Immediate Income: USA Compression Partners 12% Yield Set To Grow
Investment Thesis USA Compression Partners (USAC) offers income seekers a solid 12% yield that due to a recent acquisition is primed to grow again over time.
A Simple Definition Due to previous confusion, whenever I write concerning immediate income investing, I feel it is necessary to define what I'm speaking of when doing so. I define immediate income investing as: Investing with a taxable account seeking immediate high return via dividends.
Due to this focus, I am not concerned with total return or overly focused on capital appreciation. I am a long-term buy and hold investor who is willing to sell if necessary. I often explain you can milk your cows or slaughter them to unlock value - I'd rather milk them.
Company Overview USAC invests in natural gas compression infrastructure.
Source: USAC Presentation
USAC operates large regional natural gas gathering and compression facilities. Natural gas is piped into those locations from various wells, gathered, compressed and transmitted to storage fields or for use.
Source: USAC Presentation
USAC operates across the United States in major oil fields. Earlier this year, USAC completed its acquisition of CDM Resource Management. This acquisition will further propel USAC's growth since CDM and USAC had highly compatible strategies and allowed USAC to expand over regions they previously had minimal coverage in.
Source: USAC Presentation
A second outcome of this acquisition was that USAC is... Read more
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