Archrock Inc. (AROC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this natural gas compression services business have returned -6% over the past month versus the Zacks S&P 500 composite's -5.9% change. The Zacks Oil and Gas - Field Services industry, to which Archrock Inc. belongs, has lost 4.5% over this period. Now the key question is: Where could the stock be hea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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) Delaware 74-3204509 (State or other ju ...

Financial Data and Key Metrics Changes - Archrock reported a net income of $34 million for Q2 2024, an increase from $25 million in Q2 2023 [7] - Adjusted EBITDA for the quarter was $130 million, reflecting a 15% increase year-over-year, driven by higher pricing and effective cost management [7] - The leverage ratio stood at 3.2x, maintaining a strong financial position [7] - Quarterly dividend per share increased by 6% compared to the previous year, with a robust dividend coverage of 2.6x [7][17] Business Line Data and Key Metrics Changes - The Aftermarket Service segment generated revenues of $45 million, with an adjusted gross margin of 22%, exceeding full-year guidance expectations [11] - The contract operations segment maintained a utilization rate of 95%, with continued strong booking activity expected into 2025 [9][10] Market Data and Key Metrics Changes - Market conditions for compression services remain favorable, particularly in oil plays with associated gas production, such as the Permian Basin [9] - The average revenue per horsepower increased to $20.85, marking the 11th consecutive quarter of sequential increases [10] Company Strategy and Development Direction - The acquisition of TOPS is expected to enhance Archrock's position in the contract compression services market, adding 580,000 horsepower of young assets [12][13] - The acquisition aligns with the company's strategic focus on investing in high-quality, high-return compression assets while maintaining a strong balance sheet [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of the natural gas market, anticipating sustained demand for compression services [6][19] - The company reaffirmed its full-year 2024 adjusted EBITDA guidance, excluding the impact of the TOPS acquisition, projecting a range of $510 million to $540 million [18] Other Important Information - Growth capital expenditures for Q2 2024 totaled $62 million, with a year-to-date total of $140 million [15] - The company plans to fund the TOPS acquisition with a combination of cash and newly issued common shares, maintaining a consistent leverage ratio [16] Q&A Session Summary Question: Year-to-date growth CapEx spending and horsepower dynamics - Management noted a 95% utilization rate, indicating that much of the idle fleet horsepower has been put to work, resulting in less horsepower available for new bookings [22] Question: Lead times and equipment cost inflation - Lead times for equipment are approximately 40 weeks, with inflation for equipment costs returning to historic levels of 3% to 5% [25] Question: Pricing strategy and market conditions - Management indicated that 80% to 90% of the fleet is eligible for price increases over the next 18 months, with ongoing strong demand supporting pricing power [28][29] Question: Maintenance CapEx and guidance - Higher maintenance CapEx in the quarter was attributed to parts expenses and timing, with current guidance remaining unchanged [31] Question: Outlook for aftermarket business margins - The aftermarket service segment is expected to maintain above 20% margins due to strong service activity driven by high utilization levels [33]

Archrock Inc. (AROC) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.17%. A quarter ago, it was expected that this natural gas compression services business would post earnings of $0.22 per share when it actually produced earnings of $0.26, delivering a surprise of 18.18%.Over the l ...

Archrock Reports Second Quarter 2024 Results HOUSTON, July 30, 2024 - Archrock, Inc. (NYSE: AROC) ("Archrock") today reported results for the second quarter 2024. Second Quarter 2024 and Recent Highlights | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

HOUSTON, July 30, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) today reported results for the second quarter 2024. Second Quarter 2024 and Recent Highlights Revenue for the second quarter of 2024 was $270.5 million compared to $247.5 million in the second quarter of 2023.Net income for the second quarter of 2024 was $34.4 million compared to $24.7 million in the second quarter of 2023.Adjusted EBITDA (a non-GAAP measure defined below) for the second quarter of 2024 was $129.7 million co ...

Archrock, Inc. (AROC) is set to release second-quarter 2024 results on Jul 31. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 24 cents per share on revenues of $270.6 million.Let’s delve into the factors that might have influenced the Houston, TX-based energy company’s results in the June quarter. But it’s worth taking a look at AROC’s previous-quarter performance first.Highlights of Q1 Earnings & Surprise HistoryIn the last reported quarter, the provider of natural gas-c ...

HOUSTON, July 25, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today announced that its Board of Directors has declared a quarterly dividend of $0.165 per share of common stock, or $0.66 per share on an annualized basis. The second quarter 2024 dividend will be paid on August 13, 2024 to all stockholders of record on August 6, 2024. The second quarter 2024 dividend per share amount is consistent with Archrock’s first quarter 2024 dividend and represents a year-over-year ...

HOUSTON, July 24, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE:AROC) (“Archrock”) will host a conference call on Wednesday, July 31, 2024, to discuss its second quarter 2024 financial and operating results. The call will begin at 10:00 a.m. Eastern Time. Archrock will release its second quarter 2024 earnings report prior to the conference call. 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 Un ...

HOUSTON, July 22, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) announced today that it has commenced an underwritten public offering (the “offering”) of 11,000,000 shares of its common stock (the “common stock”). Archrock will grant the underwriters an option for 30 days to purchase up to an additional 1,650,000 shares of common stock from Archrock. Archrock intends to use the net proceeds from the offering to fund the cash portion of the purchase price for the previously announced acqu ...