An increase in revenue generated by its gas-compression equipment in the field helped boost USA Compression Partners' second-quarter sales by 60 percent and, combined with a robust pipeline of new orders, prompted the Austin-based company to guide investors toward the higher end of its 2014 earnings forecast.
As of midday Tuesday, shares of the company--whose equipment works like a heart that pumps gas through a well, pipeline and processing network--jumped about 4 percent on the upbeat report. The company's shares closed Tuesday up 2.7 percent at $25.22.
USA Compression said its revenue for the second quarter jumped to $53.3 million,, compared to $33.3 million during the same period last year. Thanks in part to a sale of some assets and containing rising costs at a rate slower than its sales growth, the company's net income more than tripled to $7.5 million (20 cents a share) from $2.4 million (8 cents a share) last year.
The gas-compression horsepower in USA Compression's fleet increased about 39 percent over the same time last year, but so did the share of that horsepower that generated revenue for the company. In the second quarter, 89.2 percent of the horsepower in its fleet was producing revenue, up from 86.4 percent during the same period last year.
Founded in 1998, USA Compression Partners is one of the largest gas-compression service providers in the nation. It leases systems that compress natural gas to create the pressure needed for production and transportation.
The company's equipment is used in key gas production areas, including the Eagle Ford and Barnett shale fields in Texas.
In May, the company said it netted $138.3 million from a secondary stock offering.
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