USA Compression Partners nets $138.3 million in stock offering

May 20, 2014
Austin American Statesman

Austin-based USA Compression Partners, which provides gas-compression equipment and services to oil and gas companies, said Monday it netted $138.3 million from a secondary stock offering


USA Compression Partners sold 5.6 million common shares of stock at $25.59 per share, according to a securities filing


The company said it plans use the proceeds to pay down existing credit obligations and for general business purposes


The company also said two of its current investors - Argonaut Private Equity and Jason Martin - planned to sell 1 million shares between them. They collectively could sell up to 990,000 more shares if underwriters choose to purchase additional shares. USA Compression Partners will not receive any of the proceeds from the investors’ offerings, according to the securities filing


USA Compression Partners raised $198 million in a January 2013 initial public offering. In 2013, the company had record revenue of $152.9 million, up 28.7 percent from $118.8 million in 2012. Net income more than doubled, to $11.1 million from $4.5 million


For the first quarter of this year, USA Compression Partners’ revenue rose 54 percent to $50.2 million, compared with $32.6 million in the same quarter last year. The company had net income of $3.9 million, or 10 cents per share, compared with net income of $4.4 million, or 12 cents per share, for the same period last year


Founded in 1998, USA Compression Partners is one of the largest gas-compression service providers in the nation. It leases systems that compress natural gas to create the pressure needed for production and transportation


The company’s equipment is used in key gas production areas, including the Eagle Ford and Barnett shale fields in Texas


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