Archrock Completes Acquisition of Natural Gas Compression Systems, Inc.

Rhea-AI Summary

Archrock (NYSE: AROC) has completed its acquisition of Natural Gas Compression Systems, Inc. (NGCSI) and NGCSE, Inc. (NGCSE). The transaction involves issuing approximately 2.251 million new Archrock common shares to NGCSE and a $299 million cash payment funded through the company's ABL credit facility. The acquisition is expected to be immediately accretive to Archrock's 2025 earnings per share and cash available for dividend.

The strategic acquisition aims to increase Archrock's scale, expand customer relationships, and strengthen its position as a leading natural gas compression services provider in the United States. The company maintains its target leverage ratio range between 3.0 and 3.5 times.

Positive

• None.

Negative

• Increases debt through $299 million cash payment funded by credit facility
• 2.251 million new shares issuance leads to dilution

HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today announced it has completed its previously announced acquisition of Natural Gas Compression Systems, Inc. (“NGCSI”) and NGCSE, Inc. (“NGCSE”) (collectively, “NGCS”).

“We are pleased to complete our acquisition of NGCS and welcome its highly talented team of employees to Archrock,” said Brad Childers, President and Chief Executive Officer of Archrock. “This accretive transaction is expected to increase our scale, expand our customer relationships, deepen our operations in key regions and strengthen our position as a premier provider of natural gas compression services in the United States. We are confident Archrock is poised for continued growth and value creation as we power a cleaner America.”

At closing, Archrock issued approximately 2.251 million new Archrock common shares to NGCSE. In addition, Archrock funded the $299 million cash portion of the total consideration with available capacity under its ABL credit facility. Archrock remains committed to its stated target leverage ratio range of between 3.0 times and 3.5 times. The transaction is expected to be immediately accretive to Archrock’s 2025 earnings per share and cash available for dividend per share.

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 the Company embodies its purpose, WE POWER A CLEANER AMERICA™, visit www.archrock.com.

Forward-Looking Statements

This press release contains forward-looking statements, which include statements about the expected benefits of the acquisition of Natural Gas Compression Systems, Inc. and NGCSE, Inc. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. 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, and those set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available online at www.sec.gov and at www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

For information, contact:

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

MEDIA
Andrew Siegel / Jed Repko / Kara Grimaldi
Joele Frank
212-355-4449

FAQ

What is the total value of Archrock's NGCS acquisition?

The acquisition includes a $299 million cash payment and approximately 2.251 million new Archrock common shares issued to NGCSE.

How is Archrock (AROC) funding the NGCS acquisition?

Archrock is funding the $299 million cash portion through its ABL credit facility and issuing approximately 2.251 million new common shares.

What are the expected benefits of Archrock's NGCS acquisition?

The acquisition is expected to increase scale, expand customer relationships, deepen operations in key regions, and be immediately accretive to 2025 earnings per share and dividend capacity.

What is Archrock's target leverage ratio after the NGCS acquisition?

Archrock remains committed to maintaining a target leverage ratio range between 3.0 times and 3.5 times.