USA Compression Places Orders
Company gained 40,000 hp (30 MW) of compression in Q4 of 2013
USA Compression Partners acquired 40,000 hp (30 MW) of midstream and gas lift compression units in the fourth quarter of 2013, bringing its fleet to about 1.2 million hp (895 MW), and has ordered 180,000 hp (134 MW) of compression for delivery this year.
The disclosures came as the Austin, Texas, limited partnership released its fourth quarter earnings. Net income jumped to US$4.4 million from US$0.9 million in the fourth quarter of 2012. Revenue climbed 53.1% to US$48.6 million from US$31.8 million, largely due to a 52.5% increase in contract operations revenue.
USA Compression said its horsepower utilization rate was well above 90% in the fourth quarter.
“We continue to see good demand for our contract compression services throughout the shale and unconventional plays in which we operate, but especially in the Marcellus, Eagle Ford, Utica, and Permian Basin shales and the Mississippi lime and Granite Wash areas,” it said.
The company has customer contracts for more than 36% of the compression units on order. “As we get closer to taking delivery at various times throughout the first half of 2014, we expect to have substantially all the new units contracted for service.”
USA Compression anticipates ordering another 40,000 hp (30 MW) of compression later in 2014 with potentially more to come. “Our demand signals remain very strong,” it said.