Archrock Announces 10% Dividend Increase

Archrock, Inc. (NYSE: AROC) has made some significant announcements in its recent press release. The company's board of directors has declared a quarterly dividend of $0.165 per share of common stock for the first quarter of 2024, representing a year-over-year increase of 10 percent. This is consistent with the fourth quarter 2023 dividend.

Moreover, the board of directors has approved an extension of the company’s share repurchase program for an additional 24-month period upon the expiry of the current authorization on April 27, 2024. As of March 31, 2024, Archrock had repurchased 833,346 common shares at an average price of $12.11 per share for an aggregate of $10.1 million. The board has replenished the amount of shares authorized for repurchase under the program, resulting in available capacity of $50 million.

Brad Childers, President and CEO of Archrock, emphasized the company's commitment to funding high-return growth capital expenditures through operations and returning excess capital to shareholders. The share repurchase authorization complements the quarterly dividend and provides Archrock with flexibility in allocating capital to the highest return opportunities.

Under the share repurchase program, shares of the company’s common stock may be repurchased periodically, including in the open market, privately negotiated transactions, or otherwise in accordance with applicable federal securities laws, until April 27, 2026. The actual timing, manner, number, and value of shares repurchased under the program will be determined by the company at its discretion.

Archrock, headquartered in Houston, Texas, is an energy infrastructure company primarily focused on midstream natural gas compression. It is committed to assisting its customers in producing, compressing, and transporting natural gas in a safe and environmentally responsible manner. The company 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. The market has reacted to these announcements by moving the company's shares -0.3% to a price of $20.13. For the full picture, make sure to review Archrock's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.