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USA Compression Partners executive sells more than 0,000 worth of company stock By Investing.com

USA Compression Partners, LP (NYSE:) has reported a significant stock transaction by a key manager. Eric D. Long, President, CEO and Director of the General Partner of USA Compression Partners, sold a total of 23,182 shares of the Company’s common stock. The transactions occurred on two separate days and had a total value of over $517,227.

The first sale occurred on August 23, 2024, when Mr. Long sold 21,396 shares of common stock at a weighted average price of $22.27. Sales continued on August 26, 2024, with 1,786 shares of common stock sold at a price of $22.81 per share. These transactions resulted in Mr. Long completely divesting his direct interests in the Company.

The sales were conducted indirectly through the Alex B Long Trust, of which Mr. Long is the trustee. According to footnotes in the filing, the price range for the first unit sold was between $22.15 and $22.52. The footnotes also note that the common units held by the Alex B Long Trust and the Adam Ericson Long Trust are included in the reported ownership and that Mr. Long is the trustee for both trusts.

The filing also notes that shares held following the transactions include common shares acquired under the Company’s Distribution Reinvestment Plan. Following the transaction, the Alex B Long Trust no longer holds any common shares, while other indirect holdings of trusts affiliated with Mr. Long remain in place.

USA Compression Partners, LP, based in Austin, Texas, is in the transmission business. The company did not comment on the transactions, and the SEC filing is merely a factual statement of the stock sales as required by securities regulations.

In other recent news, USA Compression Partners reported record-breaking financial results for the second quarter of 2024. The company achieved unprecedented revenue, adjusted gross margin and adjusted EBITDA. In addition, USA Compression Partners reported period-end utilization of 95%, with large horsepower units over 1,000 horsepower operating at near full capacity at 99%. The company’s future outlook is positive, with plans to increase pricing and reduce leverage in a strong contract compression market.

Net income for the quarter was $31.2 million, while operating income reached $77.4 million. In addition, the company deployed an additional 41,000 horsepower during the quarter. In terms of capital expenditures, the company spent $67 million on expansions and $8.9 million on maintenance in the second quarter of 2024.

USA Compression Partners has revised its full-year 2024 financial guidance, projecting an increase in net income and adjusted EBITDA. The company also plans to deploy 30,000 to 50,000 horsepower of non-contracted fleet assets during the remainder of 2024. These recent developments provide insight into the company’s performance and future prospects.

InvestingPro Insights

Following the recent transactions by a top executive of USA Compression Partners, LP (NYSE:USAC), investors may be interested in understanding the company’s current financial position. Recent data from InvestingPro shows that USAC has a market capitalization of approximately $2.59 billion, indicating its considerable size within the natural gas transportation industry. In addition, the company’s revenue recorded a healthy growth rate of 17.18% over the last twelve months (as of Q2 2024), demonstrating its ability to expand its financial base.

Investors interested in USAC stock should note that it trades at a relatively high earnings multiple, with a P/E ratio of 41.06. This could indicate that the market has high expectations for the company’s future earnings growth. In addition, USAC has consistently rewarded its shareholders, maintaining dividend payments for seven years in a row and offering a respectable dividend yield of 9.47%, according to the latest data.

One of InvestingPro’s picks highlights that the company is trading near its 52-week low, which could potentially provide a more attractive entry point for investors. Another pick suggests that analysts are forecasting profitability for the company this year, which, combined with the strong return over the past five years, could make a compelling case for investment.

For those interested in deeper analysis, InvestingPro offers additional tips on USAC’s stock performance and financial health. There are currently 9 more InvestingPro tips available for USAC, which can be accessed at https://www.investing.com/pro/USAC for investors seeking comprehensive insights.

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