USA Compression Partners (USAC) Q4 2024 earnings summary

Executive summary

• Achieved record revenues, adjusted EBITDA, distributable cash flow, and average revenue per horsepower for Q4 and full year 2024, with net income rising to $25.4 million in Q4 2024.

• Focused on safety, operational efficiency, and organizational changes, including a headquarters move to Dallas and adoption of a shared service model with Energy Transfer.

• Maintained high fleet utilization, averaging 94.5%–94.6% for Q4 and full year 2024, and continued conversion of idle units to active status.

• Disciplined growth led to deleveraging and improved distribution coverage, positioning for U.S. natural gas demand growth.

Financial highlights

• Q4 2024 revenue reached $245.9M, up 2% sequentially and 9% year-over-year; adjusted EBITDA was $155.5M, up 7% quarter-over-quarter.

• Full year 2024 revenue was $950.4M, adjusted EBITDA $584.3M, and distributable cash flow $355.3M.

• Q4 2024 net income: $25.4M; full-year net income: $99.6M; net cash from operations: $130.2M.

• Q4 adjusted gross margin exceeded 68%, with adjusted gross margin of $168.2M.

• Distributable Cash Flow Coverage Ratio was 1.56x in Q4 2024 and 1.44x for FY 2024.

Outlook and guidance

• 2025 adjusted EBITDA guidance: $590M–$610M; distributable cash flow: $350M–$370M.

• Expansion capital for 2025: $120M–$140M; maintenance capital: $38M–$42M.

• Expect active horsepower to increase by ~1.5% in 2025, mainly in the Permian.

• Anticipate $5M in annualized savings from shared services by January 2026.

• Expects continued favorable macro environment, with growth in natural gas volumes and demand from LNG and data centers.