USA Compression Partners executive sells over $500k in company stock

USA Compression Partners, LP (NYSE:USAC) has reported a significant stock transaction by a key executive. Eric D. Long, the President, Chief Executive Officer, and Director of the general partner of USA Compression Partners, sold a total of 23,182 common units of the company. The transactions occurred on two separate dates, with a combined total value of over $517,227.

The first sale took place on August 23, 2024, where Mr. Long sold 21,396 common units at a weighted average price of $22.27. The sales continued on August 26, 2024, with 1,786 common units sold at a price of $22.81 per unit. These transactions resulted in Mr. Long completely divesting his direct holdings in the company.

The sales were conducted indirectly through the Alex B Long Trust, for which Mr. Long is the trustee. According to footnotes in the filing, the price range for the first batch of units sold was between $22.15 and $22.52. The footnotes also mention that the common units held by the Alex B Long Trust and the Adam Ericson Long Trust are included in the reported ownership, and Mr. Long is the trustee for both trusts.

The filing also notes that the shares owned following the transactions include common units acquired under the company's Distribution Reinvestment Plan. Post-transaction, the Alex B Long Trust no longer holds any common units, while other indirect holdings by trusts associated with Mr. Long remain.

USA Compression Partners, LP, based in Austin, Texas, operates within the natural gas transmission industry. The company has not provided any commentary on the transactions, and the SEC filing solely represents a factual account of the stock sales as required by securities regulations.

In other recent news, USA Compression Partners reported record-breaking financial results for the second quarter of 2024. The company achieved unprecedented revenues, adjusted gross margin, and adjusted EBITDA. Additionally, USA Compression Partners reported a period-end utilization of 95%, with large horsepower units over 1,000 horsepower nearly fully utilized at 99%. The company's future outlook is positive, with plans to increase pricing and reduce its leverage ratio in a strong contract compression market.

The net income for the quarter stood at $31.2 million, with operating income reaching $77.4 million. Furthermore, the company deployed an additional 41,000 horsepower during the quarter. In terms of capital expenditures, the company spent $67 million on expansion and $8.9 million on maintenance in Q2 2024.

USA Compression Partners has revised its financial guidance for the full year 2024, predicting an increase in net income and adjusted EBITDA ranges. The company also plans to deploy 30,000 to 50,000 horsepower of uncontracted fleet assets in the remainder of 2024. These recent developments provide insights into the company's performance and future prospects.

InvestingPro Insights

Following the recent transactions by a top executive at USA Compression Partners, LP (NYSE:USAC), investors might be keen to understand the company's current financial standing. The recent data from InvestingPro reveals that USAC has a market capitalization of approximately $2.59 billion, indicating its substantial size within the natural gas transmission industry. Additionally, the company's revenue has seen a healthy growth rate of 17.18% over the last twelve months as of Q2 2024, showcasing its ability to expand its financial base.

Investors considering USAC's stock should note that it is trading at a relatively high earnings multiple, with a P/E ratio of 41.06. This could suggest that the market has high expectations for the company's future earnings growth. Moreover, USAC has been consistent in rewarding shareholders, maintaining dividend payments for seven consecutive years and offering a significant dividend yield of 9.47% as of the latest data.

One of the InvestingPro Tips highlights that the company is trading near its 52-week low, which could potentially offer a more attractive entry point for investors. Another tip indicates that analysts are predicting profitability for the company this year, which, combined with its strong return over the last five years, may provide a compelling case for investment consideration.

For those interested in a deeper analysis, InvestingPro offers additional tips on USAC's stock performance and financial health. There are currently 9 more InvestingPro Tips available for USAC, which can be accessed at: https://www.investing.com/pro/USAC for investors seeking comprehensive insights.

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