USA Compression Partners combines top-decile business quality (quality score 8.1 out of 10, Rule of 40 at 59, return on equity at 85%) with strong revenue growth of 35% year-over-year, but very high leverage (debt-to-equity of 9.5) and two consecutive earnings misses dampen the near-term setup.
Thesis pillars
- Strong Revenue Growth→Stable
- Leverage And Distribution Risk↑Improving
- Exceptional Operating Quality→Stable
- +1 more pillar — see the Why tab for full reasoning
USA Compression Partners, LP (USAC) Stock Analysis
Breakout setup
Energy · Oil & Gas Equipment & Services
Wait for pullback to $26.49. BUY gates pass at $27.56, but analyst target reached - limited upside remaining and leverage penalty (D/E 10.3): -1.5 argue for a more patient entry. Engine's entry $26.49 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum.
USA Compression Partners provides natural gas compression services to oil and gas producers, processors, and midstream companies across U.S. unconventional plays including the Permian, Marcellus, and Bakken under fixed-fee contracts. The partnership's fleet stood at 3.9 million... Read more
Wait for pullback to $26.49. BUY gates pass at $27.56, but analyst target reached - limited upside remaining and leverage penalty (D/E 10.3): -1.5 argue for a more patient entry. Engine's entry $26.49 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Fundamentals strong but target reached (-5.3% upside). Wait for pullback. Score 6.7/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.40, earnings proximity 66d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About USA Compression Partners, LP
About USA Compression Partners, LP
USA Compression Partners operates 3.9 million horsepower of compression fleet across unconventional plays including the Utica, Marcellus, Permian, Denver-Julesburg, Eagle Ford, and — following the $860 million J-W Power Acquisition completed January 12, 2026 — the Bakken, bringing total fleet to roughly 4.9 million horsepower. The partnership's 5,364 compression units as of December 31, 2025 serve approximately 260 customer companies under fixed-fee contracts, making USA Compression Partners one of the largest independent compression service providers in the U.S. by total fleet horsepower.
USA Compression Partners earns revenue exclusively from fixed monthly service fees charged to major integrated oil companies, public and private E&P companies, and midstream gatherers. Contracts typically carry initial terms of six months to five years, with approximately 19% of 2025 compression services revenue generated on month-to-month arrangements at year-end — contracts that customers may terminate with 30 days' written notice. The top 10 customers represented 46% of total revenues in 2025, up from 39% in 2023. Compression units are built to company specifications using primarily Caterpillar 3400, 3500, and 3600 engine classes and Ariel compressor frames; the partnership relies on a limited number of suppliers — including Caterpillar, Cummins, INNIO Waukesha, and Ariel — without long-term purchase contracts, and the 10-K notes lead times for Caterpillar engines have extended beyond two years for certain classes. The company carried $2.5 billion of total debt at December 31, 2025.
Show full overview
USA Compression Partners' fixed-fee contract structure requires customers to pay monthly service charges even during periods of limited or disrupted throughput, insulating near-term cash flows from volume variability. However, approximately 19% of 2025 revenues were generated on month-to-month contracts subject to 30-day termination notice. Energy Transfer owns 100% of the General Partner and 32% of limited partner units, and the 10-K notes that the General Partner's fiduciary duties to unitholders are limited under the Partnership Agreement, creating governance dynamics where Energy Transfer's interests could diverge from those of other unitholders.
See also: Energy · Oil & Gas Equipment & Services
From USA Compression Partners, LP's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-09-04Recent Developments — USA Compression Partners, LP
Latest news
- NEWS Zacks Research Issues Negative Estimate for USAC Earnings - MarketBeat — MarketBeat negative
- NEWS USA (USAC) Results Breakdown: EPS Falls Short of Its Estimate; After Results: The Market Price Advances 1.21% at the Clo — vinanet.vn negative
- NEWS USA Compression Partners LP - TradingKey — TradingKey neutral
- NEWS USA Compression Partners LP (USAC) Dividends & Stock Splits: Historical Payouts and Event Timeline - TradingKey — TradingKey neutral
- NEWS USA Compression Partners Stock - Analyst and consensus snapshot mid-year 2026 - AD HOC NEWS — AD HOC NEWS neutral
Generated 2026-09-04T08:27:08Z.
Upcoming dated catalysts
Thesis
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Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $26.49. BUY gates pass at $27.56, but analyst target reached - limited upside remaining and leverage penalty (D/E 10.3): -1.5 argue for a more patient entry. Engine's entry $26.49 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Fundamentals strong but target reached (-5.3% upside). Wait for pullback. Target $31.69 (+15.0%), stop $25.45 (−8.3%), A.R:R -0.7:1. Score 6.7/10, moderate confidence.
Take-profit target: $31.69 (-5.3% upside). Target $31.69 (+15.0%), stop $25.45 (−8.3%), A.R:R -0.7:1. Stop-loss: $25.45.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 10.3): -1.5; Consecutive earnings misses (2).
USA Compression Partners, LP trades at a P/E of 25.4 (forward 16.5). TrendMatrix value score: 6.8/10. Verdict: Buy (Wait for Entry).
12 analysts cover USAC with a consensus score of 3.7/5. Average price target: $30.
What does USA Compression Partners, LP do?USA Compression Partners provides natural gas compression services to oil and gas producers, processors, and midstream...
USA Compression Partners provides natural gas compression services to oil and gas producers, processors, and midstream companies across U.S. unconventional plays including the Permian, Marcellus, and Bakken under fixed-fee contracts. The partnership's fleet stood at 3.9 million horsepower at December 31, 2025, growing to roughly 4.9 million horsepower after the January 2026 J-W Power Acquisition; top 10 customers represented 46% of 2025 revenues.