SCHEDULE 13G/A: ALPS Advisors and Alerian MLP ETF Disclose 11.54% Passive Stake in USA Compression Partners LP

ALPS Advisors, Inc. and Alerian MLP ETF have jointly disclosed a passive beneficial ownership of 11.54% in USA Compression Partners LP, totaling 13,499,616 common units.

Summary

• ALPS Advisors, Inc., an investment adviser, and Alerian MLP ETF, an investment company, have filed an Amendment No. 2 to Schedule 13G regarding their beneficial ownership in USA Compression Partners LP.
• As of December 31, 2024, the reporting persons collectively beneficially own 13,499,616 common units representing limited partner interests in USA Compression Partners LP.
• This ownership stake represents 11.54% of the class of securities.
• Both ALPS Advisors, Inc. and Alerian MLP ETF share voting and dispositive power over these units.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While a 13G is a routine disclosure, the continued significant stake by a specialized MLP fund indicates ongoing institutional confidence in USA Compression Partners LP as an investment.

Positives

• The disclosure indicates significant institutional interest in USA Compression Partners LP, with ALPS Advisors and Alerian MLP ETF holding a substantial 11.54% stake.
• The filing confirms that the investment is passive and held in the ordinary course of business, suggesting a long-term, non-activist position.

Risks

• The passive nature of the investment means that ALPS Advisors, Inc. and Alerian MLP ETF do not intend to influence or change the control of USA Compression Partners LP, which may limit their direct impact on corporate governance or strategic direction.

Future Outlook

This Schedule 13G filing does not contain forward-looking statements or guidance from USA Compression Partners LP, as it is a disclosure of beneficial ownership by external entities.

Industry Context

USA Compression Partners LP operates in the midstream energy sector, providing natural gas compression services. The investment by Alerian MLP ETF, an exchange-traded fund focused on Master Limited Partnerships (MLPs), aligns with broader industry trends of institutional investment in energy infrastructure assets, often valued for their stable cash flows and distributions.

Stakeholder Impact

• Shareholders: The disclosure of a significant passive stake by institutional investors like ALPS Advisors and Alerian MLP ETF may be viewed positively, signaling confidence in the company's long-term prospects and potentially contributing to market stability.

Key Dates

Keywords

USA Compression Partners, MLP, Alerian MLP ETF, ALPS Advisors, Beneficial Ownership, Schedule 13G, Common Units, Limited Partner Interests, Energy Infrastructure