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Sep 30, 2024
Archrock Q3 2024 Earnings Report
Archrock's third quarter performance was driven by strong financial results and strategic achievements, including record-setting adjusted gross margins and the acquisition of TOPS.
Key Takeaways
Archrock reported strong third-quarter results, with revenue increasing to $292.2 million and net income reaching $37.5 million. The company's performance was boosted by the acquisition of TOPS, which contributed to its financial and operational strength. Archrock also raised its full-year 2024 adjusted EBITDA guidance, reflecting confidence in its future performance.
Revenue increased to $292.2 million compared to $253.4 million in Q3 2023.
Net income increased to $37.5 million, with EPS at $0.22.
Adjusted EBITDA rose to $150.9 million, compared to $120.2 million in Q3 2023.
Acquisition of Total Operations and Production Services, LLC (TOPS) was completed.
Archrock
Archrock
Archrock Revenue by Segment
Revenue by Segment
Contract Operations Revenue
CapyFin.comAftermarket Services Revenue
CapyFin.com Forward Guidance
Archrock raised its full-year 2024 adjusted EBITDA guidance to a range of $575 million to $585 million.
Positive Outlook
- Sustained strength in compression booking demand.
- Customers planning for continuing production growth
- Increased LNG export capacity
- Electric generation demand from AI and data centers
- Enhanced position in the Permian Basin.
Challenges Ahead
- Inability to achieve the expected benefits of the TOPS acquisition and difficulties in integrating TOPS.
- Risks related to acquisitions, including the TOPS acquisition, which can reduce our ability to make distributions to our common stockholders.
- Risks related to pandemics and other public health crises.
- An increase in inflation.
- Ongoing international conflicts and tensions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income