USA Compression Partners Reports 35.1% Revenue Growth Following J-W Power Acquisition

USA Compression Partners, LP reported significant financial growth in its latest quarterly results, driven primarily by the recent acquisition of J-W Power Company. For the three months ending March 31, 2026, the company generated total revenues of $331.3 million, a 35.1% increase from $245.2 million in the same period last year. This growth was largely attributed to a 30.5% rise in contract operations revenue, which reached $293.5 million, and a substantial increase in parts and service revenue, which surged by 329.3% to $21.9 million. The net income for the quarter was $38.3 million, reflecting an 86.9% increase compared to $20.5 million in the prior year.

The J-W Power Acquisition, completed on January 12, 2026, was a pivotal event for the company, adding approximately 1.0 million total horsepower to its fleet and enhancing its operational capacity across key regions in the U.S. The acquisition cost approximately $911.6 million, which included both cash and common units issued. The integration of J-W Power is expected to bolster USA Compression's market position and operational efficiency, contributing to increased revenue-generating horsepower and overall service capabilities.

Operationally, USA Compression reported a fleet horsepower of 4.9 million as of March 31, 2026, a 27.7% increase from the previous year. The company also noted a 52.6% increase in revenue-generating compression units, which rose to 694 units. However, the average horsepower per revenue-generating compression unit decreased by 17.5%, primarily due to the inclusion of a higher proportion of mid-size horsepower units from the J-W Power acquisition. The company’s horsepower utilization rates showed a slight decline, reflecting the adjustments made during the integration process.

Financially, USA Compression's total costs and expenses increased by 36.4% to $239.9 million, driven by higher operational costs associated with the J-W Power acquisition and increased depreciation and amortization expenses. The company reported a gross margin of $126.2 million, up 35.4% from the previous year, and an adjusted EBITDA of $188.6 million, a 26.1% increase. The distributable cash flow (DCF) also rose significantly to $130.8 million, resulting in a DCF coverage ratio of 1.72x, indicating strong cash generation relative to distributions.

Looking ahead, USA Compression anticipates continued growth as it integrates J-W Power and capitalizes on increased demand for natural gas compression services. The company plans to maintain a capital expenditure budget of between $230 million and $250 million for expansion initiatives in 2026, alongside a commitment to fund maintenance capital expenditures. The management remains optimistic about leveraging the expanded operational capacity and market presence to enhance profitability and shareholder value in the coming quarters.