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Dec 31, 2024
Archrock Q4 2024 Earnings Report
Archrock reported strong fourth quarter and full year 2024 results, driven by robust utilization and profitability, and provided 2025 guidance.
Key Takeaways
Archrock delivered a record-setting fourth quarter and full year 2024, marked by significant increases in revenue, net income, and Adjusted EBITDA. The company also completed a transformative acquisition, strengthened its balance sheet, and increased its quarterly dividend.
Fourth quarter 2024 revenue increased by 25.7% to $326.4 million compared to the same period in 2023.
Net income for Q4 2024 grew by 81.2% to $59.8 million, with EPS reaching $0.34.
Adjusted EBITDA for Q4 2024 surged by 52.8% to $183.8 million, reflecting strong operational performance.
The company declared a quarterly dividend of $0.19 per common share, an approximately 15% increase year-over-year, with a dividend coverage of 3.5x.
Archrock
Archrock
Archrock Revenue by Segment
Revenue by Segment
Contract Operations Revenue
CapyFin.comAftermarket Services Revenue
CapyFin.com Forward Guidance
Archrock anticipates continued strong performance in 2025, driven by sustained energy demand, particularly for natural gas supporting LNG exports and power generation. The company expects growth in contract operations and aftermarket services, supported by a robust backlog and strategic investments.
Positive Outlook
- Net income is projected to increase significantly, with a low estimate of $253 million and a high of $293 million.
- Adjusted EBITDA is expected to be between $750 million and $790 million, indicating strong operational profitability.
- Cash available for dividend is forecasted to be between $456 million and $471 million, supporting continued shareholder returns.
- Contract operations revenue is projected to reach $1.20 billion to $1.235 billion, reflecting strong demand for compression services.
- The company plans to invest in profitable, high-return growth in large midstream and electric motor drive compression.
Challenges Ahead
- The guidance for net income does not include the impact of long-lived and other asset impairment, which cannot be accurately forecasted.
- Aftermarket services revenue is projected to be lower than contract operations, with a range of $190 million to $210 million.
- Selling, general, and administrative expenses are expected to be between $142 million and $147 million.
- Maintenance capital expenditures are projected to be between $105 million and $115 million.
- Other capital expenditures are expected to be between $35 million and $50 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income