Csi Compressco Lp (CCLP) 10-Q Quarterly Report August 2022

THE WOODLANDS, Texas (August 9, 2022) / PRNewswire / - CSI Compressco LP (“CSI,” or the “Partnership”) (NASDAQ: CCLP) today announced second quarter 2022 results.

Second Quarter 2022 Results:

•Total revenues were $84.5 million compared to $76.5 million in the second quarter 2021.

•Contract services revenue increased to $64.3 million in the second quarter 2022 compared to $58.4 million in the second quarter 2021.

•Net loss was $6.8 million compared to a net loss of $9.6 million in the second quarter 2021.

•Adjusted EBITDA was $26.4 million compared to $26.5 million in the second quarter 2021.

•Compression fleet utilization increased to 82.8% compared to 76.9% in the second quarter 2021.

•Operating horsepower increased to 992,597 compared to 908,614 in the second quarter 2021.

•Distributable cash flow was $10.3 million compared to $10.1 million in the second quarter 2021.

•Distribution coverage ratio was 7.3x in the second quarter 2022 compared to 20.8x in the second quarter 2021.

•Second quarter of 2022 distribution of $0.01 per common unit will be paid on August 12, 2022.

The operating results presented throughout this document include the operating results of Spartan Treating (as defined in our 10-K filed March 14, 2022) due to the previously reported acquisition on November 10, 2021. As the Partnership and Spartan Treating were under common control at the time of Spartan’s acquisition of the Partnership’s general partner, the results of operations have been combined for the Partnership and Spartan Treating from the date of common control, which was January 29, 2021. As a result, operating results and certain financial metrics for the second quarter 2021 vary from what we previously reported.

Management Commentary

“During the second quarter of 2022, our revenues continued to grow. We continued deploying our idle fleet and implemented additional price increases. This increase in revenue was offset by a significant increase in costs during the quarter, largely associated with inflation and ongoing supply chain issues. The primary cost increases were from fluids (lube oil and gasoline), parts and labor. These three cost categories increased ranging from 10% to 15% quarter over quarter. These cost increases were largely offset by our improvement in utilization and as a result, our EBITDA is essentially flat quarter over quarter” commented John Jackson, Chief Executive Officer of CSI Compressco LP.

“As we look forward, it has been and continues to be difficult to predict the impact of inflation on our business and our costs. We continue to see strong demand for our products and services and have a significant amount of contracted horsepower that will be deployed in the second half of 2022. A significant portion of our compression fleet is under term contracts at any given time. As a result, we are raising prices as these units come off term and are subject to price changes. We have visibility into the balance of 2022 being very active and expect utilization to continue to improve through the remainder of 2022. We expect fleet revenue to continue to grow as the combination of price increases and utilization continues to work its way through the fleet.”

“Our incremental capital expenditure focus for the near term will be to deploy our available fleet as efficiently as possible, which includes converting existing units to electric motor-drive. Lead times for key components for new

The following information was filed by Csi Compressco Lp (CCLP) on Tuesday, August 9, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Csi Compressco Lp's 10-Q Quarterly Report:

Revenue - Product Highlight
Our potential sources of funds are our existing cash balances, cash generated from our operations, asset sales, and long-term and short-term borrowings, which we believe will be sufficient to meet our working capital and growth capital requirements during 2022.

Financial - Cash Flow Highlight
Management compensates for the limitations of Adjusted EBITDA and Free Cash Flow as analytical tools by reviewing the comparable U.S. GAAP measures, understanding the differences between the measures, and incorporating this knowledge into management's decision-making processes.
Revenue - Product Highlight
The increase in revenues is due to an increase in activity levels driven by the increase in oil and gas commodity prices and the improved market conditions.
Financial - Cash Flow Highlight
Cash Flows A summary of our sources (uses) of cash during the six months ended June 30, 2022 and 2021 is as follows: Operating Activities Net cash provided by operating activities decreased by $4.2 million compared to the prior year period.
Revenue - Product Highlight
In addition, due to the improved market conditions, we implemented price increases starting in the second half of 2021 and in the first half of 2022 resulting in increased revenues.
Other - Other
With the improvement in market...Read more
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With the improvement in market...Read more
Financial - Expense
Selling, general, and administrative expense...Read more
Other - Other
For a discussion of new...Read more
Financial - Expense
As the market environment continues...Read more
Other - Other
If oil and natural gas...Read more
Revenue - Product
The increase in revenues is...Read more
Financial - Cash Flow
Adjusted EBITDA and Free Cash...Read more
Financial - Cash Flow
These measures may not be...Read more
Revenue - Product
Revenue from contract services increased...Read more
Other - Other
In addition, due to the...Read more
Other - Other
Critical Accounting Policies and Estimates...Read more
Revenue - Product
Our near-term focus is to...Read more
Other - Other
Strong oil and gas commodity...Read more
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This increase in commodity prices,...Read more
Financial - Income
The change in other (income)...Read more
Other - Other
This was driven by a...Read more
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Interest expense, net Interest expense,...Read more
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Three months ended June 30,...Read more
Financial - Expense
22 Table of Contents Interest...Read more
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Other (income) expense, net Other...Read more
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Cash provided from our foreign...Read more
Financial - Earnings
The following table reconciles net...Read more
Revenue - Product
Reduced spending by oil and...Read more
Other - Other
Oil and natural gas commodity...Read more
Revenue - Product
Revenues Contract services revenues increased...Read more
Other - Other
As of June 30, 2022,...Read more
Other - Other
Management primarily uses this metric...Read more
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Although uncertainty remains, the outlook...Read more
Financial - Cash Flow
Adjusted EBITDA and Free Cash...Read more
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If the demand for compression...Read more
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Risk Factors" and elsewhere in...Read more
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We define Free Cash Flow...Read more
Revenue - Product
Aftermarket services revenues increased $1.3...Read more
Other - Other
During the first half of...Read more
Financial - Expense
Selling, general, and administrative expense...Read more
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Forward-looking statements in this Quarterly...Read more
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The increase is primarily due...Read more
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Equipment sales revenues increased $0.2...Read more
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These capital expenditures include approximately...Read more
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Our labor costs consist primarily...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Csi Compressco Lp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: CCLP
CIK: 1449488
Form Type: 10-Q Quarterly Report
Accession Number: 0001449488-22-000026
Submitted to the SEC: Tue Aug 09 2022 11:37:03 AM EST
Accepted by the SEC: Tue Aug 09 2022
Period: Thursday, June 30, 2022
Industry: Oil And Gas Field Services