Archrock, Inc. has recently released its 10-Q report, revealing key insights into the company's financial performance and strategic developments. The company operates as an energy infrastructure company in the United States, focusing on midstream natural gas compression. It operates in two segments, Contract Operations and Aftermarket Services, providing natural gas compression services and aftermarket solutions to the energy industry.
The report highlights significant business developments, including the completion of the TOPS Acquisition, where Archrock acquired all issued and outstanding equity interests in TOPS, including a fleet of approximately 580,000 horsepower for aggregate consideration consisting of $869.1 million in cash and 6,873,650 shares of common stock. Additionally, the company completed a private offering of $700.0 million aggregate principal amount of 6.625% senior notes due September 2032 and a concurrent cash tender offer of $202.0 million in connection with the TOPS Acquisition.
In terms of operating highlights, Archrock reported a total available horsepower of 4,418 at the end of the reporting period, reflecting an increase from the previous year. The average operating horsepower also showed growth, reaching 3,757 for the three months ended September 30, 2024.
The company also provided non-GAAP financial measures, including adjusted gross margin, as a primary measure used by management to evaluate the results of revenue and cost of sales, exclusive of depreciation and amortization. Archrock reported an adjusted gross margin of $177.9 million for the three months ended September 30, 2024, reflecting an increase from the previous year.
In terms of results of operations, revenue for the three months ended September 30, 2024, was $292.2 million, showing an increase from the previous year. Net income for the same period was $37.5 million, also reflecting an increase from the previous year.
The report further delves into specific segments, such as Contract Operations and Aftermarket Services, providing detailed revenue, cost of sales, and adjusted gross margin figures for each segment. It also outlines costs and expenses, including selling, general and administrative expenses, depreciation and amortization, long-lived and other asset impairment, restructuring charges, debt extinguishment loss, interest expense, transaction-related costs, gain on sale of assets, and other income, net, providing a comprehensive overview of the company's financial performance.
The market has reacted to these announcements by moving the company's shares 2.8% to a price of $24.28. For more information, read the company's full 10-Q submission here.
