XVARY Composite Score
61
/ 100
Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
USA Compression rents out big natural-gas compression machines that keep gas moving through pipelines and lift more oil from wells.
How it gets paid
Last year USA Compression made $998M in revenue. Contract operations was the main engine at $838M, or 84% of sales.
Why it's growing
Revenue grew 5.0% last year. Distributable cash flow coverage vs the $0.525 quarterly distribution—that is what pays the yield.
What just happened
Q4 2025 revenue $252.5M; diluted EPS $0.22 per common unit.
At a Glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
31.4x trailing p/e — you're paying up for this one
7.6% dividend yield — cash in your pocket every quarter
7.8% return on capital — nothing to write home about
XVARY composite: 61/100 — average
What They Do
USA Compression rents out big natural-gas compression machines that keep gas moving through pipelines and lift more oil from wells.
Compression services run under term contracts (fixed-length customer deals → recurring revenue → your cash flow is steadier), which helps USAC turn a basic industrial service into repeat business. The company works across major shale basins; full-year 2025 operating income of about $306.5M on $998.1M revenue is roughly a 31% operating margin using those reported lines. If your pipeline customer needs gas to keep moving, ripping out compression equipment is a headache, and that friction matters.
How They Make Money
$998M
annual revenue · their business grew +5.0% last year
Contract operations
$838M
+3.9%
Related-party compression revenue
$70M
+3.4%
Service and repair work
$50M
+5.0%
Support inventory and equipment
$40M
0.0%
The Products That Matter
Natural gas compression services
contract operations
core business · Q4 revenue +2.7% YoY
This is the engine. Q4 2025 total revenues were $252.5M vs $245.9M in Q4 2024—a record quarter on the revenue line in the partnership’s release.
record quarter
Acquired compression fleet
j-w power company
$860M acquisition
The j-w deal added scale in one move. Now it has to show up in utilization, cash flow, and clean execution rather than living forever as an $860M headline.
integration watch
Key Numbers
7.6%
dividend yield
Yield → cash paid to unitholders each year → so what: you are being paid well to wait, but the payout has to stay covered.
$2.5B
long-term debt
Debt → money owed → so what: interest and refinancing matter more here than at a cleaner balance-sheet company.
30.7%
operating margin
Operating margin → profit after running the business → so what: this is the number that says compression is a real business, not rented metal.
$998M
ttm revenue
Revenue → total sales → so what: USAC is close to a $1 billion top line growing 5.0% vs. prior year.
Financial Health
B+
Strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $2.5B (39% of capital)
B+ — functional but not a standout on the balance sheet.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
record FY 2025
Q4 2025 revenue $252.5M; diluted EPS $0.22 per common unit.
Full-year 2025 total revenues were $998.1M vs $950.4M in 2024. The partnership reported adjusted EBITDA of $154.5M in Q4 and $613.8M for the full year, with distributable cash flow of $103.2M in the quarter (per the Feb 17, 2026 Business Wire tables).
$252.5M
Q4 revenue
$0.22
diluted EPS
30.7%
FY op. margin
the number that mattered
Distributable cash flow coverage vs the $0.525 quarterly distribution—that is what pays the yield, not a single revenue headline.
P0: USA Compression Q4/FY 2025 results (Feb 17, 2026) — Business Wire
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What Could Go Wrong
USAC's risk profile is unusually specific: a 7.6% yield, 1.36x coverage, and $2.5B of long-term debt all have to keep cooperating. If one slips, the market stops seeing income and starts seeing strain.
High
Distribution coverage slips
Distributable cash flow coverage is 1.36x. That is coverage, not abundance.
If coverage trends lower, the 7.6% payout becomes harder to defend and the stock's main appeal weakens with it.
High
Debt load limits flexibility
USAC carries $2.5B of long-term debt, equal to 39% of capital, against a business that produced $998M in annual revenue.
That leaves less room to absorb softer utilization, higher financing costs, or any operational stumble.
Med
J-w integration has to earn its keep
The $860M j-w power company acquisition made USAC bigger. Bigger only matters if the added assets run well and support the guide.
If integration disappoints, the stock stops looking like scaled infrastructure and starts looking like a larger balance-sheet burden.
Med
Erp rollout creates avoidable friction
Management is implementing a new ERP system in 2026 for the legacy fleet. Those projects are dull right up until billing, scheduling, or reporting gets messy.
A rough rollout would not change the asset base, but it would damage the clean execution this story needs.
The combination to watch is simple: 1.36x coverage plus $2.5B of debt. If either side worsens, the yield stops looking like income and starts looking like a warning label.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Payout math
Distribution coverage
1.36x is fine. It is not generous. If this ratio weakens, the yield story changes before the headline distribution does.
Earnings
Next quarterly update
Watch whether management keeps the $770M–$800M adjusted EBITDA outlook intact and whether distributable cash flow stays strong enough to keep the payout comfortable.
Execution
Erp implementation
The 2026 system rollout is not the thesis. It still matters, because operational noise is the last thing you want in a high-yield name with limited slack.
Fleet trend
J-w acquisition follow-through
The market has already heard the $860M headline. Now you need to see better utilization, stronger cash output, or firmer support for guidance from the larger fleet.
Analyst Rankings
earnings predictability
30 / 100
Earnings can move around more than you want. In human-speak: this is steadier as an income vehicle than as a clean EPS story.
risk rank
3
Risk rank 3 means it is safer than roughly half the market. In human-speak: not a bunker stock, not a blowtorch either.
Source: institutional data
Institutional Activity
institutional ownership data for USAC is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$25
Current price
Target midpoint · from current
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