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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 will host a conference call on May 3, 2023, at 10:00 a.m. Eastern Time to discuss its first quarter 2023 financial and operating results. The earnings report will be released prior to the call. Investors can access the call via live webcast on Archrock's website or by dialing 1 (888) 440-5667 for U.S. and Canada calls and 1 (646) 960-0476 for international calls, using access code 4749623. A replay of the call will be available for 90 days on the website.
Archrock specializes in midstream natural gas compression services in the energy sector, focusing on safe and environmentally responsible operations. It is a leader in providing compression services and aftermarket solutions across the U.S.
Archrock reported strong financial results for Q4 and full-year 2022, with revenue reaching $218.9 million in Q4, up from $195.2 million in Q4 2021. Full-year revenue increased to $845.6 million from $781.5 million. Net income for Q4 was $10.5 million, compared to $6.0 million in 2021, while full-year net income rose to $44.3 million from $28.2 million. The company declared a $0.15 quarterly dividend, marking a 3% increase. 2023 guidance includes adjusted EBITDA of $400,000 to $430,000 and net income of $75,000 to $105,000. Utilization reached a record 93%.
Archrock, Inc. (NYSE: AROC) will host a conference call on February 22, 2023, at 12:00 p.m. ET to discuss its fourth quarter 2022 financial results and provide full-year 2023 guidance. The earnings report will be released before the call. To access the call, visit Archrock’s website or dial the specified numbers for U.S. and international listeners. Archrock is a leading energy infrastructure company focused on midstream natural gas compression, committed to safe and environmentally responsible operations. Additional information can be found at www.archrock.com.
Archrock (NYSE: AROC) announced an increased quarterly dividend of $0.15 per share, reflecting a 3.3% increase from the previous quarter. The dividend will be paid on February 14, 2023 to shareholders on record as of February 7, 2023, which translates to $0.60 annually. The company reports strong demand in the natural gas sector and aims for a robust performance in 2023, with 93% horsepower utilization by the end of 2022. Archrock has reduced debt by over $300 million since 2019 and anticipates a leverage ratio below 4.0 times, supporting a healthy dividend coverage ratio of approximately 2.0 times in 2023.
Archrock reported its third quarter 2022 results, with revenues increasing to $213.7 million, up from $195.2 million in 2021. Net income rose to $15.4 million compared to $9.3 million a year earlier. The gross margin for the quarter was $106.1 million, slightly higher than $103.2 million in 2021. The company achieved a record utilization rate of 89%, an increase from 82% last year. Archrock's quarterly dividend was maintained at $0.145 per share, with a dividend coverage of 1.8x. Management expects to exceed 2022 Adjusted EBITDA guidance due to strong underlying performance.
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