Archrock Inc - AROC STOCK NEWS

Archrock (NYSE: AROC) has completed its acquisition of Total Operations and Production Services, (TOPS), adding 580,000 horsepower to its fleet, including 500,000 operating horsepower and a contracted backlog of new equipment. The transaction strengthens Archrock's compression operations in the Permian Basin and establishes its leadership in electric motor drive compression. Archrock issued approximately 6.87 million new common shares to the sellers and funded the $826 million cash portion of the purchase price with proceeds from recent capital markets transactions. The acquisition is expected to be accretive and create significant shareholder value, capitalizing on the robust market for natural gas and compression while increasing returns to shareholders.

Archrock, Inc. (NYSE: AROC) has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) for its pending acquisition of Total Operations and Production Services, . This expiration marks a significant milestone in the acquisition process, satisfying a important condition for the transaction's completion. The company anticipates the deal will close in the third quarter of 2024, subject to meeting other customary closing conditions. This development signifies progress in Archrock's strategic move to expand its operations and potentially strengthen its market position in the energy services sector.

Archrock (NYSE: AROC) has announced the closing of a $700 million senior notes offering by its subsidiary, Archrock Partners. The notes, due in 2032, carry a 6.625% interest rate. The proceeds will primarily fund the acquisition of Total Operations and Production Services, , and a tender offer for up to $200 million of Archrock Partners' existing 6.875% senior notes due 2027. Any remaining funds will be used for general corporate purposes, potentially including debt repayment.

The notes were offered privately to qualified institutional buyers and non-U.S. persons, in compliance with Securities Act regulations. This offering is not registered under the Securities Act and is subject to certain restrictions on resale and transfer.

Archrock (NYSE: AROC) announced the early results and initial settlement date for its tender offer to purchase up to $200 million of its 6.875% Senior Unsecured Notes due 2027. As of the Early Tender Deadline on August 23, 2024, approximately $312.3 million in aggregate principal amount of Notes were tendered, exceeding the $200 million Tender Cap. Due to oversubscription, Archrock will accept tendered Notes on a prorated basis using a factor of about 64%. The Initial Settlement Date is set for August 26, 2024. Holders tendering after the Early Tender Deadline will not have their Notes accepted for payment. The offer will expire on September 10, 2024, unless extended or terminated earlier.

Archrock (NYSE: AROC) announced the pricing of an upsized private offering by its subsidiary, Archrock Partners, of $700 million in 6.625% senior notes due 2032. The notes were priced at par, with the offering expected to close on August 26, 2024. Concurrently, Archrock Partners initiated a tender offer to purchase up to $200 million of its 6.875% Senior Unsecured Notes due 2027.

The net proceeds will be used to fund part of the cash consideration for Archrock's acquisition of Total Operations and Production Services, , to fund the tender offer, and for general corporate purposes, including potential debt repayment. The notes are being offered only to qualified institutional buyers and non-U.S. persons in compliance with Securities Act regulations.

Archrock, Inc. (NYSE: AROC) has announced that its subsidiaries, Archrock Partners, L.P. and Archrock Partners Finance Corp., have initiated a tender offer to purchase up to $200,000,000 of their outstanding 6.875% Senior Unsecured Notes due 2027. The offer includes two pricing tiers: $1,009.00 per $1,000 principal amount for notes tendered by the Early Tender Deadline (August 23, 2024), and $979 per $1,000 for notes tendered after the Early Tender Deadline but before the Expiration Time (September 10, 2024). Tendering holders will also receive accrued and unpaid interest. The offer is subject to certain conditions and can be terminated at the Offerors' discretion.

Archrock (NYSE: AROC) announced that its subsidiary, Archrock Partners, plans to offer $500 million in senior notes due 2032 to eligible purchasers. The net proceeds will primarily fund the cash portion of Archrock's acquisition of Total Operations and Production Services, Any remaining funds will be used for general corporate purposes, potentially including debt repayment. The notes will be offered only to qualified institutional buyers and non-U.S. persons, in compliance with Securities Act regulations. This offering is subject to market conditions and is not contingent on the acquisition's completion. The notes are not registered under the Securities Act and have restrictions on their sale and offer in the United States.

Archrock (NYSE: AROC) reported strong Q2 2024 results, with revenue increasing to $270.5 million from $247.5 million in Q2 2023. Net income rose to $34.4 million, up from $24.7 million year-over-year. Adjusted EBITDA reached $129.7 million, compared to $112.8 million in Q2 2023. The company maintained a high utilization rate of 95% and declared a quarterly dividend of $0.165 per share, a 6% increase from Q2 2023. Archrock also announced the acquisition of Total Operations and Production Services, (TOPS), expected to be immediately accretive to earnings. The company reaffirmed its 2024 Adjusted EBITDA guidance range of $510-$540 million and capital expenditures guidance of $290-$300 million, excluding the TOPS acquisition impact.

Archrock (NYSE: AROC) has declared a quarterly dividend of $0.165 per share of common stock, equivalent to $0.66 per share annually. This represents a 6% year-over-year increase. The dividend will be paid on August 13, 2024, to stockholders of record as of August 6, 2024. CEO Brad Childers emphasized the company's commitment to returning capital to shareholders through a well-covered dividend.

Archrock is also in the process of acquiring Total Operations and Production Services, expected to close by the end of 2024. This acquisition is anticipated to be immediately accretive to earnings per share and cash available for dividend per share, potentially enhancing the company's financial flexibility and capacity for future dividend increases.