2024-05-11 09:06:17 ET
Summary
- USA Compression Partners delivered better than expected EPS, quarter revenue, and double-digit cash flow growth.
- The company's business model involves providing natural gas compression services and has a presence in regions with high concentrations of projects.
- The company's dividend yield of 8.4% and potential for future net sales growth make it an attractive investment option.
USA Compression Partners, LP ( USAC ) recently delivered better than expected EPS, quarter revenue, and double digit cash flow growth. Moreover, taking into account dividend yield close to 8.4% and recent growing demand for the natural gas compression services, I believe that USAC could receive a lot more attention from market participants. In addition, in my view, CPI-based customer contracts reported and beneficial expectations about future EPS in 2024 and Q1 2025 could also bring significant demand for the stock. Despite the risks from the total amount of debt or some concentration of clients, USAC could trade even higher.
Business Model, And Horsepower Utilization Records
USA Compression Partners is one of the main providers of natural gas compression services in the United States, having a presence in the regions with the highest concentration of projects of this type such as Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, and Woodford among others....
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I'm Locking Up To 8.4% Dividend Yield With USA Compression Partners