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.
Archrock Inc. (NYSE: AROC) is a premier provider of natural gas contract compression services in the United States, holding a prominent position in the energy infrastructure sector. Established over 60 years ago, the company has built a legacy of reliability and expertise, delivering essential compression services to the oil and natural gas industry. With the largest fleet in the country, strategically located assets, and highly skilled, certified technicians, Archrock ensures its services are available where and when they're needed most.
Archrock operates through two primary business segments: Contract Operations and Aftermarket Services. The Contract Operations segment caters to the installation, operation, and maintenance of natural gas compression equipment, supporting customers' efforts to produce, compress, and transport natural gas efficiently. In contrast, the Aftermarket Services segment provides comprehensive services for customers who own compression equipment, including maintenance, overhaul, reconfiguration, and parts sales.
Recent achievements underscore Archrock's robust performance and strategic direction. In the third quarter of 2023, the company achieved record levels in utilization, revenue per horsepower, and Adjusted EBITDA. The contract operations gross margin rose to 64%, reflecting positive pricing trends and effective cost management. Furthermore, Archrock has committed its 2024 new build capital and is experiencing strong booking demand extending into 2025, driven by investments in oil basins with associated gas and infrastructure to support growing LNG exports from the U.S.
Financially, Archrock is focused on maintaining a strong balance sheet, enhancing profitability, and delivering returns to shareholders. The company has increased its dividend and engaged in share buybacks, demonstrating confidence in its financial performance and market prospects. Archrock's strategic initiatives include a differentiated capital allocation framework aimed at sustainable dividend growth, leverage reduction, and high-return capital expenditures.
With a commitment to environmental responsibility and operational excellence, Archrock continues to support the natural gas industry's critical infrastructure needs. By leveraging its extensive market presence and operational capabilities, Archrock remains well-positioned to capitalize on the enduring demand for natural gas compression services, contributing to the broader goal of providing cleaner, reliable, and affordable energy.
Archrock (NYSE: AROC) announced that its subsidiary, Archrock Partners, plans to offer $500 million in senior notes due 2032 to eligible purchasers. The net proceeds will primarily fund the cash portion of Archrock's acquisition of Total Operations and Production Services, Any remaining funds will be used for general corporate purposes, potentially including debt repayment. The notes will be offered only to qualified institutional buyers and non-U.S. persons, in compliance with Securities Act regulations. This offering is subject to market conditions and is not contingent on the acquisition's completion. The notes are not registered under the Securities Act and have restrictions on their sale and offer in the United States.
Archrock (NYSE: AROC) reported strong Q2 2024 results, with revenue increasing to $270.5 million from $247.5 million in Q2 2023. Net income rose to $34.4 million, up from $24.7 million year-over-year. Adjusted EBITDA reached $129.7 million, compared to $112.8 million in Q2 2023. The company maintained a high utilization rate of 95% and declared a quarterly dividend of $0.165 per share, a 6% increase from Q2 2023. Archrock also announced the acquisition of Total Operations and Production Services, (TOPS), expected to be immediately accretive to earnings. The company reaffirmed its 2024 Adjusted EBITDA guidance range of $510-$540 million and capital expenditures guidance of $290-$300 million, excluding the TOPS acquisition impact.
Archrock (NYSE: AROC) has declared a quarterly dividend of $0.165 per share of common stock, equivalent to $0.66 per share annually. This represents a 6% year-over-year increase. The dividend will be paid on August 13, 2024, to stockholders of record as of August 6, 2024. CEO Brad Childers emphasized the company's commitment to returning capital to shareholders through a well-covered dividend.
Archrock is also in the process of acquiring Total Operations and Production Services, expected to close by the end of 2024. This acquisition is anticipated to be immediately accretive to earnings per share and cash available for dividend per share, potentially enhancing the company's financial flexibility and capacity for future dividend increases.
Archrock has announced the timing for its second quarter 2024 financial and operating results. The company will host a conference call on July 31, 2024, at 10:00 a.m. Eastern Time to discuss the results. The earnings report will be released prior to the conference call. To listen to the call live, visit www.archrock.com or dial 1 (800) 715-9871 in the U.S. and Canada, or 1 (646) 307-1963 for international calls using the access code 4749623. A replay of the webcast will be available for 90 days on Archrock’s website after the call.
Archrock (NYSE: AROC) has priced its public offering of 11,000,000 common stock shares at $21.00 per share. The offering, expected to close on July 24, 2024, aims to raise approximately $223 million in net proceeds. Underwriters have a 30-day option to purchase up to 1,650,000 additional shares. The funds will primarily finance Archrock's acquisition of Total Operations and Production Services, (TOPS). If the acquisition doesn't materialize, proceeds will be used for general corporate purposes. J.P. Morgan, Evercore ISI, Wells Fargo Securities, and Citigroup are acting as joint book-running managers for the offering.
Archrock (NYSE: AROC) has announced a public offering of 11,000,000 shares of its common stock, with an option for underwriters to purchase an additional 1,650,000 shares. The company plans to use the net proceeds to fund the cash portion of its previously announced acquisition of Total Operations and Production Services, (TOPS). If the TOPS acquisition doesn't materialize, the funds will be used for general corporate purposes. J.P. Morgan, Evercore ISI, Wells Fargo Securities, and Citigroup are acting as underwriters for the offering. The shares will be offered and sold under an effective shelf registration statement on Form S-3 filed with the SEC.
Archrock (NYSE: AROC) has announced a $983 million cash and stock acquisition of Total Operations and Production Services, (TOPS), a leading Permian Basin contract gas compression provider. This strategic move will expand Archrock's compression capacity in the Permian Basin by 30%, adding approximately 580,000 horsepower of predominantly young electric motor drive compression assets.
The transaction is expected to be immediately accretive to Archrock's earnings per share and cash available for dividend. It will enhance Archrock's positioning in lower carbon solutions and is projected to be more than 10% accretive to EPS and over 20% accretive to cash available for dividend per share in 2025. The deal is anticipated to close by the end of 2024, subject to regulatory approvals and closing conditions.
Archrock, Inc. (NYSE: AROC) reported strong first quarter 2024 results with revenue at $268.5 million, net income of $40.5 million, and adjusted EBITDA of $131.0 million. The company raised its 2024 adjusted EBITDA guidance to $510-540 million. Archrock's long-term debt decreased to $1.6 billion, with a leverage ratio of 3.2x. The company declared a quarterly dividend of $0.165 per share and repurchased common shares during the quarter. Shareholders can expect a quarterly dividend payment on May 14, 2024.
FAQ
What is the current stock price of Archrock (AROC)?
What is the market cap of Archrock (AROC)?
What does Archrock Inc. do?
How long has Archrock been in operation?
What are Archrock's primary business segments?
What recent achievements has Archrock reported?
Where is Archrock headquartered?
How does Archrock support its customers?
What is Archrock's approach to environmental responsibility?
What is Archrock's strategy for financial performance?
What drives demand for Archrock's services?
How does Archrock plan to grow in the future?
