Archrock, Inc. ( (AROC) ) has released its Q3 earnings. Here is a breakdown of the information Archrock, Inc. presented to its investors.
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Archrock, Inc. is an energy infrastructure company based in Houston, Texas, specializing in midstream natural gas compression services and aftermarket services for compression equipment, serving the energy industry across the U.S.
Archrock has reported significant financial growth for the third quarter of 2024, with revenues reaching $292.2 million, up from $253.4 million in the same quarter of the previous year. The company also achieved a net income of $37.5 million, reflecting an increase from the $30.9 million recorded in Q3 2023. Alongside these financial achievements, Archrock has raised its full-year 2024 adjusted EBITDA guidance, highlighting a robust market outlook.
Key financial metrics for the quarter included an adjusted EBITDA of $150.9 million, a notable increase from $120.2 million in Q3 2023. The company declared a quarterly dividend of $0.175 per share, marking a 6% increase from the previous quarter and a 13% increase compared to the same period last year. Additionally, Archrock closed its acquisition of Total Operations and Production Services, LLC (TOPS), boosting its operational capabilities.
The company’s contract operations segment saw an 18% increase in revenue, amounting to $245.4 million, and an adjusted gross margin of 67%. The aftermarket services segment also experienced growth, with a revenue of $46.7 million and an improved adjusted gross margin of 26%. These segments contributed to the company’s strengthened financial performance and enhanced operational capacity.
Looking ahead, Archrock’s management anticipates continued growth, driven by strong compression booking demand and strategic investments in midstream and electric motor drive horsepower. The company’s focus on integrating the TOPS acquisition and expanding its presence in the Permian Basin positions it for future success, with expectations for increased customer service levels, operational execution, and profitability in 2025.
