NYSE$AROC

Archrock Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Archrock's financial performance improved in Q2 2024, driven by growth in operating horsepower and strong utilization.

Archrock reported a strong second quarter with increased revenue and net income compared to the previous year. The company's revenue reached $270.5 million, and net income was $34.4 million. Archrock is also acquiring Total Operations and Production Services, LLC (TOPS).

  • Revenue increased to $270.5 million compared to $247.5 million in Q2 2023.
  • Net income rose to $34.4 million compared to $24.7 million in Q2 2023.
  • Adjusted EBITDA was $129.7 million compared to $112.8 million in Q2 2023.
  • The company announced the acquisition of Total Operations and Production Services, LLC (TOPS).

Headline financials

Total Revenue

$271M

Previous: $248M+9.3%
EPS (adj)

$0.23

Previous: $0.16+43.8%
Free Cash Flow

$34.4M

Previous: $24.7M+39.6%
Net Income

$34.4M

Previous: $24.7M+39.6%
Operating Income

-$147M

Previous: -$139M-5.8%
Gross Profit

-$114M

Previous: -$111M-2.7%
Cash & Equivalents

$919K

Previous: $1.19M-23.0%
Total Assets

$2.71B

Previous: $2.68B+1.1%
Stock-Based Comp

$3.51M

Previous: $3.2M+9.9%

Revenue & EPS history

Archrock · Revenue · Quarterly

$271M

Q2 2024+9.3%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Archrock · $253M total across 2 segments · Q3 2023

  • Contract Operations
    $208M+21.8%
  • Aftermarket Services
    $45.8M+6.1%

Forward guidance

Archrock reaffirmed its 2024 Adjusted EBITDA guidance range of $510 million to $540 million and total capital expenditures guidance range of $290 million to $300 million, excluding the impact of the acquisition of TOPS.

Tailwinds

  • Market conditions for compression remain highly constructive.
  • Expect to see sustained compression booking demand well into the future.
  • Acquiring highly utilized and contracted horsepower that is expected to be immediately accretive to earnings and cash available for dividend.
  • Expanding business with existing and new customers.
  • The transaction also supports our ability to achieve our stated financial objectives, including growing our shareholder returns and maintaining a leverage ratio of between 3.0 to 3.5 times.

Headwinds

  • Inability to consummate the Transaction.
  • Inability to achieve the expected benefits of the Transaction and difficulties in integrating TOPS.
  • Risks related to acquisitions, including the Transaction, that can reduce our ability to make distributions to our common stockholders.
  • Uncertainty to pay dividends in the future.
  • Risks related to a substantial amount of debt and our debt agreements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.5%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.0%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+16.6%

Q2 2016

Best reaction

-37.9%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-8.0%-14.6%
Q4 2025+3.7%+9.1%+5.4%
Q3 2025-2.4%-0.0%-4.4%
Q1 2025-2.6%+0.6%+2.5%
Q4 2024+2.3%+5.1%+2.9%
Q3 2024+7.1%+2.7%+17.9%
Q2 2024-4.2%-13.6%-7.5%
Q1 2024-3.1%+0.4%-2.2%
Q4 2023+6.5%+6.0%+14.1%
Q3 2023+8.8%+10.1%+14.6%
Q2 2023+10.9%+11.5%+10.6%
Q1 2023-8.9%-4.7%-10.3%
Q4 2022+2.4%+14.6%-3.9%
Q3 2022+5.3%+12.1%+17.2%
Q2 2022-1.9%-6.8%-12.7%
Q1 2022-3.9%+1.0%+13.5%
Q4 2021-0.5%-1.9%+7.3%
Q3 2021+2.7%+6.5%-11.6%
Q2 2021+1.3%+0.0%-7.1%
Q1 2021-4.4%-3.8%-5.8%
Q4 2020-1.6%+1.6%-6.8%
Q3 2020+11.3%+7.6%+42.0%
Q2 2020-6.1%+0.1%-5.9%
Q1 2020-2.9%+6.9%+45.4%
Q4 2019+4.6%-8.8%-57.2%
Q3 2019+2.2%-1.4%-11.4%
Q2 2019+3.0%-3.6%-11.6%
Q1 2019-4.4%-6.6%-12.7%
Q4 2018+10.6%+5.5%+5.8%
Q3 2018+1.4%+6.2%-2.0%
Q2 2018-2.2%-1.1%-5.2%
Q1 2018-3.7%-0.5%+8.8%
Q4 2017+14.7%+14.1%+2.8%
Q3 2017-8.8%-10.1%-16.8%
Q2 2017-4.1%-5.9%-6.8%
Q1 2017-6.8%-5.5%-10.2%
Q4 2016-15.8%-13.9%-23.7%
Q3 2016-3.4%-5.6%+12.1%
Q2 2016+16.6%+20.7%+28.0%
Q1 2016-37.9%
Q4 2015+14.0%
Q3 2015-5.8%
Q2 2015+3.8%
Q1 2015+0.0%
Q4 2014+0.8%
Q3 2014-10.6%
Q2 2014+3.5%
Q1 2014+0.2%
Q4 2013+4.1%
Q3 2013+1.1%
Q2 2013-11.3%
Q1 2013-4.4%
Q4 2012+7.4%
Q3 2012+5.5%
Q2 2012+6.1%
Q1 2012+2.8%
Q4 2011+3.1%
Q3 2011+1.4%
Q2 2011-29.6%
Q1 2010-3.1%
Q1 2011-1.0%
Q4 2010-3.5%
Q4 2008-3.5%
Q3 2009-13.7%
Q3 2010-13.7%
Q4 2009-12.3%
Q2 2009-12.3%
Q2 2010-12.3%

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