Archrock Announces Credit Rating Upgrade from S&P Global Ratings

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Archrock, Inc. (AROC) receives an upgrade in credit rating by S&P Global Ratings, with a stable outlook. The company's senior unsecured debt rating has also been raised, reflecting high equipment utilization, increasing earnings, and declining leverage. S&P forecasts improved EBITDA and debt ratios for 2024 and 2025.

HOUSTON, March 04, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE:AROC) (“Archrock”) announced that S&P Global Ratings (“S&P”) has upgraded Archrock’s issuer credit rating to ‘BB-’ from ‘B+’ with a stable outlook.

S&P also raised the issue-level rating on Archrock’s senior unsecured debt to ‘BB-’ from ‘B+’.

S&P pointed to high equipment utilization, increasing earnings and declining leverage through the forecast period. S&P highlighted in their report, “Archrock has significantly increased EBITDA since 2022 as a result of stronger demand, increasing utilization and contract rates. We forecast S&P Global Ratings-adjusted debt to EBITDA will be 3x-3.5x in 2024 and under 3x in 2025.”

Doug Aron, Archrock’s Chief Financial Officer, commented: “Archrock has built a strong balance sheet and resilient financial position through debt reduction, profitability growth and disciplined capital allocation. We are proud of the upgrades from S&P, which indicate strength in the compression market outlook and recognize improvement in the stability and quality of Archrock’s operations and cash flows.”  

About Archrock

Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is the leading provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICA^TM, visit www.archrock.com.

SOURCE: Archrock, Inc.

For information, contact:

Megan Repine
Vice President, Investor Relations
(281) 836-8360
investor.relations@archrock.com

FAQ

What is the recent credit rating upgrade announced for Archrock, Inc. (AROC)?

S&P Global Ratings has upgraded Archrock's issuer credit rating to 'BB-' from 'B+' with a stable outlook, along with raising the issue-level rating on Archrock's senior unsecured debt to 'BB-' from 'B+'.

What were the reasons cited by S&P for the credit rating upgrade of Archrock, Inc. (AROC)?

S&P highlighted high equipment utilization, increasing earnings, and declining leverage through the forecast period as key factors for the credit rating upgrade. They also noted stronger demand, rising utilization, and contract rates contributing to increased EBITDA.

What are the projected debt to EBITDA ratios for Archrock, Inc. (AROC) in 2024 and 2025 according to S&P?

S&P forecasts debt to EBITDA ratios to be in the range of 3x-3.5x in 2024 and below 3x in 2025 for Archrock, indicating improved financial health and stability.

Who commented on the credit rating upgrade for Archrock, Inc. (AROC) and what were their remarks?

Doug Aron, Archrock's Chief Financial Officer, stated that the upgrades from S&P reflect the company's strong balance sheet, resilient financial position, and improvements in compression market outlook, operations, and cash flows.