Archrock Reports Third Quarter 2024 Results and Raises Full Year 2024 Financial Guidance

Core Insights - Archrock, Inc. reported strong financial performance for the third quarter of 2024, with revenue increasing to $292.2 million from $253.4 million in the same quarter of 2023, marking a year-over-year growth of 15.3% [2] - The company achieved a net income of $37.5 million, up from $30.9 million in Q3 2023, resulting in earnings per share (EPS) of $0.22 compared to $0.20 in the prior year [2][7] - Adjusted EBITDA for the quarter was $150.9 million, a significant increase from $120.2 million in Q3 2023, reflecting a robust operational performance [2][17] Financial Performance - Revenue for Q3 2024 was $292.2 million, a 15.3% increase from $253.4 million in Q3 2023 [2] - Net income rose to $37.5 million, with adjusted net income reaching $47.3 million, compared to $30.9 million in Q3 2023 [2][39] - Adjusted EBITDA increased to $150.9 million from $120.2 million year-over-year [2][40] Segment Performance - Contract operations segment revenue was $245.4 million, an 18% increase from $207.6 million in Q3 2023, with adjusted gross margin rising to $165.6 million [9] - Aftermarket services segment revenue totaled $46.7 million, slightly up from $45.8 million in the same quarter last year, with adjusted gross margin improving to $12.3 million [10] Strategic Developments - The company completed the acquisition of Total Operations and Production Services, LLC (TOPS), enhancing its operational capabilities [2][3] - Archrock raised its full-year 2024 adjusted EBITDA guidance to a range of $575 million to $585 million, reflecting confidence in continued operational strength [2][14] Shareholder Returns - A quarterly dividend of $0.175 per share was declared, representing a 6% increase from the previous quarter and a 13% increase from Q3 2023, supported by a dividend coverage ratio of 3.0x [2][12] - The company repurchased approximately $12.1 million worth of common shares during the quarter, with $37.9 million remaining available for future repurchases [13] Balance Sheet and Liquidity - Long-term debt stood at $2.2 billion as of September 30, 2024, with available liquidity totaling $650 million [11][38] - The leverage ratio improved to 3.57x from 3.84x year-over-year, indicating a stronger balance sheet [11]