AROC - CSI Compressco: Looking Beyond Valuation

CSI Compressco (CCLP), by any measure of EBITDA or distributable cash flow (“DCF”), looks like a screaming buy on the surface level. Macro tailwinds look extremely healthy, EBITDA multiples look discounted, and the company recently committed to balance sheet repair by ridding itself of what have been extremely dilutive Preferred Units. Is this the deal of 2019 or there is more to the story?

While there is no denying the deep value nature at work here, I wanted to elaborate on some concerns I have with how CSI Compressco has run its business