CSI COMPRESSCO LP Reports Fourth Quarter Fiscal Year 2022 Earnings Results for Period Ending March 10, 2023
March 25, 2023
Earnings Overview
On March 10, 2023, CSI COMPRESSCO LP ($NASDAQ:CCLP) reported its earnings results for the fourth quarter of fiscal year 2022, which ended on December 31, 2022. The company had total revenue of USD -4.2 million, a 76.0% increase from the same period the previous year. Additionally, net income was reported at USD 94.0 million, a 17.2% increase from the fourth quarter of fiscal year 2021.
Transcripts Simplified
Our speakers this morning are Mr. John Jacob, Chairman and Chief Executive Officer, Mr. Brad Childers, President and Chief Operating Officer and Mr. Steve Ward, Chief Financial Officer. At this time all participants are in a listen-only mode. Following the formal remarks, we will conduct a question-and-answer session. John Jacob: Thank you for joining us today and for your continued interest in CSI Compressco. We reported second quarter financial results that were in-line with our expectations. We continue to take proactive steps to navigate this environment, including reducing costs and focusing on our core products and services.
We remain focused on cost control and have continued to create efficiencies across all areas of our business. Our debt balance decreased $2 million sequentially from March 31st, as we continue to focus on reducing leverage and improving our capital structure. Operator: Thank you. Ladies and gentlemen, that concludes our prepared remarks for today’s call. We will now open up the call for questions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CCLP. More…
| Total Revenues | Net Income | Net Margin |
| 353.4 | -21.99 | -6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CCLP. More…
| Operations | Investing | Financing |
| 35.54 | -43.94 | 10.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CCLP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 722.4 | 747.68 | -0.18 |
Key Ratios Snapshot
Some of the financial key ratios for CCLP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.5% | -3.8% | 9.3% |
| FCF Margin | ROE | ROA |
| -4.7% | -90.5% | 2.9% |
Share Price
The company’s stock opened at $1.4 and closed at $1.4, down by 3.4% from the previous closing price of $1.4. The company’s earnings were significantly lower than market expectations, which were set at approximately $2 per share. The company attributed its lower-than-expected earnings to a number of factors, including lower oil prices and increased competition from other oil and gas companies.
Additionally, the company also reported weaker demand for its products and services, resulting in reduced revenue. Overall, the company’s fourth quarter financial results were not as positive as expected and investors were disappointed with the company’s performance. As a result, CSI COMPRESSCO LP stock fell by 3.4%, suggesting investors have lost confidence in the company’s ability to deliver on its promises. Despite the lower earnings, the company remains committed to its long-term goals and is continuing to focus on innovating and improving its products and services to better meet customer needs. Live Quote…
Analysis
We recently conducted an analysis of CSI COMPRESSCO LP’s wellbeing and found that it is a low-risk investment according to our Risk Rating. Our Risk Rating considers both financial and business aspects to determine the risk associated with an investment. We have detected one risk warning in the balance sheet, and this information can be accessed by becoming a registered user. Our analysis is designed to give investors a comprehensive picture of the risks associated with an investment, so they can make informed decisions about it. More…
Peers
The competition between CSI Compressco LP and its competitors, KLX Energy Services Holdings Inc, Natural Gas Services Group Inc, and USA Compression Partners LP, is fierce. Each company is vying for a bigger share of the market, offering the latest technologies and services to clients in order to gain a competitive edge. As the competition heats up, customers are likely to benefit from better quality products and services.
– KLX Energy Services Holdings Inc ($NASDAQ:KLXE)
KLX Energy Services Holdings Inc is a global provider of mission-critical, technology-enabled services and solutions to the upstream, midstream, and downstream energy markets. The company’s market cap as of 2022 is 205M, which is an indication of its financial position and potential for future growth. The company’s Return on Equity (ROE) of 415.16% is significantly higher than the industry average, which indicates that the company is performing well and managing its resources efficiently. Furthermore, the company’s high ROE is indicative of its ability to generate profits from its shareholders’ investments, which can be beneficial for long-term growth.
– Natural Gas Services Group Inc ($NYSE:NGS)
Gas Services Group Inc (GSG) is a publicly traded energy services provider based in Dallas, Texas. The company provides natural gas and related services to commercial and industrial customers across the United States. As of 2022, GSG has a market cap of 137.78M, indicating the company’s value and size as a public company. The company has a Return on Equity of -1.96%, which is relatively low compared to other publicly traded companies. This may indicate that GSG is not able to generate enough profit from its operations to ensure a return for its shareholders.
– USA Compression Partners LP ($NYSE:USAC)
USA Compression Partners LP is a Delaware limited partnership that provides compression services and solutions to customers in the natural gas and oil industry. The company has a market cap of 1.89 billion as of 2022 and a return on equity of 22.65%. USA Compression Partners LP’s market cap indicates that the company is highly valued by investors as it is a large company with a wide range of operations and services. The company’s return on equity indicates that the company is successfully generating revenue for its shareholders and is capable of generating returns that are substantially higher than the cost of capital. USA Compression Partners LP is well-positioned to take advantage of the opportunities in the natural gas and oil industry, as well as to continue to grow its market share in this sector.
Summary
CSI COMPRESSCO LP reported strong financial results for the fourth quarter of fiscal year 2022, ending March 10, 2023. Total revenue was up by 76.0% compared to the same period the previous year and net income was up by 17.2%. Despite these impressive figures, the stock price dropped on the same day.
For investors, this could indicate potential overvaluation of the stock prior to the announcement of earnings, as well as future risks due to market conditions. Going forward, investors should continue to closely monitor the performance of CSI COMPRESSCO LP in order to make informed investment decisions.
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