USA Compression Partners plans $750 million senior notes offering

DALLAS - USA Compression Partners, LP (NYSE:USAC), a $2.96 billion market cap company known for its impressive 8.7% dividend yield, announced Monday it intends to offer $750 million in aggregate principal amount of senior unsecured notes due 2033 in a private placement to eligible purchasers, subject to market conditions. InvestingPro data shows the company has maintained consistent dividend payments for 8 consecutive years.

The midstream energy company, which maintains a "GOOD" financial health score according to InvestingPro analysis and generated $590 million in EBITDA over the last twelve months, plans to use the net proceeds from the offering, along with borrowings under its credit agreement, to redeem all of its 6.875% senior notes due 2027 and to pay related fees and expenses, according to a press release statement.

The partnership may temporarily use proceeds to repay outstanding borrowings under its credit agreement before funding the redemption of the 2027 notes.

The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons outside the United States under Regulation S. The securities have not been registered under the Securities Act of 1933 and will not be listed on any securities exchange or automated quotation system.

USA Compression Partners provides compression services for natural gas and crude oil production, gathering, artificial lift, transmission, processing, and storage. The company and its wholly-owned subsidiary, USA Compression Finance Corp., are jointly offering the notes. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at its current price of $24.13. Subscribers can access the comprehensive Pro Research Report, which provides detailed insights into USAC’s valuation, financial health, and growth prospects, along with 8 additional ProTips not mentioned in this article.

In other recent news, USA Compression Partners LP reported its earnings for the second quarter of 2025, exceeding both earnings and revenue forecasts. The company posted an earnings per share of $0.22, surpassing the anticipated $0.21, representing a 4.76% surprise. Revenue reached $250.13 million, which was above the expected $246.74 million, marking a 1.37% surprise. Additionally, Texas Capital Securities initiated coverage on USA Compression Partners with a Hold rating and set a price target of $23.00. The firm highlighted the company’s leading distribution and significant presence as a contract compression provider in the U.S. These developments reflect recent activities surrounding USA Compression Partners.

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