Archrock, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Archrock, Inc. has filed its Q1 2024 10-Q report detailing financial performance and corporate actions.</b>

AI Summary

Archrock, Inc. (AROC) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Archrock, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers financial activities from January 1, 2024, to March 31, 2024. Key dates related to share repurchase programs and credit facilities are noted. The company's business address is 9807 Katy Freeway, Suite 100, Houston, TX 77024. Archrock, Inc. was formerly known as Exterran Holdings Inc. and Iliad Holdings, INC.

Why It Matters

For investors and stakeholders tracking Archrock, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data, enabling them to assess the company's performance and make informed investment decisions. Understanding the details within this report, such as segment revenues and share repurchase activities, is crucial for evaluating Archrock's operational health and capital allocation strategies.

Risk Assessment

Risk Level: medium — Archrock, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and does not indicate any immediate, significant positive or negative developments.

Analyst Insight

Review the detailed segment revenues and any updates on debt facilities to understand Archrock's operational performance and financial stability.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-01 — Filing Date (Date the report was filed)
• 2023-12-31 — Previous Fiscal Year End (Fiscal Year End)

Key Players & Entities

• Archrock, Inc. (company) — Filer and subject of the report
• Exterran Holdings Inc. (company) — Former name of Archrock, Inc.
• Iliad Holdings, INC (company) — Former name of Archrock, Inc.
• 9807 Katy Freeway, Suite 100, Houston, TX 77024 (location) — Business and mailing address

FAQ

Industry Context

Archrock, Inc. operates in the natural gas transmission industry, providing critical infrastructure and services for the energy sector.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the revenue breakdown by segment (Aftermarket Services and Contract Operations) for Q1 2024.
2. Examine any disclosures related to the Revolving Credit Facility due November 2024.
3. Review the details of the Share Repurchase Program 2023, including any recent activity.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $0.01 — nge on which registered Common stock, $0.01 par value per share AROC New York S
• $50.0 million — 023 that allowed us to repurchase up to $50.0 million of outstanding common stock for a perio
• $500.0 million — e amount to $50.0 million. 2027 Notes $500.0 million of 6.875% senior notes due April 2027,
• $800.0 million — 2027, issued in March 2019 2028 Notes $800.0 million of 6.25% senior notes due April 2028, $
• $300.0 million — n of which was issued in December 2019, $300.0 million of which was issued in December 2020 A
• $750.0 million — ting Standards Update Credit Facility $750.0 million asset-based revolving credit facility d

Filing Documents

• aroc-20240331x10q.htm (10-Q) — 1333KB
• aroc-20240331xex31d1.htm (EX-31.1) — 18KB
• aroc-20240331xex31d2.htm (EX-31.2) — 17KB
• aroc-20240331xex32d1.htm (EX-32.1) — 8KB
• aroc-20240331xex32d2.htm (EX-32.2) — 7KB
• 0001389050-24-000025.txt (&nbsp;) — 6507KB
• aroc-20240331.xsd (EX-101.SCH) — 47KB
• aroc-20240331_cal.xml (EX-101.CAL) — 59KB
• aroc-20240331_def.xml (EX-101.DEF) — 212KB
• aroc-20240331_lab.xml (EX-101.LAB) — 416KB
• aroc-20240331_pre.xml (EX-101.PRE) — 325KB
• aroc-20240331x10q_htm.xml (XML) — 1125KB

Forward-Looking Statements

Forward-Looking Statements 4

Financial Information

Part I. Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 5 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to Unaudited Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 27

Controls and Procedures

Item 4. Controls and Procedures 27

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 28

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28

Other Information

Item 5. Other Information 29

Exhibits

Item 6. Exhibits 30

Signatures

Signatures 31 2 Table of Contents GLOSSARY The following terms and abbreviations appearing in the text of this report have the meanings indicated below. 2023 Form 10- K Annual Report on Form 10-K for the year ended December 31, 2023 Share Repurchase Program Share repurchase program approved by our Board of Directors on April 27, 2023 that allowed us to repurchase up to $50.0 million of outstanding common stock for a period of twelve months, which prior to its expiration was extended on April 25, 2024, for an additional twenty-four-month period and a replenishment of the authorized share repurchase amount to $50.0 million. 2027 Notes $500.0 million of 6.875% senior notes due April 2027, issued in March 2019 2028 Notes $800.0 million of 6.25% senior notes due April 2028, $500.0 million of which was issued in December 2019, $300.0 million of which was issued in December 2020 Amended and Restated Credit Agreement Amended and Restated Credit Agreement, dated May 16, 2023, which amended and restated that Credit Agreement, dated as of March 30, 2017, which governs the Credit Facility Archrock, our, we, us Archrock, Inc., individually and together with its wholly-owned subsidiaries ASU Accounting Standards Update Credit Facility $750.0 million asset-based revolving credit facility due May 2028, as governed by the Amended and Restated Credit Agreement, dated May 16, 2023, which amended and restated that Credit Agreement, dated as of March 30, 2017 ECOTEC Ecotec International Holdings, LLC ESPP Employee Stock Purchase Plan Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board

Financial Statements

Financial Statements Condensed consolidated financial statements included in Part I Item 1 of this Quarterly Report on Form 10-Q GAAP U.S. generally accepted accounting principles GHG Greenhouse gases (carbon dioxide, methane and water vapor for example) Hilcorp Hilcorp Energy Company Ionada Ionada PLC LIBOR London Interbank Offered Rate OTC Over-the-counter, as related to aftermarket services parts and components SEC U.S. Securities and Exchange Commission SG&A Selling, general and administrative SOFR Secured Overnight Financing Rate U.S. United States of America WACC Weighted average cost of capital 3 Table of Contents FORWARD–LOOKING STATEMENTS This Quarterly Report on Form 10–Q (this "Form 10-Q") contains "forward–looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this Form 10–Q are forward–looking statements within the meaning of the Exchange Act, including, without limitation, our business growth strategy and projected costs; future financial position; the sufficiency of available cash flows to fund continuing operations and pay dividends; the expected amount of our capital expenditures; anticipated cost savings; future revenue, gross margin and other financial or operational measures related to our business; the future value of our equipment; and plans and objectives of our management for our future operations. You can identify many of these statements by words such as "believe," "expect," "intend," "project," "anticipate," "estimate," "will continue" or similar words or the negative thereof. Such forward–looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this Form 10–Q. Although we believe that the expectations reflected in these forward–looking statements are ba

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Archrock, Inc. Condensed Consolidated Balance Sheets (in thousands, except par value and share amounts) (unaudited) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 1,155 $ 1,338 Accounts receivable, net of allowance of $ 496 and $ 587 , respectively 105,295 124,069 Inventory 80,358 81,761 Other current assets 6,898 5,989 Total current assets 193,706 213,157 Property, plant and equipment, net 2,332,009 2,301,982 Operating lease right-of-use assets 14,343 14,097 Intangible assets, net 28,737 30,182 Contract costs, net 35,967 37,739 Deferred tax assets 2,847 3,192 Other assets 47,467 47,733 Non-current assets of discontinued operations 7,868 7,868 Total assets $ 2,662,944 $ 2,655,950 Liabilities and Stockholders' Equity Current liabilities: Accounts payable, trade $ 48,717 $ 61,026 Accrued liabilities 98,751 85,381 Deferred revenue 5,778 5,736 Total current liabilities 153,246 152,143 Long-term debt 1,566,566 1,584,869 Operating lease liabilities 12,364 12,271 Deferred tax liabilities 15,986 4,921 Other liabilities 24,834 22,857 Non-current liabilities of discontinued operations 7,868 7,868 Total liabilities 1,780,864 1,784,929 Commitments and contingencies (Note 7) Equity: Preferred stock: $ 0.01 par value per share, 50,000,000 shares authorized, zero issued — — Common stock: $ 0.01 par value per share, 250,000,000 shares authorized, 165,775,863 and 164,984,401 shares issued, respectively 1,657 1,650 Additional paid-in capital 3,474,777 3,470,576 Accumulated deficit ( 2,485,399 ) ( 2,499,931 ) Treasury stock: 9,489,406 and 9,020,454 common shares, at cost, respectively ( 108,955 ) ( 101,274 ) Total equity 882,080 871,021 Total liabilities and equity $ 2,662,944 $ 2,655,950 The accompanying notes are an integral part of these unaudi

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