Core Viewpoint - Archrock, Inc. has announced a definitive agreement to acquire Natural Gas Compression Systems for $357 million, enhancing its position in the natural gas compression services market in the U.S. [1] Group 1: Acquisition Details - The acquisition will be financed with $298 million in cash from Archrock's ABL credit facility and the issuance of up to 2.312 million new shares to the sellers [3] - The transaction has been unanimously approved by Archrock's board and is expected to close in the second quarter of 2025, pending regulatory approvals [3] Group 2: Strategic Benefits - The acquisition will increase Archrock's compression capacity to over 4.5 million operating horsepower, with a 10% increase in capacity in the Permian Basin, reaching approximately 2.5 million horsepower [4] - The merger will enhance Archrock's electric motor drive compression horsepower to approximately 815,000 [4] - The deal is anticipated to be immediately accretive to Archrock's earnings per share and dividend cash flow by the end of 2025 [4] Group 3: Company Overview - Archrock is a provider of natural gas contract compression services and aftermarket services for compression equipment, currently holding a Zacks Rank 1 (Strong Buy) [5]

Business includes approximately 351,000 horsepower, comprised of 316,000 operating horsepower and a 35,000 horsepower backlog of contracted new equipmentAligns with Archrock's focus on large horsepower compression with blue-chip customersComplements and deepens Archrock's existing operations in the Permian BasinExpands Archrock's electric motor drive compression capabilities as customer demand for low carbon solutions continues to growThe $357 million transaction is expected to be immediately accretive to A ...

Archrock Inc. (AROC) ended the recent trading session at $25.28, demonstrating a +0.68% swing from the preceding day's closing price. This change lagged the S&P 500's 1.12% gain on the day. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 1.46%.Shares of the natural gas compression services business have depreciated by 12.42% over the course of the past month, underperforming the Oils-Energy sector's loss of 5.86% and the S&P 500's loss of 4.13%.Market participants will be closely followin ...

Group 1 - Archrock reported full year earnings on February 27, marking the first full quarter after the TOPS acquisition, showcasing the impact of the company's increased scale [1] - The acquisition has positioned Archrock to leverage its larger operational capacity, indicating potential for enhanced revenue generation and market presence [1] Group 2 - The company focuses on income-producing equities and rental real estate properties, aiming for cash flow and long-term appreciation [1]

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:TKO Group Holdings, Inc. (TKO) : This company which is primarily engaged in the production and distribution of unique and creative content via myriad channels, including the premium over-the-top network monetized through license arrangements or through direct-to-consumer subscriptions, content rights agreements, premium live event programming and the sale of consumer products featuring brands, has seen the Zacks Consensus Estimate for i ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth S ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, February 27th:United States Cellular (USM) : This company which is the fourth largest full-service wireless carrier in the United States, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days.United States Cellular’s shares gained 3% over the last three month compared with the S&P 500’s loss of 0.7%. The company pos ...

Group 1: Klabin (KLBAY) - Klabin is the largest producer, exporter, and recycler of paper in Brazil [1] - The Zacks Consensus Estimate for Klabin's next year earnings has increased by 1.4% over the last 60 days [1] - Klabin has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 3.3%, which is higher than the industry average of 2.6% [1] Group 2: Archrock (AROC) - Archrock provides natural gas contract compression services and aftermarket services for compression equipment [2] - The Zacks Consensus Estimate for Archrock's next year earnings has increased nearly 1.3% over the last 60 days [2] - Archrock has a Zacks Rank of 1 and a dividend yield of 2.9%, compared to the industry average of 0.0% [2]

Financial Data and Key Metrics Changes - Archrock reported record adjusted EPS and adjusted EBITDA, with adjusted EPS increasing by 69% and adjusted EBITDA by more than 30% compared to 2023 [7][10]. - The company achieved an all-time high equipment utilization rate of 96% at year-end [9]. - Total debt at year-end was $2.2 billion, with a leverage ratio of 3.3 times, down from 3.5 times in the previous year [28]. Business Line Data and Key Metrics Changes - Contract operations revenue for Q4 was $286 million, up 17% from the previous quarter, driven by the TOPS acquisition and organic horsepower growth [27]. - Adjusted gross margin for contract operations reached a record 70% in Q4, reflecting a $35 million increase in adjusted gross margin dollars compared to the previous quarter [27][30]. - The aftermarket services segment reported Q4 revenue of $40 million, down from the previous quarter due to seasonal softness, but profitability remained higher compared to historical levels [20][27]. Market Data and Key Metrics Changes - The EIA forecasts 2% to 3% annual growth in oil and natural gas production for 2025, with significant demand for compression driven by natural gas production and infrastructure investments [14][15]. - Archrock anticipates strong customer demand for new equipment well into 2025, supported by a substantial contracted backlog [17]. Company Strategy and Development Direction - Archrock's strategic focus for 2025 includes capturing opportunities in the robust market, maximizing service reliability, and reducing carbon emissions through electric motor drive compression [11][12]. - The company plans to invest between $330 million and $370 million in growth capital expenditures for 2025, primarily for new build horsepower and electric motor drive units [21][31]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong dynamics driving oil and gas production growth in the U.S., indicating that 2025 is expected to be an even better year than 2024 [91]. - The company is optimistic about maintaining profitability and generating stable cash flows, despite potential slowdowns in oil production growth [89]. Other Important Information - Archrock announced a 15% year-over-year increase in quarterly dividends, reflecting confidence in the outlook for compression and financial flexibility [23][29]. - The company is focused on maintaining a well-covered dividend that grows alongside profitability increases [23]. Q&A Session Summary Question: Sustainability of Margin Performance - Management believes the current margin performance is sustainable and can be expanded through internal efficiencies and pricing strategies [36][37]. Question: Growth CapEx and Horsepower Additions - Archrock expects to add over 200,000 horsepower in 2025, with 80% of the budget allocated to large horsepower midstream gas drive engines and 20% to electric motor drive [40][41]. Question: 2025 Guidance Assumptions - Guidance for 2025 is influenced by pricing increases and the timing of fleet additions, with a focus on maintaining profitability [47][48]. Question: Demand Opportunities Outside the Permian - While the Permian remains the primary focus, Archrock sees growth opportunities in other basins like Haynesville and Bakken, albeit on a smaller scale [51]. Question: Aftermarket Revenue Growth Confidence - Management is confident in achieving double-digit growth in aftermarket services due to high customer activity and demand for services [67][70]. Question: Maintenance CapEx Expectations - The elevated maintenance CapEx for 2025 is driven by the timing of fleet additions and the need to maintain a competitive edge [72][73].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file no. 001-33666 Archrock, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporat ...