•
Dec 31, 2023

Archrock Q4 2023 Earnings Report

Archrock's financial performance improved significantly, marked by increased revenue, net income, and adjusted EBITDA, driven by strong utilization and pricing.

Key Takeaways

Archrock reported a strong fourth quarter and full year 2023, with revenue increasing to $259.6 million for the quarter and $990.3 million for the year. Net income also saw a substantial rise, reaching $33.0 million for the quarter and $105.0 million for the year. The company's adjusted EBITDA reached $120.3 million for the quarter and $450.4 million for the year. The company provided 2024 guidance with Adjusted EBITDA expected between $500 million and $530 million.

Revenue for Q4 2023 increased to $259.6 million, compared to $218.9 million in Q4 2022.

Net income for Q4 2023 was $33.0 million, a significant increase from $10.5 million in Q4 2022.

Adjusted EBITDA for Q4 2023 rose to $120.3 million, up from $89.0 million in Q4 2022.

The company achieved a record period-end utilization of 96% in Q4 2023, compared to 93% in Q4 2022.

Total Revenue
$260M
Previous year: $219M
+18.6%
EPS
$0.21
Previous year: $0.07
+200.0%
Gross Profit
$105M
Previous year: $70.2M
+49.0%
Cash and Equivalents
$1.34M
Previous year: $1.57M
-14.6%
Total Assets
$2.66B
Previous year: $2.6B
+2.2%

Archrock

Archrock

Archrock Revenue by Segment

Forward Guidance

Archrock expects 2024 Adjusted EBITDA between $500 million and $530 million and 2024 total capex between $275 million and $290 million.

Positive Outlook

  • Adjusted EBITDA is expected to increase by 14% compared to 2023.
  • Growth in contract operations revenue and gross margin is expected to drive the increase.
  • Total capex is expected to be between $275 million and $290 million compared to $299 million in 2023.
  • Growth capex is anticipated to be between $175 million and $180 million.
  • Capital expenditures are expected to be fully funded by operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income