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Energy Transfer LP (NYSE: ET) today announced the pricing of its offering of $650,000,000 aggregate principal amount of Series 2026A junior subordinated notes

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A month has gone by since the last earnings report for USA Compression Partners (USAC - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is USA Compression due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

USA Compression Q4 Earnings Match Estimates, Revenues Rise Y/YUSA Compression Partners reported a fourth-quarter adjusted net profit of 28 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter's adjusted net profit of 18 cents per common unit, driven by a year-over-year increase in average monthly revenue per horsepower.

The largest independent provider of natural gas compression services generated revenues of $252.5 million, improving 2.7% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by $1 million. This growth was due to a 3.9% increase in contract operations and a 3.4% rise in related-party revenues.

Adjusted EBITDA decreased 0.6% to $154.5 million, which missed our estimate of $156.2 million.

USA Compression’s distributable cash flow increased to $103.2 million from $96.3 million in the prior-year quarter. The company reported a net income worth $27.8 million compared with $25.4 million in the year-ago quarter.

The oil and gas equipment and services company reported net operating cash flow of $139.5 million in the fourth quarter, up from the prior-year quarter’s $130.2 million.

Adjusted gross operating margin of 66.8% marked a decrease from the year-ago period’s 68.4%.

The company’s revenue-generating capacity declined slightly year over year to 3.58 million horsepower. However, the figure exceeded our estimate of 3.57 million horsepower.

Further, the average monthly revenue per horsepower rose to $21.69 from $20.85 in the fourth quarter of 2024. The figure was lower than our estimate of $21.91.

Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.5%, which was in line with the prior-year quarter’s level.

DCF, Cost, Capex & Balance SheetUSA Compression’s distributable cash flow available to limited partners totaled $103.2 million (providing 1.36x distribution coverage), up 7.2% from the year-ago level.Notably, on Oct. 16, 2025, USA Compression declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the third quarter. The distribution paid on Nov. 7, 2025, to its common unitholders of record as of Oct. 27.

Notably, on Jan. 15, 2026, USA Compression declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the fourth quarter. The distribution was paid on Feb. 6, 2026, to its common unitholders of record as of Jan. 26.

The company reported $175.9 million in costs and expenses, up 2.7% from $171.4 million in the year-ago quarter. It spent $40 million on growth capex. Maintenance capex amounted to $7.8 million.

As of Dec. 31, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.

GuidanceUSA Compression expects its full-year 2026 adjusted EBITDA to be between $770 million and $800 million. This Zacks Rank #2 (Buy) company also expects distributable cash flow to range from $480 million to $510 million, expansion capital expenditures to be between $230 million and $250 million, and maintenance capital expenditures to total in the band of $60 million to $70 million.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -26.6% due to these changes.

VGM ScoresCurrently, USA Compression has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, USA Compression has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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Stock to Watch: USA Compression Partners (USAC - Free Report) Founded in 1998, USA Compression Partners, LP is one of the largest independent natural gas compression service providers in the United States, measured by fleet horsepower. Structured as a master limited partnership ("MLP") with the Energy Transfer family owning approximately 48%, it primarily focuses on large-horsepower applications (greater than 1,000 horsepower) in some areas, including the Permian/Delaware, Marcellus/Utica, Mid-Continent/SCOOP/STACK, South Texas, East Texas, Louisiana, Rockies. The firm is also involved in engineering, design, operation, service, and repair of compressor units.

USAC is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Oils-Energy stock. USAC has a Momentum Style Score of B, and shares are up 3.1% over the past four weeks.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $1.32 per share. USAC boasts an average earnings surprise of +1.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, USAC should be on investors' short list.

Key Takeaways Repsol (REPYY), FTI, VIV and USAC passed a screen based on superior efficiency ratios versus peers.High receivables, inventory turnover, asset use and margins signal stronger profit generation potential.REPYY, FTI, VIV and USAC also posted positive four-quarter earnings surprises, supporting strength. Efficiency level assesses a company’s capability to transform usable input into output, and is commonly considered an essential parameter for gauging its potential to generate profits. A company with a high efficiency level is expected to provide stellar returns, as it is believed to be positively correlated with price performance.

However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.

The stocks of Repsol (REPYY - Free Report) , TechnipFMC (FTI - Free Report) , Telefonica Brasil (VIV - Free Report) and USA Compression Partners (USAC - Free Report) made it through the screening process:

These efficiency ratios are:

Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio, or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.

Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.

Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.

Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.

Screening CriteriaIn addition to the above-mentioned ratios, we have added a favorable Zacks Rank — Zacks Rank #1 (Strong Buy) — to the screen to make this strategy more profitable. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average(Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.)   

The use of these few criteria narrowed down the universe of over 7,906 stocks to 18.

Here are the top four stocks that made it through the screen:

Repsol

Repsol explores, develops and produces crude oil products and natural gas, transports petroleum products and liquified petroleum gas and refines petroleum. REPYY has an average four-quarter earnings surprise of 18.7%.

TechnipFMC

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. FTI has an average four-quarter earnings surprise of 15.9%.

Telefonica Brasil

Telefonica Brasil is engaged in providing communication, information and entertainment solutions in the telecommunication sector, in the State of Sao Paulo. VIV has an average four-quarter earnings surprise of 7.7%.

USA Compression Partners

USA Compression Partners is one of the largest independent natural gas compression service providers in the United States, measured by fleet horsepower. USAC has an average four-quarter earnings surprise of 1.2%.

USA Compression Partners is rated a cautious buy, offering a stable 7.8% forward yield and improving distribution coverage post-acquisition. USAC's $860M J-W Power acquisition boosts EBITDA guidance to $770–800M and DCF to $480–510M for 2026, raising coverage to ~1.6x. Leverage remains a constraint at ~3.2–3.3x EBITDA, making deleveraging a priority for retained cash rather than shareholder returns.

DALLAS--(BUSINESS WIRE)--USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for first-quarter 2026.

Financial Highlights

Total revenues of $331.3 million for first-quarter 2026, compared to $245.2 million for first-quarter 2025. Net income was $38.3 million for first-quarter 2026, compared to $20.5 million for first-quarter 2025. Net cash provided by operating activities was $86.1 million for first-quarter 2026, compared to $54.7 million for first-quarter 2025. Adjusted EBITDA was $188.6 million for first-quarter 2026, compared to $149.5 million for first-quarter 2025. Distributable Cash Flow was $130.8 million for first-quarter 2026, compared to $88.7 million for first-quarter 2025. Distributable Cash Flow Coverage Ratio was 1.72x for first-quarter 2026, compared to 1.44x for first-quarter 2025. Announced cash distribution of $0.525 per common unit for first-quarter 2026, consistent with first-quarter 2025. Strategic Highlights

Acquired J-W Power Company and its parent company, J-W Energy Company (the “J-W Power Acquisition”), adding over 0.8 million active horsepower across key regions, including the Northeast, Mid-Continent, Rockies, Gulf Coast, and Permian Basin, creating a combined fleet of approximately 4.4 million active horsepower. Operational Highlights

Average revenue per revenue-generating horsepower per month of $22.73 for first-quarter 2026, compared to $21.06 for first-quarter 2025. Average revenue-generating horsepower of 4.44 million for first-quarter 2026, compared to 3.56 million for first-quarter 2025. Average horsepower utilization of 91.9% for first-quarter 2026, compared to 94.4% for first-quarter 2025. “First-quarter results reflect steady demand and strong operational execution,” said Clint Green, President and CEO. “Since closing the highly accretive J-W Power Acquisition on January 12, our first quarter results reflect improvement in metrics for leverage, cash flow and distribution coverage. Looking ahead, we are encouraged by the J-W cultural alignment across the organization and have visibility into improved earnings of the combined assets. Additionally, as new engine procurement lead times have recently moved out beyond two years, the acquisition of a high-quality fleet and customer base is certainly well-timed. Looking ahead, we remain focused on executing consistently, generating reliable cash flows that support our distribution, and building on first quarter momentum throughout 2026.”

Expansion capital expenditures were $26.4 million, maintenance capital expenditures were $9.2 million, and cash interest expense, net was $47.1 million for first-quarter 2026.

The results of operations of J-W Power Company, and its parent company, J-W Energy Company, subsequent to their acquisition on January 12, 2026 are reflected in the Partnership’s financial results for first-quarter 2026.

On April 16, 2026, the Partnership announced a first-quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution will be paid on May 8, 2026, to common unitholders of record as of the close of business on April 27, 2026.

Operational and Financial Data

Three Months Ended

March 31,
2026

December 31,
2025

March 31,
2025

Operational data:

Fleet horsepower (at period end) (1)

4,930,737

3,894,332

3,859,920

Revenue-generating horsepower (at period end) (2)

4,439,968

3,585,452

3,559,624

Average revenue-generating horsepower (3)

4,438,366

3,579,179

3,557,164

Revenue-generating compression units (at period end)

6,430

4,256

4,213

Horsepower utilization (at period end) (4)

92.0

%

94.7

%

94.4

%

Average horsepower utilization (for the period) (4)

91.9

%

94.5

%

94.4

%

Financial data ($ in thousands, except per horsepower data):

Total revenues

$

331,275

$

252,484

$

245,234

Average revenue per revenue-generating horsepower per month (5)

$

22.73

$

21.69

$

21.06

Net income

$

38,342

$

27,760

$

20,512

Operating income

$

91,411

$

76,569

$

69,391

Net cash provided by operating activities

$

86,103

$

139,488

$

54,651

Gross margin

$

126,227

$

96,388

$

93,223

Adjusted gross margin (6)

$

213,373

$

168,748

$

163,616

Adjusted gross margin percentage (7)

64.4

%

66.8

%

66.7

%

Adjusted EBITDA (6)

$

188,587

$

154,499

$

149,514

Adjusted EBITDA percentage (7)

56.9

%

61.2

%

61.0

%

Distributable Cash Flow (6)

$

130,793

$

103,211

$

88,695

Distributable Cash Flow Coverage Ratio (6)

1.72x

1.36x

1.44x

____________________ (1)

Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 14,985, 14,985, and 13,210 of non-marketable horsepower as of March 31, 2026, December 31, 2025, and March 31, 2025, respectively. As of March 31, 2026, we had 61,350 large horsepower on order for delivery, all of which is expected to be delivered within the next 12 months.

(2)

Revenue-generating horsepower is horsepower under contract for which the Partnership is billing a customer.​

(3)

Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period.​

(4)

Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is expected to be delivered, divided by (ii) total available horsepower less idle horsepower that is under repair.

Horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.0%, 92.1%, and 92.2% at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.2%, 92.1%, and 91.9% for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

(5)

Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period.

(6)

Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below.

(7)

Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue.

Liquidity and Long-Term Debt

As of March 31, 2026, the Partnership was in compliance with all covenants under its $1.75 billion revolving credit facility. As of March 31, 2026, the Partnership had outstanding borrowings under the revolving credit facility of $1.25 billion and, after accounting for outstanding letters of credit in the amount of $2.0 million, $497.8 million of remaining unused availability, all of which was available to be drawn, inclusive of restrictions related to compliance with applicable financial covenants. As of March 31, 2026, the outstanding aggregate principal amount of the Partnership’s 7.125% senior notes due 2029 and 6.250% senior notes due 2033 was $1.00 billion and $750.0 million, respectively.

Full-Year 2026 Outlook

USA Compression confirms its full-year 2026 guidance as follows (in thousands):

Full-Year 2026 Outlook

Low

High

Adjusted EBITDA (1)

$

770,000

$

800,000

Distributable Cash Flow (1)

$

480,000

$

510,000

Capital Expenditures:

Expansion capital expenditures (2)

$

230,000

$

250,000

Maintenance capital expenditures

$

60,000

$

70,000

Conference Call

The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss first-quarter 2026 financial and operating results. The call will be broadcast live over the internet. Investors may participate by audio webcast, or if located in the U.S. or Canada, by phone. A replay will be available shortly after the call via the “Events & Presentations” page of USA Compression’s Investor Relations website.

About USA Compression Partners, LP

USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com.

Non-GAAP Financial Measures

This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio.

Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes Adjusted gross margin is useful to investors as a supplemental measure of the Partnership’s operating profitability. Management uses adjusted gross margin to assess operating performance as compared to historical results, budget and forecast amounts, expected return on capital investment, and our competitors. Adjusted gross margin primarily is impacted by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume, and per-unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units, and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted gross margin, as presented, may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its cost structure. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability.

Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year, and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense (benefit). The Partnership defines Adjusted EBITDA as EBITDA plus impairment of assets, impairment of goodwill, interest income on capital leases, unit-based compensation expense (benefit), severance charges and other employee costs, certain transaction expenses, loss (gain) on disposition of assets, loss on extinguishment of debt, loss (gain) on derivative instrument, amortization of capitalized SaaS implementation costs, and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess:

the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure, or the historical cost basis of the Partnership’s assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure. Management believes Adjusted EBITDA provides useful information to investors because, when viewed in conjunction with the Partnership’s GAAP results and the accompanying reconciliations, it may provide a more complete assessment of the Partnership’s performance as compared to considering solely GAAP results. Management also believes that external users of the Partnership’s financial statements benefit from having access to the same financial measures that management uses to evaluate the results of the Partnership’s business.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of assets, impairment of goodwill, certain transaction expenses, severance charges and other employee costs, loss (gain) on disposition of assets, loss on extinguishment of debt, change in fair value of derivative instrument, proceeds from insurance recovery, amortization of capitalized SaaS implementation costs, and other, less distributions on Preferred Units and maintenance capital expenditures.

Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Distributable Cash Flow, as presented, may not be comparable to similarly titled measures of other companies.​

Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors, and others to compare the cash flows that the Partnership generates (after distributions on Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions that the Partnership expects to pay its common unitholders.

Distributable Cash Flow Coverage Ratio is defined as the period’s Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it permits management, investors, and others to assess the Partnership’s ability to pay distributions to common unitholders out of the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio, as presented, may not be comparable to similarly titled measures of other companies.

This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership for its 2026 fiscal year. The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP, because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations.

See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.

Forward-Looking Statements

Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2026 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include:

changes in economic conditions of the crude oil and natural gas industries, including any impact from the ongoing military conflict involving Russia and Ukraine or the conflict in the Middle East; changes in general economic conditions, including inflation, supply chain disruptions, trade tensions or tariff impacts; changes in the long-term supply of and demand for crude oil and natural gas; our ability to realize the anticipated benefits of the J-W Power Acquisition and to integrate the acquired assets with our existing fleet and operations; competitive conditions in the Partnership’s industry, including competition for employees in a tight labor market; changes in the availability and cost of capital, including changes to interest rates; renegotiation of material terms of customer contracts; actions taken by the Partnership’s customers, competitors, and third-party operators; operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control; the deterioration of the financial condition of the Partnership’s customers, which may result in the initiation of bankruptcy proceedings with respect to certain customers; the restrictions on the Partnership’s business that are imposed under the Partnership’s long-term debt agreements; information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems; our ability to realize the anticipated benefits of the shared services integration with Energy Transfer; the effects of existing and future laws and governmental regulations; the effects of future litigation; factors described in Part I, Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2026, as well as our subsequent filings with the SEC; and other factors discussed in the Partnership’s filings with the SEC. All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

USA COMPRESSION PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per unit amounts – Unaudited)

Three Months Ended

March 31,
2026

December 31,
2025

March 31,
2025

Revenues:

Contract operations

$

293,509

$

231,713

$

224,975

Parts and service

21,871

4,165

5,094

Related party

15,895

16,606

15,165

Total revenues

331,275

252,484

245,234

Costs and expenses:

Cost of operations, exclusive of depreciation and amortization

117,902

83,736

81,618

Depreciation and amortization

87,146

72,360

70,393

Selling, general, and administrative

35,357

17,891

18,862

Loss (gain) on disposition of assets

(545

)

1,626

1,325

Impairment of assets

4

302

3,645

Total costs and expenses

239,864

175,915

175,843

Operating income

91,411

76,569

69,391

Other income (expense):

Interest expense, net

(48,966

)

(45,299

)

(47,369

)

Loss on extinguishment of debt

(1

)

(3,006

)

—

Other

20

32

25

Total other expense

(48,947

)

(48,273

)

(47,344

)

Net income before income tax expense

42,464

28,296

22,047

Income tax expense

4,122

536

1,535

Net income

38,342

27,760

20,512

Less: distributions on Preferred Units

—

—

(4,388

)

Net income attributable to common unitholders’ interests

$

38,342

$

27,760

$

16,124

Weighted average common units outstanding – basic

142,750

123,741

117,513

Weighted average common units outstanding – diluted

143,131

124,166

118,254

Basic and diluted net income per common unit

$

0.27

$

0.22

$

0.14

Distributions declared per common unit for respective periods

$

0.525

$

0.525

$

0.525

  USA COMPRESSION PARTNERS, LP

SELECTED BALANCE SHEET DATA

(In thousands, except unit amounts – Unaudited)

March 31,
2026

Selected Balance Sheet Data:

Total assets

$

3,734,442

Long-term debt, net

$

2,980,327

Total partners’ capital

$

316,666

Common units outstanding

144,972,358

  USA COMPRESSION PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands — Unaudited)

Three Months Ended

March 31,
2026

December 31,
2025

March 31,
2025

Net cash provided by operating activities

$

86,103

$

139,488

$

54,651

Net cash used in investing activities

(467,892

)

(51,181

)

(18,041

)

Net cash provided by (used in) financing activities

387,747

(79,743

)

(36,622

)

  USA COMPRESSION PARTNERS, LP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED GROSS MARGIN TO GROSS MARGIN

(In thousands — Unaudited)

  The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented:

  Three Months Ended

March 31,
2026

December 31,
2025

March 31,
2025

Total revenues

$

331,275

$

252,484

$

245,234

Cost of operations, exclusive of depreciation and amortization

(117,902

)

(83,736

)

(81,618

)

Depreciation and amortization

(87,146

)

(72,360

)

(70,393

)

Gross margin

$

126,227

$

96,388

$

93,223

Depreciation and amortization

87,146

72,360

70,393

Adjusted gross margin

$

213,373

$

168,748

$

163,616

  USA COMPRESSION PARTNERS, LP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES

(In thousands — Unaudited)

  The following table reconciles Adjusted EBITDA to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

  Three Months Ended

March 31,
2026

December 31,
2025

March 31,
2025

Net income

$

38,342

$

27,760

$

20,512

Interest expense, net

48,966

45,299

47,369

Depreciation and amortization

87,146

72,360

70,393

Income tax expense

4,122

536

1,535

EBITDA

$

178,576

$

145,955

$

139,809

Unit-based compensation expense (1)

2,405

1,527

3,384

Transaction expenses (2)

3,777

1,914

—

Severance charges and other employee costs (3)

4,085

169

1,351

Loss (gain) on disposition of assets

(545

)

1,626

1,325

Loss on extinguishment of debt (4)

1

3,006

—

Amortization of capitalized SaaS implementation costs

284

—

—

Impairment of assets (5)

4

302

3,645

Adjusted EBITDA

$

188,587

$

154,499

$

149,514

Interest expense, net

(48,966

)

(45,299

)

(47,369

)

Non-cash interest expense

1,829

1,949

2,241

Income tax expense

(4,122

)

(536

)

(1,535

)

Non-cash income tax expense

2,711

—

—

Transaction expenses

(3,777

)

(1,914

)

—

Severance charges and other employee costs

(4,085

)

(169

)

(1,351

)

Other

398

436

85

Changes in operating assets and liabilities

(46,472

)

30,522

(46,934

)

Net cash provided by operating activities

$

86,103

$

139,488

$

54,651

____________________ (1)

For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, unit-based compensation expense included $0.1 million, $0.4 million, and $0.7 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards and $0.0 million, $2.0 million, and $2.2 million, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods.

(2)

Represents certain expenses related to potential and completed transactions, including the J-W Power Acquisition, and other items. The Partnership believes it is useful to investors to exclude these expenses.

(3)

Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services or the J-W Power Acquisition integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended March 31, 2026, severance charges and other employee costs included $0.6 million and $0.2 million related to retention and relocation payments, respectively. For the three months ended December 31, 2025, severance charges and other employee costs included $0.1 million and $(0.1) million related to retention and relocation payments, respectively. For the three months ended March 31, 2025, severance charges and other employee costs included $0.4 million and $0.1 million related to retention and relocation payments, respectively.

(4)

For the three months ended December 31, 2025, the loss on extinguishment of debt of $3.0 million is a result of the redemption of our senior notes due 2027.

(5)

Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows.

  USA COMPRESSION PARTNERS, LP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES

(Dollars in thousands — Unaudited)

  The following table reconciles Distributable Cash Flow to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

  Three Months Ended

March 31,
2026

December 31,
2025

March 31,
2025

Net income

$

38,342

$

27,760

$

20,512

Non-cash interest expense

1,829

1,949

2,241

Depreciation and amortization

87,146

72,360

70,393

Non-cash income tax expense

2,711

436

85

Unit-based compensation expense (1)

2,405

1,527

3,384

Transaction expenses (2)

3,777

1,914

—

Severance charges and other employee costs (3)

4,085

169

1,351

Other (4)

—

—

1,000

Loss (gain) on disposition of assets

(545

)

1,626

1,325

Loss on extinguishment of debt (5)

1

3,006

—

Impairment of assets (6)

4

302

3,645

Distributions on Preferred Units

—

—

(4,388

)

Amortization of capitalized SaaS implementation costs

284

—

—

Maintenance capital expenditures (7)

(9,246

)

(7,838

)

(10,853

)

Distributable Cash Flow

$

130,793

$

103,211

$

88,695

Maintenance capital expenditures

9,246

7,838

10,853

Transaction expenses

(3,777

)

(1,914

)

—

Severance charges and other employee costs

(4,085

)

(169

)

(1,351

)

Distributions on Preferred Units

—

—

4,388

Other

398

—

(1,000

)

Changes in operating assets and liabilities

(46,472

)

30,522

(46,934

)

Net cash provided by operating activities

$

86,103

$

139,488

$

54,651

Distributable Cash Flow

$

130,793

$

103,211

$

88,695

Distributions for Distributable Cash Flow Coverage Ratio (8)

$

76,110

$

76,109

$

61,731

Distributable Cash Flow Coverage Ratio

1.72x

1.36x

1.44x

____________________ (1)

For the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, unit-based compensation expense included $0.1 million, $0.4 million, and $0.7 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards and $0 million, $2.0 million, and $2.2 million, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for these periods.

(2)

Represents certain expenses related to potential and completed transactions, including the J-W Power Acquisition, and other items. The Partnership believes it is useful to investors to exclude these expenses.

(3)

Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services or the J-W Power Acquisition integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended March 31, 2026, severance charges and other employee costs included $0.6 million and $0.2 million related to retention and relocation payments, respectively. For the three months ended December 31, 2025, severance charges and other employee costs included $0.1 million and $(0.1) million related to retention and relocation payments, respectively. For the three months ended March 31, 2025, severance charges and other employee costs included $0.4 million and $0.1 million related to retention and relocation payments, respectively.

(4)

Represents incremental cash income tax expense accrued for the period presented as a result of the IRS examination of our tax returns for the federal tax years 2019 and 2020.

(5)

For the three months ended December 31, 2025, the loss on extinguishment of debt of $3.0 million is a result of the redemption of our senior notes due 2027.

(6)

Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows.

(7)

Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow.

(8)

Represents distributions to the holders of the Partnership’s common units as of the record date.

Key Takeaways USAC posted Q1 adjusted profit of 27 cents per unit as revenues climbed 35.1% year over year.USA Compression boosted revenue-generating capacity to 4.44M horsepower after the J-W Power deal.USAC reaffirmed 2026 EBITDA guidance of $770M-$800M and DCF outlook of $480M-$510M. USA Compression Partners (USAC - Free Report) reported first-quarter 2026 adjusted net profit of 27 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter’s net profit of 18 cents per common unit, driven by a year-over-year increase in revenue-generating capacity and the contribution from the J-W Power acquisition.

The largest independent provider of natural gas compression services generated revenues of $331.3 million, improving 35.2% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by 13.3%. This growth was aided by higher contract operations revenues and the inclusion of J-W Power’s results following the Jan. 12, 2026, acquisition.

Dallas, TX-based oil and gas equipment and services company’s adjusted EBITDA increased 26.1% to $188.6 million from $149.5 million in the prior-year quarter. Distributable cash flow rose to $130.8 million from $88.7 million in the year-ago period. The company reported net income of $38.3 million compared with $20.5 million in the year-ago quarter.

USAC reported net operating cash flow of $86.1 million in the first quarter, up from the prior-year quarter’s $54.7 million.

USAC’s Operational PerformanceThe company’s revenue-generating capacity increased year over year to 4.44 million horsepower from 3.56 million horsepower, primarily reflecting the J-W Power acquisition. Moreover, the figure exceeded our estimate of 3.58 million horsepower.

Adjusted gross operating margin of 64.4% marked a decrease from the year-ago period’s 66.7%. Further, the average monthly revenue per horsepower rose to $22.73 from $21.06 in the first quarter of 2025. However, the figure missed our estimate of $25.01 million average monthly revenue per horsepower.

USA Compression’s average quarterly horsepower utilization rate was 91.9%, down from the year-ago quarter’s 94.4%.

USAC’s DCF, Cost, Capex & Balance SheetUSA Compression’s distributable cash flow available to limited partners totaled $130.8 million, providing 1.72x distribution coverage, up from the year-ago level of 1.44x.

The company reported $239.9 million in costs and expenses, up from $175.8 million in the year-ago quarter. It spent $26.4 million on growth capex. Maintenance capex amounted to $9.2 million.

As of March 31, 2026, USA Compression had net long-term debt of $3 billion. The partnership had $497.8 million of remaining unused availability under its revolving credit facility.

USAC’s GuidanceUSA Compression reaffirmed its full-year 2026 outlook. This Zacks Rank #3 (Hold) company expects adjusted EBITDA to be between $770 million and $800 million. It also expects distributable cash flow to range from $480 million to $510 million, expansion capital expenditures to be between $230 million and $250 million, and maintenance capital expenditures to total in the band of $60 million to $70 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a GlanceWhile we have discussed USAC’s first-quarter results in detail, let us take a look at three other key reports in this space.

Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.

Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.

Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.

Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.

DALLAS--(BUSINESS WIRE)--USA Compression Partners, LP (NYSE: USAC) (“USA Compression”) today announced that its 2025 Schedule K-3 reflecting items of international tax relevance is available online. Unitholders requiring this information may access their Schedule K-3 at taxpackagesupport.com/usac. A limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detail.