Archrock Announces Expiration of Hart-Scott-Rodino Act Waiting Period for Acquisition of Total Operations and Production Services, LLC

Rhea-AI Summary

Archrock, Inc. (NYSE: AROC) has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) for its pending acquisition of Total Operations and Production Services, . This expiration marks a significant milestone in the acquisition process, satisfying a important condition for the transaction's completion. The company anticipates the deal will close in the third quarter of 2024, subject to meeting other customary closing conditions. This development signifies progress in Archrock's strategic move to expand its operations and potentially strengthen its market position in the energy services sector.

Positive

• Expiration of HSR Act waiting period satisfies a key condition for the acquisition
• Acquisition expected to close in Q3 2024, indicating progress in the transaction

Negative

• None.

Insights

Legal Expert

The expiration of the HSR Act waiting period is a significant milestone for Archrock's acquisition of Total Operations and Production Services, This development indicates that the Federal Trade Commission and Department of Justice have not identified any major antitrust concerns that would warrant further investigation. It's a positive sign for the deal's progression, suggesting that regulatory hurdles are being cleared.

However, investors should note that while this is an important step, it doesn't guarantee the deal's completion. The mention of "other customary closing conditions" implies that there are still potential obstacles to overcome. These could include shareholder approvals, financing arrangements, or other regulatory clearances. The projected closing in Q3 2024 provides a timeline, but delays are always possible in complex acquisitions.

Financial Analyst

This news is moderately positive for Archrock (NYSE: AROC) shareholders. The acquisition of Total Operations and Production Services, is likely aimed at expanding Archrock's operational capabilities and market share in the energy services sector. While financial details are not provided, such strategic moves often lead to revenue synergies and cost efficiencies.

Investors should watch for upcoming announcements detailing the financial implications of this acquisition, including potential impacts on Archrock's earnings, debt levels and cash flow. The market's reaction to this news may be muted until more concrete financial projections are available. Long-term investors should consider how this acquisition aligns with Archrock's growth strategy and its potential to enhance shareholder value in the evolving energy services landscape.

HOUSTON, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) today announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act"), in connection with its pending acquisition of Total Operations and Production Services, LLC.

The expiration of the waiting period under the HSR Act satisfies an important condition necessary for the completion of the transaction.

The transaction is expected to close in the third quarter of 2024 subject to the satisfaction of other customary closing conditions.

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 a premier 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.

Forward-Looking Statements

This press release contains forward-looking statements, which include statements about the expected benefits of the acquisition of Total Operations and Production Services, LLC, including the the anticipated completion of the acquisition and the timing thereof. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Archrock expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in Archrock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and as set forth from time to time in Archrock’s filings with the Securities and Exchange Commission. These filings are available online at www.sec.gov and www.archrock.com.

For information, contact:

Archrock, Inc.

INVESTORS Megan Repine VP of Investor Relations 281-836-8360 investor.relations@archrock.com

MEDIA Andrew Siegel / Jed Repko Joele Frank 212-355-4449

FAQ

What is the significance of the HSR Act waiting period expiration for Archrock's acquisition of Total Operations and Production Services?

The expiration of the HSR Act waiting period is a important step in the acquisition process, satisfying an important regulatory condition and allowing the transaction to move forward towards completion.

When is Archrock (AROC) expected to close the acquisition of Total Operations and Production Services?

Archrock anticipates closing the acquisition in the third quarter of 2024, subject to the satisfaction of other customary closing conditions.

What remaining conditions need to be met for Archrock (AROC) to complete the acquisition?

While the HSR Act waiting period has expired, Archrock still needs to satisfy other customary closing conditions before finalizing the acquisition of Total Operations and Production Services.

How might the acquisition of Total Operations and Production Services impact Archrock's (AROC) business?

The acquisition could potentially expand Archrock's operations and strengthen its market position in the energy services sector, although specific details about the impact are not provided in the press release.