USA Compression Partners, LP Common Limited Partner Interests (USAC) Company Bio
USA Compression Partners LP provides natural gas compression services under term contracts with customers in the oil and gas industry in the United States. It engineers, designs, operates, services, and repairs its compression units and maintains related support inventory and equipment. The company was founded in 1998 and is based in Austin, Texas.
USAC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for USAC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that USA Compression Partners LP ranked in the 96th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 8746.83%. The most interesting components of our discounted cash flow analysis for USA Compression Partners LP ended up being:
Its compound free cash flow growth rate, as measured over the past 3.54 years, is 1.5% -- higher than 94.72% of stocks in our DCF forecasting set.
36% of the company's capital comes from equity, which is greater than merely 19.76% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Energy), USA Compression Partners LP has a reliance on debt greater than 59.27% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as USAC, try QES, DNR, AM, MCEP, and GPP.
Also with me is Matt Liuzzi, our CFO; and Bill Manias, our COO. Average pricing across the fleet increased modestly during the first quarter, reflecting some new unit deliveries as well as the impact of selective service rate increases previously negotiated.
Cushing® Asset Management, LP, and Swank Capital, LLC, announce an upcoming interim change to the constituents of The Cushing® MLP Market Cap Index (the "Index"). Per the Index's methodology guide, a constituent change due to a distribution cut will take place on the latter of the distribution ex-date or the last business day of the week that is at least five business days after the day on which the announcement is made. Due to the January 15, 2020, distribution cut announcement by EnLink Midstream, LLC (NYSE: ENLC), after the market closes on January 30, 2020, (the distribution ex-date) and effective on January 31, 2020, USA Compression Partners, LP (NYSE: USAC) will replace ENLC as a constituent of the Index at ENLC's then-current weight.