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olivLaw · US equity research

USA Compression Partners, LP USAC

Natural Gas Transmission · SIC 4922 · Vertical: Natural Gas Transmission (SIC 4922)

24.24USD−0.86% · 1 dayClose 05 Nov 2026

USA Compression Partners, LP (USAC) is one of the largest independent providers of natural gas compression services in the U.S., measured by fleet horsepower. The January 2026 J-W Power acquisition added about 1.0 million horsepower, and second-quarter 2026 results show growth while integration continues.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 05 Nov 2026, USA Compression Partners, LP (USAC) stock was 24.24 USD (−0.86% on the day), with market capitalisation 3.5 bn USD, P/E 22.1, beta 0.68, 52-week range 22.65–30.30 USD. Latest reported quarter (Q3 2026): revenue of 357.2 m USD (+42.7% YoY), net income of 47.3 m USD (+37.3% YoY).

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
3.5 bn USD
shares as of 30 Oct 2026
P/E (TTM)
22.1
market cap ÷ net income
E/P (TTM)
4.53%
Dividend yield
unavailable
Beta (2y)
0.68
Volatility (1y) 29%
52-week range
22.6530.30

Price history

Loading chart…

Technical reading

RSI (14)
39.8
weak (30–45)
Bollinger (20, 2)
24.35 – 25.95
below the lower band · %B -0.07 · band width 6.3%
SMA 50 / 200
25.91 / 26.75
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.27 / -0.24
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−6.2%−5.9%−0.2 pp—
3 months−7.1%−4.6%−2.4 pp—
6 months−12.2%+0.2%−12.4 pp—
Year to date+5.4%+7.4%−2.0 pp—
1 year+3.4%+8.2%−4.8 pp+10.5%
3 years−7.2%+68.4%−75.6 pp+61.4%
5 years+50.4%+56.5%−6.2 pp—
Max drawdown (1y)
−20.0%
19 May 2026 → 05 Nov 2026
Max drawdown (5y)
−25.3%
03 Apr 2024 → 05 Aug 2024
Compound annual growth (5y)
+8.5%
S&P 500 +9.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
357.2 m USD
+42.7% YoY
Net income
47.3 m USD
+37.3% YoY
Diluted EPS
unavailable
unavailable YoY
net / operating
13.3% / 28.6%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue245.9 m245.2 m250.1 m250.3 m252.5 m331.3 m342.1 m357.2 m
Cost of revenue77.7 m81.6 m86.5 m77.0 m83.7 m117.9 m124.8 m135.0 m
SG&A20.3 m18.9 m12.9 m16.7 m17.9 m35.4 m28.9 m31.0 m
Operating income74.5 m69.4 m76.6 m83.9 m76.6 m91.4 m100.4 m102.2 m
Depreciation & amortisation69.0 m70.4 m70.8 m71.2 m72.4 m87.1 m89.1 m89.1 m
Interest expense48.6 m47.4 m47.7 m47.1 m45.3 m49.0 m49.3 m49.2 m
Pre-tax income25.9 m22.0 m29.0 m36.9 m28.3 m42.5 m51.1 m53.0 m
Income tax503.0 k1.5 m391.0 k2.4 m536.0 k4.1 m5.5 m5.7 m
Net income25.4 m20.5 m28.6 m34.5 m27.8 m38.3 m45.7 m47.3 m
Operating cash flow130.2 m54.7 m124.2 m ≈75.9 m ≈139.5 m86.1 m145.7 m ≈117.7 m ≈
Capex29.0 m18.4 m23.2 m ≈24.0 m ≈51.7 m24.2 m37.4 m ≈103.5 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue584.4 m698.4 m667.7 m632.6 m704.6 m846.2 m950.4 m998.1 m
Revenue YoY+111.2%+19.5%−4.4%−5.2%+11.4%+20.1%+12.3%+5.0%
Net income-10.6 m39.1 m-594.7 m10.3 m30.3 m68.3 m99.6 m111.3 m
Net income YoYunavailableunavailable−1,619.8%unavailable+195.0%+125.2%+45.9%+11.8%
Diluted EPSunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-1.8%5.6%-89.1%1.6%4.3%8.1%10.5%11.2%
Free cash flow-40.2 m129.4 m184.1 m220.2 m126.4 m33.4 m136.5 m277.0 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
8.6 m USD
Financial debt
2.5 bn USD
Net debt
2.5 bn USD
Equity
unavailable USD
Total assets
2.6 bn USD
Debt / equity
unavailable
Current ratio
1.27x
ROE
unavailable
ROA
4.1%
FCF margin
27.8%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
846.2 m
2024
950.4 m
2025
998.1 m

SEC (XBRL)· 17 Feb 2026verified

Cost of revenue
2023
284.7 m
2024
312.7 m
2025
328.8 m

SEC (XBRL)· 17 Feb 2026verified

Gross profit
2023
561.5 m ≈
2024
637.7 m ≈
2025
669.3 m ≈

SEC (XBRL)· 17 Feb 2026derived

SG&A
2023
72.7 m
2024
72.7 m
2025
66.3 m

SEC (XBRL)· 17 Feb 2026verified

Operating income
2023
232.0 m
2024
294.4 m
2025
306.5 m

SEC (XBRL)· 17 Feb 2026verified

Depreciation & amortisation
2023
246.1 m
2024
264.8 m
2025
284.8 m

SEC (XBRL)· 17 Feb 2026verified

EBITDA
2023
478.1 m ≈
2024
559.2 m ≈
2025
591.3 m ≈

SEC (XBRL)· 17 Feb 2026derived

Interest expense
2023
169.9 m
2024
193.5 m
2025
187.4 m

SEC (XBRL)· 17 Feb 2026verified

Pre-tax income
2023
69.6 m
2024
101.8 m
2025
116.2 m

SEC (XBRL)· 17 Feb 2026verified

Income tax
2023
1.4 m
2024
2.2 m
2025
4.9 m

SEC (XBRL)· 17 Feb 2026verified

Net income
2023
68.3 m
2024
99.6 m
2025
111.3 m

SEC (XBRL)· 17 Feb 2026verified

Balance sheet · USD

Cash
2023
11.0 k
2024
14.0 k
2025
8.6 m

SEC (XBRL)· 17 Feb 2026verified

Receivables
2023
—
2024
—
2025
—

SEC (XBRL)· 14 Feb 2023verified

Inventories
2023
114.7 m
2024
133.9 m
2025
134.5 m

SEC (XBRL)· 17 Feb 2026verified

Current assets
2023
226.4 m
2024
235.0 m
2025
236.6 m

SEC (XBRL)· 17 Feb 2026verified

Goodwill
2023
—
2024
—
2025
0

SEC (XBRL)· 07 May 2026verified

Intangibles (excl. goodwill)
2023
245.7 m
2024
216.3 m
2025
186.9 m

SEC (XBRL)· 17 Feb 2026verified

Total assets
2023
2.7 bn
2024
2.7 bn
2025
2.6 bn

SEC (XBRL)· 17 Feb 2026verified

Accounts payable
2023
39.8 m
2024
—
2025
—

SEC (XBRL)· 13 Feb 2024verified

Short-term debt
2023
0
2024
0
2025
0

SEC (XBRL)· 17 Feb 2026verified

Long-term debt
2023
2.3 bn
2024
2.5 bn
2025
2.5 bn

SEC (XBRL)· 17 Feb 2026verified

Current liabilities
2023
187.5 m
2024
190.7 m
2025
186.9 m

SEC (XBRL)· 17 Feb 2026verified

Total liabilities
2023
2.6 bn
2024
2.7 bn
2025
2.7 bn

SEC (XBRL)· 17 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
271.9 m
2024
341.3 m
2025
394.3 m

SEC (XBRL)· 17 Feb 2026verified

Capex
2023
238.5 m
2024
204.9 m
2025
117.3 m

SEC (XBRL)· 17 Feb 2026verified

Free cash flow
2023
33.4 m ≈
2024
136.5 m ≈
2025
277.0 m ≈

SEC (XBRL)· 17 Feb 2026derived

Investing cash flow
2023
-232.7 m
2024
-202.0 m
2025
-115.0 m

SEC (XBRL)· 17 Feb 2026verified

Financing cash flow
2023
-39.3 m
2024
-139.3 m
2025
-270.8 m

SEC (XBRL)· 17 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
5.0%
computed by olivLawFY 2025
Revenue CAGR 3Y
12.3%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
8.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
4.1%
computed by olivLawFY 2025
Net income growth (YoY)
11.8%
computed by olivLawFY 2025
Net income CAGR 3Y
54.3%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
input data missing
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
102.9%
computed by olivLawFY 2025

Profitability

Gross margin
64.0%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
55.2%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
28.9%
computed by olivLawTTM to 30 Sept 2026
Net margin
12.4%
computed by olivLawTTM to 30 Sept 2026
FCF margin
21.2%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
unavailable
input data missing
ROA
5.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
10.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
3.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
4.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Debt / equity
unavailable
input data missing
Interest coverage
1.9x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
1.5x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
0.8x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
489.0 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
216.9 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
272.1 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
171.0%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
69.1%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
116 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
3.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
6.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
22.1x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
22.1x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
4.5%
computed by olivLawTTM to 30 Sept 2026
P/B
unavailable
input data missing
P/S
2.7x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
9.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBIT
17.6x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/Sales
5.1x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
12.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
7.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Neutral profile

Score: 60 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

24.24 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 3.5 bn USD

Key indicators

Market capitalisation
3.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
22.1x
computed by olivLawTTM to 30 Sept 2026
P/B
unavailable
input data missing
EV/EBITDA
9.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROE
unavailable
input data missing
Net margin
12.4%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
5.0%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

28/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 30 Oct 2026
Source: SEC (XBRL)published 04 Nov 2026
verified 1617derived 147

Score by group

  • Quality68
  • Growth100
  • Balance sheet27
  • Valuation70

Estimated value range

Low
26.94
USD per share
Mid
37.93
USD per share
High
41.49
USD per share
Price: 24.24 USD
The price is below the range
Potential to the central value: 56.5% (value / price − 1)
Margin of safety: 36.1% (1 − price / value)
Agreement between methods: low · 3 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 14.23 – 89.51 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)40.64 – 89.51 (Mid 57.81)
    WACC 7.5% · starting FCFF 447.4 m USD · terminal value share of EV 80%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -11.3%
  • Peers: EV/EBITDA26.94 – 41.49 (Mid 37.93)
    9 companies used · median multiple 12.0x · quartiles 9.7x – 12.7x
    DTM, ET, KGS, KMI, KNTK, NGL, TRGP, WES, WMB
  • Peers: P/E14.23 – 25.31 (Mid 17.06)
    10 companies used · median multiple 15.5x · quartiles 13.0x – 23.1x
    AM, AROC, DTM, EPD, ET, KMI, KNTK, TRGP, WES, WMB
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Natural Gas Transmission (SIC 4922)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 60/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality12.4%35 (vs peers)9%
FCF conversion · Quality171.0%100 (on a fixed band)9%
Revenue CAGR 3Y · Growth12.3%100 (on a fixed band)12%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet4.2x27 (vs peers)15%
Interest coverage · Balance sheet1.9x7 (on a fixed band)9%
Current ratio · Balance sheet1.5x55 (on a fixed band)6%
P/E (TTM) · Valuation22.1x42 (vs peers)15%
EV/EBITDA · Valuation9.2x78 (vs peers)15%
FCF yield · Valuation7.7%97 (on a fixed band)12%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet27/100 · 3/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality68/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation70/100 · 3/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

USA Compression Partners, LP (USAC). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 998.1 m USD in 2025; YoY growth 5.0%; net margin 12.4%; net debt/EBITDA 4.2x.

The estimated value range is 26.94–41.49 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 37.93 USD, the price of 24.24 USD leaves a potential of 56.5% (value / price − 1) and a margin of safety of 36.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 60/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 171.0%
  • Revenue CAGR 3Y: 12.3%
  • EV/EBITDA: 9.2x
  • FCF yield: 7.7%
  • The price is below the estimated value range

What contradicts it

  • Net debt / EBITDA: 4.2x
  • Interest coverage: 1.9x
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Natural Gas Transmission (SIC 4922) · same industry (4-digit SIC) · compared with 17 companies

Multiples and returns vs the median

P/E
22.1x
vertical median 18.0x
above median (+22.6%)
EV/EBITDA
9.2x
vertical median 12.0x
below median (−23.4%)
P/S
2.7x
vertical median 3.1x
below median (−12.4%)
P/B
—
vertical median 2.7x
ROE
—
vertical median 13.4%
Net margin
12.4%
vertical median 19.6%
below median (−36.9%)
EBIT margin
28.9%
vertical median 29.0%
at median
Revenue YoY
5.0%
vertical median 10.7%
below median (−53.0%)
Net debt/EBITDA
4.2x
vertical median 3.9x
above median (+9.6%)
Dividend yield
—
vertical median 3.3%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
EPDEnterprise Products Partners L.P.79.0 bn12.0—10.2%−6.4%+12% / +37%
WMBWilliams Companies, Inc.78.6 bn25.624.0%25.2%+13.8%+5% / +75%
KMIKinder Morgan, Inc.67.3 bn18.711.6%19.6%+12.2%+11% / +72%
ETEnergy Transfer LP66.1 bn12.5—4.9%+3.5%+15% / +38%
TRGPTarga Resources Corp.58.3 bn25.972.6%13.5%+3.9%+55% / +201%
WESWestern Midstream Partners, LP16.5 bn12.8—28.2%+6.6%+1% / +34%
DTMDT Midstream, Inc.11.5 bn24.59.9%35.4%+26.7%−7% / +97%
AMAntero Midstream Corporation9.1 bn13.531.6%53.4%+7.4%+6% / +44%
AROCArchrock, Inc.4.7 bn13.722.6%22.9%+28.7%+8% / +84%
KGSKodiak Gas Services, Inc.3.9 bn45.84.6%5.8%+12.8%+11% / +121%
USACUSA Compression Partners, LP3.5 bn22.1—12.4%+5.0%+3% / −7%
KNTKKinetik Holdings Inc.3.3 bn17.4—10.4%+19.0%+42% / +35%
NGLNGL Energy Partners LP1.8 bn——-3.8%−9.0%+50% / +241%
SMCSummit Midstream Corporation285.3 m8,705.40.1%0.0%+30.8%+7% / +29%
TRPTc Energy Corporation——12.8%23.1%+10.7%+14% / +67%
NGGNational Grid PLC——8.6%15.8%−7.4%+13% / +30%
TGSGas Transporter Of The South Inc.——18.1%30.3%+23.7%−30% / +56%
TCPATranscanada Pipelines Ltd——14.0%23.1%+7.2%−15% / unavailable

1- and 3-year price returns: for USAC from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
15.45
Total return -36% · Per year -36%
27.22
Total return 12% · Per year 12%
40.88
Total return 69% · Per year 69%
3 years
17.44
Total return -28% · Per year -10%
34.34
Total return 42% · Per year 12%
56.25
Total return 132% · Per year 32%
5 years
19.69
Total return -19% · Per year -4%
43.31
Total return 79% · Per year 12%
77.41
Total return 219% · Per year 26%
What moves the 3-year price the most
  • Exit P/E± 8.58
  • Net margin± 6.01
  • Annual revenue growth± 4.59
  • Annual dilution± 0.50

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).

In brief

USA Compression Partners, LP (USAC) is one of the largest independent providers of natural gas compression services in the U.S., measured by fleet horsepower. The January 2026 J-W Power acquisition added about 1.0 million horsepower, and second-quarter 2026 results show growth while integration continues 123.

SWOT

Strengths

  • A large, standardized and modular fleet allows equipment to be quickly redeployed across customers and basins 1.
  • Fixed monthly fee contracts, billed in advance with annual inflation adjustments, provide predictable revenue 1.
  • Distributable cash flow covered the distribution at a comfortable level in the second quarter of 2026 3.

Weaknesses

  • Customer concentration, with the ten largest customers making up a significant part of revenue, means losing one important customer would have a large effect 1.
  • A significant share of services is provided on a month-to-month basis, which can leave revenue exposed to quick customer withdrawals 1.
  • The debt level, including heavy use of the revolving credit facility after the acquisition, limits financial flexibility 2.

Opportunities

  • If demand for associated gas and LNG keeps growing, expanding the large-horsepower fleet could support revenue growth 1.
  • Contracts already signed for 2027 and 2028 could strengthen growth if they are confirmed at larger scale 3.
  • Expansion into new areas such as the Bakken, enabled by the J-W Power acquisition, could open new customer relationships 1.

Threats

  • A decline in oil or gas production could reduce demand for compression services and pressure rates 1.
  • Competition from rivals with greater financial resources could lead to lost market share 1.
  • Changes in trade policy and tariffs could affect equipment costs and customer activity 12.

Risks

  • Dependence on a few key customershigh

    Losing one of the key customers could reduce revenue and cash available for distribution, as a large share of revenue comes from a small number of companies 1.

  • Integration of J-W Powerhigh

    If integration of the acquired assets does not proceed on time, results and cash flows could be negatively affected 12.

  • Debt and cost of capitalmedium

    Existing debt and rising interest rates could limit access to additional financing and the ability to pay distributions 12.

  • Environmental regulationmedium

    Changes to Clean Air Act rules could raise compliance costs for the company and its customers 1.

  • Supply chain constraintsmedium

    Lead times for engines and compressor frames have extended, and reliance on a few suppliers could affect the ability to expand the fleet 1.

Investment thesis

What would need to be true (bull case)

  • If associated gas output and LNG demand keep growing, the company could benefit from high utilization and rising rates 13.
  • Distributable cash flow coverage above the reference level and the 2026 guidance point to a solid financial base during integration 3.
  • Contracts already in place for new units in 2027 and 2028 could reduce uncertainty about future revenue 3.

What would break the thesis

  • Lower fleet utilization in the second quarter of 2026 compared with the prior year could signal demand pressure 3.
  • Customer concentration and month-to-month contracts make revenue sensitive to decisions by a few large companies 1.
  • Higher debt after the acquisition could limit flexibility if activity slows 2.

What to watch

  • Utilization and rate trends after the J-W Power integrationQ3 2026
  • Delivery against full-year 2026 Adjusted EBITDA and Distributable Cash Flow guidance2026
  • New contracts for the compression units planned for 20272027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).

The business

USA Compression Partners, LP is a partnership managed by USA Compression GP, LLC, a subsidiary wholly owned by Energy Transfer. The company provides compression services for a fixed monthly fee, with initial contracts ranging from six months to five years, and it owns and operates the compression units it services 1. Fleet horsepower stood at 3.9 million at the end of 2025, and the January 12, 2026 J-W Power acquisition added another 1.0 million 1.

Customers number about 260 energy companies, including major integrated oil companies, independent producers and midstream firms 1. The ten largest customers accounted for about 46% of total revenues in 2025 1, a meaningful concentration. The company reports a single segment, located and operated entirely in the U.S. 1.

Through the J-W Power acquisition, the company also owns specialized manufacturing facilities for compression units and two compression fabrication facilities 1. Natural gas treating services, such as carbon dioxide and hydrogen sulfide removal, complement the core offering 1.

Market context

The company operates mainly in U.S. unconventional shale plays such as Marcellus, Permian and Haynesville, and after the J-W Power acquisition also in the Bakken 1. The EIA expects production volumes in these plays to rise over the long term 1. Demand for natural gas is supported by power generation, LNG exports and data center growth linked to artificial intelligence 1.

Trends

  • Associated gas growth from oil playstailwind

    Growth in associated gas from the Permian could raise demand for compression services even if crude oil output stays flat, as the company notes 1.

  • LNG exports and power demandtailwind

    LNG exports and rising gas use in power generation support the baseload demand for natural gas, which could sustain long-term compression demand 1.

  • Lower oil pricesheadwind

    Lower crude prices can slow drilling and pressure rates and utilization in gas lift applications, especially in low-price periods 1.

  • Integration of J-W Powermixed

    Integrating the J-W Power assets and the shared services platform with Energy Transfer could bring synergies, but it is complex and costly and could affect results if poorly executed 12.

Competitive position

The compression market is highly competitive, with some larger rivals having greater financial resources and many smaller regional firms able to adapt quickly and price aggressively 1. Customers may also integrate vertically by buying their own compression fleets 1.

The company says it competes on price, equipment availability, customer service, flexibility and reliability 1. The sources supplied do not name specific competitors, so a detailed market-share comparison is not possible from them 1.

  • Larger rivals with greater financial resources

    The filings state that some competitors have greater financial and other resources than the company, without naming them 1.

  • Smaller regional firms

    Regional competition comes from many smaller companies that can adapt quickly and adopt aggressive pricing 1.

  • Customers building their own fleets

    Customers can choose to buy and operate their own compression units, an indirect form of competition 1.

  • Providers of alternative oil-enhancement technologies

    Alternative technologies for enhancing crude oil production could replace the company's gas lift services 1.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

  • Quarterly report04 Nov 2026
  • Current report03 Nov 2026
    Results of operations · Financial statements and exhibits
  • Current report05 Oct 2026
    Item 3.02 · Amendments to articles or bylaws · Financial statements and exhibits
  • Current report24 Sept 2026
    Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
  • Current report11 Sept 2026
    Other events · Financial statements and exhibits
  • Current report10 Sept 2026
    Delisting notice · Regulation FD disclosure · Financial statements and exhibits
  • Quarterly report06 Aug 2026
  • Current report05 Aug 2026
    Regulation FD disclosure
  • Current report04 Aug 2026
    Results of operations · Financial statements and exhibits
  • Current report06 Jul 2026
    Item 3.03 · Amendments to articles or bylaws · Other events · Financial statements and exhibits

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / USA Compression Partners, LP · 17 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / USA Compression Partners, LP · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / USA Compression Partners, LP · 04 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.