USAC’s moving average
USA Compression Partners (USAC) continues to trade above both its short-term and long-term moving averages, which indicates bullish sentiment in the stock. It was trading 10.8% and 13.9% above its 50-day SMA and 200-day SMA as of January 19, respectively. In comparison, USAC’s peers Archrock Partners (APLP) and CSI Compressco (CCLP) were trading 12.3% and 21.9% above their 50-day SMAs.
USAC’s recent compression deal with Energy Transfer Partners (ETP)—and a further increase in US drilling activity or natural gas production growth—could push USAC’s stock further above its moving average. On the other hand, a negative earnings surprise, possible dilution from the USAC deal, and a decline in Eagle Ford drilling activity might push USAC below its 50-day and 200-day SMA, resulting in bearish sentiment. USAC’s exposure to the Eagle Ford region is expected to increase following the completion of the deal.
Short interest in USAC
Short interest in USAC was 0.13 million shares as of January 19, 2018. At the same time, short interest in USAC as a percentage of float ratio was 0.25%, which is lower than the 30-day average of 0.32% and which indicates bullish sentiment in the stock. Moreover, short interest in USAC is lower than the last one-year and three-year averages of 0.5% and 0.6%, respectively.
USAC’s forward EV-to-EBITDA
USAC was trading at a forward EV-to-EBITDA multiple of 9.5x as of January 19, which is slightly below the one-year and three-year averages of 12.2x and 11.3x, respectively. However, USAC’s distribution yield of 11.1% is lower than the one-year yield of 12.6%. A lower distribution compared to the historical average indicates that the partnership is trading at a premium to historical levels.