Also joining Good Chris. morning you, call. our Thank is thanks everyone, for Matt CFO. Liuzzi, our with and me
we morning, quarter operational results financial released and third XXXX. of for the our This
yet another The represented a standpoint. Compression, as well again an quarter solid as financial USA quarter both third from for operational
strength in business accretive as of to with both model stability growth. organic point results as continued Our revenues, the margins utilization, yet fleet our well modest,
to a shout-out our First Permian, Delaware operating team.
we at X.X quarter, During USA all this one with is miles million about and at-fault the technicians every zero target the Zero core drove Compression. each day our in do third region mantras of wrecks. incidents in we
entire great both focus benefits workforce. our our on and We safety are gang. and for employees' the proud Keep work up resulting of customers our the
of from year we of of the company million metrics was over income meaningful quarter XX% some was mention year. $XXX.X over continued highlight to ago. over increase XXXX. a a a combined now like next Adjusted as made third million the key Net quarter up a the for $XX.X have that for would I progress EBITDA
During consistent gross margin operating XX.X% the overall was previous with quarter, quarters. our
units XX,XXX above highly focused over counterparties. added large-horsepower and X,XXX fleet, attractive the predominantly with generate on We financial returns strong horsepower horsepower class to our that
generating was the was at average million X.X for quarter third horsepower our period horsepower Our utilization XX.X%. revenue approximately horsepower end and
cash we October, unit consistent common our the the announced $X.XXX distribution previous holders to In unit of quarter. with per
which the B week, During distribution Energy will our held public. quarter, USA by acquisition holders our common of million coverage consideration we is in IPO This X.XXx. $XXX and end converted since distribution regular-pay the in CDM over to Class for Compression's have value part returned units, of the the since were distribution which Transfer, XXth resulted of units, by to going this the unit common and
continues covenant QX. to Finally, leverage consistent X.Xx the stay for quarter with manageable our bank at
financially read successful of compression industry the had for a years Even we and the the months asked questions about continue headlines quarter energy in very and and outlook ahead. to though we get operationally, and overall health the
let we XXXX. me on have throughout touch seen First, what
business of that As compression exposure commodity USA from energy-related have our apart sets the business we've contract Compression discussed, to other nature prices. services demand-driven
Our ourselves like gas that third a in natural the used by by operation will business assets either critical world pipelines through or provided compression the natural gas you to find party of pipelines. are every owned and transports
contract a producing in our for recurring price multiple stay move Instead, customer. a a to cycles. a our Our don't in commodity short to We elsewhere and on time our are basis. often equipment for services have long customers period region of require place a then typically installed through time provide assets compression and and different
natural financially are invest E&P deliver continue is gas capital country to process most active to which As required. secure our move, and and customers, and this midstream companies our the of equipment some in
That the EIA for of the average continually the and XXXX, demand. U.S. quarter at increase daily we've production grid at be is The gas in the natural moving and first almost is XX meeting above levels. third continued approximately it work compression it increasing gas expects aimed XXXX pipeline through to per the day the seen nine Bcf production doing XXXX where of months to to XX% During get go. gas needs
Takeaway the capacity producing continues many the this get major improved if while in of pipelines attention open of capacity out have part of over remaining. regions, to still because course little, year any
midstream place entire should help As help in should happen, the realizations, near-term in better which development restrain further price increased takes chain. and the lead value but to further it overinvestment volumes will debottlenecking ultimately
and look at terms capital see we less some the across with of As capital being discipline. an to Budgets on levels. expect and into the budgets in are XXXX we rest emphasis activity XXXX, industry scrutinized of pullback
get In XXXX. to into and pending addition, the the presidential XXXX the and due of of relating global uncertainty we U.S. as end to activity somewhat we some to issues trade will moderate amount election, expect
XXXX long-time reduction currently be Just avoid will and are be order for strengthen versus large committed on is year, the have next to the customers. all we XX,XXX balance our seeing for a XXXX's off Based currently reliance are XXXX of out as we markets the which pedal to desire sheet our XXXX. as undue market, expect our we XXXX, on as what a delivery CapEx horsepower level. program taking capital below several foot to of We on well
compression indicates, utilization manage and we to optimize continue fleet. our our As
at Regardless, the out other of USA slightly be units, large-horsepower stability effectively decreased units. history. has compression an been to attractive of part sold important operating the customers XX-plus-year timing back returned continue put because utilization continue of of While we That some to quarter utilization we in units with Compression's rates. those in during areas out
Now overall from to touch on quarter. some operating metrics achievements the third and
to our our year consistent the from sure large-horsepower levels an the strength efforts stability with the earning increased generally remained utilization ongoing the half make first fleet and quarter are market. services. of return we Our of Pricing installed for appropriate second demonstrating reflecting
consistent of continue and we past during to million during acceptable to Growth will we levels with distribution was focus levels. coverage taper on $XX the and continued at the considerably of model. balance both and our for XXXX sheet the capital off remain approximately stable which believe be margins business Operating quarter rest
of unit with quarterly we Last to of this which our month, year. consistent $X.XXX a throughout equates distribution XX% levels per declared current yield around
returns program. equity As we a our of program unit investment the planned holders. reflect appropriate norm remainder incremental we an always XXXX CapEx believe we USA initial XXXX modest orders opportunities, is growth not The balance for are for for and and Compression's which for have focused generate is attractive where required discussed, high-return is have CapEx financial future on our accretive, and self-funding additional and
played this taken associated midstream point ongoing we out market equipment. over-commit as believe Even and at impact for incremental we with the our infrastructure prudent there overbuild services services much prices compression steps demand the or year, out Overall not has we to on will for uncertainty growth there be the around expected. of the have E&P commodity and
We differentiates our believe applications, continue with USA counterparties on our to focus financially peers. stable from infrastructure-oriented Compression large-horsepower strong
have results, half year consistent low the a utilization during the redeployed XX.X% for quarter customers the to average services of third The return with the quarter quarter very the demonstrated in first mid been no during classes. September XX% Those market that some continuing the to units needed. range. the primarily of of decrease strong the with some was for largely demand longer continued utilization So third slight average due compression from largest units reflecting during horsepower QX
majority of the substantial this in point achieved. been our year, the At plan has capital
to set of new the are delivered. For customers. units XXXX for remainder specific we approximately horsepower earmarked be have already Those XXXX
of From slightly X.X as metric. horsepower. an was up And reflected end horsepower I mentioned, certain large-horsepower primarily the units. decreased to movement total our period operating at was in fleet the perspective, at Active as previously modestly approximately due this million horsepower utilization return
that a equipment back units. of the redeployed have smaller in our of consists other regions. fleet in idle much field out We the already in the past horsepower Consistent equipment the small amount of with primarily relatively portion
working. continue for pricing again the the is the delivery to increases service units benefit the working look to reflected and selective and of those horsepower cost ways market deployed and previous effectively in There fleet units field. out and increased new for rate those get over field of Average a which we quarter, on already smaller the back to across assets equipment
For the the $XX.XX in third revenue of monthly quarter. second we saw quarter, from up average per $XX.XX horsepower
driver whole the on re-pricing average, we we've made that is a near-term. overall of new the fleet be results look we existing Combined expect our trajectory of less in view our into While the increased our with opportunities we on to moderate the delivered continue the expect entire going fleet to pricing increase evaluate to and for XXXX. units pricing prices to on of
QX and year $XX $XXX growth between new end capital has generally CapEx to of all expect million. amount million This delivery year. was horsepower. million growth remained total approximately including XX,XXX We approximately this $XXX consistent
Of was two-thirds number unit that about total related those to CapEx growth new deliveries.
usual, predominantly focused on the were units larger XXXX-horsepower unit horsepower above. and As new the deliveries class
gives new and largest weeks classes, In levels for closer USA XX on or the equipment terms the demand, the equipment to continues commitments equipment. we aren't defer the industry In to lead which prudent within ability of to three equipment for large-horsepower capital have engine and supply at by times Compression quarters. overbuilding two spending any additional CapEx there be general, seeing stabilized
another reflected again as of field. performance pricing, solid by financial We quarter XXXX. deployment stable the third units the we driven quarter metrics reported mentioned, I through horsepower into and the improved As worked new
the did The operating quarter, XX.X% the history margin was during second business adjusted of contract of While grow also the underlying achieving with EBITDA attractive million our of very reflecting recurring consistent adjusted operations EBITDA strong margins. $XXX.X quarter continued business.
quarter, converted the X.XXx. QX ratio flow covenant B leverage X.Xx includes which bank Class and was cash Our now coverage the with distributable for units consistent our was
the reminder, ratio receiving during B third they been have X.XXx. a not the would and quarter Class If had converted converted, distributions. units As approximately coverage the began
market the energy for little the a as the a to The uncertainty demand industry. third throughout some consistent the by and cloudy remained continued color general generally turning marked a sector whole. So, quarter drivers market economy around and in outlook
However, with seeing game are demand general think the sentiment natural end I we that gas you market positive investment as meeting of a see to even reality and by that in ongoing impact world's users. the the continue in energy changer
continue which companies, These petrochemical moving power LNG gas way. others from system, results to -- like continue us facilities. the in ultimately along to users drive end in facilities compression are -- generators, invest expected exporters, through and more the to These more requiring domestic guys demand,
referred marketplace positioned. are And business based Compression's gas as upon often the USA we've natural how what to have demand-driven for we seen like demand, I a in business. we
been have seeing are is budgets It impact are exercise customers continue trickle-down drastically we no services. counts and spending. providers to you broadly curtailed secret the rig capital one-time More on our and the that seeing other on of caution E&P
This USA activity overall to this anticipation of moderation in situation. reality avoid balanced we are prudent ought marketplace to also Compression, a in taking steps oversupplied to lead the an new and at more
for have plans number with As major very highly CapEx back I few XXXX, growth have we pursuing a a pared projects mentioned, our attractive limited customers. of
and ability the the have will additional on We things to will capital conditions an extent to keep market needs. specific growth to core eye customers' allocate meet dictate, we
for the infrastructure The demand. coming compression which and investment to that drives demand for expect increase continue domestically bottom-line is good over gas produced to is we natural years
recent Delaware of slower in On and on we the that Permian a region majority be continues moderated, The growth basins allocate investment currently years. to with the albeit in of development has that regional expect but capital and to our center XXXX. where vast continue is the in in activity than basis,
and demand believe the of oil with crude which to completion imminent, for we capacity incremental takeaway lead pipelines new continued natural compression. new is Significant gas will
Fayetteville mid-continent well focus In market changing STACK on the to adjusting and been conditions. as the the shale, operators plays the SCOOP supply are and where has as
regions flexible benefits As they a mobile areas. the of equipment redeployed of have has and moved fleet. selectively do it out This demonstrated we having other those in
and dry. Instead things in are in change flow. to those actively our manage left producing redeploy to generating assets given cash work we keep a the not field fleet and assets area, When the out out
shale, other be and regions as the South Colorado continue as to Our Louisiana, Utica Ford well operating Marcellus the Eagle stable. shales, Texas,
Our next nor has changed year look business into we throughout this strategy year. as not
large-horsepower, capital on prudent focused performance sure our expense and spending are value strong of are require We services. making we care who and while operational taking controls applications, continued customers infrastructure-based our
now turn Matt? the the some I to financial to call walk over will of highlights the of Matt through quarter.
