Archrock(AROC) - 2024 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 2024 was $270.5 million, a 9.9% increase from $247.5 million in Q2 2023[2] - Net income for Q2 2024 was $34.4 million, compared to $24.7 million in Q2 2023, representing a 39.0% increase[2] - Adjusted EBITDA for Q2 2024 was $129.7 million, up from $112.8 million in Q2 2023, reflecting a 15.0% increase[2] - Total revenue for Q2 2024 was $270.5 million, a 9.2% increase from $247.5 million in Q2 2023[25] - Contract operations revenue reached $225.5 million, up from $201.1 million in the same quarter last year, reflecting a 12.1% year-over-year growth[25] - Adjusted EBITDA for Q2 2024 was $129.7 million, representing 48% of total revenue, compared to 46% in Q2 2023[26] - Net income for Q2 2024 was $34.4 million, or $0.22 per share, compared to $24.7 million, or $0.16 per share, in Q2 2023[25] - Adjusted EBITDA for the three months ended June 30, 2024, was $129,712,000, slightly down from $131,024,000 in the previous quarter but up from $112,775,000 year-over-year[33] Contract Operations - Contract operations segment revenue increased by 12% to $225.5 million in Q2 2024 from $201.1 million in Q2 2023[7] - Adjusted gross margin for contract operations was $146.2 million in Q2 2024, a 17% increase from $125.1 million in Q2 2023[7] - Adjusted gross margin for contract operations was 65% in Q2 2024, up from 62% in Q2 2023[26] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.165 per share, with a dividend coverage of 2.6x in Q2 2024[2] - The company declared a dividend of $0.165 per share for the period, totaling approximately $28.0 million, compared to $24.4 million in Q2 2023[26] - The company reported cash available for dividend coverage of 2.6 times, compared to 2.1 times in Q2 2023[26] - Cash available for dividend for the three months ended June 30, 2024, was $71,593,000, down from $82,026,000 in the previous quarter but up from $52,227,000 year-over-year[33] Guidance and Projections - Archrock updated its 2024 net income guidance to a range of $139 million to $167 million, including transaction-related expenses[11] - The company expects standalone total capital expenditures of $290 million to $300 million for 2024[12] - The company expects annual net income guidance for 2024 to be between $138,700,000 and $166,500,000[39] - The projected Adjusted EBITDA for 2024 is estimated to be between $510,000,000 and $540,000,000[39] - Maintenance capital expenditures for 2024 are expected to be between $80,000,000 and $85,000,000[39] Debt and Capital Expenditures - Total long-term debt as of June 30, 2024, was $1.6 billion, slightly decreased from $1.6 billion in March 2024[27] - Capital expenditures for Q2 2024 were $91.3 million, down from $103.1 million in Q2 2023[26] Acquisitions - Archrock announced the acquisition of Total Operations and Production Services, LLC, which is expected to be accretive to earnings and cash available for dividends[5] Operating Metrics - Total operating horsepower at the end of Q2 2024 was 3.6 million, with a utilization rate of 95%[7] - Average operating horsepower was 3,607 as of June 30, 2024, compared to 3,549 in the same period last year[26]