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

THE WOODLANDS, Texas (November 3, 2022) / PRNewswire / - CSI Compressco LP (“CSI,” or the “Partnership”) (NASDAQ: CCLP) today announced third quarter 2022 results.

Third Quarter 2022 Results:

•Total revenues were $94.9 million compared to $77.7 million in the third quarter 2021.

•Contract services revenue increased to $67.5 million compared to $59.4 million in the third quarter 2021.

•Net loss was $4.5 million compared to a net loss of $10.5 million in the third quarter 2021.

•Adjusted EBITDA was $29.8 million compared to $25.7 million in the third quarter 2021.

•Trailing Twelve Months Adjusted EBITDA was $109.5 million.

•Compression fleet utilization increased to 85.1% compared to 78.9% in the third quarter 2021.

•Operating horsepower increased to 1,022,106 compared to 928,303 in the third quarter 2021.

•Distributable cash flow was $13.1 million compared to $10.6 million in the third quarter 2021.

•Distribution coverage ratio was 9.3x compared to 21.8x in the third quarter 2021.

•Third quarter of 2022 distribution of $0.01 per common unit will be paid on November 14, 2022.

•Net Leverage Ratio was 5.7x compared to 6.8x in the third quarter 2021.

•CSI has no significant credit facility or debt maturities until 2025.

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 third quarter 2021 vary from what we previously reported.

Management Commentary

“During the third quarter of 2022, CSI Compressco financial and operating results reflected improvement in many areas that translated to improved EBITDA. Revenues for the fleet and aftermarket services continued to grow. The net realization from those revenue increases to EBITDA was much stronger this quarter than the second quarter of 2022. Utilization improved as we deployed more of our idle fleet, and we were able to continue to increase pricing on our existing fleet as we recoup the effects of inflation in our business. In the third quarter, revenue increases were able to outpace inflation as we saw overall EBITDA improve quarter over quarter by more than 10%. The third quarter saw some tempering of the costs increases from the first half of the year. While costs have generally continued to increase through the third quarter of 2022, the percentage increase was lower than the first half of 2022,” commented John Jackson, Chief Executive Officer of CSI Compressco LP.

“As we look forward, we continue to see strong demand and have additional contracted horsepower that will be deployed in the fourth quarter of 2022 and the first quarter of 2023. At that point, we will be reaching near full utilization of our reciprocating fleet. Our price increases will continue as we attempt to move our fleet to current market pricing as units come off term and move to month-to-month. It has been and continues to be difficult to

The following information was filed by Csi Compressco Lp (CCLP) on Thursday, November 3, 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.
Revenue - Geography Highlight
External factors including Russia's invasion of Ukraine, and on Federal Reserve interest rate increases, could adversely affect our results of operations, impair our ability to raise capital, or otherwise adversely impact our ability to realize certain business strategies.
Financial - Income Highlight
The change in other (income) expense, net was driven by higher foreign currency losses, hedge losses, and investment income primarily from our operations in Mexico and Argentina.
Revenue - Product
In addition, due to the...Read more
Other - Other
With the improvement in market...Read more
Other - Other
For a discussion of new...Read more
Other - Other
If oil and natural gas...Read more
Financial - Cash Flow
Cash Flows A summary of...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
Other - Other
With improved market conditions and...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
This increase in commodity prices,...Read more
Financial - Income
26 Table of Contents Other...Read more
Revenue - Product
Equipment sales revenues decreased $0.6...Read more
Other - Other
This was driven by a...Read more
Revenue - Product
Three months ended September 30,...Read more
Financial - Expense
Interest expense, net Interest expense,...Read more
Revenue - Geography
Cash provided from our foreign...Read more
Financial - Earnings
27 Table of Contents The...Read more
Revenue - Product
Reduced spending by oil and...Read more
Revenue - Product
Revenues Contract services revenues increased...Read more
Other - Other
As of September 30, 2022,...Read more
Other - Other
Management primarily uses this metric...Read more
Other - Other
Although uncertainty remains, the outlook...Read more
Financial - Cash Flow
Adjusted EBITDA and Free Cash...Read more
Other - Other
If the demand for compression...Read more
Other - Other
Risk Factors" and elsewhere in...Read more
Financial - Cash Flow
We define Free Cash Flow...Read more
Revenue - Product
23 Table of Contents Aftermarket...Read more
Other - Other
During 2022, oil and gas...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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Increased market conditions has provided...Read more
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These capital expenditures include approximately...Read more
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Our labor costs consist primarily...Read more
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We measure the horsepower utilization...Read more

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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: 0001449488-22-000033
Submitted to the SEC: Thu Nov 03 2022 11:29:37 AM EST
Accepted by the SEC: Thu Nov 03 2022
Period: Friday, September 30, 2022
Industry: Oil And Gas Field Services