USA Compression Partners, LP (NYSE:USAC) Q3 2023 Earnings Conference Call October 31, 2023 11:00 AM ET
Company Participants
Chris Porter – Vice President-General Counsel and Secretary
Eric Long – Chief Executive Officer
Eric Scheller – Chief Operating Officer
Conference Call Participants
Selman Akyol – Stifel
Robert Mosca – Mizuho
Operator
Good morning. Welcome to USA Compression Partners Third Quarter 2023 Earnings Conference Call. During today’s call, all parties will be in a listen-only mode. At the conclusion of management’s prepared remarks, the call will be opened for Q&A. [Operator Instructions] This conference is being recorded today, October 31, 2023.
I would now like to turn the call over to Chris Porter, Vice President, General Counsel and Secretary.
Chris Porter
Good morning, everyone, and thank you for joining us. This morning, we released our operational and financial results for the quarter ending September 30, 2023. You can find a copy of our earnings release as well as a recording of this call in the Investor Relations section of our website at usacompression.com.
During this call, our management will reference certain non-GAAP measures. You will find definitions and reconciliations of these non-GAAP measures to the most comparable U.S. GAAP measures in our earnings release. As a reminder, our conference call will include forward-looking statements.
These statements are based on management’s current beliefs and include projections and expectations regarding our future performance and other forward-looking matters. Actual results may differ materially from these statements. Please review the risk factors included in this morning’s earnings release and in our other public filings. Please note that information provided on this call speaks only to management views as of today, October 31, 2023, and may no longer be accurate at the time of a replay.
I’ll now turn the call over to Eric Long, President and CEO of USA Compression.
Eric Long
Thank you, Chris. Good morning, everyone, and thanks for joining our call. I am joined on the call today by Eric Scheller, our COO. This morning, we released our third quarter 2023 results, which highlight the continued improvement in our financial and operational results, as we continue to focus on capital discipline and maximizing return on our assets. Eric Scheller will provide more detail on our results, but I would like to highlight our third quarter distribution coverage, which grew to 1.39 times continuing our trend of increasing distribution coverage is here.
In addition, our leverage ratio was 4.21 times continuing progress towards our previously mentioned goal of 4.0 times, a welcome improvement in both metrics. Methodical de-levering of our balance sheet over the coming quarters positions us well for when our senior notes mature, which is not until Q2 2026 and Q3 2027. Our unit price this past year has trended up from the $18 range to recently over $26 levels last seen in 2014.