USA Compression Secures $860 Million Agreement, Expands Fleet by 4.4 Million Horsepower
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
0mins
Should l Buy USAC?
Source: Benzinga
Acquisition Announcement: USA Compression Partners (USAC) has agreed to acquire J-W Power Company for approximately $860 million, with a combination of cash and new common units.
Transaction Details: The deal involves $430 million in cash and the issuance of about 18.3 million new common units, expected to close in Q1 2026 pending regulatory approvals.
Strategic Benefits: The acquisition will enhance USAC's operational scale, expand its presence in key U.S. energy regions, and strengthen its aftermarket services and customer relationships.
Market Impact: USAC shares rose 1.35% to $25.51 following the announcement, reflecting positive investor sentiment regarding the acquisition's potential financial benefits.
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Analyst Views on USAC
Wall Street analysts forecast USAC stock price to rise
4 Analyst Rating
0 Buy
4 Hold
0 Sell
Hold
Current: 26.420
Low
25.00
Averages
26.75
High
29.00
Current: 26.420
Low
25.00
Averages
26.75
High
29.00
About USAC
USA Compression Partners, LP is a provider of natural gas compression services. The Company provides compression services to its customers primarily in connection with infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and enhancing crude oil production through artificial lift processes. The Company engineers, designs, operates, services and repairs its fleet of compression units and maintains related support inventory and equipment. It also provides compression services in mature conventional basins, including gas lift applications on crude oil wells targeted by horizontal drilling techniques. It has over 3,862,102 horsepower in its fleet. It provides compression services in unconventional resource plays throughout the United States, including the Utica, Marcellus, Permian, Denver-Julesburg, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, and Haynesville shales.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- EPS Expectations: The consensus EPS estimate stands at $0.31, reflecting investor confidence in the company's profitability; exceeding this estimate could lead to a stock price increase.
- Revenue Forecast Analysis: The consensus revenue estimate is $253.43 million, indicating a 3.1% year-over-year growth, showcasing the company's stable growth potential in the market, and achieving this target would bolster investor confidence in future performance.
- Estimate Revision Dynamics: Over the past three months, EPS estimates have seen one upward revision and no downward adjustments, while revenue estimates experienced one upward revision and two downward adjustments, indicating market divergence regarding the company's future performance, which may impact investor decisions.
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USA Compression Partners (USAC) Declares $0.525 Quarterly Dividend with 8.23% Yield
- Quarterly Dividend Declaration: USA Compression Partners has declared a quarterly dividend of $0.525 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Yield Advantage: The forward yield of 8.23% not only attracts income-seeking investors but also enhances the company's appeal in the competitive energy market, positioning it favorably for future investments.
- Acquisition Expansion: The company plans to acquire compression services provider J-W Power for $860 million, which will further enhance its market share and service capabilities, expected to positively impact future revenues.
- EBITDA Target: USA Compression Partners has set a $620 million EBITDA target, aiming to optimize financial performance through expanded horsepower deployment and reduced leverage, reflecting the company's confidence in future growth.
See More
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- Earnings Announcement Date: USA Compression Partners (USAC) is set to release its Q4 earnings on February 17 before market open, with market expectations potentially influencing stock price movements.
- EPS Expectations: The consensus EPS estimate stands at $0.31, reflecting investor confidence in the company's profitability; exceeding this estimate could lead to a stock price increase.
- Revenue Forecast Analysis: The consensus revenue estimate is $253.43 million, indicating a 3.1% year-over-year growth, showcasing the company's stable growth potential in the market, and achieving this target would bolster investor confidence in future performance.
- Estimate Revision Dynamics: Over the past three months, EPS estimates have seen one upward revision and no downward adjustments, while revenue estimates experienced one upward revision and two downward adjustments, indicating market divergence regarding the company's future performance, which may impact investor decisions.
See More
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- Attractive Yield: Energy Transfer offers a 7.3% distribution yield, appealing to dividend investors aiming to maximize portfolio income, although the underlying business structure is somewhat complex.
- Business Complexity: As one of North America's largest midstream operators, Energy Transfer owns energy infrastructure and charges fees for usage, but also serves as the general partner for two publicly traded master limited partnerships, adding management complexity.
- Dividend History Comparison: Unlike Enterprise Products Partners, Energy Transfer cut its distribution in 2020, and while it now targets annual growth of 3% to 5%, past cuts may have disappointed income-dependent investors.
- Investment Considerations: Despite the attractive high yield, the associated risks and complexities of Energy Transfer may lead conservative dividend investors to prefer Enterprise Products Partners, which offers more stable dividend growth.
See More
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- Stable Cash Flow: Energy Transfer's distributable cash flow covered its distribution by 1.8 times in the first nine months of 2025, indicating a solid income base that could attract conservative investors.
- Future Investment Plans: The company plans to invest $5.5 billion in capital projects in 2026, which is expected to support a distribution growth of 3% to 5%, demonstrating its commitment to becoming a more reliable income investment.
- Historical Trust Issues: Although the distribution has recovered and surpassed pre-pandemic levels, the cut during the 2020 pandemic still raises concerns among conservative investors, potentially affecting their investment decisions.
- Alternative Competitors: For investors wary of management decisions, alternatives like Enterprise Products Partners and Enbridge offer a more stable dividend history, albeit with slightly lower yields of 6.6% and 5.8%, respectively.
See More
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- Cash Flow Coverage: Energy Transfer's distributable cash flow covered its distribution by 1.8 times in the first nine months of 2025, indicating strong financial health that could attract income-seeking investors.
- Capital Investment Plans: The company has $5.5 billion in capital investment projects planned for 2026, expected to support distribution growth of 3% to 5%, reflecting confidence in future revenue growth.
- Historical Issues Impact: Despite strong current cash flow, past distribution cuts in 2020 and 2016 may raise trust concerns among conservative investors, potentially affecting their investment decisions.
- Market Competition: Energy Transfer faces competition from other midstream companies like Enterprise Products Partners and Enbridge, which have demonstrated better distribution stability, potentially attracting more conservative investors.
See More
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- Cash Flow Coverage: Energy Transfer's distributable cash flow covered its distribution by 1.8 times in the first nine months of 2025, demonstrating a reliable income source that supports its lofty 7.5% yield, thereby boosting investor confidence.
- Capital Investment Plans: The company plans to invest $5.5 billion in capital projects for 2026, which is expected to support distribution growth of 3% to 5%, indicating its commitment to becoming a more reliable income investment and enhancing long-term appeal.
- Historical Issues Impact: While the future outlook is positive, past events such as the distribution cut during the pandemic in 2020 and uncertainties surrounding the 2016 acquisition of Williams Companies may lower trust among conservative investors, affecting market performance.
- Alternative Investment Options: Given Energy Transfer's historical decisions, investors may prefer alternatives like Enterprise Products Partners and Enbridge, which have more stable records of distribution growth, even though their yields are slightly lower.
See More
USA Compression Partners (USAC) Declares $0.525 Quarterly Dividend with 8.23% Yield
- Quarterly Dividend Declaration: USA Compression Partners has declared a quarterly dividend of $0.525 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Yield Advantage: The forward yield of 8.23% not only attracts income-seeking investors but also enhances the company's appeal in the competitive energy market, positioning it favorably for future investments.
- Acquisition Expansion: The company plans to acquire compression services provider J-W Power for $860 million, which will further enhance its market share and service capabilities, expected to positively impact future revenues.
- EBITDA Target: USA Compression Partners has set a $620 million EBITDA target, aiming to optimize financial performance through expanded horsepower deployment and reduced leverage, reflecting the company's confidence in future growth.
See More
