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Archrock
🇺🇸 NYSE:AROC
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•
Dec 31, 2019

Archrock Q4 2019 Earnings Report

Achieved record net income and increased adjusted EBITDA.

Key Takeaways

Archrock reported a net income of $46.0 million for Q4 2019, which included a non-cash benefit of $39.6 million from the release of a deferred tax asset valuation allowance and a non-cash long-lived asset impairment of $25.8 million. Adjusted EBITDA for the fourth quarter of 2019 was $112.5 million, up 15% compared to the fourth quarter of 2018. The company's contract operations segment saw a revenue increase of 16%, while the aftermarket services segment experienced a revenue decrease due to customer deferral of maintenance activities.

Net income for the fourth quarter was $46.0 million, compared to $13.0 million in the fourth quarter of 2018.

Adjusted EBITDA for the fourth quarter of 2019 was $112.5 million, up 15% compared to the fourth quarter of 2018.

Contract operations segment revenue totaled $204.4 million, a 16% increase compared to $176.4 million in the fourth quarter of 2018.

Aftermarket services segment revenue totaled $41.6 million compared to $56.8 million in the fourth quarter of 2018.

Total Revenue
$246M
Previous year: $233M
+5.5%
EPS
$0.3
Previous year: $0.1
+200.0%
Total Operating Horsepower
3.93M
Horsepower Utilization Spot
89%
Previous year: 89%
+0.0%
Cash available for dividend coverage
2.9
Gross Profit
$84.6M
Cash and Equivalents
$3.69M
Total Assets
$3.11B

Archrock

Archrock

Archrock Revenue by Segment

Forward Guidance

Archrock is providing annual guidance for 2020 with net income between $67 million and $102 million and adjusted EBITDA between $415 million and $450 million.

Positive Outlook

  • Contract operations revenue between $800 million and $825 million
  • Contract operations gross margin percentage between 61.5% and 63.0%
  • Aftermarket services revenue between $195 million and $210 million
  • Aftermarket services gross margin percentage between 17.0% and 19.0%
  • Cash available for dividend between $223 million and $248 million

Challenges Ahead

  • Net income does not include the impact of long-lived asset impairment
  • Selling, general and administrative expenses between $120 million and $125 million
  • Growth capital expenditures between $80 million and $100 million
  • Maintenance capital expenditures between $57 million and $63 million
  • Other capital expenditures between $28 million and $32 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Archrock