USA Compression Partners Q2 Earnings Call Highlights

USA Compression Partners NYSE: USAC reported higher second-quarter revenue and maintained its full-year financial outlook as the company continued integrating the J-W acquisition, expanded its fleet planning and cited extended equipment lead times and customer demand visibility.

For the quarter ended June 30, 2026, the contract compression provider reported total revenue of $342.1 million, up 37% from $250.1 million in the prior-year period.

Contract operations revenue increased 34% to $304.9 million, driven primarily by the addition of J-W horsepower and higher average revenue per revenue-generating horsepower, Chief Financial Officer Chris Paulsen said.

Net income was $45.7 million and operating income was $100.4 million.

Net cash provided by operating activities totaled $145.7 million, while net cash interest expense was $47.4 million.

Chief Executive Officer Clint Green said the company expects average annual new-horsepower growth of about 2.5% through 2029.

Including roughly 850,000 active horsepower acquired from J-W, the plan calls for adding more than 500,000 horsepower by 2030.

Green said the expansion reflects management’s confidence in natural-gas demand growth and USA Compression’s ability to maintain market share.

He also cited long lead times for certain new engines, which can reach approximately 200 weeks, or nearly four years.

“When you show up with specific multi-year deployment plan, customers can grow with you,” Green said, adding that customers are seeking providers with the commitment and capital to meet their future compression requirements.

Chief Operating Officer Chris Wauson said USA Compression has already contracted about 50% of new units scheduled for delivery in 2027 and a mid-teens percentage of units planned for 2028.

He said contracting capacity two years ahead of delivery is atypical and reflects customer confidence in longer-term production growth.

While the company experienced elevated equipment stops during the second quarter, Wauson said request-for-proposal activity remained healthy and the company entered the second half with a healthy pipeline of customer contracts.

Total fleet horsepower was approximately 4.95 million at quarter-end.

Average active horsepower was about 4.45 million.

Average utilization was 92%, reflecting the blended impact of the J-W fleet.

Average revenue per revenue-generating horsepower per month was $22.84, up 0.5% sequentially and 7% year over year.

Management said integration of J-W remains underway following the company’s February implementation of SAP.

Green said the larger combined organization is capturing labor and cost synergies as it standardizes fleet operations, while also...