USA Compression Partners reported record third-quarter 2026 results on November 3, driven by the January 2026 acquisition of J-W Power Company and strong contract operations performance. Average revenue-generating horsepower reached a record 4.48 million, up 26% year-over-year, while revenue per horsepower hit a record $23.14, up 8%. Total revenue climbed 43% to $357.2 million. Adjusted EBITDA rose 23% to $197.3 million.
The company guided full-year 2026 Adjusted EBITDA to $770 million to $780 million and Distributable Cash Flow to $495 million to $505 million, narrowing both ranges from prior guidance. Management attributed the adjustments to higher fuel and lube oil costs and lower retail parts and service activity, though the core contract operations business remained strong.
USA Compression's stock traded at $25.76, up 3.87% following the earnings release. The company's leverage ratio improved to 3.78x, approaching management's near-term target of 3.75x. Distribution coverage stood at 1.67x, up from 1.4x when the current CFO joined in November 2024. The company has maintained or grown quarterly distributions for more than 50 consecutive quarters.
More than 60% of 2027 new horsepower deliveries are already contracted, with approximately 90% of first-half 2027 deliveries secured. Industry forecasts call for 20-plus Bcf/d of natural gas production growth by 2030, requiring an estimated 10 million-plus incremental horsepower across the sector.
USA Compression Partners (USAC) trades on equity markets tied to natural gas compression demand. Investors should monitor Q4 2026 results and 2027 horsepower delivery execution against contracted backlog.