USA Compression Partners reported record operating results for the third quarter of 2026, with average revenue-generating horsepower reaching 4.48 million, up 26% from a year earlier. Revenue increased 43% to $357.2 million, reflecting the January acquisition of J-W Power Company and growth in the company’s contract operations business.
Fleet utilization was 92%, rising to 96% for units of at least 1,000 horsepower. Revenue per revenue-generating horsepower also set a record at $23.14, an 8% year-over-year increase. Adjusted EBITDA grew 23% to $197.3 million, while distribution coverage was 1.67 times and the leverage ratio was 3.78 times.
The company narrowed its 2026 guidance to adjusted EBITDA of $770 million to $780 million and distributable cash flow of $495 million to $505 million. USA Compression attributed the adjustments to higher fuel and lubricant costs and weaker-than-expected retail parts and service activity. It said the update did not indicate weaker demand in its core contract operations business.
USA Compression expects annualized fleet growth of 2% to 3%. More than 60% of its new horsepower deliveries for 2027 are contracted, including about 90% of deliveries planned for the first half of the year. Its order book for new units totals approximately $500 million through 2029.
The presentation cited forecasts for natural gas production to increase by more than 20 billion cubic feet per day by 2030, supporting demand for compression services. The company also said equipment lead times have reached 185 to 200 weeks, prompting customers to plan further ahead.
Capital spending for 2026 is expected to total $230 million to $250 million, including $60 million to $70 million for expansion. USA Compression reported that its leverage ratio had declined from 4.10 times in 2023 to 3.78 times in the third quarter. Its asset-based lending facility had capacity of more than $1 billion, with $684 million drawn as of September 30, 2026.
Sources: Investing.com News.