USA Compression Partners stock steady as Raymond James reiterates Outperform

Investing.com - Raymond (NSE:RYMD) James has reiterated an Outperform rating and $30.00 price target on USA Compression Partners LP (NYSE:USAC), currently trading at $23.38, following the company’s second quarter 2025 results. According to InvestingPro data, the company maintains a solid 8.98% dividend yield and has consistently paid dividends for 8 consecutive years.

The compression services provider delivered a small revenue beat and slight margin miss, resulting in adjusted EBITDA that aligned with analyst expectations and remained stable quarter-over-quarter.

USAC achieved record pricing with revenue per horsepower per month increasing approximately 1% sequentially, though operating horsepower declined by about 1% during the same period.

The company reported that an additional 100,000 preferred units were converted into approximately 5 million common units in June, which reduced preferred dividends and increased common distributions. Only 80,000 of the original 500,000 preferred units remain outstanding.

USA Compression Partners maintained its full-year 2025 guidance across all metrics, with CEO Clint Green noting that compression demand remains strong in both oil and gas production areas, amid what the company described as a tight compression landscape.

In other recent news, USA Compression Partners reported its first-quarter 2025 earnings, which revealed a shortfall in earnings per share (EPS) compared to market expectations. The company posted an EPS of $0.14, missing the forecasted $0.23. However, revenue slightly exceeded expectations, reaching $245.2 million against a forecast of $244.78 million. Stifel analysts recently adjusted their price target for USA Compression Partners, lowering it to $27.00 from $28.00, while maintaining a Hold rating. This adjustment followed the company’s performance that met Stifel’s forecasts and highlighted the strategic positioning of its fleet in the Northeast. The company’s management discussed expectations for moderate growth and a focus on lowering leverage. Additionally, USA Compression Partners announced a new compensation package for Christopher W. Porter, the company’s Vice President, General Counsel, and Secretary, with an annual base salary of $435,000 and a target bonus set at 105% of his annual base earnings.

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