Seeking Alpha

Goldman cuts USA Compression to Neutral following results, acquistion

  • USA Compression Partners (USAC +3.5%) — which yesterday reported Q2 results and announced the acquisition of $183M in compression assets — is downgraded to Neutral from Buy at Goldman.
  • Price target raised to $25 from $22.
  • Growth potential is "group-average," analyst Ted Durbin says, adding that although GS likes USAC's "exposure to shale-driven infrastructure growth via fee-based cash flows with no commodity risk," the shares are probably fully valued.
  • See the conference call (transcript) for Durbin's back and forth with management regarding the recent acquisition and what it means for EBITDA.
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