CSI Compressco LP (CCLP) Misses Q1 EPS by 15c, Affirms Financial Guidance

CSI Compressco LP (NASDAQ: CCLP) reported Q1 EPS of ($0.26), $0.15 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $103 million versus the consensus estimate of $115.53 million.

Forward-Looking Guidance

We expect consolidated 2019 revenue to be between $490 million and $520 million and Adjusted EBITDA to be between $125 million and $140 million, consistent with our prior expectations. We further expect that our average distribution coverage ratio for 2019 will be between 30X and 35X at the end of 2019 with aggregate 2019 distributable cash flow to be between $55.5 million and $68.5 million. Reconciliations of expected adjusted EBITDA, distributable cash flow, free cash flow and distribution coverage ratio to the nearest GAAP financial measures are included on Schedule E.

We expect 2019 capital expenditures to total $60 million to $65 million, which we expect to fund from cash on hand and cash flow from operations. This range includes $18 million to $20 million for maintenance capital expenditures and $42 million to $45 million of growth capital expenditures that would add approximately 79,000 of horsepower to the fleet in 2019, all with client commitments. This range excludes $15 million, or 20,700 horsepower, that TETRA Technologies, Inc. ("TETRA") agreed to purchase and lease to us under a five-year financing lease. However, for accounting purposes, the $15 million of fleet additions, funded by TETRA finance lease commitment, will be reflected as capital expenditures. We have the right to buy the equipment any time over the next five years in accordance with the terms of the agreements with TETRA, and have no obligation to buy the equipment at the end of the five-year term. This support from TETRA will allow us to meet current client demands without having to access the debt and equity markets or our credit facility.

For earnings history and earnings-related data on CSI Compressco LP (CCLP) click here.

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