USA Compression Partners, LP (USAC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

USA Compression Partners, LP (USAC) Energy Operations & Outlook

USA Compression Partners, LP (USAC) specializes in natural gas compression services, boasting a significant compression fleet horsepower. Serving oil and gas infrastructure, including gathering systems and processing facilities, USAC distinguishes itself through its focus on centralized compression solutions within the energy sector.

What Is the Investment Thesis for USAC?

With a market capitalization of $4.03B and a dividend yield of 7.46%, USAC offers an attractive income stream for investors. The company's profit margin of 11.9% and gross margin of 51.6% indicate strong operational efficiency. Growth catalysts include increasing demand for natural gas compression services driven by rising natural gas production and infrastructure development. However, potential risks include fluctuations in natural gas prices and regulatory changes affecting the energy sector. The company's beta of 0.17 suggests relatively low volatility compared to the broader market.

Based on FMP financials and quantitative analysis

USAC Key Highlights

Market capitalization of $4.03B, reflecting significant investor confidence in the company's market position.

• Dividend yield of 7.46%, providing a substantial income stream for investors.
• Profit margin of 11.9%, indicating effective cost management and operational efficiency.
• Gross margin of 51.6%, showcasing the company's ability to generate revenue from its compression services.
• Beta of 0.17, suggesting lower volatility compared to the overall market, making it a potentially stable investment.

Who Are USAC's Competitors?

USAC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are USAC's Key Strengths?

Large compression fleet horsepower.

• Established customer base in key energy-producing regions.
• Expertise in operating and maintaining compression equipment.
• Strong financial performance with solid profit and gross margins.

What Are USAC's Weaknesses?

Dependence on the cyclical oil and gas industry.

• Exposure to fluctuations in natural gas prices.
• Potential for equipment failures and downtime.
• Sensitivity to regulatory changes affecting the energy sector.

What Could Drive USAC Stock Higher?

Increasing natural gas production in key shale plays driving demand for compression services.

• Infrastructure development projects requiring compression solutions.
• Potential acquisitions of smaller compression service providers to expand market share.
• Technological advancements leading to more efficient compression equipment.

What Are the Key Risks for USAC?

Financial-distress signal — its Altman Z-Score of 1.37 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Rich valuation — a P/E of 25.83 runs well above the Energy sector’s ~15.80x, leaving little room for a miss.
• Fluctuations in natural gas prices impacting profitability.
• Stricter environmental regulations increasing compliance costs.
• Increased competition from other compression service providers.
• Equipment failures and downtime affecting service delivery.

What Are the Growth Opportunities for USAC?

• Growth opportunity 1: Expansion of Compression Fleet: Investing in and deploying additional compression units to capitalize on growing demand in key shale plays. The market for compression services is directly tied to natural gas production volumes, which are projected to increase in the coming years. This expansion allows USAC to secure new contracts and increase revenue, with a potential timeline of 1-3 years for significant fleet growth.
• Growth opportunity 2: Strategic Acquisitions: Pursuing strategic acquisitions of smaller compression service providers to consolidate market share and expand geographic reach. The fragmented nature of the compression services market presents opportunities for USAC to acquire complementary businesses and integrate them into its existing operations. This strategy could yield significant synergies and enhance USAC's competitive position within 2-5 years.
• Growth opportunity 3: Technological Innovation: Investing in research and development to develop and deploy more efficient and environmentally friendly compression technologies. The demand for lower-emission compression solutions is growing, driven by stricter environmental regulations and increasing focus on sustainability. USAC's investment in innovation will enable it to offer differentiated services and attract environmentally conscious customers within 3-5 years.
• Growth opportunity 4: Infrastructure Development: Capitalizing on the growing need for natural gas infrastructure, including pipelines and processing facilities, to provide compression services for new projects. As natural gas production increases, the demand for infrastructure to transport and process the gas will also grow. USAC can leverage its expertise and experience to secure contracts for these new projects, with a potential timeline of 2-4 years for significant infrastructure development.
• Growth opportunity 5: Renewable Natural Gas (RNG) Compression: Expanding into the renewable natural gas (RNG) sector by providing compression services for RNG production facilities. The RNG market is experiencing rapid growth, driven by increasing demand for renewable energy sources and government incentives. USAC can leverage its existing compression expertise to serve this emerging market, with a potential timeline of 1-3 years for significant RNG market penetration.

What Threats Does USAC Face?

• Increased competition from other compression service providers.
• Decline in natural gas production due to market conditions.
• Stricter environmental regulations impacting compression operations.
• Technological advancements rendering existing compression equipment obsolete.

What Are USAC's Competitive Advantages?

• Significant compression fleet horsepower, providing economies of scale.
• Established relationships with key players in the oil and gas industry.
• Expertise in operating and maintaining compression equipment.
• Focus on infrastructure applications, providing essential services.

What Does USAC Do?

USA Compression Partners, LP, established in 1998 and headquartered in Dallas, Texas, operates as a growth-oriented Delaware limited partnership. The company is a major player in the natural gas compression services sector, distinguished by its substantial compression fleet horsepower. USAC provides compression services to a diverse clientele, including oil companies, independent producers, processors, gatherers, and transporters of natural gas and crude oil. Its operations extend to operating compression stations, primarily catering to infrastructure applications such as centralized natural gas gathering systems and processing facilities. These services are critical for maintaining and enhancing the efficiency of natural gas transportation and processing. USAC's strategic focus on infrastructure applications positions it as a key enabler in the midstream energy sector, supporting the flow of natural gas from production sites to end-users. The company's commitment to growth is reflected in its continuous investment in its compression fleet and its expansion into key energy-producing regions. With a history spanning over two decades, USA Compression Partners, LP has established itself as a reliable and experienced provider of natural gas compression solutions.

What Products and Services Does USAC Offer?

• Provides natural gas compression services.
• Offers compression services to oil companies and independent producers.
• Serves processors, gatherers, and transporters of natural gas and crude oil.
• Operates compression stations.
• Focuses on infrastructure applications like centralized natural gas gathering systems.
• Supports processing facilities.

How Does USAC Make Money?

• Generates revenue by providing natural gas compression services.
• Contracts with oil and gas companies for compression capacity.
• Operates and maintains compression equipment and facilities.
• Focuses on long-term contracts to ensure stable revenue streams.

What Industry Does USAC Operate In?

USA Compression Partners, LP operates within the oil and gas equipment and services industry, a sector characterized by its cyclical nature and sensitivity to energy prices. The industry is currently experiencing growth driven by increasing natural gas production and infrastructure development. Key trends include the adoption of advanced compression technologies and a focus on environmental sustainability. The competitive landscape includes companies such as KGS: Kodiak Gas Services, Inc. and KNTK: Kinetik Holdings Inc., which also provide natural gas compression services. USAC's focus on infrastructure applications positions it as a key player in supporting the midstream energy sector.

Who Are USAC's Key Customers?

• Oil companies
• Independent producers
• Processors of natural gas
• Gatherers of natural gas
• Transporters of natural gas and crude oil

Company Profile

USA Compression Partners, LP operates in the Oil & Gas Equipment & Services industry within the Energy sector. It is headquartered in Dallas, US. The company is led by CEO Micah C. Green. USAC has traded publicly since 2013.

USA Compression Partners, LP Financial Trajectory

USA Compression Partners, LP (USAC) reported $342.1M in revenue for Q2 FY2026, reflecting 3.3% growth compared to the prior quarter. The company recorded net income of $45.7M, with diluted EPS of $0.31. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Energy company. Across the four most recent quarters, USAC averaged $0.27 in diluted EPS.

How USA Compression Partners, LP Is Valued

USA Compression Partners, LP carries a market capitalization of $4.03B, placing it in the mid-cap category. Analyst price targets span from $29.00 to $31.00, with a consensus of $30.00. At the current price of $27.77, that implies approximately 8% upside potential. Relative to its peer group, USAC's quantitative score of 57/100 is roughly in line with the peer average of 63/100.

Return on equity for USA Compression Partners, LP stands at 141.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.0%, showing how much profit it generates from its asset base. USAC trades at a trailing price-to-earnings ratio of 25.83, above the Energy sector average of ~15.80x. Its free cash flow yield is 8.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.35 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.9%, the inverse of the P/E and a quick read on earnings relative to price.

USA Compression Partners, LP's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.37 places it in the distress zone, a signal of elevated financial risk.

USA Compression Partners, LP has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 10.4% below estimates on average.

Over the past six months, USA Compression Partners, LP insiders filed 4 SEC Form 4 transactions — 0 sales and 4 purchases. On net that is roughly 33K shares acquired (about $262K) — insiders putting money in tends to read as conviction.

USAC Financials

USAC Latest News

USAC Analyst Consensus

USAC MoonshotScore

Common Questions About USAC (Energy)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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