USA Compression Partners Reports 36.8% Revenue Growth Driven by J-W Power Acquisition

USA Compression Partners, LP reported significant financial growth in its latest quarterly results, driven primarily by the acquisition of J-W Power Company. For the three months ended June 30, 2026, the company generated total revenues of $342.1 million, a 36.8% increase from $250.1 million in the same period last year. Contract operations revenue rose by 34.1% to $304.9 million, while parts and service revenue surged 240.2% to $22.1 million. The net income for the quarter was $45.7 million, reflecting a 59.9% increase compared to $28.6 million in the prior year.

The financial performance for the first half of 2026 also showed substantial improvement, with total revenues reaching $673.4 million, up 35.9% from $495.4 million in the first half of 2025. The net income for this period was $84.0 million, a 71.2% increase from $49.1 million in the previous year. The growth in revenue and profitability was largely attributed to the J-W Power Acquisition, which added approximately 1.0 million total horsepower to the company’s fleet and expanded its operational footprint across key regions in the U.S.

Operationally, USA Compression Partners saw an increase in its fleet horsepower, which reached 4.95 million by the end of June 2026, up 28.3% from 3.86 million a year earlier. The number of revenue-generating compression units also increased by 55.3%, reflecting the successful integration of J-W Power's assets. However, the average horsepower per revenue-generating compression unit decreased, indicating a shift towards a higher proportion of mid-size horsepower units following the acquisition.

The company’s balance sheet showed total assets of $3.69 billion as of June 30, 2026, compared to $2.62 billion at the end of 2025. This increase was driven by the acquisition and the addition of goodwill amounting to $117.4 million. Total liabilities also rose to $3.40 billion, primarily due to increased long-term debt, which stood at $2.94 billion. The company reported a DCF (Distributable Cash Flow) of $125.3 million for the quarter, resulting in a DCF coverage ratio of 1.65x, indicating strong cash generation relative to distributions.

Looking ahead, USA Compression Partners anticipates continued growth driven by the integration of J-W Power and the expansion of its service offerings. The company plans to invest between $230 million and $250 million in expansion capital expenditures for 2026, alongside maintenance capital expenditures of $60 million to $70 million. The management remains optimistic about the demand for compression services, supported by the overall increase in natural gas production in the U.S. and favorable market conditions.