USA Compression Partners
Dividend Yield: 7.2%
While EXLP has its hands across the entire natural gas value chain, USA Compression Partners, LP (USAC) generally focuses on midstream applications. Over 90% of USAC’s generated horsepower is used in large‑volume gathering systems, processing facilities and pipeline applications. The bulk of those compressors are located in natural gas hotbeds like the Marcellus, Fayetteville and Haynesville shales.
That focus on midstream compression provides USAC stock with more stable revenues as its pumps are generally leased out for long-term contracts to pipeline owners — roughly two to five years. Additionally, many of those contracts continually get re-upped as you generally don’t pick up and move pipeline to another location. Also helping is USAC’s young fleet of high horsepower compression units. Those command higher rents from midstream firms.
All in all, that stability has helped USAC stock continually boost its distribution. The latest was a 4% increase vs. the previous quarter. USAC yields a hefty 7.2% as of its last quarterly payout.