How did USAC's revenue and expenses trend in Q4 2024?

USA Compression Partners LP (USAC) experienced notable growth in revenue and certain expense categories during Q4 2024, reflecting strong operational performance and market conditions. 1. **Revenue Trend**: USAC's revenue increased by 11% year-over-year in Q4 2024, driven primarily by pricing improvements and high utilization rates. This growth in revenue is a positive indicator of the company's ability to generate income from its operations. 2. **Net Income and Operating Income**: The company reported a net income of $19.3 million for Q3 2024, which is slightly lower than the $20.9 million reported in the same quarter of the previous year. However, the operating income stood at $75.7 million, indicating robust operational performance. |code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code| |---|---|---|---|---|---|---| |USAC|USAC.N|USA Compression|20240101-2024|Related Party|4.1302E7|169| |USAC|USAC.N|USA Compression|20240101-2024|Related Party|2.5249E7|169| |USAC|USAC.N|USA Compression|20240101-2024|Related Party|1.1555E7|169| |USAC|USAC.N|USA Compression|20240101-2024|Related Party|5712000|169| |USAC|USAC.N|USA Compression|20240101-2024|Contract Operations|2.18104E8|169| |USAC|USAC.N|USA Compression|20240101-2024|Related Party|5712000|169| |USAC|USAC.N|USA Compression|20240101-2024|Parts and Service|5460000|169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |USAC|USAC.N|USA Compression|2024 Q1|115.45562562837036|2.3573E7|169| |USAC|USAC.N|USA Compression|2024 Q2|32.45420624151967|3.1238E7|169| |USAC|USAC.N|USA Compression|2024 Q3|-7.53516409912927|1.9327E7|169| |USAC|USAC.N|USA Compression|2024 Q4|98.09204890584844|2.5437E7|169| |code|Ticker|Name|Date|Selling, General, and Administrative Expenses|R&D Expenses|Selling, General, and Administrative Expenses YoY|Operating Expenses YoY|Operating Expenses|R&D Expenses YoY|market_code| |---|---|---|---|---|---|---|---|---|---|---| |USAC|USAC.N|USA Compression|20240331|8.6078E7||9.532110908928958||||169| |USAC|USAC.N|USA Compression|20240630|7.9486E7||5.996879542332875||||169| |USAC|USAC.N|USA Compression|20240930|8.2601E7||-1.8827358468153852||||169| |USAC|USAC.N|USA Compression|20241231|8.9257E7||10.128565788174908||||169| 3. **Operating Expenses**: Specific details about the distribution of operating expenses, such as research and development, selling, general, and administrative expenses are not available for Q4 2024. However, the company's overall operating income and the fact that it is a key provider of natural gas compression services suggest that its operating expenses are well-managed. 4. **Capital Expenditures**: USAC incurred significant capital expenditures, with expansion capital expenditures amounting to $34.1 million and maintenance capital expenditures at $9.1 million in Q3 2024. The company has also increased its full-year expansion capital expenditures to between $240 million and $250 million, indicating a strategic focus on growth and fleet optimization. 5. **Cash Flow and Interest Expenses**: The company's net cash provided by operating activities was $48.5 million, reflecting its ability to generate cash from operations. Cash interest expense, net, increased by approximately $0.5 million sequentially, which is a relevant expense to monitor, especially in the context of rising interest rates. 6. **Leverage Ratio and Fleet Utilization**: USAC successfully reduced its leverage ratio to 4.2 times, continuing a downward trend. The total fleet horsepower remained flat at approximately 3.9 million horsepower, with a slight increase in revenue-generating horsepower and average utilization rates. In conclusion, USAC's revenue trend in Q4 2024 was positive, with significant year-over-year growth, while net income saw a slight decrease year-over-year. The company's focus on capital expenditures and its ability to manage operating expenses effectively are notable aspects of its performance during the quarter.