AUSTIN, Texas - USA Compression (NYSE:USAC) Partners, LP (NYSE: USAC), a major provider of natural gas compression services, announced the retirement of co-founder Eric D. Long from his roles as President and CEO, as well as his departure from the company's Board of Directors, effective October 2, 2024. Long will continue to support the company in a transitional capacity until the end of the year.
Succeeding Long is Micah Clint Green, who has been appointed as the new President and CEO starting today. Green brings over 25 years of industry experience to USA Compression, having previously held leadership roles at Energy Transfer LP (NYSE: NYSE:ET) and other energy firms.
Tom Long, co-CEO of Energy Transfer and Chairman of the USAC Board, expressed gratitude for Eric Long's leadership, which has been instrumental in establishing USA Compression as a leading provider of compression services in the oil and gas industry. He also welcomed Clint Green, noting his significant experience and contributions to Energy Transfer's operations and construction teams.
Eric Long reflected on his tenure, acknowledging the growth and success of USA Compression under his leadership and expressing confidence in leaving the company in capable hands.
USA Compression is recognized as one of the nation's largest independent providers of natural gas compression services by total compression fleet horsepower. The company caters to a diverse customer base, including producers, processors, gatherers, and transporters of natural gas and crude oil, focusing on midstream natural gas compression services for infrastructure applications.
This leadership transition is based on a press release statement from USA Compression Partners, LP.
In other recent news, Energy Transfer has reported a significant increase in its adjusted EBITDA for the second quarter of 2024, reaching $3.76 billion, up from $3.1 billion in the same period of the previous year. This growth was driven by record volumes in crude oil and natural gas liquids pipelines, as well as robust exports. The company also announced a secondary public offering of 38,755,996 of its common units, with all proceeds going to the Selling Unitholders, WTG Midstream LLC and an affiliate of Stonepeak. Barclays (LON:BARC) has been appointed as the underwriter for the offering.
In addition, Energy Transfer has formed a joint venture with Sunoco LP, merging their crude oil and produced water gathering operations in the Permian Basin. The company also acquired WTG Midstream Holdings LLC for approximately $3.25 billion, a move expected to enhance the company's operations and access to natural gas and natural gas liquids in the Permian Basin.
Mizuho maintained its Outperform rating and a $20.00 price target on Energy Transfer, despite the company's increased capital expenditure forecast and active mergers and acquisitions strategy. The firm remains optimistic about Energy Transfer's overall trajectory, citing its strategic investments and market position. These are the recent developments for Energy Transfer.
InvestingPro Insights
As USA Compression Partners undergoes this significant leadership change, it's worth examining the financial health of Energy Transfer LP (NYSE: ET), given the incoming CEO's background with the company. According to InvestingPro data, Energy Transfer boasts a substantial market capitalization of $54.93 billion, indicating its significant presence in the Oil, Gas & Consumable Fuels industry.
Energy Transfer's financial metrics reveal a company with strong fundamentals. The company's P/E ratio of 13.34 suggests a reasonable valuation relative to its earnings. Moreover, Energy Transfer has demonstrated profitability over the last twelve months, with a revenue of $83.63 billion and an EBITDA of $13.86 billion for the same period.
InvestingPro Tips highlight Energy Transfer's commitment to shareholder returns, noting that the company "pays a significant dividend to shareholders" and "has maintained dividend payments for 19 consecutive years." This aligns well with the company's current dividend yield of 7.98%, which could be attractive to income-focused investors.
Another relevant InvestingPro Tip indicates that Energy Transfer's stock "generally trades with low price volatility," which might appeal to investors seeking stability in the often-volatile energy sector. This characteristic could be particularly valuable as the industry navigates leadership transitions and market fluctuations.
These insights offer a glimpse into Energy Transfer's financial position and market performance, which may influence USA Compression Partners' future direction under its new leadership. For a more comprehensive analysis, InvestingPro offers 8 additional tips for Energy Transfer, providing investors with a deeper understanding of the company's prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.