CSI Compressco shows increase in 2022 revenue, distributable cash flows

CSI Compressco has operations in the most prolific producing basins in the U.S. (Map: CSI Compressco.)

CSI Compressco reported its full-year 2022 results, which showed increases in revenue, adjusted EBITDA and distributable cash flows. The company’s net loss for the year fell to $22.1 million, down from a net loss of $50.3 million a year earlier.

Total revenues for 2022 were $353.4 million, up from to $304.2 million in 2021. The company’s adjusted EBITDA was $115.5 million, up from $101.8 million a year earlier. Distributable cash flows rose to $42.4 million, up from $38.1 million a year earlier.

The compression rental company said its fleet utilization at the end 2022 was 86.8% compared to 80.8% a year earlier. The utilization of the company’s reciprocating fleet, which represents 82% of its total horsepower, was 93.3%.

“Our fourth quarter results reflected a continuing robust demand for compression and related services,” said John Jackson, CEO of CSI Compressco. “We continued to add new build units to our fleet while upgrading some of our existing units through a combination of electric drive conversions and reconfiguring units to more industry-standard applications.”

The company said it sees strong demand for rental units in general, but tight supply for medium and large horsepower units. “We plan to spend lower amounts of growth capital in 2023 when compared to 2022 as we want to generate free cash flow,” he said.

As of December 31, 2022, the company’s fleet had a total of 1,187,357 hp, with 1,030,571 hp in service. Idle horsepower equipment under repair is not considered utilized, and the company does not count units on standby as utilized when the client is being billed a standby service rate.

The company forecast 2023 capital expenditures in the range of $43 million to $48 million. These capital expenditures include approximately $17 million to $19 million of maintenance capital expenditures, about $23 million to $25 million of capital expenditures primarily associated with the expansion of our contract services fleet, and $3 million to $4 million of capital expenditures related to investments in technology and facilities.

CSI Compressco provides natural gas compression services and treating services. It has a fleet of approximately 4800 compressor packages utilizing a full spectrum of low-, medium- and high-horsepower engines. The company’s general partner is owned by Spartan Energy Partners.