USA Compression Partners USAC reported second-quarter 2026 adjusted net profit of 31 cents per common unit, beating the Zacks Consensus Estimate of 24 cents. The metric improved from the year-ago quarter’s net profit of 22 cents per common unit, driven by a year-over-year increase in revenue-generating capacity.
The largest independent provider of natural gas compression services generated revenues of $342.1 million, improving 36.8% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by 0.7%. This growth was aided by higher contract operations revenues and higher revenues from the sale of parts and services.
USAC’s contract operations revenues were $304.9 million, up 34% year over year, driven primarily by the addition of J-W's horsepower and average revenue per revenue-generating horsepower. Parts and service revenues were $22.1 million, reflecting the manufacturing and aftermarket services activity that J-W brought to the platform.
The Dallas, TX-based oil and gas equipment and services company’s adjusted EBITDA increased 29.2% to $193.2 million from $149.5 million in the prior-year quarter. Distributable cash flow rose to $125.3 million from $89.9 million in the year-ago period. The company reported net income of $45.7 million compared with $28.6 million in the year-ago quarter.
USAC reported net operating cash flow of $145.7 million in the second quarter, up from the prior-year quarter’s $124.2 million.
USAC’s Q2 Operational Performance
The company’s revenue-generating capacity increased year over year to 4.45 million horsepower from 3.55 million horsepower. Moreover, the figure exceeded our estimate of 4.26 million horsepower.
Adjusted gross operating margin of 63.5% marked a decrease from the year-ago period’s 65.4%. Further, the average monthly revenue per horsepower rose to $22.84 from $21.31 in the second quarter of 2025. However, the figure missed our estimate of $24.20 million average monthly revenue per horsepower.
USA Compression’s average quarterly horsepower utilization rate was 92%, down from the year-ago quarter’s 94.4%.
USAC’s DCF, Cost, Capex & Balance Sheet
USA Compression’s distributable cash flow available to limited partners totaled $125.3 million, providing 1.65x distribution coverage, up from the year-ago level of 1.4x.
The company reported $241.8 million in costs and expenses, up from $173.5 million in the year-ago quarter. It spent $46.8 million on growth capex. Maintenance capex amounted to $16.9 million.
As of June 30, 2026, USA Compression had net long-term debt of $2.9 billion. The partnership had $536.9 million of remaining unused availability under its revolving credit facility.
USAC’s 2026 Guidance
USA Compression reaffirmed its full-year 2026 outlook. This Zacks Rank #4 (Sell) 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 Glance
While we have discussed USAC’s second-quarter results in detail, let us take a look at three other key reports in this space.
Imperial Oil Limited IMO reported second-quarter 2026 adjusted earnings per share of $3.27, which beat the Zacks Consensus Estimate of $2.99 and increased from the year-ago quarter’s $1.34, driven by higher price realizations.
Revenues of $11.6 billion missed the Zacks Consensus Estimate of $11.8 billion. However, the top line increased significantly from the year-ago quarter’s level of $8.1 billion, backed by strong performance in both the Upstream and Downstream segments.
As of June 30, 2026, Imperial Oil had cash and cash equivalents of C$2.8 billion. Total debt of the company amounted to C$3.96 billion, with a debt-to-capitalization of 13.9%.
Pembina Pipeline Corporation PBA reported second-quarter 2026 earnings per share of 48 cents, which missed the Zacks Consensus Estimate of 49 cents. However, it increased from the year-ago quarter’s level of 47 cents. This improvement was primarily driven by strong underlying operational performance and volume growth across the Pipelines and Facilities and Marketing & New Ventures divisions.
This Calgary-based oil and gas storage and transportation company’s quarterly sales of $1.55 billion increased about 20% year over year, driven by higher revenue performance across all three segments.
As of June 30, 2026, PBA had cash and cash equivalents worth C$153 million and C$19.8 billion in long-term debt. Debt-to-capitalization was 53.7%.
Diamondback Energy, Inc. FANG reported second-quarter 2026 adjusted earnings per share of $6.48, which beat the Zacks Consensus Estimate of $5.96 and more than doubled from the year-ago adjusted profit of $2.67. The outperformance was driven by production growth and a 53.1% improvement in the year-over-year realized oil prices.
This Midland, TX-based oil and gas exploration and production company’s revenues of $5.6 billion increased more than 51% from the year-ago quarter and topped the Zacks Consensus Estimate by about 17%, fueled primarily by higher sales of oil, natural gas and natural gas liquids, increased sales of purchased oil and higher revenues from other operating income.
As of June 30, the Permian-focused operator had approximately $462 million in cash and cash equivalents and $11.1 billion in long-term debt, representing a debt-to-capitalization of 20.1%.
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USA Compression Partners, LP (USAC): Free Stock Analysis Report
Imperial Oil Limited (IMO): Free Stock Analysis Report
Pembina Pipeline Corp. (PBA): Free Stock Analysis Report
Diamondback Energy, Inc. (FANG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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