Archrock Inc. (AROC) ended the recent trading session at $24.36, demonstrating a -2.33% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%. Shares of the natural gas compression services business have appreciated by 0.65% over the course of the past month, underperforming the Oils-Energy sector's gain of 6.67%, and outperforming the S ...

Financial Data and Key Metrics Changes - Rental revenue reached a quarterly record of $38.9 million, a 15% increase year-over-year and a 2% sequential increase [6][20] - Adjusted EBITDA for the quarter was $19.3 million, marking a 14% increase compared to the first quarter of the previous year and a 7% sequential increase [7][22] - Net income for the quarter was $4.9 million, or $0.38 per diluted share, compared to $5.1 million, or $0.41 per diluted share in the prior year [21] - Total revenue for Q1 2025 was $41.4 million, a 12% increase from $36.9 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Adjusted rental gross margin was 61.9%, an increase of 80 basis points year-over-year and 150 basis points sequentially [21] - Rented adjusted gross margin reached 61.9%, marking one of the highest levels achieved in the past decade [21] Market Data and Key Metrics Changes - Natural gas prices are currently hovering in the mid-threes after peaking above four, with forecasts showing potential upside due to LNG export growth and new pipeline projects [10] - The company has observed modest CapEx reductions from customers, but these have not materially impacted its business [9] Company Strategy and Development Direction - The company is focusing on three growth and value drivers: asset utilization, fleet expansion, and mergers and acquisitions [11] - There is a strong emphasis on customer diversification, with the largest customer accounting for 46% of revenue, down from 54% in the previous fiscal year [15] - The company is maintaining its growth CapEx guidance of $95 million to $120 million, heavily weighted towards the second half of the year [29] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to perform despite market volatility and has not seen significant changes in the demand environment [35] - The company is cautiously optimistic about the future, with ongoing discussions about growth in 2026 and a strong pipeline of contracted units [5][9] - Management is closely monitoring macroeconomic conditions and their potential impact on the business [28] Other Important Information - The company ended the quarter with $168 million outstanding on its revolving credit facility, with a leverage ratio of 2.18 times [23] - Significant progress has been made in monetizing an $11 million income tax receivable, which is expected to be collected in the near future [12] Q&A Session Summary Question: Current demand environment and volatility - Management indicated that there has not been a significant change in the demand environment, with 2025 contracts essentially locked in and ongoing discussions for 2026 growth [35] Question: Gross margins and unusual factors - Management explained that the increase in gross margins is consistent with the mix of high horsepower units and that some natural volatility is expected [38][40] Question: Plans for monetization of assets - Proceeds from monetization efforts will primarily be used to pay down debt and fund organic growth initiatives [47] Question: Impact of crude oil volatility on smaller compression providers - Management noted that while crude oil prices primarily affect large horsepower, there are modest positive trends for small horsepower driven by natural gas prices [54] Question: Lead times for engines and frames - Lead times remain unchanged, with engines taking approximately six to nine months and compressor frames taking up to twelve months [58]

Kodiak Gas Services (KGS) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Company Participants Graham Sones - VP - Investor RelationsMickey McKee - President & CEOJohn Griggs - Executive VP & CFODoug Irwin - Vice PresidentConnor Jensen - Senior Equity Research AssociateDerrick Whitfield - Managing DirectorBrian Dirubbio - Managing Director Conference Call Participants John Mackay - AnalystSebastian Erskine - AnalystNone - Analyst Operator Good morning, ladies and gentlemen, and thank you for standing by. Wel ...

Kodiak Gas Services (KGS) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Speaker0 Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Kodiak Gas Services First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Graham Soens, Vice President, Investor Relation ...

Valaris Limited (VAL) , an offshore drilling contractor, has secured an award for its ultra-deepwater Valaris DS-15 drillship for work offshore West Africa. The estimated duration of the contract is 250 days, with a total contract value of $135 million.The contract involves drilling five wells for an undisclosed operator and does not include any additional services. The assignment is expected to begin in the third quarter of 2026. Additionally, the contract includes priced options for up to five wells. Thes ...

Archrock (AROC) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Company Participants Megan Repine - VP - IRBradley Childers - President & CEODoug Aron - SVP & CFOGabriel Moreen - Managing DirectorDoug Irwin - Vice PresidentEli Jossen - Equity Research Vice PresidentSelman Akyol - Managing Director - Energy & Power sectorNate Pendleton - Vice President Conference Call Participants Jim Rollyson - Director & Equity Research AnalystSteve Ferazani - Senior Equity Analyst Operator Good morning. Welcome to Archrock ...

Archrock (AROC) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Speaker0 Good morning. Welcome to Archrock First Quarter twenty twenty five Conference Call. Your host for today's call is Ms. Megan Repine, Vice President, Investor Relations at Archrock. I will now turn the call over to Ms. Repine. You may begin. Speaker1 Thank you, Van. Hello, everyone, and thanks for joining us on today's call. With me today are Brad Childers, President and Chief Executive Officer of Archrock and Doug Aaron, Chief Financial ...

Archrock Inc. (AROC) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this natural gas compression services business would post earnings of $0.31 per share when it actually produced earnings of $0.35, delivering a surprise of 12.90%.Over the l ...

HOUSTON, May 05, 2025 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today reported results for the first quarter 2025. First Quarter 2025 and Recent Highlights Revenue for the first quarter of 2025 was $347.2 million compared to $268.5 million in the first quarter of 2024.Net income for the first quarter of 2025 was $70.9 million and EPS was $0.40, compared to $40.5 million and $0.26, respectively, in the first quarter of 2024.Adjusted net income (a non-GAAP measure defined b ...

SM Energy Company (SM) reported first-quarter 2025 adjusted earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.60. The bottom line also increased from the year-ago quarter’s figure of $1.41.Total quarterly revenues of $845 million beat the Zacks Consensus Estimate of $822 million. The top line increased from the year-ago quarter’s level of $560 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The strong quarterly results were primarily driven by ...