Financial Data and Key Metrics Changes - Archrock reported a net income of $71 million for Q1 2025, with adjusted net income of $74 million or $0.42 per share, reflecting a significant increase compared to the previous year [23][27] - Adjusted EBITDA for Q1 2025 was $198 million, showing strong underlying business performance [23] - The leverage ratio at the end of the quarter was 3.2 times, down from 3.3 times in the previous quarter, indicating improved financial stability [26] Business Line Data and Key Metrics Changes - Contract operations revenue reached $300 million in Q1 2025, up 5% sequentially and 35% year-over-year, driven by organic horsepower growth and higher pricing [24][25] - The aftermarket services segment reported revenues of $47 million, up from $40 million in the previous quarter, with an adjusted gross margin percentage of 25% [26] - Monthly revenue per horsepower increased to a record $23.54 during Q1 2025, with a consistent adjusted gross margin percentage of 70% [17][18] Market Data and Key Metrics Changes - The compression market fundamentals remained strong, with utilization rates at 96% and a substantial contracted backlog for 2025 [10][16] - Archrock is closely monitoring market developments, particularly regarding OPEC's production actions and their potential impact on WTI prices [11][12] Company Strategy and Development Direction - Archrock is focused on value-creating industry consolidation, with the integration of Total Operations and Production Services (TOPS) progressing as planned and the recent acquisition of NGCS expected to enhance scale and customer relationships [8][9] - The company aims to maintain a leverage ratio between 3 to 3.5 times while continuing to invest in growth capital expenditures between $330 million and $370 million for 2025 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to manage business in various market conditions, citing a stable production-oriented business model and a disciplined capital allocation strategy [12][13] - The long-term outlook remains positive, with expectations for continued growth in global natural gas demand supporting infrastructure investments in the U.S. [14][15] Other Important Information - The quarterly dividend per share was increased by 15% year-over-year, with a robust dividend coverage of 3.9 times [7][27] - Archrock has repurchased approximately 977,000 shares at an average price of $23.22 per share, with a remaining capacity of $65 million for additional buybacks [7][27] Q&A Session Summary Question: Impact of macro headwinds on gas outlook - Management noted that while some producers are adjusting CapEx modestly, the committed backlog for 2025 remains unaffected, indicating stability in deployment plans [33][34] Question: Equipment pricing and tariffs - Management indicated that pricing for orders is locked in, and the estimated impact of tariffs on equipment costs is in the low single-digit range [36][37] Question: Decisive actions in response to market conditions - Management emphasized operational flexibility, with the ability to adjust both OpEx and CapEx quickly in response to market changes [41][42] Question: Pricing assumptions and guidance - Management confirmed no changes in overall pricing strategy, with pricing increases moderating but still reflecting a tight compression market [45][46] Question: NGCS acquisition details - The acquisition is expected to contribute positively to earnings without requiring additional material investment in equipment [50][51] Question: Compression intensity in different basins - Management highlighted that the Permian has the highest compression intensity, but growth in other basins is being observed without a shift away from the Permian [53][54] Question: Demand for electric compression - Approximately 30% of the new build CapEx budget is allocated to electric compression, with demand remaining stable [65][66] Question: Positioning for potential slowdowns - Management noted that the current customer mix and high utilization levels provide a different level of stability compared to previous cycles [68][70]

Core Insights - Archrock Inc. reported revenue of $347.16 million for Q1 2025, a year-over-year increase of 29.3% and a surprise of +1.55% over the Zacks Consensus Estimate of $341.88 million [1] - The company achieved an EPS of $0.42, compared to $0.26 a year ago, with an EPS surprise of +7.69% against the consensus estimate of $0.39 [1] Revenue Breakdown - Aftermarket services revenue was $46.77 million, slightly below the two-analyst average estimate of $49.76 million, reflecting a year-over-year change of +2.9% [4] - Contract operations revenue reached $300.40 million, exceeding the two-analyst average estimate of $292.43 million, with a year-over-year change of +34.7% [4] Gross Margin Analysis - Gross margin for aftermarket services was reported at $11.51 million, slightly above the estimated $11.45 million [4] - Gross margin for contract operations was $210.60 million, surpassing the estimated $204.19 million [4] Stock Performance - Archrock Inc. shares have returned +12.7% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Company Performance - Archrock Inc. reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and up from $0.26 per share a year ago, representing an earnings surprise of 7.69% [1] - The company posted revenues of $347.16 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.55%, compared to revenues of $268.49 million in the same quarter last year [2] - Over the last four quarters, Archrock has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $354.08 million, and for the current fiscal year, it is $1.66 on revenues of $1.46 billion [7] - The estimate revisions trend for Archrock is favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Oil and Gas - Field Services industry, to which Archrock belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Another company in the same industry, Nine Energy Service, is expected to report a quarterly loss of $0.15 per share, with a year-over-year change of +37.5%, indicating challenges within the sector [9]

Exhibit 99.1 Archrock Reports First Quarter 2025 Results HOUSTON, May 5, 2025 - Archrock, Inc. (NYSE: AROC) ("Archrock" or the "Company") today reported results for the first quarter 2025. First Quarter 2025 and Recent Highlights Management Commentary and Outlook "Our outstanding first quarter results were driven by solid execution and our operational transformation from prior and ongoing investments in our high-quality asset base and innovative processes and technology," said Brad Childers, Archrock's Pres ...

Core Insights - Archrock, Inc. reported strong first quarter results for 2025, driven by operational transformation and high equipment utilization, with a leverage ratio of 3.2x [3][4][13] Financial Performance - First quarter 2025 revenue reached $347.2 million, a 29% increase from $268.5 million in the same period of 2024 [10] - Net income for the first quarter of 2025 was $70.9 million, compared to $40.5 million in the first quarter of 2024, with adjusted net income at $74.5 million [7][10] - Adjusted EBITDA for the first quarter of 2025 was $197.8 million, up from $131.0 million in the first quarter of 2024 [10][45] Segment Performance - Contract operations segment revenue increased by 35% to $300.4 million in the first quarter of 2025, with an adjusted gross margin of $210.6 million, representing a 45% increase [11] - Aftermarket services segment revenue was $46.8 million, slightly up from $45.4 million in the first quarter of 2024, with an adjusted gross margin of $11.5 million [12] Strategic Initiatives - The company announced the strategic acquisition of Natural Gas Compression Systems, Inc. (NGCS), which closed on May 1, 2025, enhancing its asset base and earnings potential [4][10] - Archrock's management emphasized a commitment to prudent capital allocation, with cash available for dividend coverage remaining over 3.0x [6][10] Shareholder Returns - A quarterly dividend of $0.19 per share was declared for the first quarter of 2025, approximately 15% higher than the previous year, resulting in a dividend coverage of 3.9x [10][14] - The Board of Directors approved an increase in the share repurchase program by an additional $50 million, bringing total capacity to $65.2 million [16][15] Guidance and Outlook - The company raised its full-year 2025 Adjusted EBITDA guidance to a range of $790 million to $830 million, reflecting confidence in continued growth despite macroeconomic uncertainties [10][17]

Shares of Archrock Inc. (AROC) have gained 12.7% over the past four weeks to close the last trading session at $24.56, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $31.13 indicates a potential upside of 26.8%.The average comprises eight short-term price targets ranging from a low of $29 to a high of $33, with a standard deviation of $1.25. While the lowest estimate indicates ...

Core Viewpoint - Archrock, Inc. has successfully completed the acquisition of Natural Gas Compression Systems, Inc. and NGCSE, Inc., which is expected to enhance its operational scale and customer relationships in the natural gas compression services sector [1][2]. Company Overview - Archrock is an energy infrastructure company focused on midstream natural gas compression, committed to safe and environmentally responsible practices in gas production, compression, and transportation [3]. Acquisition Details - The acquisition involved the issuance of approximately 2.251 million new common shares to NGCSE and a cash payment of $299 million funded through Archrock's ABL credit facility [2]. - The transaction is anticipated to be immediately accretive to Archrock's earnings per share and cash available for dividends per share in 2025 [2]. Strategic Implications - The acquisition is expected to deepen Archrock's operations in key regions and strengthen its position as a leading provider of natural gas compression services in the United States [2]. - The company aims to maintain a target leverage ratio between 3.0 and 3.5 times following the acquisition [2].

Core Viewpoint - Archrock, Inc. will host a conference call on May 6, 2025, to discuss its first quarter 2025 financial and operating results, with the earnings report released prior to the call [1]. Group 1: Conference Call Details - The conference call is scheduled for 10:30 a.m. Eastern Time on May 6, 2025 [1]. - The call can be accessed via a live webcast on Archrock's website or by dialing specific phone numbers for U.S. and international participants [2]. - A replay of the webcast will be available for 90 days on Archrock's website after the call [2]. Group 2: Company Overview - Archrock is an energy infrastructure company focused on midstream natural gas compression, emphasizing safe and environmentally responsible operations [3]. - The company is headquartered in Houston, Texas, and is a leading provider of natural gas compression services in the U.S. [3]. - Archrock also offers aftermarket services to customers owning compression equipment [3].

Industry Overview - The Zacks Oil and Gas - Field Services industry is facing a challenging outlook due to a volatile pricing environment for commodities, driven by rising trade tensions and strict capital management by upstream energy firms, which is diminishing the demand for oilfield services [1][4] - Companies in this sector must navigate the evolving landscape of energy transition to succeed, as failing to meet energy transition objectives could adversely impact their cash flow [1][6] - The industry comprises companies providing support services to exploration and production players, including manufacturing, repairing, and maintaining wells, drilling equipment, and seismic testing [3] Current Trends - The demand for oilfield services is closely tied to exploration and production activities, making companies like SLB and Halliburton susceptible to the uncertainties caused by volatile oil and gas prices, particularly due to the US-China trade war [4] - There has been a slowdown in drilling activities as upstream players prioritize stockholder returns over boosting output, leading to lower demand for oilfield services [5] - Companies must efficiently tackle the decarbonization of oil and gas operations while adopting low-carbon technologies to navigate the energy transition successfully [6] Industry Performance - The Zacks Oil and Gas - Field Services industry currently holds a Zacks Industry Rank of 149, placing it in the bottom 40% of over 250 Zacks industries, indicating a bearish outlook [7][8] - Over the past year, the industry has declined by 27.1%, significantly underperforming the S&P 500, which rose by 4.7%, and the broader Zacks Oil - Energy sector, which declined by 15.2% [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 5.45X, compared to the S&P 500's 15.53X and the sector's 4.14X, indicating a lower valuation relative to the broader market [13] - Historically, the industry has traded as high as 12.87X and as low as 1.10X over the past five years, with a median of 8.24X [13] Company Insights - Archrock's acquisition of Total Operations and Production Services significantly expands its capacity and improves margins, positioning it as a leader in electrified natural gas compression [15] - Baker Hughes has a diverse business portfolio across natural gas, LNG, and clean energy, which secures steady earnings despite operational volatility, and is expanding its global presence [18] - SLB's diversified portfolio and leadership in digital technology position it for sustained growth, even as upstream investments moderate [20] - Halliburton is focusing on key growth areas that could contribute $2.5 to $3 billion in annual revenues within the next three to five years, despite industry challenges [21]

Group 1 - Archrock Inc. (AROC) closed at $24.41, with a 3.2% gain over the past four weeks, and a mean price target of $31.75 indicating a 30.1% upside potential [1] - The average of eight short-term price targets ranges from $29 to $34, with the lowest estimate suggesting an 18.8% increase and the highest indicating a 39.3% upside, alongside a standard deviation of $1.67 [2] - Analysts show strong agreement in revising AROC's earnings estimates higher, which correlates with potential stock price increases [4][10] Group 2 - The Zacks Consensus Estimate for AROC's current year has increased by 6.7% over the last 30 days, with two estimates moving higher and no negative revisions [11] - AROC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [12] - While the consensus price target may not be a reliable indicator of the extent of AROC's potential gains, it does suggest a positive direction for price movement [12]