Archrock Inc Stock Price, News & Analysis

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.

Archrock has announced the timing for its second quarter 2024 financial and operating results. The company will host a conference call on July 31, 2024, at 10:00 a.m. Eastern Time to discuss the results. The earnings report will be released prior to the conference call. To listen to the call live, visit www.archrock.com or dial 1 (800) 715-9871 in the U.S. and Canada, or 1 (646) 307-1963 for international calls using the access code 4749623. A replay of the webcast will be available for 90 days on Archrock’s website after the call.

Archrock (NYSE: AROC) has priced its public offering of 11,000,000 common stock shares at $21.00 per share. The offering, expected to close on July 24, 2024, aims to raise approximately $223 million in net proceeds. Underwriters have a 30-day option to purchase up to 1,650,000 additional shares. The funds will primarily finance Archrock's acquisition of Total Operations and Production Services, (TOPS). If the acquisition doesn't materialize, proceeds will be used for general corporate purposes. J.P. Morgan, Evercore ISI, Wells Fargo Securities, and Citigroup are acting as joint book-running managers for the offering.

Archrock (NYSE: AROC) has announced a public offering of 11,000,000 shares of its common stock, with an option for underwriters to purchase an additional 1,650,000 shares. The company plans to use the net proceeds to fund the cash portion of its previously announced acquisition of Total Operations and Production Services, (TOPS). If the TOPS acquisition doesn't materialize, the funds will be used for general corporate purposes. J.P. Morgan, Evercore ISI, Wells Fargo Securities, and Citigroup are acting as underwriters for the offering. The shares will be offered and sold under an effective shelf registration statement on Form S-3 filed with the SEC.

Archrock (NYSE: AROC) has announced a $983 million cash and stock acquisition of Total Operations and Production Services, (TOPS), a leading Permian Basin contract gas compression provider. This strategic move will expand Archrock's compression capacity in the Permian Basin by 30%, adding approximately 580,000 horsepower of predominantly young electric motor drive compression assets.

The transaction is expected to be immediately accretive to Archrock's earnings per share and cash available for dividend. It will enhance Archrock's positioning in lower carbon solutions and is projected to be more than 10% accretive to EPS and over 20% accretive to cash available for dividend per share in 2025. The deal is anticipated to close by the end of 2024, subject to regulatory approvals and closing conditions.