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

Key Points

• USA Compression Partners announced a quarterly dividend of $0.525 per share, payable on August 7 to shareholders of record on July 27, with an annualized yield of about 7.8%.
• The dividend appears stretched: the company has a 185.8% payout ratio, and analysts expect it may still not fully cover its annual dividend with future earnings.
• USAC also reported its latest quarterly results, posting $0.27 EPS versus the $0.35 consensus, even as revenue came in above expectations at $331.27 million.

USA Compression Partners, LP (NYSE:USAC - Get Free Report) announced a quarterly dividend on Thursday, July 16th. Investors of record on Monday, July 27th will be given a dividend of 0.525 per share by the oil and gas company on Friday, August 7th. This represents a c) annualized dividend and a dividend yield of 7.8%. The ex-dividend date is Monday, July 27th.

USA Compression Partners has a payout ratio of 185.8% meaning 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 $1.34 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 156.7%.

USA Compression Partners Stock Up 1.1%

Shares of USAC opened at $26.88 on Friday. The firm has a market cap of $3.90 billion, a PE ratio of 27.71 and a beta of 0.21. The company's fifty day moving average is $27.42 and its two-hundred day moving average is $26.85. USA Compression Partners has a fifty-two week low of $21.85 and a fifty-two week high of $30.55. The company has a quick ratio of 0.86, a current ratio of 1.55 and a debt-to-equity ratio of 9.41.

USA Compression Partners (NYSE:USAC - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The oil and gas company reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.35 by ($0.08). The company had revenue of $331.27 million for the quarter, compared to analysts' expectations of $308.35 million. USA Compression Partners had a net margin of 11.91% and a negative return on equity of 807.33%. Analysts forecast that USA Compression Partners will post 1.02 earnings per share for the current year.

Hedge Funds Weigh In On USA Compression Partners

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. boosted its position in USA Compression Partners by 82.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,863,377 shares of the oil and gas company's stock worth $77,254,000 after purchasing an additional 1,296,339 shares during the period. Raymond James Financial Inc. raised its position in USA Compression Partners by 1.5% in the second quarter. Raymond James Financial Inc. now owns 548,743 shares of the oil and gas company's stock valued at $13,340,000 after purchasing an additional 8,169 shares during the period. HRT Financial LP acquired a new position in shares of USA Compression Partners during the second quarter worth about $1,555,000. Corient Private Wealth LLC boosted its position in shares of USA Compression Partners by 131.7% in the second quarter. Corient Private Wealth LLC now owns 412,900 shares of the oil and gas company's stock worth $10,038,000 after buying an additional 234,730 shares during the period. Finally, BNP Paribas Financial Markets boosted its position in shares of USA Compression Partners by 233.3% in the third quarter. BNP Paribas Financial Markets now owns 1,443 shares of the oil and gas company's stock worth $35,000 after buying an additional 1,010 shares during the period. Institutional investors and hedge funds own 47.77% of the company's stock.

USA Compression Partners Company Profile

USA Compression Partners NYSE: USAC is a Houston-based master limited partnership specializing in natural gas compression services for oil and gas producers. The company offers a full suite of midstream compression solutions designed to enhance production flow and optimize field operations. Its core activities include the design, engineering, fabrication, installation, operation and maintenance of natural gas compression equipment onshore across key U.S. basins.

USA Compression's product and service offerings encompass new equipment deployment, aftermarket parts and component sales, field service support, and instrumentation and control systems.

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