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Sep 30, 2023

Archrock Q3 2023 Earnings Report

Reported excellent operational and financial performance, setting new records for utilization, monthly revenue per horsepower and quarterly Adjusted EBITDA.

Key Takeaways

Archrock reported strong Q3 2023 results, with revenue increasing to $253.4 million and net income reaching $30.9 million. The company achieved a record period-end utilization of 96% and expects to deliver close to the high-end of its previously issued 2023 Adjusted EBITDA guidance.

Revenue for Q3 2023 was $253.4 million, compared to $213.7 million in Q3 2022.

Net income for Q3 2023 was $30.9 million, compared to $15.4 million in Q3 2022.

Adjusted EBITDA for Q3 2023 was $120.2 million, compared to $91.9 million in Q3 2022.

Achieved record period-end utilization of 96% for the third quarter of 2023, compared to 89% in the third quarter of 2022.

Total Revenue
$253M
Previous year: $214M
+18.6%
EPS
$0.2
Previous year: $0.1
+100.0%
Gross Profit
$99.3M
Previous year: $106M
-6.5%
Cash and Equivalents
$482K
Previous year: $2.04M
-76.4%
Total Assets
$2.67B
Previous year: $2.61B
+2.6%

Archrock

Archrock

Archrock Revenue by Segment

Forward Guidance

Archrock expects enhanced profitability, improved financial returns and positive free cash flow for 2024. The company remains committed to its differentiated capital allocation framework, which includes increasing shareholder returns through annual dividend growth of 5% and reducing its leverage ratio further to a range of 3.0 to 3.5 times.

Positive Outlook

  • Enhanced profitability
  • Improved financial returns
  • Positive free cash flow
  • Increasing shareholder returns through annual dividend growth of 5%
  • Reducing leverage ratio further to a range of 3.0 to 3.5 times

Revenue & Expenses

Visualization of income flow from segment revenue to net income