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USA Compression Partners, LP,(USAC) a leading provider of natural gas compression services, has released its financial results for the first quarter of 2023. The unaudited condensed consolidated financial statements show a positive outcome for the company, reporting a net income of $10.9 million. The revenue for the quarter reached $197.1 million, indicating a substantial increase compared to the same period last year. Let's delve into the details of the financial statements to understand the factors contributing to the company's performance.
Net Income/Loss
For the three months ended March 31, 2023, USA Compression Partners achieved a net income of $10.9 million, showcasing strong operational efficiency and improved financial performance. This represents significant growth compared to the same period in the previous year, where the company reported a net income of $3.3 million.
Revenue
During the first quarter of 2023, USA Compression Partners recorded total revenues of $197.1 million. This impressive figure represents a substantial increase compared to the first quarter of 2022, which saw total revenues of $163.4 million. The growth in revenue can be attributed to increased contract operations, parts and services, as well as related-party revenue.
The breakdown of revenue for the first quarter of 2023 is as follows:
- Contract operations: $188.5 million
- Parts and service: $3.9 million
- Related party: $4.7 million
Financial Statements Overview
Assets
As of March 31, 2023, USA Compression Partners' total assets amounted to $2.66 billion, slightly down from $2.66 billion reported on December 31, 2022. The assets primarily consist of current assets worth $185.9 million and long-term assets, including property and equipment, lease right-of-use assets, identifiable intangible assets, and other assets.
Liabilities, Preferred Units, and Partners’ Deficit
The company reported total liabilities of $2.35 billion, which include current liabilities amounting to $156.0 million. Long-term debt, net, accounted for $2.17 billion of the total liabilities.
The Preferred Units, standing at $477.3 million, remain unchanged from the previous period. The partners' deficit, representing the net equity of common unitholders, reached $168.5 million, a significant increase from the deficit of $116.3 million at the end of December 2022.
Overall, USA Compression Partners has demonstrated positive financial results for the first quarter of 2023, with increased net income and revenue compared to the same period last year. The company's focus on contract operations and related services has proved to be fruitful, contributing to its overall growth and financial stability.