USA Compression Lifts Third-Quarter Revenue to $357.2 Million

The Tip Desk · November 10, 2026 · 3 min read

The natural-gas compression partnership posted $197.3 million of Adjusted EBITDA and updated full-year 2026 Adjusted EBITDA guidance to $770.0 million–$780.0 million.

USA Compression Partners, LP (USAC), one of the nation’s largest independent natural-gas compression providers by total compression fleet horsepower, reported third-quarter 2026 revenue of $357.2 million, up from $342.1 million in the second quarter after $331.3 million in the first quarter.

Adjusted EBITDA was $197.3 million, compared with $193.2 million in the prior quarter and $188.6 million in the first quarter. Distributable Cash Flow was $127.1 million, after $125.3 million in the second quarter and $130.8 million in the first. Net income was $47.3 million, or $0.33 a share, versus $45.7 million, or $0.31 a share, in the second quarter.

Adjusted EBITDA extended its sequential climb. Distributable Cash Flow rebounded from the second quarter but remained below the first-quarter print. The company said third-quarter performance reflected sequential growth in revenue, Adjusted EBITDA and Distributable Cash Flow despite a challenging commodity cost environment, and cited substantial completion of integration activities and an expanded executed contract pipeline.

Average revenue per revenue-generating horsepower per month was $23.14, after $22.84 in the second quarter and $22.73 in the first. Average revenue-generating horsepower was 4.48 million, after 4.45 million and 4.44 million. Average horsepower utilization was 92.1%, after 92.0% and 91.9%.

Adjusted gross margin percentage was 62.2%, down from 63.5% in the second quarter and 64.4% in the first. Adjusted EBITDA percentage was 55.2%, down from 56.5% and 56.9%.

Contract operations revenue was $308.4 million. Related-party revenue was $26.5 million, up from $15.2 million in the second quarter. Parts and service revenue was $22.2 million.

Net cash provided by operating activities was $117.7 million, down from $145.7 million in the second quarter after $86.1 million in the first. Expansion capital expenditures were $87.7 million, up from $46.8 million in the second quarter and $26.4 million in the first. Maintenance capital expenditures were $18.5 million. Cash interest expense, net, was $47.3 million.

The partnership announced a third-quarter cash distribution of $0.525 a common unit, matching the second-quarter rate and corresponding to an annualized $2.10. The distribution was to be paid November 6, 2026, to common unitholders of record as of October 26, 2026. The Distributable Cash Flow Coverage Ratio was 1.67x.

Fleet horsepower at period end was 4,997,227, and revenue-generating horsepower at period end was 4,481,756. Revenue-generating compression units at period end were 6,518. Horsepower utilization at period end was 92.3%.

As of September 30, 2026, the partnership had 155,000 large horsepower on order for delivery, of which 34,000 was expected within the next 12 months, versus 97,650 on order as of June 30, 2026, of which 53,650 was expected within the next 12 months.

Outstanding borrowings under the $1.75 billion revolving credit facility were $684.5 million, with $1.06 billion of remaining unused availability after $2.0 million of letters of credit. Outstanding principal on 7.125% senior notes due 2029, 6.250% notes due 2033 and 6.750% notes due 2035 was $1.00 billion, $750.0 million and $600.0 million, respectively.

The partnership updated full-year 2026 guidance to Adjusted EBITDA of $770.0 million to $780.0 million and Distributable Cash Flow of $495.0 million to $505.0 million. Expansion capital expenditures are guided at $230.0 million to $250.0 million, including $32 million of other non-compression capital, and maintenance capital expenditures at $60.0 million to $70.0 million.

President and CEO Clint Green said the expanded platform and increased multi-year cash-flow visibility give the company continued confidence in its ability to create long-term value for unitholders.