Welcome to our dedicated page for Archrock news (Ticker: AROC), a resource for investors and traders seeking the latest updates and insights on Archrock stock.
Overview of Archrock Inc
Archrock Inc (NYSE: AROC) is a prominent energy infrastructure company specializing in midstream natural gas compression and comprehensive aftermarket services. With over 60 years of industry expertise, Archrock serves the oil and natural gas sector by providing an integrated range of services that ensure effective production, compression, and transportation of natural gas across the United States. The company’s operations are designed to meet the full spectrum of needs for natural gas compression, from the initial design and installation to ongoing operation and maintenance, using advanced technologies and a highly skilled workforce.
Core Business Areas
Archrock operates through two primary business segments:
- Contract Operations: This segment is the backbone of the company, providing end-to-end solutions that include owning, installing, operating, and maintaining natural gas compression systems. By leveraging the nation’s largest fleet and a network of trusted OEM manufacturers and distributors, Archrock addresses complex challenges and delivers customized solutions for efficient energy production.
- Aftermarket Services: Complementing its contract operations, Archrock offers a full suite of aftermarket services designed for customers who own compression equipment. These services cover critical support functions such as maintenance, overhauls, reconfiguration, and parts sales, ensuring maximum operational uptime, reliability, and long-term performance of the equipment.
Market Position and Operational Excellence
Archrock has established a robust market presence due to its dependable service, technical expertise, and strategic positioning. The company bridges the gap between operational challenges and effective solutions, delivering compression services "done the right way" every step of the process. The emphasis on quality and operational excellence is underscored by a well-trained, certified technician workforce, a significant asset base, and strategically located operations that enable Archrock to serve customers efficiently across diverse geographical regions.
Technological Integration and Industry Expertise
Integrating enabling technology and innovative practices, Archrock continuously enhances its operational processes to meet evolving industry standards. The company employs sophisticated methodologies and a disciplined approach to maintenance and equipment optimization, ensuring sustained reliability in natural gas production. This technical proficiency, combined with robust service execution, not only secures its market position but also underpins its reputation for delivering solutions that are both efficient and environmentally responsible.
Competitive Landscape
Within the competitive arena of natural gas compression services, Archrock distinguishes itself through its scale, operational efficiency, and deep industry relationships. With a vast operational footprint and a reputation built on decades of service, the company is able to offer unmatched horsepower capacity and a comprehensive service portfolio. This operational excellence, fortified by strategic geographic positioning and long-term client relationships, allows Archrock to maintain a distinctive edge over its competitors.
Service Quality and Customer Assurance
Customer trust and service dependability are at the core of Archrock's operations. The company’s commitment to high-quality service is reflected in its meticulous approach to equipment maintenance and operational oversight. Clients benefit from Archrock’s extensive experience in bridging technical challenges with practical, scalable solutions that ensure minimal downtime and enhanced performance of their natural gas systems.
Conclusion
In summary, Archrock Inc stands as a cornerstone in the realm of natural gas compression, offering a balanced expertise in both contract operations and aftermarket solutions. Through its historical legacy, robust technical framework, and strategic market positioning, Archrock continues to provide essential services that empower the energy infrastructure of the United States. Whether addressing technical complexities or navigating the dynamics of the energy market, Archrock’s comprehensive service model delivers enduring value and operational reliability.
Archrock (NYSE: AROC) has announced the acquisition of Natural Gas Compression Systems (NGCS) in a $357 million cash and stock transaction. The deal includes approximately 351,000 horsepower of compression systems, with 316,000 operating horsepower and a 35,000 horsepower backlog.
Key aspects of the acquisition include:
- Increasing Archrock's Permian Basin compression capacity by 10% to 2.5 million horsepower
- Expanding electric motor drive compression capabilities by adding 78,000 horsepower, bringing total to 815,000
- Transaction funding through $298 million cash from ABL credit facility and 2.312 million new Archrock shares
The acquisition is expected to close in Q2 2025 and will be immediately accretive to earnings per share and cash available for dividend. The purchase price represents a multiple of less than 7.0x expected run-rate of annualized July 2025 adjusted EBITDA.
Coldstream Energy has launched its MaCH4™ NGL Recovery Solution, partnering with Archrock (NYSE: AROC) as a strategic distributor. The innovative gas separation technology maximizes NGL recovery at compressor stations while reducing emissions.
The MaCH4 system features a compact design with no rotating components or chemicals, capable of supporting up to 8,250 horsepower. Key benefits include:
- Estimated $1.1 million in incremental NGL revenue
- 35 tons reduction in annual VOC emissions
- Up to 9% improvement in engine performance by preventing derating
The solution has demonstrated success in a pilot project with Iron Horse Midstream since December 2023, achieving over 99% mechanical availability. At the pilot site, the projected annual NGL value recovery exceeds $1.2 million for a 7,500 HP compressor station.
Archrock reported its fourth quarter and full year 2024 results, highlighting significant growth. Q4 2024 revenue was $326.4 million, up from $259.6 million in Q4 2023. Full-year 2024 revenue reached $1,157.6 million compared to $990.3 million in 2023.
Net income for Q4 2024 was $59.8 million with an EPS of $0.34, compared to $33.0 million and $0.21 in Q4 2023. Full-year net income was $172.2 million with an EPS of $1.05, up from $105.0 million and $0.67 in 2023. Adjusted net income for Q4 2024 was $61.5 million with an adjusted EPS of $0.35, compared to $33.0 million and $0.21 in Q4 2023. Full-year adjusted net income was $185.2 million with an adjusted EPS of $1.13, compared to $105.0 million and $0.67 in 2023.
Adjusted EBITDA for Q4 2024 was $183.8 million, up from $120.3 million in Q4 2023. Full-year adjusted EBITDA was $595.4 million, compared to $450.4 million in 2023. Archrock declared a quarterly dividend of $0.19 per common share for Q4 2024, a 15% increase from Q4 2023, with a dividend coverage of 3.5x.
Contract operations segment revenue for Q4 2024 was $286.5 million, up 34% from Q4 2023. Adjusted gross margin for Q4 2024 was $200.2 million, up 46% from Q4 2023. Aftermarket services segment revenue for Q4 2024 was $40.0 million, down from $46.6 million in Q4 2023.
Archrock's long-term debt was $2.2 billion with available liquidity of $688 million as of December 31, 2024, and a leverage ratio of 3.3x, down from 3.5x at the end of 2023.
Archrock (NYSE:AROC) has announced it will release its fourth quarter and full-year 2024 financial results before hosting a conference call on Tuesday, February 25, 2025, at 9:00 a.m. Eastern Time. The company will discuss Q4 and full-year 2024 financial and operating results, along with providing annual 2025 guidance.
Investors can access the call via webcast on Archrock's website or by phone using the following numbers: 1 (800) 715-9871 (US) or 1 (646) 307-1963 (international), with access code 4749623. A replay will be available on the company's website for 90 days after the call.
Archrock (NYSE: AROC) has announced a 9% increase in its quarterly dividend to $0.19 per share, or $0.76 annually. This represents a 15% increase compared to Q4 2023. The dividend will be paid on February 19, 2025, to stockholders of record as of February 12, 2025.
This marks the fifth dividend increase since January 2023, reflecting the company's high utilization and transformed platform. CEO Brad Childers emphasized their commitment to increasing shareholder returns while maintaining prudent dividend coverage and leverage ratios. The company continues to invest in high-return assets to support customer needs and grow their natural gas compression business in response to robust market conditions.
Archrock (NYSE: AROC) reported strong Q3 2024 results with revenue of $292.2 million, up from $253.4 million in Q3 2023. Net income reached $37.5 million with EPS of $0.22, compared to $30.9 million and $0.20 in Q3 2023. The company increased its quarterly dividend by 6% to $0.175 per share and completed the acquisition of TOPS. Contract operations revenue grew 18% to $245.4 million, with adjusted gross margin at 67%. Based on strong performance, Archrock raised its full-year 2024 adjusted EBITDA guidance to $575-585 million.
Archrock has released its 2023 Sustainability Report, highlighting significant achievements in safety, environmental performance, and operational excellence. The company exceeded safety targets, achieving zero Lost Time Incident Rate for the third consecutive year and winning the GPSA Excellence in Safety Award. Key accomplishments include a 19% reduction in CO2 emissions intensity, 20% investment of organic growth capex in electric drive compression, and recognition as one of America's Most Responsible Companies by Newsweek.
The report coincides with Archrock's 70th Anniversary, showcasing the company's commitment to digitization, automation, and decarbonization through innovative technology investments. The report follows SASB midstream and TCFD reporting frameworks, demonstrating Archrock's dedication to transparency and sustainability standards.
Archrock (NYSE:AROC) has scheduled its third quarter 2024 earnings conference call for Tuesday, November 12, 2024, at 9:00 a.m. Eastern Time. The company will release its Q3 2024 financial and operating results before the call. Investors can access the call via webcast on www.archrock.com or by phone using the access code 4749623. A replay of the webcast will be available on the company's website for 90 days after the call.
Archrock (NYSE: AROC) announced an increased quarterly dividend of $0.175 per share, equivalent to $0.70 annually. The dividend will be paid on November 13, 2024, to stockholders of record as of November 6, 2024. This represents a 6% increase from Q2 2024 and a 13% increase year-over-year. The company attributes the increase to strong natural gas demand growth, platform transformation, and the accretive TOPS acquisition. Management expressed commitment to high-return investments while maintaining prudent dividend and leverage coverage ratios.
Archrock (NYSE: AROC) has completed its acquisition of Total Operations and Production Services, (TOPS), adding 580,000 horsepower to its fleet, including 500,000 operating horsepower and a contracted backlog of new equipment. The transaction strengthens Archrock's compression operations in the Permian Basin and establishes its leadership in electric motor drive compression. Archrock issued approximately 6.87 million new common shares to the sellers and funded the $826 million cash portion of the purchase price with proceeds from recent capital markets transactions. The acquisition is expected to be accretive and create significant shareholder value, capitalizing on the robust market for natural gas and compression while increasing returns to shareholders.
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