USA Compression Partners, LP (NYSE:USAC) Stock to Pay Quarterly Dividend of $0.53

Key Points

• USA Compression Partners declared a quarterly dividend of $0.525 per share, payable November 6 to shareholders of record October 26. The annualized dividend is $2.10 per share, representing an 8.4% yield.
• The dividend appears financially stretched: the company’s payout ratio is 185.8%, and analysts expect a future payout ratio of about 140%, suggesting earnings may not fully cover distributions.
• USAC shares opened at $24.88, while the company recently reported quarterly EPS of $0.31, beating estimates of $0.28. Institutional investors own 47.77% of the stock, and a company director recently increased his holdings by purchasing 6,000 shares.

USA Compression Partners, LP (NYSE:USAC - Get Free Report) announced a quarterly dividend on Thursday, October 15th. Stockholders of record on Monday, October 26th will be given a dividend of $0.5250 per share by the oil and gas company on Friday, November 6th. This represents a $2.10 annualized dividend and a dividend yield of 8.4%. The ex-dividend date of this dividend is Monday, October 26th.

USA Compression Partners has a dividend payout ratio of 185.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect USA Compression Partners to earn $1.50 per share next year, which means the company may not be able to cover its $2.10 annual dividend with an expected future payout ratio of 140.0%.

USA Compression Partners Trading Up 0.1%

Shares of USA Compression Partners stock opened at $24.88 on Friday. The company's fifty day simple moving average is $26.27 and its 200-day simple moving average is $26.85. The company has a market cap of $3.61 billion, a price-to-earnings ratio of 22.20 and a beta of 0.28. The company has a current ratio of 1.35, a quick ratio of 0.68 and a debt-to-equity ratio of 10.25. USA Compression Partners has a 1 year low of $21.85 and a 1 year high of $30.55.

USA Compression Partners (NYSE:USAC - Get Free Report) last released its earnings results on Tuesday, August 4th. The oil and gas company reported $0.31 EPS for the quarter, beating the consensus estimate of $0.28 by $0.03. USA Compression Partners had a net margin of 12.43% and a return on equity of 179.77%. The firm had revenue of $342.15 million during the quarter, compared to analysts' expectations of $340.49 million. As a group, sell-side analysts expect that USA Compression Partners will post 1.16 EPS for the current year.

Insider Activity at USA Compression Partners

In other news, Director Bradford Whitehurst bought 6,000 shares of USA Compression Partners stock in a transaction that occurred on Friday, August 21st. The stock was purchased at an average cost of $26.10 per share, with a total value of $156,600.00. Following the completion of the transaction, the director directly owned 43,616 shares in the company, valued at $1,138,377.60. This trade represents a 15.95% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.

Institutional Investors Weigh In On USA Compression Partners

Institutional investors and hedge funds have recently bought and sold shares of the business. Ellsworth Advisors LLC raised its stake in shares of USA Compression Partners by 2.0% in the 3rd quarter. Ellsworth Advisors LLC now owns 32,335 shares of the oil and gas company's stock valued at $804,000 after buying an additional 630 shares in the last quarter. Ulland Investment Advisors LLC increased its position in USA Compression Partners by 15.4% in the 3rd quarter. Ulland Investment Advisors LLC now owns 15,000 shares of the oil and gas company's stock valued at $373,000 after acquiring an additional 2,000 shares in the last quarter. Whalen Wealth Management Inc. raised its stake in shares of USA Compression Partners by 2.8% in the third quarter. Whalen Wealth Management Inc. now owns 14,495 shares of the oil and gas company's stock worth $360,000 after acquiring an additional 400 shares during the last quarter. Chickasaw Capital Management LLC raised its stake in shares of USA Compression Partners by 6.2% in the third quarter. Chickasaw Capital Management LLC now owns 172,000 shares of the oil and gas company's stock worth $4,278,000 after acquiring an additional 10,000 shares during the last quarter. Finally, Tidal Investments LLC raised its stake in shares of USA Compression Partners by 49.2% in the second quarter. Tidal Investments LLC now owns 11,231 shares of the oil and gas company's stock worth $296,000 after acquiring an additional 3,704 shares during the last quarter. Institutional investors own 47.77% of the company's stock.

USA Compression Partners Company Profile

USA Compression Partners, LP NYSE: USAC is a master limited partnership that provides natural gas compression services to infrastructure operators and producers in the United States. The company owns and operates a fleet of natural gas compression units and supplies compression under long-term and short-term contracts.

Its equipment and services support several stages of the natural gas value chain, including gathering, processing, transmission, storage and production. Compression helps maintain the pressure needed to move natural gas through pipelines and other infrastructure, making the company a service provider to midstream and upstream energy businesses.

USA Compression Partners serves customers across major U.S.

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