EIG Veteran Equity Aggregator, L.P., a significant shareholder in USA Compression Partners, LP (NYSE:USAC), has recently sold a portion of its holdings in the company. The transactions, which took place on June 5th and 6th, 2024, involved the sale of 4,463 common units at prices ranging from $24.00 to $24.0035 per share, totaling approximately $107,122.
The sales were executed over two consecutive days, with the first transaction on June 5th comprising 1,602 common units at $24.00 each, and the subsequent sale on June 6th of 2,861 units at a slightly higher price of $24.0035 per share. Following these transactions, EIG Veteran Equity Aggregator's ownership in USA Compression Partners has been adjusted to 5,542,125 common units.
USA Compression Partners, a company specializing in natural gas transmission, has seen its common units actively traded by significant investors such as EIG Veteran Equity Aggregator. The partnership's units are traded on the New York Stock Exchange under the ticker symbol NYSE:USAC, and the recent sales by EIG Veteran Equity Aggregator represent a notable change in its investment position.
Investors often monitor such transactions closely, as they may reflect the views of significant shareholders on the company's current valuation and future prospects. The managing entities involved in the sale include EIG Veteran Equity GP, LLC and EIG Asset Management, LLC, with signatures from Matthew Hartman, Managing Director, and Nick Williams, Senior Vice President, confirming the executed sales.
USA Compression Partners, with its business address in Austin, Texas, continues to be a key player in the energy sector, providing critical services in natural gas transmission. The transactions by EIG Veteran Equity Aggregator provide insights into the investment activities of major stakeholders in the energy industry.
In other recent news, USA Compression Partners reported record-breaking financial and operational performance for the first quarter of 2024. The company showcased robust growth with record revenues, an increase in adjusted gross margin, adjusted EBITDA, and distributable cash flow. Also, the company issued and redeemed senior notes, converted preferred units to common, and focused on reducing leverage to stabilize cash flow.
On another note, Mizuho Securities upgraded USA Compression Partners stock from Underperform to Neutral, setting a price target of $26.00. This upgrade reflects the company's solid operational performance, supported by a tight compression market, longer contract durations, and improved fleet utilization.
These are some of the recent developments for USA Compression Partners. The company's strategic focus on balance sheet simplification is recognized as a positive move that could attract new investors. With expectations for supply growth, the sector seems poised to maintain its upward trajectory. As USA Compression Partners continues to deleverage, it is in a position to benefit from its midstream characteristics without having to reduce its distribution payouts to shareholders.
InvestingPro Insights
Amidst the recent transactions by EIG Veteran Equity Aggregator, L.P. in USA Compression Partners, LP (NYSE:USAC), current and potential investors may find it beneficial to consider additional insights provided by InvestingPro. Despite the sale of common units by a significant shareholder, USA Compression Partners is positioned with a robust financial outlook based on real-time data and analysis.
InvestingPro data indicates that USA Compression Partners has a market capitalization of $2.79 billion and is trading at a forward P/E ratio of 57.7, suggesting that investors may expect sustained earnings in the near future. Moreover, the company's revenue has grown by 18.96% over the last twelve months as of Q1 2024, reflecting strong operational performance. Additionally, the firm's dividend yield stands at a compelling 8.8%, which is particularly attractive for income-focused investors.
An InvestingPro Tip highlights that USA Compression Partners is expected to see net income growth this year, which could signal a positive trajectory for the company's profitability. Furthermore, the firm is recognized for maintaining dividend payments for seven consecutive years, showcasing a commitment to returning value to shareholders consistently.
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