USA Compression Stock: 9%-Yielder Reports Record Q3, Increases 2025 Guidance
November 24, 2025
Outlook for USA Compression Partners Remains Bullish
In the spotlight today is USA Compression stock.
With oil prices taking a beating, many investors have turned their backs on the energy sector. However, there’s more to energy than crude. One of the biggest energy stories this year has to be the big rise in natural gas prices.
Since the start of 2025, natural gas prices have rallied 25.7% and 64% on an annual basis to $4.57. As we head into the winter months, natural gas prices could experience additional gains on the heels of strong domestic demand and calls for U.S. liquified natural gas (LNG) exports.
While many investors will be looking for pure-play LNG companies, others may want to take a pick-and-shovel approach. One good example is USA Compression Partners LP (NYSE:USAC), a provider of energy infrastructure services.
Why? Well, regardless of where oil and gas prices are, energy companies always need their infrastructure serviced.
Dallas-Texas-based USA Compression Partners is one of the country’s largest independent providers of natural gas compression services. It has a major operating presence in each of the gas growth basins in the U.S., including the Marcellus/Utica, DJ Basin, Gulf Coast, Permian, and Barnett/Haynesville. (Source: “Investor Presentation,” USA Compression Partners LP, November 5, 2025.)
The company provides its services under fixed-term contracts to oil and gas companies, including independent producers, processors, gatherers, and transporters of natural gas and crude oil.
Due to distance and friction, natural gas loses pressure as it moves through pipelines. Compression ensures that the gas continues to move smoothly through pipelines. Compressors are also used at above-ground and underground natural gas storage facilities.
USA Compression Partners’ fixed-fee, take-or-pay contracts provide it with consistent cash flows. On top of that, the majority of contract terms are set at three to five years. This essential service has helped the company generate stable cash flows during all commodity cycles.
Another Record Quarter
In 2024, USA Compression Partners reported record results. That strong momentum has carried into 2025. For the third quarter ended September 30, the company announced that total revenue increased 4.3% on an annual basis to a record $250.3 million. (Source: “USA Compression Partners Reports Third-Quarter 2025 Results; Achieves Record Results; Improves 2025 Outlook,” USA Compression Partners LP, November 5, 2025.)
The company’s net income advanced 79% to a record $34.5 million. Net cash provided by operating activities was up more than 56% at $79.5 million.
USA Compression’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 10% to a record $160.3 million. Its distributable cash flow grew 20% to a record $103.8 million.
Commenting on the record results, Clint Green, the company’s president and chief executive officer, said, “In addition to sustained top-line momentum, we delivered meaningful savings across SG&A, key operating expense lines, and interest expense, demonstrating our focus on efficiency and disciplined execution.”
2025 Business Guidance Increased
Looking ahead, USA Compression’s management confirmed its 2025 guidance; it expects to report:
- Adjusted EBITDA in the range of $610.0 million to $620.0 million, up from previous guidance of $590.0 million to $610.0 million
- Distributable cash flow of $370.0 million to $380.0 million, up from previous guidance of $350.0 million to $370.0 million
USA Compression Stock: Quarterly Distribution of $0.525/Share
Investors love a limited partnership like USA Compression because it has to generate 90% of its income through activities or interest and dividend payments related to natural resources. This results in some of the biggest, most reliable dividends on Wall Street.
Since its IPO in 2013, USA Compression stock has never missed or lowered its dividend payout. It has also returned in excess of $1.6 billion in cash to unitholders. (Source: “Distributions & Splits,” USA Compression Partners LP, last accessed November 17, 2025.)
In the third quarter, USA Compression reported record distributable cash flow of $103.8 million, with record distributable coverage of 1.61 times. That’s more than enough to cover its distribution payments.
USA Compression stock currently pays a dividend of $0.525 per unit, or $2.10 on an annual basis, for a yield of approximately nine percent.
USA Compression Stock: Great Upside Potential
USA Compression stock has been having a pretty solid year, rising more than nine percent year to date and 12.5% on an annual basis. The stock actually hit a new record high of $30.10 back on February 10, but it has given up some short-term ground since then, trading at around $23.60 per share.
USA Compression stock took a hit, along with the broader market in early April on concerns about how a global trade war would impact the company’s results. It turns out that those concerns have, so far, been overblown.
While USA Compression stock hasn’t returned to its record highs yet, Wall Street thinks it will be closing in on those levels. Wall Street analysts have provided a 12-month share price target range of $25.50 to $27.00 per share on USA Compression stock. This points to potential upside of approximately eight percent to 14.5%.
However, none of those projections have been updated since USA Compression reported record third- quarter results and increased its full-year guidance.
Chart courtesy of StockCharts.com
The Lowdown on USA Compression Stock
USA Compression stock continues to be a great energy pick that provides natural gas compression services in each of the gas growth basins in the U.S. This helps provide the company with secure, stable cash flows.
USA Compression reported record 2023 and 2024 results, and it expects 2025 to be another great year. In the third quarter, the company reported record total revenue, net income, adjusted EBITDA, distributable cash flow, and distributable cash flow coverage. It also increased its full-year guidance for adjusted EBITDA and distributable cash flow.
