USA Compression Partners LP (USA Compression Partners LP) Interest Coverage : 1.58 (As of Dec. 2023)

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What is USA Compression Partners LP Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. USA Compression Partners LP's Operating Income for the three months ended in Dec. 2023 was $70.8 Mil. USA Compression Partners LP's Interest Expense for the three months ended in Dec. 2023 was $-44.8 Mil. USA Compression Partners LP's interest coverage for the quarter that ended in Dec. 2023 was 1.58. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. USA Compression Partners LP interest coverage is 1.43, which is low.

The historical rank and industry rank for USA Compression Partners LP's Interest Coverage or its related term are showing as below:

USAC' s Interest Coverage Range Over the Past 10 Years
Min: 1.1 Med: 1.38 Max: No Debt
Current: 1.43

USAC's Interest Coverage is ranked worse than
87.93% of 762 companies
in the Oil & Gas industry
Industry Median: 6.74 vs USAC: 1.43

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

USA Compression Partners LP Interest Coverage Historical Data

The historical data trend for USA Compression Partners LP's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

USA Compression Partners LP Interest Coverage Chart

USA Compression Partners LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

1.38

1.27

1.10

1.25

1.43

USA Compression Partners LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.23	1.30	1.47	1.34	1.58

Competitive Comparison of USA Compression Partners LP's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, USA Compression Partners LP's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

USA Compression Partners LP's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, USA Compression Partners LP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where USA Compression Partners LP's Interest Coverage falls into.

USA Compression Partners LP Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

USA Compression Partners LP's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, USA Compression Partners LP's Interest Expense was $-169.9 Mil. Its Operating Income was $242.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,350.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	242.66	/	-169.924
	=	1.43

USA Compression Partners LP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, USA Compression Partners LP's Interest Expense was $-44.8 Mil. Its Operating Income was $70.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,350.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	70.808	/	-44.832
	=	1.58

The higher the ratio, the stronger the company's Financial Strength is.

USA Compression Partners LP (NYSE:USAC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

USA Compression Partners LP Interest Coverage Related Terms

Thank you for viewing the detailed overview of USA Compression Partners LP's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

USA Compression Partners LP (USA Compression Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » USA Compression Partners LP (NYSE:USAC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

111 Congress Avenue, Suite 2400, Austin, TX, USA, 78701

Website

https://www.usacompression.com

USA Compression Partners LP provides compression services in the United States in terms of total compression fleet horsepower to customers relating to infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and enhancing crude oil production through artificial lift processes. It engineers, designs, operates, services, and repairs its compression units, and maintains related support inventory and equipment. The company provides compression services in several shale plays throughout the U.S., including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, and others.

Executives

Eig Veteran Equity Aggregator, L.p.	director	1700 PENNSYLVANIA AVENUE, NW, SUITE 800, WASHINGTON DC 20006
Christopher W Porter	officer: SEE REMARKS	111 CONGRESS AVE., SUITE 2400, AUSTIN TX 78701
Eric D Long	director, officer: See Remarks	111 CONGRESS AVE., SUITE 2400, AUSTIN TX 78701
Michael C Pearl	officer: See Remarks	1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380-7046
Sean T Kimble	officer: SEE REMARKS	111 CONGRESS AVE., SUITE 2400, AUSTIN TX 78701
Bradford D. Whitehurst	director, See Remarks	100 CONGRESS AVENUE, SUITE 450, AUSTIN TX 78701
W Brett Smith	director	508 W WALL AVE., SUITE 500, MIDLAND TX 79701
Eric A Scheller	officer: See Remarks	111 CONGRESS AVE, SUITE 2400, AUSTIN TX 78701
Energy Transfer Lp	10 percent owner	8111 WESTCHESTER DRIVE, SUITE 600, DALLAS TX 75225
Le Gp Llc	10 percent owner
Energy Transfer Operating, L.p.	10 percent owner	8111 WESTCHESTER DRIVE, SUITE 600, DALLAS TX 75225
Energy Transfer Partners Gp, L.p.	10 percent owner	3738 OAK LAWN AVE., DALLAS TX 75219
Energy Transfer Partners, L.l.c.	10 percent owner	3738 OAK LAWN AVE., DALLAS TX 75219
Kelcy L Warren	10 percent owner
William G Manias	director	GULFTERRA ENERGY PARTNERS, 4 GREENWAY PLAZA, HOUSTON TX 77046