Archrock Reports Fourth Quarter and Full Year 2024 Results and Provides 2025 Guidance
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 ha riportato i risultati del quarto trimestre e dell'intero anno 2024, evidenziando una crescita significativa. Le entrate del Q4 2024 sono state di 326,4 milioni di dollari, rispetto ai 259,6 milioni di dollari del Q4 2023. Le entrate dell'intero anno 2024 hanno raggiunto 1.157,6 milioni di dollari, rispetto ai 990,3 milioni di dollari del 2023.
Il reddito netto per il Q4 2024 è stato di 59,8 milioni di dollari con un EPS di 0,34, rispetto ai 33,0 milioni di dollari e 0,21 nel Q4 2023. Il reddito netto per l'intero anno è stato di 172,2 milioni di dollari con un EPS di 1,05, in aumento rispetto ai 105,0 milioni di dollari e 0,67 nel 2023. Il reddito netto rettificato per il Q4 2024 è stato di 61,5 milioni di dollari con un EPS rettificato di 0,35, rispetto ai 33,0 milioni di dollari e 0,21 nel Q4 2023. Il reddito netto rettificato per l'intero anno è stato di 185,2 milioni di dollari con un EPS rettificato di 1,13, rispetto ai 105,0 milioni di dollari e 0,67 nel 2023.
Il EBITDA rettificato per il Q4 2024 è stato di 183,8 milioni di dollari, in aumento rispetto ai 120,3 milioni di dollari del Q4 2023. L'EBITDA rettificato per l'intero anno è stato di 595,4 milioni di dollari, rispetto ai 450,4 milioni di dollari del 2023. Archrock ha dichiarato un dividendo trimestrale di 0,19 dollari per azione comune per il Q4 2024, un aumento del 15% rispetto al Q4 2023, con una copertura del dividendo di 3,5x.
Le entrate del segmento operazioni contrattuali per il Q4 2024 sono state di 286,5 milioni di dollari, in aumento del 34% rispetto al Q4 2023. Il margine lordo rettificato per il Q4 2024 è stato di 200,2 milioni di dollari, in aumento del 46% rispetto al Q4 2023. Le entrate del segmento servizi post-vendita per il Q4 2024 sono state di 40,0 milioni di dollari, in calo rispetto ai 46,6 milioni di dollari del Q4 2023.
Il debito a lungo termine di Archrock era di 2,2 miliardi di dollari con una liquidità disponibile di 688 milioni di dollari al 31 dicembre 2024, e un rapporto di leva di 3,3x, in diminuzione rispetto a 3,5x alla fine del 2023.
Archrock informó sus resultados del cuarto trimestre y del año completo 2024, destacando un crecimiento significativo. Los ingresos del Q4 2024 fueron de 326,4 millones de dólares, frente a los 259,6 millones de dólares en el Q4 2023. Los ingresos del año completo 2024 alcanzaron 1.157,6 millones de dólares en comparación con 990,3 millones de dólares en 2023.
El ingreso neto para el Q4 2024 fue de 59,8 millones de dólares con un EPS de 0,34, en comparación con 33,0 millones de dólares y 0,21 en el Q4 2023. El ingreso neto del año completo fue de 172,2 millones de dólares con un EPS de 1,05, en comparación con 105,0 millones de dólares y 0,67 en 2023. El ingreso neto ajustado para el Q4 2024 fue de 61,5 millones de dólares con un EPS ajustado de 0,35, en comparación con 33,0 millones de dólares y 0,21 en el Q4 2023. El ingreso neto ajustado del año completo fue de 185,2 millones de dólares con un EPS ajustado de 1,13, en comparación con 105,0 millones de dólares y 0,67 en 2023.
El EBITDA ajustado para el Q4 2024 fue de 183,8 millones de dólares, en comparación con 120,3 millones de dólares en el Q4 2023. El EBITDA ajustado del año completo fue de 595,4 millones de dólares, frente a 450,4 millones de dólares en 2023. Archrock declaró un dividendo trimestral de 0,19 dólares por acción común para el Q4 2024, un aumento del 15% respecto al Q4 2023, con una cobertura del dividendo de 3,5x.
Los ingresos del segmento de operaciones de contratos para el Q4 2024 fueron de 286,5 millones de dólares, un aumento del 34% respecto al Q4 2023. El margen bruto ajustado para el Q4 2024 fue de 200,2 millones de dólares, un aumento del 46% respecto al Q4 2023. Los ingresos del segmento de servicios postventa para el Q4 2024 fueron de 40,0 millones de dólares, en comparación con 46,6 millones de dólares en el Q4 2023.
La deuda a largo plazo de Archrock era de 2,2 mil millones de dólares con una liquidez disponible de 688 millones de dólares al 31 de diciembre de 2024, y un ratio de apalancamiento de 3,3x, en comparación con 3,5x a finales de 2023.
Archrock는 2024년 4분기 및 전체 연도 결과를 발표하며 상당한 성장을 강조했습니다. 2024년 4분기 매출은 3억 2,640만 달러로, 2023년 4분기 2억 5,960만 달러에서 증가했습니다. 2024년 전체 연도 매출은 11억 5,760만 달러로, 2023년 9억 9,030만 달러와 비교됩니다.
2024년 4분기 순이익은 5,980만 달러로 주당 순이익(EPS)은 0.34였으며, 2023년 4분기 3,300만 달러와 0.21에 비해 증가했습니다. 전체 연도의 순이익은 1억 7,220만 달러로, 주당 순이익은 1.05로 2023년 1억 5,000만 달러와 0.67에서 증가했습니다. 2024년 4분기 조정 순이익은 6,150만 달러로 조정된 EPS는 0.35였으며, 2023년 4분기 3,300만 달러와 0.21에 비해 증가했습니다. 전체 연도의 조정 순이익은 1억 8,520만 달러로 조정된 EPS는 1.13로, 2023년 1억 5,000만 달러와 0.67에서 증가했습니다.
2024년 4분기 조정 EBITDA는 1억 8,380만 달러로, 2023년 4분기 1억 2,030만 달러에서 증가했습니다. 전체 연도의 조정 EBITDA는 5억 9,540만 달러로, 2023년 4억 5,040만 달러와 비교됩니다. Archrock는 2024년 4분기 일반 주식당 0.19달러의 분기 배당금을 선언했으며, 이는 2023년 4분기보다 15% 증가한 수치로, 배당금 커버리지 비율은 3.5배입니다.
2024년 4분기 계약 운영 부문 매출은 2억 8,650만 달러로, 2023년 4분기 대비 34% 증가했습니다. 2024년 4분기 조정 총 마진은 2억 2,020만 달러로, 2023년 4분기 대비 46% 증가했습니다. 2024년 4분기 애프터마켓 서비스 부문 매출은 4,000만 달러로, 2023년 4분기 4,660만 달러에서 감소했습니다.
Archrock의 장기 부채는 22억 달러였으며, 2024년 12월 31일 기준으로 6억 8,800만 달러의 유동성이 있었고, 레버리지 비율은 3.3배로 2023년 말 3.5배에서 감소했습니다.
Archrock a publié ses résultats du quatrième trimestre et de l'année complète 2024, mettant en avant une croissance significative. Le chiffre d'affaires du Q4 2024 s'élevait à 326,4 millions de dollars, contre 259,6 millions de dollars au Q4 2023. Le chiffre d'affaires de l'année 2024 a atteint 1 157,6 millions de dollars, comparé à 990,3 millions de dollars en 2023.
Le bénéfice net pour le Q4 2024 était de 59,8 millions de dollars avec un BPA de 0,34, contre 33,0 millions de dollars et 0,21 au Q4 2023. Le bénéfice net pour l'année complète était de 172,2 millions de dollars avec un BPA de 1,05, en hausse par rapport à 105,0 millions de dollars et 0,67 en 2023. Le bénéfice net ajusté pour le Q4 2024 était de 61,5 millions de dollars avec un BPA ajusté de 0,35, contre 33,0 millions de dollars et 0,21 au Q4 2023. Le bénéfice net ajusté pour l'année complète était de 185,2 millions de dollars avec un BPA ajusté de 1,13, comparé à 105,0 millions de dollars et 0,67 en 2023.
Le EBITDA ajusté pour le Q4 2024 était de 183,8 millions de dollars, en hausse par rapport à 120,3 millions de dollars au Q4 2023. L'EBITDA ajusté pour l'année complète était de 595,4 millions de dollars, contre 450,4 millions de dollars en 2023. Archrock a déclaré un dividende trimestriel de 0,19 dollar par action ordinaire pour le Q4 2024, soit une augmentation de 15% par rapport au Q4 2023, avec une couverture de dividende de 3,5x.
Les revenus du segment des opérations contractuelles pour le Q4 2024 étaient de 286,5 millions de dollars, en hausse de 34% par rapport au Q4 2023. La marge brute ajustée pour le Q4 2024 était de 200,2 millions de dollars, en hausse de 46% par rapport au Q4 2023. Les revenus du segment des services après-vente pour le Q4 2024 étaient de 40,0 millions de dollars, en baisse par rapport à 46,6 millions de dollars au Q4 2023.
La dette à long terme d'Archrock était de 2,2 milliards de dollars avec une liquidité disponible de 688 millions de dollars au 31 décembre 2024, et un ratio d'endettement de 3,3x, en baisse par rapport à 3,5x à la fin de 2023.
Archrock hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht und ein signifikantes Wachstum hervorgehoben. Der Umsatz im Q4 2024 betrug 326,4 Millionen Dollar, ein Anstieg von 259,6 Millionen Dollar im Q4 2023. Der Umsatz für das gesamte Jahr 2024 erreichte 1.157,6 Millionen Dollar im Vergleich zu 990,3 Millionen Dollar im Jahr 2023.
Der Nettogewinn für das Q4 2024 betrug 59,8 Millionen Dollar mit einem EPS von 0,34, verglichen mit 33,0 Millionen Dollar und 0,21 im Q4 2023. Der Nettogewinn für das gesamte Jahr betrug 172,2 Millionen Dollar mit einem EPS von 1,05, im Vergleich zu 105,0 Millionen Dollar und 0,67 im Jahr 2023. Der bereinigte Nettogewinn für das Q4 2024 betrug 61,5 Millionen Dollar mit einem bereinigten EPS von 0,35, verglichen mit 33,0 Millionen Dollar und 0,21 im Q4 2023. Der bereinigte Nettogewinn für das gesamte Jahr betrug 185,2 Millionen Dollar mit einem bereinigten EPS von 1,13, im Vergleich zu 105,0 Millionen Dollar und 0,67 im Jahr 2023.
Das bereinigte EBITDA für das Q4 2024 betrug 183,8 Millionen Dollar, ein Anstieg von 120,3 Millionen Dollar im Q4 2023. Das bereinigte EBITDA für das gesamte Jahr betrug 595,4 Millionen Dollar, verglichen mit 450,4 Millionen Dollar im Jahr 2023. Archrock erklärte eine vierteljährliche Dividende von 0,19 Dollar pro Stammaktie für das Q4 2024, ein Anstieg von 15% gegenüber dem Q4 2023, mit einer Dividendenabdeckung von 3,5x.
Der Umsatz des Segments Vertragsoperationen für das Q4 2024 betrug 286,5 Millionen Dollar, ein Anstieg von 34% gegenüber dem Q4 2023. Die bereinigte Bruttomarge für das Q4 2024 betrug 200,2 Millionen Dollar, ein Anstieg von 46% gegenüber dem Q4 2023. Der Umsatz des Segments Nachmarktservices für das Q4 2024 betrug 40,0 Millionen Dollar, ein Rückgang von 46,6 Millionen Dollar im Q4 2023.
Die langfristigen Schulden von Archrock betrugen 2,2 Milliarden Dollar, mit einer verfügbaren Liquidität von 688 Millionen Dollar zum 31. Dezember 2024 und einem Verschuldungsgrad von 3,3x, im Vergleich zu 3,5x Ende 2023.
- Q4 2024 revenue increased to $326.4 million from $259.6 million in Q4 2023.
- Full-year 2024 revenue rose to $1,157.6 million from $990.3 million in 2023.
- Q4 2024 net income was $59.8 million, up from $33.0 million in Q4 2023.
- Full-year net income for 2024 was $172.2 million, compared to $105.0 million in 2023.
- Adjusted EBITDA for Q4 2024 was $183.8 million, up from $120.3 million in Q4 2023.
- Full-year adjusted EBITDA for 2024 was $595.4 million, compared to $450.4 million in 2023.
- Declared a quarterly dividend of $0.19 per share for Q4 2024, a 15% increase from Q4 2023.
- Aftermarket services segment revenue for Q4 2024 was $40.0 million, down from $46.6 million in Q4 2023.
- Selling, general, and administrative expenses for Q4 2024 were $42.2 million, up from $33.0 million in Q4 2023.
Insights
Archrock's Q4 and full-year 2024 results reveal a company executing at an exceptional level, with financial performance significantly outpacing previous years. Q4 revenue jumped 25.7% year-over-year to
The Contract Operations segment – Archrock's core business providing compression services essential for natural gas transportation – delivered particularly strong results with a 500 basis point improvement in adjusted gross margin to
What's particularly compelling about Archrock's position is their strategic focus on high-horsepower compression units serving midstream applications and their expansion into electric motor drive compression through what management describes as a "transformative acquisition." This positions them at the intersection of two powerful trends: growing natural gas infrastructure needs (particularly supporting LNG exports) and the industry shift toward electrification to reduce emissions and operating costs.
The company's financial discipline is evident in their improved leverage ratio of 3.3x (down from 3.5x last year) despite completing a significant acquisition. This balance sheet strength provides flexibility for both continued growth investments and increasing shareholder returns, as demonstrated by their 15% dividend increase and share repurchases totaling
Looking forward, Archrock's contracted backlog for 2025 and booking activity extending into 2026 signals sustained demand momentum. The company is strategically focusing its growth investments in premier basins like the Permian, where associated gas production continues to increase regardless of natural gas price fluctuations. This approach provides some insulation from commodity price volatility while positioning them to benefit from structural growth in natural gas infrastructure needed to support both LNG exports and domestic power generation.
While the Aftermarket Services segment saw some seasonal weakness with revenue declining to
Archrock's ability to maintain high utilization rates while simultaneously growing their fleet (operating horsepower increased from 3.6 million to 4.2 million year-over-year) demonstrates both strong execution and robust market demand. Their dividend coverage ratio of 3.5x provides significant financial flexibility and potential for further dividend growth beyond the already announced 15% increase for 2025.
The company's strategic positioning at the critical midstream infrastructure level supporting natural gas movement from production areas to end markets, combined with their focus on larger horsepower units and electric compression, aligns perfectly with the long-term growth trajectory of U.S. natural gas production and export capacity. This strategic alignment, coupled with their demonstrated operational excellence, positions Archrock to continue delivering strong financial performance as the U.S. natural gas infrastructure buildout continues.
Archrock's exceptional Q4 and full-year 2024 results reveal a company capitalizing on structural growth in natural gas infrastructure while simultaneously strengthening their competitive positioning through strategic initiatives. The 34% revenue growth in their core Contract Operations segment to
The company's 96% utilization rate across their 4.2 million horsepower fleet represents near-maximum efficiency in asset deployment – remarkable in an industry where 85-90% is typically considered strong performance. This exceptional utilization, maintained while growing their fleet by 16.7% year-over-year, indicates robust structural demand for compression services that extends beyond cyclical factors.
What's particularly significant is Archrock's strategic positioning at the nexus of two powerful industry trends. First, they're focused on large horsepower units primarily serving midstream applications in associated gas plays like the Permian. Unlike dry gas production, which responds directly to natural gas prices, associated gas production (a byproduct of oil drilling) continues regardless of natural gas prices, providing more stable demand fundamentals. Second, their "transformative acquisition" establishing leadership in electric motor drive compression represents a significant competitive advantage as the industry increasingly shifts toward electrification.
Electric compression units typically deliver 98%+ reliability (versus 93-95% for gas-driven units), require less maintenance, and significantly reduce emissions – increasingly important as midstream operators face pressure to reduce their carbon footprint. While initially more capital-intensive, electric units generally offer lower total cost of ownership over their lifecycle, particularly in regions with reliable electric infrastructure.
The company's strategic focus on the Permian Basin is especially noteworthy as this region continues to drive U.S. natural gas production growth. The Permian's associated gas requires substantial compression infrastructure not just for gathering but also for the long-haul transportation to Gulf Coast LNG facilities and growing Mexico exports. Archrock's contracted backlog extending into 2026 provides exceptional visibility in what has historically been a more cyclical business.
From a financial perspective, Archrock's improved leverage ratio of 3.3x (down from 3.5x) despite completing a significant acquisition demonstrates disciplined balance sheet management. Their dividend coverage ratio of 3.5x is substantially higher than most midstream entities (typically 1.2-2.0x), providing significant financial flexibility for both continued growth investments and potential further dividend increases beyond the already announced 15% hike.
The slight weakness in their Aftermarket Services segment appears to be timing-related rather than structural, with margins actually improving to
Looking forward, Archrock is exceptionally well-positioned to benefit from the continued buildout of U.S. natural gas infrastructure supporting both growing domestic consumption (particularly power generation) and LNG exports. With approximately 25 Bcf/d of additional LNG export capacity under construction or development through 2030, the demand for high-horsepower compression services will remain robust regardless of near-term natural gas price fluctuations. Archrock's strategic focus on electric compression also aligns perfectly with the industry's increasing emphasis on emissions reduction and operational reliability.
HOUSTON, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) today reported results for the fourth quarter and full year 2024.
Fourth Quarter and Full Year 2024 Highlights
- Revenue for the fourth quarter of 2024 was
$326.4 million compared to$259.6 million in the fourth quarter of 2023. Revenue for 2024 was$1,157.6 million compared to$990.3 million in 2023. - Net income for the fourth quarter of 2024 was
$59.8 million and EPS was$0.34 , compared to$33.0 million and$0.21 , respectively, in the fourth quarter of 2023. Net income for 2024 was$172.2 million and EPS was$1.05 , compared to$105.0 million and$0.67 , respectively, in 2023. - Adjusted net income (a non-GAAP measure defined below) for the fourth quarter of 2024 was
$61.5 million and adjusted EPS (a non-GAAP measure defined below) was$0.35 , compared to$33.0 million and$0.21 , respectively, in the fourth quarter of 2023. Adjusted net income for 2024 was$185.2 million and adjusted EPS was$1.13 compared to$105.0 million and$0.67 , respectively, in 2023. - Adjusted EBITDA (a non-GAAP measure defined below) for the fourth quarter of 2024 was
$183.8 million compared to$120.3 million in the fourth quarter of 2023. Adjusted EBITDA for 2024 was$595.4 million compared to$450.4 million in 2023. - Declared a quarterly dividend of
$0.19 per common share for the fourth quarter of 2024, approximately15% higher compared to the fourth quarter of 2023, resulting in dividend coverage of 3.5x.
Management Commentary and Outlook
“Archrock’s outstanding fourth quarter performance rounded out a record-setting year of robust utilization and profitability,” said Brad Childers, Archrock’s President and Chief Executive Officer. “For 2024, we increased our contract operations adjusted gross margin by 500 basis points, improved our net income by over
“We are even more excited about what we are positioned to deliver in 2025. Archrock continues to perform at an exceptional level, reflecting consistent operational execution and the successful progression of our strategic initiatives. Our investment in high-quality assets, excellent customer service and implementation of innovative technology and processes are driving value for our customers and our shareholders.
“Moreover, we see the market opportunities provided by rising energy demand, and in particular, the natural gas required to support growing LNG exports and power generation, continuing into the foreseeable future. With sustained high utilization levels and a large and contracted backlog for 2025, we are booking units for 2026 delivery and believe we will continue to see strong customer demand for new equipment well into next year.
“This impressive and durable investment outlook for Archrock is further underpinned by our financial flexibility and returns-based capital allocation. We are investing in profitable, high-return growth in large midstream and electric motor drive compression to support our high-quality customers in premier, primarily associated gas, plays like the Permian. We also remain committed to consistent growth in shareholder returns and started the year with a
Fourth Quarter and Full Year 2024 Financial Results
Archrock’s fourth quarter 2024 net income of
Fourth quarter 2024 selling, general, and administrative expenses of
Adjusted EBITDA for the fourth quarter of 2024 and 2023 included
Archrock’s full year 2024 net income of
Adjusted EBITDA for the full year 2024 and 2023 included
Contract Operations
For the fourth quarter of 2024, contract operations segment revenue totaled
Aftermarket Services
For the fourth quarter of 2024, aftermarket services segment revenue totaled
Balance Sheet
Long-term debt was
Quarterly Dividend
Our Board of Directors recently declared a quarterly dividend of
2025 Annual Guidance
(in thousands, except percentages, per share amounts, and ratios)
| Full Year 2025 Guidance | |||||||
| Low | High | ||||||
| Net income (1) (2) | $ | 253,000 | $ | 293,000 | |||
| Adjusted EBITDA(3) | 750,000 | 790,000 | |||||
| Cash available for dividend(4) (5) | 456,000 | 471,000 | |||||
| Segment | |||||||
| Contract operations revenue | $ | 1,200,000 | $ | 1,235,000 | |||
| Contract operations adjusted gross margin percentage | 68 | % | 71 | % | |||
| Aftermarket services revenue | $ | 190,000 | $ | 210,000 | |||
| Aftermarket services adjusted gross margin percentage | 22 | % | 24 | % | |||
| Selling, general and administrative | $ | 147,000 | $ | 142,000 | |||
| Capital expenditures | |||||||
| Growth capital expenditures | $ | 330,000 | $ | 370,000 | |||
| Maintenance capital expenditures | 105,000 | 115,000 | |||||
| Other capital expenditures | 35,000 | 50,000 | |||||
| __________________________________ | |||||||
| (1) 2025 annual guidance for net income does not include the impact of long-lived and other asset impairment because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was | |||||||
| (2) Reflects an estimate of expenses to be incurred related to the acquisition of Total Operations and Production Services, LLC (the “TOPS Acquisition”). | |||||||
| (3) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons. | |||||||
| (4) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends. | |||||||
| (5) A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were | |||||||
Summary Metrics
(in thousands, except percentages, per share amounts and ratios)
| Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Net income | $ | 59,758 | $ | 37,516 | $ | 33,002 | $ | 172,231 | $ | 104,998 | ||||||||||||
| Adjusted net income (1) | $ | 61,533 | $ | 47,313 | $ | 33,002 | $ | 185,211 | $ | 104,998 | ||||||||||||
| Adjusted EBITDA (1) | $ | 183,844 | $ | 150,854 | $ | 120,263 | $ | 595,434 | $ | 450,387 | ||||||||||||
| Contract operations revenue | $ | 286,466 | $ | 245,420 | $ | 213,022 | $ | 980,405 | $ | 809,439 | ||||||||||||
| Contract operations adjusted gross margin | $ | 200,245 | $ | 165,610 | $ | 137,062 | $ | 657,353 | $ | 502,691 | ||||||||||||
| Contract operations adjusted gross margin percentage | 70 | % | 67 | % | 64 | % | 67 | % | 62 | % | ||||||||||||
| Aftermarket services revenue | $ | 39,950 | $ | 46,741 | $ | 46,571 | $ | 177,186 | $ | 180,898 | ||||||||||||
| Aftermarket services adjusted gross margin | $ | 9,054 | $ | 12,346 | $ | 10,239 | $ | 41,737 | $ | 38,627 | ||||||||||||
| Aftermarket services adjusted gross margin percentage | 23 | % | 26 | % | 22 | % | 24 | % | 21 | % | ||||||||||||
| Selling, general, and administrative | $ | 42,234 | $ | 34,059 | $ | 33,007 | $ | 139,121 | $ | 116,639 | ||||||||||||
| Net cash provided by operating activities | $ | 124,338 | $ | 96,900 | $ | 71,719 | 429,591 | 310,187 | ||||||||||||||
| Cash available for dividend(1) | $ | 118,089 | $ | 92,887 | $ | 71,484 | $ | 364,595 | $ | 232,979 | ||||||||||||
| Cash available for dividend coverage (2) | 3.5 | x | 3.0 | x | 2.8 | x | 3.1 | x | 2.4 | x | ||||||||||||
| Adjusted free cash flow (1) (3) | $ | 68,945 | $ | (834,282 | ) | $ | 47,385 | (730,472 | ) | 77,696 | ||||||||||||
| Adjusted free cash flow after dividend (1) (3) | $ | 38,255 | $ | (862,147 | ) | $ | 23,195 | (840,846 | ) | (18,100 | ) | |||||||||||
| Total available horsepower (at period end) (4) | 4,401 | 4,418 | 3,759 | 4,401 | 3,759 | |||||||||||||||||
| Total operating horsepower (at period end) (5) | 4,227 | 4,179 | 3,607 | 4,227 | 3,607 | |||||||||||||||||
| Horsepower utilization spot (at period end) (6) | 96 | % | 95 | % | 96 | % | 96 | % | 96 | % | ||||||||||||
| __________________________________ | ||||||||||||||||||||||
| (1) Management believes adjusted net income, adjusted EBITDA, cash available for dividend, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons. | ||||||||||||||||||||||
| (2) Defined as cash available for dividend divided by dividends declared for the period. | ||||||||||||||||||||||
| (3) Reflects | ||||||||||||||||||||||
| (4) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us. | ||||||||||||||||||||||
| (5) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue. | ||||||||||||||||||||||
| (6) Defined as total available horsepower divided by total operating horsepower at period end. | ||||||||||||||||||||||
Conference Call Details
Archrock will host a conference call on February 25, 2025, to discuss fourth quarter and full year 2024 financial results. The call will begin at 9:00 a.m. Eastern Time.
To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States or 1 (646) 307-1963 for international calls. The access code is 4749623.
A replay of the webcast will be available on Archrock’s website for 90 days following the event.
Adjusted net income, a non-GAAP measure, is defined as net income (loss) excluding transaction-related costs and debt extinguishment loss adjusted for income taxes. A reconciliation of adjusted net income to net income, the most directly comparable GAAP measure, and a reconciliation of adjusted earnings per share to basic and diluted earnings per common share, the most directly comparable GAAP measure, appear below.
Adjusted EBITDA, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items. A reconciliation of adjusted EBITDA to net income, the most directly comparable GAAP measure, and a reconciliation of our full year 2025 adjusted EBITDA guidance to net income appear below.
Adjusted gross margin, a non-GAAP measure, is defined as revenue less cost of sales, exclusive of depreciation and amortization. Adjusted gross margin percentage, a non-GAAP measure, is defined as adjusted gross margin divided by revenue. A reconciliation of adjusted gross margin to net income, the most directly comparable GAAP measure, and a reconciliation of adjusted gross margin percentage to gross margin appear below.
Cash available for dividend, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items, less maintenance capital expenditures, other capital expenditures, cash taxes and cash interest expense. Reconciliations of cash available for dividend to net income and net cash provided by operating activities, the most directly comparable GAAP measures, and a reconciliation of our full year 2025 cash available for dividend guidance to net income appear below.
Adjusted free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities. A reconciliation of adjusted free cash flow to net cash provided by operating activities, the most directly comparable GAAP measure, appears below.
Adjusted free cash flow after dividend, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities less dividends paid to stockholders. A reconciliation of adjusted free cash flow after dividend to net cash provided by operating activities, the most directly comparable GAAP measure, appears below.
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 Archrock embodies its purpose, WE POWER A CLEANER AMERICA, visit www.archrock.com.
Forward-Looking Statements
All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Archrock. Forward-looking information includes, but is not limited to statements regarding: guidance or estimates related to Archrock’s results of operations or of financial condition; fundamentals of Archrock’s industry, including the attractiveness of returns and valuation, stability of cash flows, demand dynamics and overall outlook, and Archrock’s ability to realize the benefits thereof; Archrock’s expectations regarding future economic, geopolitical and market conditions and trends; Archrock’s operational and financial strategies, including planned growth, coverage and leverage reduction strategies, Archrock’s ability to successfully effect those strategies, and the expected results therefrom; Archrock’s financial and operational outlook; demand and growth opportunities for Archrock’s services; structural and process improvement initiatives, the expected timing thereof, Archrock’s ability to successfully effect those initiatives and the expected results therefrom; the operational and financial synergies provided by Archrock’s size; statements regarding Archrock’s dividend policy; the expected benefits of the TOPS Acquisition, including its expected accretion and the expected impact on Archrock’s leverage ratio; and plans and objectives of management for future operations.
While Archrock believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: risks related to macroeconomic conditions, including an increase in inflation and trade tensions; pandemics and other public health crises; ongoing international conflicts and tensions; risks related to our operations; competitive pressures; risks of acquisitions to reduce our ability to make distributions to our common stockholders; inability to make acquisitions on economically acceptable terms; risks related to our sustainability initiatives; uncertainty to pay dividends in the future; risks related to a substantial amount of debt and our debt agreements; inability to access the capital and credit markets or borrow on affordable terms to obtain additional capital; inability to fund purchases of additional compression equipment; vulnerability to interest rate increases; erosion of the financial condition of our customers; risks related to the loss of our most significant customers; uncertainty of the renewals for our contract operations service agreements; risks related to losing management or operational personnel; dependence on particular suppliers and vulnerability to product shortages and price increases; information technology and cybersecurity risks; tax-related risks; legal and regulatory risks, including climate-related and environmental, social and governance risks.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2024, Archrock’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024 and those set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: Archrock, Inc.
For information, contact:
Megan Repine
VP of Investor Relations
281-836-8360
investor.relations@archrock.com
| Archrock, Inc. | ||||||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Contract operations | $ | 286,466 | $ | 245,420 | $ | 213,022 | $ | 980,405 | $ | 809,439 | ||||||||||
| Aftermarket services | 39,950 | 46,741 | 46,571 | 177,186 | 180,898 | |||||||||||||||
| Total revenue | 326,416 | 292,161 | 259,593 | 1,157,591 | 990,337 | |||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | ||||||||||||||||||||
| Contract operations | 86,221 | 79,810 | 75,960 | 323,052 | 306,748 | |||||||||||||||
| Aftermarket services | 30,896 | 34,395 | 36,332 | 135,449 | 142,271 | |||||||||||||||
| Total cost of sales, exclusive of depreciation and amortization | 117,117 | 114,205 | 112,292 | 458,501 | 449,019 | |||||||||||||||
| Selling, general and administrative | 42,234 | 34,059 | 33,007 | 139,121 | 116,639 | |||||||||||||||
| Depreciation and amortization | 58,129 | 48,377 | 42,695 | 193,194 | 166,241 | |||||||||||||||
| Long-lived and other asset impairment | 1,203 | 2,509 | 3,658 | 10,681 | 12,041 | |||||||||||||||
| Restructuring charges | — | — | 221 | — | 1,775 | |||||||||||||||
| Debt extinguishment loss | — | 3,181 | — | 3,181 | — | |||||||||||||||
| Interest expense | 38,238 | 30,179 | 27,938 | 123,610 | 111,488 | |||||||||||||||
| Transaction-related costs | 2,247 | 9,220 | — | 13,249 | — | |||||||||||||||
| Gain on sale of assets, net | (12,712 | ) | (2,218 | ) | (2,181 | ) | (17,887 | ) | (10,199 | ) | ||||||||||
| Other (income) expense, net | 1,598 | (304 | ) | (745 | ) | 1,561 | 1,086 | |||||||||||||
| Income before income taxes | 78,362 | 52,953 | 42,708 | 232,380 | 142,247 | |||||||||||||||
| Provision for income taxes | 18,604 | 15,437 | 9,706 | 60,149 | 37,249 | |||||||||||||||
| Net income | $ | 59,758 | $ | 37,516 | $ | 33,002 | $ | 172,231 | $ | 104,998 | ||||||||||
| Basic and diluted net income per common share (1) | $ | 0.34 | $ | 0.22 | $ | 0.21 | $ | 1.05 | $ | 0.67 | ||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||
| Basic | 173,451 | 165,847 | 153,879 | 162,037 | 154,126 | |||||||||||||||
| Diluted | 173,848 | 166,173 | 154,177 | 162,375 | 154,344 | |||||||||||||||
| __________________________________ | ||||||||||||||||||||
| (1) Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share. | ||||||||||||||||||||
| Archrock, Inc. | ||||||||||||||||||||||
| Unaudited Supplemental Information | ||||||||||||||||||||||
| (in thousands, except percentages, per share amounts and ratios) | ||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Revenue: | ||||||||||||||||||||||
| Contract operations | $ | 286,466 | $ | 245,420 | $ | 213,022 | $ | 980,405 | $ | 809,439 | ||||||||||||
| Aftermarket services | 39,950 | 46,741 | 46,571 | 177,186 | 180,898 | |||||||||||||||||
| Total revenue | $ | 326,416 | $ | 292,161 | $ | 259,593 | $ | 1,157,591 | $ | 990,337 | ||||||||||||
| Adjusted gross margin: | ||||||||||||||||||||||
| Contract operations | $ | 200,245 | $ | 165,610 | $ | 137,062 | $ | 657,353 | $ | 502,691 | ||||||||||||
| Aftermarket services | 9,054 | 12,346 | 10,239 | 41,737 | 38,627 | |||||||||||||||||
| Total adjusted gross margin (1) | $ | 209,299 | $ | 177,956 | $ | 147,301 | $ | 699,090 | $ | 541,318 | ||||||||||||
| Adjusted gross margin percentage: | ||||||||||||||||||||||
| Contract operations | 70 | % | 67 | % | 64 | % | 67 | % | 62 | % | ||||||||||||
| Aftermarket services | 23 | % | 26 | % | 22 | % | 24 | % | 21 | % | ||||||||||||
| Total adjusted gross margin percentage (1) | 64 | % | 61 | % | 57 | % | 60 | % | 55 | % | ||||||||||||
| Selling, general and administrative | $ | 42,234 | $ | 34,059 | $ | 33,007 | $ | 139,121 | $ | 116,639 | ||||||||||||
| % of revenue | 13 | % | 12 | % | 13 | % | 12 | % | 12 | % | ||||||||||||
| Adjusted EBITDA (1) | $ | 183,844 | $ | 150,854 | $ | 120,263 | $ | 595,434 | $ | 450,387 | ||||||||||||
| % of revenue | 56 | % | 52 | % | 46 | % | 51 | % | 45 | % | ||||||||||||
| Capital expenditures | $ | 97,988 | $ | 70,018 | $ | 36,655 | $ | 359,032 | $ | 298,632 | ||||||||||||
| Proceeds from sale of property, plant and equipment and other assets | (43,387 | ) | (6,654 | ) | (17,543 | ) | (67,591 | ) | (72,206 | ) | ||||||||||||
| Net capital expenditures | $ | 54,601 | $ | 63,364 | $ | 19,112 | $ | 291,441 | $ | 226,426 | ||||||||||||
| Total available horsepower (at period end) (2) | 4,401 | 4,418 | 3,759 | 4,401 | 3,759 | |||||||||||||||||
| Total operating horsepower (at period end) (3) | 4,227 | 4,179 | 3,607 | 4,227 | 3,607 | |||||||||||||||||
| Average operating horsepower | 4,205 | 3,757 | 3,607 | 3,794 | 3,554 | |||||||||||||||||
| Horsepower utilization: | ||||||||||||||||||||||
| Spot (at period end) (4) | 96 | % | 95 | % | 96 | % | 96 | % | 96 | % | ||||||||||||
| Average (4) | 95 | % | 95 | % | 96 | % | 95 | % | 95 | % | ||||||||||||
| Dividend declared for the period per share | $ | 0.190 | $ | 0.175 | $ | 0.165 | $ | 0.695 | $ | 0.625 | ||||||||||||
| Dividend declared for the period to all stockholders | $ | 33,487 | $ | 30,656 | $ | 25,913 | $ | 117,861 | $ | 97,857 | ||||||||||||
| Cash available for dividend coverage (5) | 3.5 | x | 3.0 | x | 2.8 | x | 3.1 | x | 2.4 | x | ||||||||||||
| Adjusted free cash flow (1) (6) | $ | 68,945 | $ | (834,282 | ) | $ | 47,385 | $ | (730,472 | ) | $ | 77,696 | ||||||||||
| Adjusted free cash flow after dividend (1) (6) | $ | 38,255 | $ | (862,147 | ) | $ | 23,195 | $ | (840,846 | ) | $ | (18,100 | ) | |||||||||
| __________________________________ | ||||||||||||||||||||||
| (1) Management believes adjusted gross margin, adjusted EBITDA, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons. | ||||||||||||||||||||||
| (2) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us. | ||||||||||||||||||||||
| (3) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue. | ||||||||||||||||||||||
| (4) Defined as total available horsepower divided by total operating horsepower at period end (spot) or over time (average). | ||||||||||||||||||||||
| (5) Defined as cash available for dividend divided by dividends declared for the period. | ||||||||||||||||||||||
| (6) Reflects | ||||||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||
| 2024 | 2024 | 2023 | |||||||
| Balance Sheet | |||||||||
| Long-term debt (1) | $ | 2,198,376 | $ | 2,236,131 | $ | 1,584,869 | |||
| Total equity | 1,323,531 | 1,290,736 | 871,021 | ||||||
| __________________________________ | |||||||||
| (1) Carrying values are shown net of unamortized premium and deferred financing costs. | |||||||||
| Archrock, Inc. | ||||||||||||||||||||
| Unaudited Supplemental Information | ||||||||||||||||||||
| Reconciliation of Net Income to Adjusted Net Income and Earnings Per Share to Adjusted Earnings Per Share | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income | $ | 59,758 | $ | 37,516 | $ | 33,002 | $ | 172,231 | $ | 104,998 | ||||||||||
| Transaction-related costs | 2,247 | 9,220 | — | 13,249 | — | |||||||||||||||
| Debt extinguishment loss | — | 3,181 | — | 3,181 | — | |||||||||||||||
| Tax effect of adjustments (1) | (472 | ) | (2,604 | ) | — | (3,450 | ) | — | ||||||||||||
| Adjusted net income (2) | $ | 61,533 | $ | 47,313 | $ | 33,002 | $ | 185,211 | $ | 104,998 | ||||||||||
| Weighted-average common shares outstanding used in diluted earnings per common share | 173,451 | 166,173 | 154,401 | 162,037 | 154,344 | |||||||||||||||
| Basic and diluted earnings per common share (3) | $ | 0.34 | $ | 0.22 | $ | 0.21 | 1.05 | 0.67 | ||||||||||||
| Transaction-related costs per share | 0.01 | 0.06 | — | 0.08 | — | |||||||||||||||
| Debt extinguishment loss per share | — | 0.02 | — | 0.02 | — | |||||||||||||||
| Tax effect of adjustments per share | (0.00 | ) | (0.02 | ) | — | (0.02 | ) | — | ||||||||||||
| Adjusted earnings per share (2) | $ | 0.35 | $ | 0.28 | $ | 0.21 | $ | 1.13 | $ | 0.67 | ||||||||||
| __________________________________ | ||||||||||||||||||||
| (1) Represents tax effect of transaction-related costs and debt extinguishment loss based on statutory tax rate. | ||||||||||||||||||||
| (2) Management believes adjusted net income and adjusted earnings per share provides useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review our current period operating performance, comparability measure and performance measure for period-to-period comparisons without burdened earnings and earnings per share for non-recurring transactional costs. | ||||||||||||||||||||
| (3) Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share. | ||||||||||||||||||||
| Archrock, Inc. | ||||||||||||||||||||
| Unaudited Supplemental Information | ||||||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA and Adjusted Gross Margin | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income | $ | 59,758 | $ | 37,516 | $ | 33,002 | $ | 172,231 | $ | 104,998 | ||||||||||
| Depreciation and amortization | 58,129 | 48,377 | 42,695 | 193,194 | 166,241 | |||||||||||||||
| Long-lived and other asset impairment | 1,203 | 2,509 | 3,658 | 10,681 | 12,041 | |||||||||||||||
| Unrealized change in fair value of investment in unconsolidated affiliate | 1,484 | — | (1,023 | ) | 1,484 | 973 | ||||||||||||||
| Restructuring charges | — | 221 | — | 1,775 | ||||||||||||||||
| Debt extinguishment loss | — | 3,181 | — | 3,181 | — | |||||||||||||||
| Interest expense | 38,238 | 30,179 | 27,938 | 123,610 | 111,488 | |||||||||||||||
| Transaction-related costs | 2,247 | 9,220 | — | 13,249 | — | |||||||||||||||
| Stock-based compensation expense | 3,431 | 3,738 | 3,283 | 14,646 | 12,998 | |||||||||||||||
| Amortization of capitalized implementation costs | 750 | 697 | 783 | 3,009 | 2,624 | |||||||||||||||
| Provision for income taxes | 18,604 | 15,437 | 9,706 | 60,149 | 37,249 | |||||||||||||||
| Adjusted EBITDA (1) | 183,844 | 150,854 | 120,263 | 595,434 | 450,387 | |||||||||||||||
| Selling, general and administrative | 42,234 | 34,059 | 33,007 | 139,121 | 116,639 | |||||||||||||||
| Stock-based compensation expense | (3,431 | ) | (3,738 | ) | (3,283 | ) | (14,646 | ) | (12,998 | ) | ||||||||||
| Amortization of capitalized implementation costs | (750 | ) | (697 | ) | (783 | ) | (3,009 | ) | (2,624 | ) | ||||||||||
| Gain on sale of assets, net | (12,712 | ) | (2,218 | ) | (2,181 | ) | (17,887 | ) | (10,199 | ) | ||||||||||
| Other (income) expense, net | 1,598 | (304 | ) | (745 | ) | 1,561 | 1,086 | |||||||||||||
| Adjusted gross margin (1) | $ | 209,299 | $ | 177,956 | $ | 147,301 | $ | 699,090 | $ | 541,318 | ||||||||||
| __________________________________ | ||||||||||||||||||||
| (1) Management believes adjusted EBITDA and adjusted gross margin provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons. | ||||||||||||||||||||
| Archrock, Inc. | ||||||||||||||||||||||||||||||
| Unaudited Supplemental Information | ||||||||||||||||||||||||||||||
| Reconciliation of Total Revenue to Adjusted Gross Margin | ||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
| Total revenues | $ | 326,416 | $ | 292,161 | $ | 259,593 | $ | 1,157,591 | $ | 990,337 | ||||||||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | (117,117 | ) | (114,205 | ) | (112,292 | ) | (458,501 | ) | (449,019 | ) | ||||||||||||||||||||
| Depreciation and amortization | (58,129 | ) | (48,377 | ) | (42,695 | ) | (193,194 | ) | (166,241 | ) | ||||||||||||||||||||
| Gross margin | 151,170 | 46 | % | 129,579 | 44 | % | 104,606 | 40 | % | 505,896 | 44 | % | 375,077 | 38 | % | |||||||||||||||
| Depreciation and amortization | 58,129 | 48,377 | 42,695 | 193,194 | 166,241 | |||||||||||||||||||||||||
| Adjusted gross margin (1) | $ | 209,299 | 64 | % | $ | 177,956 | 61 | % | $ | 147,301 | 57 | % | $ | 699,090 | 60 | % | 541,318 | 55 | % | |||||||||||
| __________________________________ | ||||||||||||||||||||||||||||||
| (1) Management believes adjusted gross margin provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measures and performance measures for period-to-period comparisons. | ||||||||||||||||||||||||||||||
| Archrock, Inc. | ||||||||||||||||||||
| Unaudited Supplemental Information | ||||||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income | $ | 59,758 | $ | 37,516 | $ | 33,002 | $ | 172,231 | $ | 104,998 | ||||||||||
| Depreciation and amortization | 58,129 | 48,377 | 42,695 | 193,194 | 166,241 | |||||||||||||||
| Long-lived and other asset impairment | 1,203 | 2,509 | 3,658 | 10,681 | 12,041 | |||||||||||||||
| Unrealized change in fair value of investment in unconsolidated affiliate | 1,484 | — | (1,023 | ) | 1,484 | 973 | ||||||||||||||
| Restructuring charges | — | — | 221 | — | 1,775 | |||||||||||||||
| Debt extinguishment loss | — | 3,181 | — | 3,181 | — | |||||||||||||||
| Interest expense | 38,238 | 30,179 | 27,938 | 123,610 | 111,488 | |||||||||||||||
| Transaction-related costs | 2,247 | 9,220 | — | 13,249 | ||||||||||||||||
| Stock-based compensation expense | 3,431 | 3,738 | 3,283 | 14,646 | 12,998 | |||||||||||||||
| Amortization of capitalized implementation costs | 750 | 697 | 783 | 3,009 | 2,624 | |||||||||||||||
| Provision for income taxes | 18,604 | 15,437 | 9,706 | 60,149 | 37,249 | |||||||||||||||
| Adjusted EBITDA (1) | 183,844 | 150,854 | 120,263 | 595,434 | 450,387 | |||||||||||||||
| Less: Maintenance capital expenditures | (21,623 | ) | (21,190 | ) | (18,156 | ) | (87,753 | ) | (92,168 | ) | ||||||||||
| Less: Other capital expenditures | (7,023 | ) | (6,945 | ) | (3,193 | ) | (20,333 | ) | (16,164 | ) | ||||||||||
| Less: Cash tax (payment) refund | 134 | (404 | ) | (120 | ) | (2,209 | ) | (1,311 | ) | |||||||||||
| Less: Cash interest expense | (37,243 | ) | (29,428 | ) | (27,310 | ) | (120,544 | ) | (107,765 | ) | ||||||||||
| Cash available for dividend (2) | $ | 118,089 | $ | 92,887 | $ | 71,484 | $ | 364,595 | $ | 232,979 | ||||||||||
| __________________________________ | ||||||||||||||||||||
| (1) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons. | ||||||||||||||||||||
| (2) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends. | ||||||||||||||||||||
| Archrock, Inc. | ||||||||||||||||||||
| Unaudited Supplemental Information | ||||||||||||||||||||
| Reconciliation of Net Cash Provided by Operating Activities to Cash Available for Dividend | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net cash provided by operating activities | $ | 124,338 | $ | 96,900 | $ | 71,719 | $ | 429,591 | $ | 310,187 | ||||||||||
| Inventory write-downs | 18 | (51 | ) | (164 | ) | (550 | ) | (545 | ) | |||||||||||
| Provision for credit losses | (286 | ) | (90 | ) | (458 | ) | (381 | ) | (224 | ) | ||||||||||
| Gain on sale of assets, net | 12,712 | 2,218 | 2,181 | 17,887 | 10,199 | |||||||||||||||
| Current income tax (benefit) provision | 997 | (146 | ) | 459 | 2,059 | 1,591 | ||||||||||||||
| Cash tax (payment) refund | 134 | (404 | ) | (120 | ) | (2,209 | ) | (1,311 | ) | |||||||||||
| Amortization of operating lease ROU assets | (1,063 | ) | (962 | ) | (831 | ) | (3,852 | ) | (3,319 | ) | ||||||||||
| Amortization of contract costs | (6,106 | ) | (6,046 | ) | (5,653 | ) | (23,877 | ) | (21,289 | ) | ||||||||||
| Deferred revenue recognized in earnings | 5,294 | 4,101 | 5,421 | 15,001 | 16,464 | |||||||||||||||
| Cash restructuring charges | — | — | 211 | — | 1,554 | |||||||||||||||
| Transaction-related costs | 2,247 | 9,220 | — | 13,249 | — | |||||||||||||||
| Changes in assets and liabilities | 8,450 | 16,282 | 20,068 | 25,763 | 28,004 | |||||||||||||||
| Maintenance capital expenditures | (21,623 | ) | (21,190 | ) | (18,156 | ) | (87,753 | ) | (92,168 | ) | ||||||||||
| Other capital expenditures | (7,023 | ) | (6,945 | ) | (3,193 | ) | (20,333 | ) | (16,164 | ) | ||||||||||
| Cash available for dividend (1) | $ | 118,089 | $ | 92,887 | $ | 71,484 | $ | 364,595 | $ | 232,979 | ||||||||||
| __________________________________ | ||||||||||||||||||||
| (1) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends. | ||||||||||||||||||||
| Archrock, Inc. | ||||||||||||||||||||
| Unaudited Supplemental Information | ||||||||||||||||||||
| Reconciliation of Net Cash Provided By Operating Activities to Adjusted Free Cash Flow | ||||||||||||||||||||
| and Adjusted Free Cash Flow After Dividend | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net cash provided by operating activities | $ | 124,338 | $ | 96,900 | $ | 71,719 | $ | 429,591 | $ | 310,187 | ||||||||||
| Net cash used in investing activities (1) | (55,393 | ) | (931,182 | ) | (24,334 | ) | (1,160,063 | ) | (232,491 | ) | ||||||||||
| Adjusted free cash flow (1) (2) | 68,945 | (834,282 | ) | 47,385 | (730,472 | ) | 77,696 | |||||||||||||
| Dividends paid to stockholders | (30,690 | ) | (27,865 | ) | (24,190 | ) | (110,374 | ) | (95,796 | ) | ||||||||||
| Adjusted free cash flow after dividend (1) (2) | $ | 38,255 | $ | (862,147 | ) | $ | 23,195 | $ | (840,846 | ) | $ | (18,100 | ) | |||||||
| __________________________________ | ||||||||||||||||||||
| (1) Reflects | ||||||||||||||||||||
| (2) Management believes adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons. | ||||||||||||||||||||
| Archrock, Inc. | ||||||||
| Unaudited Supplemental Information | ||||||||
| Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend Guidance | ||||||||
| (in thousands) | ||||||||
| Annual Guidance Range | ||||||||
| 2025 | ||||||||
| Low | High | |||||||
| Net income (1) | $ | 253,000 | $ | 293,000 | ||||
| Interest expense | 153,000 | 153,000 | ||||||
| Provision for income taxes | 101,000 | 101,000 | ||||||
| Depreciation and amortization | 219,000 | 219,000 | ||||||
| Stock-based compensation expense | 15,000 | 15,000 | ||||||
| Amortization of capitalized implementation costs | 4,000 | 4,000 | ||||||
| Transaction-related costs (2) | 5,000 | 5,000 | ||||||
| Adjusted EBITDA (3) | 750,000 | 790,000 | ||||||
| Less: Maintenance capital expenditures | (105,000 | ) | (115,000 | ) | ||||
| Less: Other capital expenditures | (35,000 | ) | (50,000 | ) | ||||
| Less: Cash tax expense | (7,000 | ) | (7,000 | ) | ||||
| Less: Cash interest expense | (147,000 | ) | (147,000 | ) | ||||
| Cash available for dividend (4)(5) | $ | 456,000 | $ | 471,000 | ||||
| __________________________________ | ||||||||
| (1) 2025 annual guidance for net income does not include the impact of long-lived and other asset impairment because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact Adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was | ||||||||
| (2) Reflects an estimate of expenses to be incurred related to the TOPS acquisition. | ||||||||
| (3) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons. | ||||||||
| (4) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends. | ||||||||
| (5) A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were | ||||||||
FAQ
What were Archrock's Q4 2024 revenue and net income?
How did Archrock's full-year 2024 revenue compare to 2023?
What was Archrock's EPS for Q4 2024 and full-year 2024?
How much did Archrock's adjusted EBITDA grow in Q4 2024?
What was Archrock's quarterly dividend for Q4 2024?
What was the revenue for Archrock's contract operations segment in Q4 2024?
How did Archrock's aftermarket services segment perform in Q4 2024?
What is Archrock's leverage ratio as of December 31, 2024?
