USA Compression Partners, LP (USAC): A Bull Case Theory

We came across a bullish thesis on USA Compression Partners, LP on X.com by . In this article, we will summarize the bulls’ thesis on USAC. USA Compression Partners, LP's share was trading at $27.60 as of February 26th. USAC’s trailing and forward P/E were 35.73 and 23.36 respectively according to Yahoo Finance.

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USA Compression Partners, LP provides natural gas compression services in the United States. USAC emerges as a compelling income-focused energy play for 2026, offering investors an 8.5% indicated annualized yield at a recent price of $24.60, with potential upside to $30. The Master Limited Partnership provides essential compression services under long-term, take-or-pay contracts, enabling natural gas transportation through domestic pipelines and supporting crude oil production.

Its operations are concentrated on high-horsepower applications, which comprise over 75% of its active compression fleet, deployed across five major basins with favorable economics, demonstrating resilience even during periods of stressed pricing. In 3Q 2025, USAC posted record adjusted EBITDA of $160 million, exceeding analyst expectations, with contract operations revenue rising 5% year-over-year and full-year EBITDA guidance increased by 2.5%, reflecting tight market conditions and a 94% average horsepower utilization rate.

The company benefits from strong financial backing, with Energy Transfer LP owning the non-economic general partnership and 46.9% of outstanding common units, while Moody’s, S&P, and Fitch affirm stable credit profiles with Ba3, B+, and BB ratings, respectively. Rating agencies highlight USAC’s geographic diversity, scale, customer retention, and long-term relationships with investment-grade counterparties, emphasizing the stability of its cash flows driven by 100% fixed-fee contracts with no commodity price or short-term volumetric risk.

The combination of resilient operations, strong contract coverage, and attractive yield positions USAC as a medium- to high-risk MLP well-suited for taxable income-focused portfolios. With proven execution, steady demand for compression services, and long-term contractual visibility, USAC represents a distinctive opportunity for investors seeking both high current income and exposure to the domestic energy infrastructure sector.

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