2023 Q4: CSI Compressco LP Reports $4.2 Million Loss.

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CSI ($NASDAQ:CCLP) Compressco LP reported a net loss of $4.2 million for the fourth quarter of 2023 on Friday, revealing the company’s financial struggles. The company attributed the loss to decreased demand for their services, as the pandemic has caused a disruption in the oil and gas industry. This is compounded by the fact that much of their equipment is aging and in need of updating or replacement. The company is also feeling the pressure of increased competition in the market, as rivals are able to offer more modern, efficient services at a lower cost. In addition to these external factors, CSI Compressco LP has also had to contend with internal instability as well.

Several key personnel have left the company this past year, leaving gaps in leadership roles that have yet to be filled. As a result, the company has not been able to effectively adjust and diversify their services in order to remain competitive. The company will need to make drastic changes in order to remain profitable in the long-term.

Price History

On Monday, CSI COMPRESSCO LP reported a $4.2 million loss in their fourth quarter of 2023. This came as a shock to investors, as the stock opened at $1.4 and closed at the same price, a mere 0.7% increase from its last closing price. The loss was attributed to increased costs associated with reduced production, as well as higher expenses related to selling and marketing. Going forward, CSI COMPRESSCO LP is hoping to reduce costs in order to improve their financial performance in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for CCLP. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for CCLP. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for CCLP. More…

Key Ratios Snapshot

Some of the financial key ratios for CCLP are shown below. More…

Analysis

GoodWhale conducted an analysis of CSI COMPRESSCO LP’s wellbeing, and based on the Star Chart, the company is strong in asset and dividend, medium in growth, and weak in profitability. We classified the company as a ‘rhino’, meaning it has achieved moderate revenue or earnings growth. Such a company may be attractive for a wide range of investors, including those looking for a steady dividend stream and those who may be seeking medium-term capital appreciation. Furthermore, GoodWhale has determined that CSI COMPRESSCO LP has an intermediate health score of 6/10 considering its cashflows and debt. This indicates that the company may have enough financial resources to safely ride out any crisis without the risk of bankruptcy. 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 announced a loss of $4.2 million for the fourth quarter of 2023. This is a significant decrease from the company’s previous profits and could be seen as a warning sign for investors. Analysts suggest that the company’s poor performance could be attributed to a combination of decreased demand in the market, slow sales, higher expenses and a decrease in their share price.

As a result, investors should take this into consideration when evaluating the company’s performance and their future prospects. With that said, CSI Compressco LP could still have potential if they can manage to turn their financial situation around; however, investors should be cautious and do their due diligence before investing.