CSI Compressco LP (CCLP) Tops Q3 EPS by 8c, Revenues Beat

CSI Compressco LP (NASDAQ: CCLP) reported Q3 EPS of ($0.25), $0.08 better than the analyst estimate of ($0.33). Revenue for the quarter came in at $79.16 million versus the consensus estimate of $77.51 million.

Brady Murphy, President of CSI Compressco commented, "Despite the industry macro environment with another 36% sequential decline in drilling rigs in the U.S., our business continues to perform very well. Excluding New Equipment Sales, which we are exiting, revenue decreased 1% to $72.3 million in the third quarter of 2020. Adjusted EBITDA improved by $722,000 and Adjusted EBITDA margins improved by 700 basis points. Contributing to our improved Adjusted EBITDA margins was the sale of some lower horsepower used unit sales as we continue to rationalize the fleet and upgrade to larger horsepower, and from continued efforts on cost reductions and streamlining our operations."

"As part of our exit of the New Equipment Sales business, our Midland, Texas fabrication facility and real estate was sold in early July for $17 million in gross cash proceeds. We also completed or expect to complete during the third and fourth quarters of this year the sale of used compressors in three separate transactions for a total of $13 million. We expect these sales of non-strategic and under-utilized assets may generate, in aggregate, incremental liquidity totaling approximately $30 million, $21 million of which was generated in the third quarter."

"As a key part of our strategy going forward, I am very pleased to announce the introduction of our new HelixTM digitally enhanced compression telemetry system. The Helix digitally enhanced compression system communicates at significantly higher fidelity rates, streaming data 1,440 times faster than our current telemetry solution. Our new telemetry system will leapfrog existing compression industry systems and allow the use of big data to improve performance, reliability and predictive maintenance. As part of our Helix digitally enhanced compression development, we are pleased to be the only oilfield services company to partner with Houston's Rice University D2K program, a partnership specifically designed to analyze big data and develop machine learning models that enhance our current predictive maintenance programs. Currently we have completed 25% of the hardware upgrade roll outs and expect to be fully deployed by the end of 2021."

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

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