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Jun 30, 2024
Archrock Q2 2024 Earnings Report
Archrock's financial performance improved in Q2 2024, driven by growth in operating horsepower and strong utilization.
Key Takeaways
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).
Archrock
Archrock
Archrock Revenue by Segment
Revenue by Segment
Contract Operations Revenue
CapyFin.comAftermarket Services Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income