Archrock (AROC) Earnings Call Presentation

Company Overview - Archrock is the largest outsourced compression provider in the U S [10] - The company has a market capitalization of $2 25 billion and an enterprise value of $4 1 billion [10] - Archrock's dividend is $0 165 per quarter, resulting in a yield of 4% [10] - 85% of Archrock's fleet is focused on large horsepower units, primarily serving midstream gathering systems [12] Financial Performance and Outlook - Archrock anticipates an adjusted EBITDA between $500 million and $530 million for 2024 [14] - The company's dividend coverage is strong at 2 8x [12] - Archrock is targeting a leverage ratio of 3 0-3 5x in 2024 [12] Market and Strategy - Approximately 2/3 of Archrock's operating horsepower is concentrated in the Permian and Eagle Ford basins [24] - The company's utilization rate reached 96% exceeding prior cycle peak [27] - Archrock is increasing return of capital to shareholders YoY and long-term, with dividend growth complimented by strong expected dividend coverage of well above 2 0x [42]