Archrock Announces Upsizing and Pricing of $800 Million of Senior Notes

Rhea-AI Summary

Archrock (NYSE: AROC) priced an upsized private offering of $800 million aggregate principal amount of 6.000% senior notes due 2034, issued by Archrock Services with Archrock Partners Finance Corp as co-issuer. The Notes were priced at par and the offering is expected to close on January 21, 2026, subject to customary closing conditions.

Archrock intends to use net proceeds to repay a portion of outstanding borrowings under its revolving credit facility. The Notes are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S and are not registered under the Securities Act.

Positive

• Proceeds earmarked to repay revolving credit borrowings
• Issued amount of $800 million increases liquidity runway
• Long-term maturity (2034) extends debt profile

Negative

• New fixed coupon of 6.000% increases interest expense
• Offering subject to customary closing conditions; not closed
• Notes not registered and sold only to QIBs/Reg S investors

Key Figures

Senior notes size $800 million Aggregate principal amount of 6.000% senior notes due 2034 in upsized offering

Coupon rate 6.000% Interest rate on senior notes due 2034

Prior notes plan $500 million Initial senior notes due 2034 size referenced in 8-K before upsizing

Maturity year 2034 Maturity of newly issued senior notes

Current share price $26.41 Pre-news price, down 0.83% over prior 24 hours

200-day MA $24.60 Shares trading above long-term moving average before notes announcement

Long-term debt $2.56 billion Q3 2025 long-term debt including $768.7M credit facility balance

Credit facility balance $768.7 million Revolver balance at Q3 2025, targeted for partial repayment with note proceeds

Market Reality Check

$25.70 Last Close

Volume Volume 1,523,356 is modestly below the 20-day average of 1,678,018 ahead of the notes announcement. normal

Technical Shares at $26.41 are trading above the 200-day MA of $24.60, and about 13.24% below the 52-week high.

Peers on Argus

Peers show mixed moves: WFRD up 3.14%, USAC roughly flat, while LB and VAL are down 4.54% and 3.84% respectively, indicating stock-specific rather than sector-wide dynamics.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 20	Sustainability report	Positive	+1.2%	Emission intensity reductions, safety outperformance, and $1.4B acquisitions disclosure.
Oct 28	Earnings and guidance	Positive	-2.8%	Strong Q3 results, higher dividend, and raised 2025 EBITDA guidance.
Oct 23	Dividend declaration	Positive	-0.0%	Quarterly dividend of $0.21 per share, ~20% above prior year level.
Oct 09	Debt redemption	Positive	-3.2%	Plan to redeem $300M of 6.875% senior notes due 2027 at par plus interest.
Oct 08	Earnings timing	Neutral	+6.2%	Announcement of Q3 2025 results release date and conference call details.

Pattern Detected

Recent positive fundamental or capital-structure news (earnings beat, note redemption) has sometimes seen muted or negative next-day moves, showing a tendency for occasional divergence between news tone and short-term price reaction.

Recent Company History

Over the last few months, Archrock reported strong Q3 2025 results with higher revenue, net income and raised EBITDA guidance, alongside an active capital allocation program including dividends and buybacks. The company also announced redemption of $300 million of 6.875% senior notes due 2027 and published a 2024 sustainability report highlighting emissions intensity reductions and sizable acquisitions. Today’s upsized $800 million 6.000% senior notes due 2034 fits into this ongoing balance sheet and funding optimization narrative.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-09-08

Archrock has an effective Form S-3ASR shelf registration dated September 8, 2025, allowing it to issue common stock, preferred stock and debt securities from time to time, providing flexibility to access capital markets as described in future prospectus supplements.

Market Pulse Summary

This announcement details an upsized private offering of $800 million in 6.000% senior notes due 2034, with proceeds intended to repay outstanding borrowings under Archrock’s revolving credit facility. It follows earlier actions like redeeming $300 million of higher-coupon notes and amending the credit facility to reduce borrowing costs. Investors may focus on how this refinancing affects interest expense, debt maturity profile, and flexibility under Archrock’s effective S-3ASR shelf.

Key Terms

senior notes financial

"aggregate principal amount of 6.000% senior notes due 2034 (the “Notes”)."

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

revolving credit facility financial

"use the net proceeds from the offering of the Notes to repay a portion of the outstanding borrowings under Archrock’s revolving credit facility."

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

Rule 144A regulatory

"offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

Regulation S regulatory

"and non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act."

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

qualified institutional buyers financial

"The Notes will be offered only to qualified institutional buyers in reliance on Rule 144A"

Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.

AI-generated analysis. Not financial advice.

HOUSTON, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) today announced the pricing of an upsized private offering by Archrock Services, L.P. (“Archrock Services”), a wholly-owned subsidiary of Archrock, of $800 million aggregate principal amount of 6.000% senior notes due 2034 (the “Notes”). The Notes were priced at par. The offering is expected to close on January 21, 2026, subject to the satisfaction of customary closing conditions. Archrock Partners Finance Corp., a wholly-owned subsidiary of Archrock Partners, L.P., will serve as co-issuer of the Notes.

Archrock intends to use the net proceeds from the offering of the Notes to repay a portion of the outstanding borrowings under Archrock’s revolving credit facility.

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. The Notes will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Archrock

Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, please visit www.archrock.com.

About Archrock Services

Archrock Services is a leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the United States. Archrock owns all of the limited and general partnership interests in Archrock Services.

Forward-Looking Statements

All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside Archrock or Archrock Services’ control. Forward-looking information includes, but is not limited to: statements regarding Archrock Services’ proposed offering, the completion of such offering, the intended use of net proceeds from the proposed offering, and the impact of market conditions on such offering.

While Archrock and Archrock Services believe that the assumptions concerning future events are reasonable, they caution that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional and national economic conditions and the impact they may have on Archrock Services’ and its customers; conditions in the oil and gas industry, including the level of production of, demand for or price of oil or natural gas; changes in safety, health, environmental and other regulations; the financial condition of Archrock Services’ customers; the failure of any customer to perform its contractual obligations; and the performance of Archrock.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025 and those reports set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock and Archrock Services expressly disclaim any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

SOURCE: Archrock, Inc.

For information, contact:

Megan Repine
VP of Investor Relations
281-836-8360
investor.relations@archrock.com

FAQ

What did Archrock (AROC) announce on January 6, 2026 about senior notes?

Archrock priced an upsized private offering of $800 million of 6.000% senior notes due 2034, priced at par.

When is the Archrock (AROC) senior notes offering expected to close?

The offering is expected to close on January 21, 2026, subject to customary closing conditions.

How will Archrock (AROC) use the proceeds from the $800M notes offering?

Archrock intends to use net proceeds to repay a portion of outstanding borrowings under its revolving credit facility.

Who can buy Archrock's (AROC) $800M senior notes issued January 2026?

The Notes are offered only to qualified institutional buyers (Rule 144A) and to non-U.S. persons in transactions outside the U.S. (Regulation S).

Are Archrock's (AROC) 2034 senior notes registered with the SEC?

No; the Notes have not been registered under the Securities Act and rely on exemptions for the offering.