Active investors must pick breakout stocks for excellent returns. This method involves zeroing in on stocks whose prices vary within a narrow band.If the stock price falls below this channel, it could be the best time to sell it off. However, the best time to buy a stock per this strategy is when it is about to break above this trading band. Such stocks offer the prospect of impressive gains.To that end, BRF (BRFS) , Archrock (AROC) and Nomura (NMR) have been selected as the breakout stocks for today.Zeroin ...

Company Profile - AROC is an outsourced provider of natural gas compression services in the U S with a fleet of 3 773 000 available horsepower HP at the end of September mostly consisting of large compressors with 1 000 or more horsepower [2] - The company operates in various basins across the U S with a heavier concentration in oil driven shale plays such as the Permian Eagle Ford Scoop Stack and Niobrara as well as other basins like the Marcellus Utica and Bakken [2] - AROC serves both midstream and upstream operators with its top 10 customers representing over 50 of its revenue including companies like Enterprise Products Partners Williams Companies Enlink Chevron and Devon [2] - The company has fixed fee contracts with initial terms of 12 48 months and an aftermarket service business that accounts for nearly 20 of its revenue [2] - AROC owns a 25 stake in Ecotec International Holders which manages and monitors ethane emissions [2] Market Trends and Opportunities - AROC is benefiting from strong natural gas production particularly in oil producing regions like the Permian where associated gas production is driven by oil prices rather than natural gas prices [3] - The company has seen an increase in monthly revenue per horsepower for eight straight quarters with a 17 increase in Q3 [3] - AROC is experiencing unprecedented tightness in the compression market due to structural and industry wide changes to capital allocation practices [3] - The company s utilization rate based on horsepower reached a record 96 at the end of Q3 compared to 89 a year ago [3] - AROC is more willing to add new compression units even at elevated prices which are up about 40 since the pandemic and has raised 55 million through the sale of nonstrategic equipment to fund new build investments [3] - The company s 2024 new build capacity is already committed with growth capex expected to be about 160 million in 2024 [3] - AROC s aftermarket service business is expected to benefit from the current industry dynamics as older units stay in the field requiring more maintenance and overhauls [3] - The company has long term opportunities in carbon capture with a 25 stake in ECOTEC and a partnership with Ionada for post combustion carbon capture technology [3] Valuation and Financials - AROC trades at 8 5x the 2024 EBITDA consensus of 494 6 million and 8 0x the 2025 EBITDA consensus of 526 9 million [4] - The stock has a distributable cash flow yield of about 8 5 based on 2023 conservative projections of 225 million and pays a dividend yield of about 4 after a 6 5 increase in late January [4] - The company s dividend was covered 2 6x in Q3 and it was leveraged 3 8x at the end of Q3 [4] - AROC is less expensive than USAC despite having a similar business and historically trading at a discount to USAC [4] Conclusion - The Biden administration s pause on new LNG facility permitting adds some risk but is not expected to have a big impact over the next two years [6] - The compression market is expected to remain tight with prices continuing to rise gradually [6] - AROC is anticipated to report a solid Q4 with high utilization and sequential price increases benefiting its top and bottom lines [6] - The company is less expensive and has a better balance sheet than USAC riding many of the same market trends [6]

Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Is Archrock Inc. (AROC) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.Archrock Inc. is a member of the Oils-Energy sector. This group includes 249 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different grou ...

HOUSTON, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE:AROC) ("Archrock") today announced that its Board of Directors has declared an increased quarterly dividend of $0.165 per share of common stock, or $0.66 per share on an annualized basis. The fourth quarter 2023 dividend will be paid on February 13, 2024 to all stockholders of record on February 6, 2024. The fourth quarter 2023 dividend per share amount represents an increase of 6.5 percent over the Archrock third quarter 2023 dividend level an ...

Archrock, Inc. (NYSE:AROC) Q3 2023 Earnings Conference Call November 2, 2023 12:00 PM ET Company Participants Megan Repine - Manager, IR, Noble Midstream Partners Bradley Childers - President, CEO & Director Douglas Aron - SVP & CFO Conference Call Participants James Rollyson - Raymond James & Associates Stephen Ferazani - Sidoti & Company Selman Akyol - Stifel, Nicolaus & Company Operator Good morning, and welcome to the Archrock's Third Quarter 2023 Conference Call. Your host for today's call is Megan Rep ...

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) This section presents Archrock, Inc.'s unaudited condensed consolidated financial statements for Q3 2023, covering balance sheets, operations, cash flows, and notes [Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) Presents Archrock, Inc.'s unaudited condensed consolidated financial statements for Q3 2023, including balance sheets, statements of operations, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.67 billion** from **$2.60 billion**, driven by property, plant, and equipment, while liabilities rose to **$1.81 billion** Condensed Consolidated Balance Sheets (in thousands) | Assets & Liabilities | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $224,877 | $231,960 | | **Property, plant and equipment, net** | $2,302,417 | $2,199,253 | | **Total assets** | **$2,672,110** | **$2,598,750** | | **Total current liabilities** | $159,375 | $148,571 | | **Long-term debt** | $1,604,554 | $1,548,334 | | **Total liabilities** | **$1,811,017** | **$1,738,057** | | **Total equity** | **$861,093** | **$860,693** | | **Total liabilities and equity** | **$2,672,110** | **$2,598,750** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2023 total revenue rose to **$253.4 million** and net income doubled to **$30.9 million**, with nine-month revenue reaching **$730.7 million** Statement of Operations Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $253,367 | $213,668 | $730,744 | $626,697 | | **Income before income taxes** | $42,312 | $19,637 | $99,539 | $48,365 | | **Net Income** | $30,858 | $15,371 | $71,996 | $33,838 | | **Diluted EPS** | $0.20 | $0.10 | $0.46 | $0.21 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$238.5 million**, while cash used in investing rose to **$208.2 million** and financing decreased to **$31.4 million** Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $238,468 | $166,332 | | Net cash used in investing activities | ($208,157) | ($66,546) | | Net cash used in financing activities | ($31,395) | ($99,313) | | **Net (decrease) increase in cash** | **($1,084)** | **$473** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain business segments, accounting developments, financial items, and key events including credit facility amendment, share repurchase, and restructuring - Archrock operates as a pure-play midstream natural gas compression company with two segments: contract operations and aftermarket services[35](index=35&type=chunk) - The Credit Facility was amended on May 16, 2023, extending maturity to May 2028, changing the reference rate to SOFR, and incurring **$6.0 million** in transaction costs[46](index=46&type=chunk)[47](index=47&type=chunk) - A **$50.0 million** share repurchase program was authorized on April 27, 2023, with **576 thousand** shares repurchased for **$6.5 million** as of September 30, 2023[54](index=54&type=chunk)[55](index=55&type=chunk) - A Q3 2023 dividend of **$0.155 per share** was declared, an increase from **$0.145 per share** in Q3 2022[59](index=59&type=chunk) Revenue by Segment (in thousands) | Segment | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Contract operations | $207,552 | $170,497 | $596,417 | $500,451 | | Aftermarket services | $45,815 | $43,171 | $134,327 | $126,246 | | **Total revenue** | **$253,367** | **$213,668** | **$730,744** | **$626,697** | - A Q1 2023 restructuring plan resulted in **$1.6 million** in charges for the nine months ended September 30, 2023, primarily for severance[73](index=73&type=chunk)[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operational results, highlighting strong performance from increased revenue and gross margin in contract operations and aftermarket services, alongside liquidity, capital resources, and shareholder returns Operating Highlights (Horsepower) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Total available horsepower (thousands) | 3,773 | 3,747 | | Total operating horsepower (thousands) | 3,608 | 3,353 | | Horsepower utilization (Spot) | 96% | 89% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q3 2023 saw revenue increases of **22%** in Contract Operations and **6%** in Aftermarket Services, driving gross margin growth, with overall net income rising due to higher gross margins Contract Operations Performance - Q3 2023 vs Q3 2022 (in thousands) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $207,552 | $170,497 | 22% | | Gross Margin | $132,279 | $98,803 | 34% | | Gross Margin % | 64% | 58% | 6% | Aftermarket Services Performance - Q3 2023 vs Q3 2022 (in thousands) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $45,815 | $43,171 | 6% | | Gross Margin | $9,127 | $7,338 | 24% | | Gross Margin % | 20% | 17% | 3% | - SG&A expense decreased in Q3 2023 primarily due to a **$2.2 million** accounting change for sales taxes, now recorded in cost of sales[119](index=119&type=chunk) - Interest expense increased in Q3 2023 due to higher interest rates and a larger average outstanding debt balance[123](index=123&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources are cash from operations and a **$750.0 million** revolving credit facility, with planned **$295 million** in 2023 capital expenditures and continued shareholder returns - Projected 2023 capital expenditures are approximately **$295 million**, including **$200 million** for growth, with growth capex anticipated to reduce to **$160 million** in 2024[147](index=147&type=chunk) - A quarterly dividend of **$0.155 per share** was declared on October 26, 2023[148](index=148&type=chunk) Share Repurchase Summary - Q3 2023 | Metric | Value | | :--- | :--- | | Total cost of shares repurchased | $4.42 million | | Average price per share | $12.49 | | Total number of shares repurchased | 354 thousand | - Net cash from operating activities increased for the nine months ended September 30, 2023, primarily due to higher cash inflows from gross margin and accounts receivable[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is variable interest rates on its Credit Facility, with a **1%** increase potentially raising annual interest expense by **$3.1 million** - A **1%** increase in the Credit Facility's effective interest rate would result in an approximate **$3.1 million** annual increase in interest expense[158](index=158&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2023, ensuring timely and accurate information reporting - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of September 30, 2023, ensuring timely information recording, processing, and reporting[161](index=161&type=chunk) [Part II. Other Information](index=43&type=section&id=Part%20II.%20Other%20Information) This section provides other required information, including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, with management expecting no material adverse effect on financial position, operations, or cash flows - The company does not expect pending legal actions to have a material adverse effect on its consolidated financial position, results of operations, or cash flows[162](index=162&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes or updates to previously disclosed risk factors have occurred since the last Annual Report on Form 10-K - No material changes or updates to risk factors have occurred since the last Form 10-K filing[163](index=163&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's equity security repurchases during Q3 2023 under the publicly announced 2023 Share Repurchase Program Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Approx. Value Remaining in Program | | :--- | :--- | :--- | :--- | :--- | | July 2023 | 0 | $— | 0 | $47,927 thousand | | August 2023 | 164,089 | $12.66 | 163,372 | $45,858 thousand | | September 2023 | 190,640 | $12.34 | 190,640 | $43,505 thousand | | **Total** | **354,729** | **$12.49** | **354,012** | **—** | [Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - No defaults upon senior securities occurred during the period[165](index=165&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This disclosure item is not applicable[165](index=165&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No other information is reported under this item for the period - No additional information is reported under this item[165](index=165&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q report, including officer certifications and interactive data files - Exhibits filed with the report include officer certifications (31.1, 31.2, 32.1, 32.2) and interactive data files (101.1, 104.1)[168](index=168&type=chunk)

Archrock, Inc. (NYSE:AROC) Q2 2023 Earnings Conference Call August 1, 2023 12:00 PM ET Company Participants Megan Repine - Manager, IR, Noble Midstream Partners LP Bradley Childers - President, CEO & Director Douglas Aron - SVP & CFO Conference Call Participants James Rollyson - Raymond James & Associates Selman Akyol - Stifel, Nicolaus & Company Stephen Ferazani - Sidoti & Company Operator Good morning. Welcome to the Archrock Second Quarter 2023 Conference Call. Your host for today's call is Megan Repine, ...

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, 2023 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 - In Q1 2023, net income increased to $16 million from $2 million in Q1 2022 [6] - Adjusted EBITDA for Q1 2023 was $97 million, reflecting strong underlying business performance [19] - The debt-to-EBITDA ratio improved to 4.1x from 4.4x in the previous quarter [21] Business Segment Data and Key Metrics Changes - Contract operations revenue reached $188 million in Q1 2023, up 6% sequentially [20] - Aftermarket services segment revenue was $42 million, a 25% increase year-over-year [21] - Gross margin for contract operations was 58%, consistent with the previous quarter [20] Market Data and Key Metrics Changes - The compression market is experiencing tight conditions, with fleet utilization reaching an all-time high of 94% [12] - Natural gas production in the U.S. is expected to grow, supporting demand for compression services [9] - Lead times for new equipment remain over a year due to supply chain issues [45] Company Strategy and Development Direction - The company is focused on a disciplined capital allocation strategy, including a $50 million buyback authorization [15] - Growth capital expenditures are projected between $180 million and $200 million for 2023 [16] - The company aims to achieve a leverage ratio below 4x by year-end 2023 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the tightening compression market and expects adjusted EBITDA to trend towards the high end of the guidance range of $400 million to $430 million for 2023 [23] - The company anticipates continued strong demand for compression services driven by underinvestment in infrastructure [10] - Management highlighted the importance of maintaining pricing power in a tight market [13] Other Important Information - The company declared a quarterly dividend of $0.15 per share, representing a 6% yield [22] - Cash available for dividends totaled $46 million, leading to a dividend coverage of 2.0x [22] - The aftermarket services segment is expected to see continued growth through 2023 [14] Q&A Session Summary Question: On the buyback and market volatility - Management indicated confidence in achieving leverage targets while being opportunistic with the buyback authorization [26] Question: Fleet transformation and asset sales - Management stated that transactional activity related to fleet transformation is mostly complete, with only a few smaller asset packages remaining [28] Question: Contract mix and pricing trends - Approximately 60% of contracts are long-term, with 40% available for pricing adjustments [30] Question: Utilization rates and future potential - Utilization rates have increased since the end of Q1, with expectations of reaching around 96% [34] Question: Aftermarket services margin sustainability - Management expressed optimism about the aftermarket services segment, despite its historical volatility [39] Question: Future demand and CapEx stickiness - 90% of the 2023 CapEx budget is committed and under contract, driven by infrastructure underinvestment [42] Question: Lead times for new equipment - Lead times for new equipment remain over a year due to ongoing supply chain issues [45] Question: Outsourced versus owned compression trends - The market split remains around 70% owned and 30% outsourced, but some growth plays are trending towards more outsourced [47]

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 March 31, 2023 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 j ...