Archrock completes acquisition of Natural Gas Compression Systems, enhancing its service capabilities and customer relationships in the U.S.
Quiver AI Summary
Archrock, Inc. has successfully completed its acquisition of Natural Gas Compression Systems, Inc. and NGCSE, Inc., enhancing its operations and market positioning in the natural gas compression services industry. CEO Brad Childers expressed enthusiasm about integrating NGCS's skilled team, indicating that the acquisition will expand customer relationships and operations in key regions, thereby supporting Archrock's growth and commitment to a cleaner energy future. The deal included the issuance of approximately 2.251 million new shares and a $299 million cash payment funded through an existing credit facility. Archrock anticipates that this transaction will positively impact its earnings per share and cash available for dividends in 2025, while maintaining its target leverage ratio.
Potential Positives
- Archrock has successfully completed the acquisition of Natural Gas Compression Systems, Inc., enhancing its scale and expanding its customer relationships.
- The acquisition is expected to be immediately accretive to Archrock’s 2025 earnings per share and cash available for dividend per share, indicating potential for increased financial returns.
- The addition of NGCS is anticipated to strengthen Archrock’s position as a premier provider of natural gas compression services in the United States, supporting its growth strategy.
Potential Negatives
- Issued approximately 2.251 million new common shares, which could dilute existing shareholders' equity.
- Acquisition financed with $299 million from the ABL credit facility, raising concerns about financial leverage and interest obligations.
- Dependence on forward-looking statements that emphasize potential risks and uncertainties, which may undermine investor confidence.
FAQ
What companies did Archrock acquire?
Archrock completed the acquisition of Natural Gas Compression Systems, Inc. (NGCSI) and NGCSE, Inc. (NGCSE).
What was the total consideration for the acquisition?
The total consideration for the acquisition was $299 million, funded through Archrock's available capacity under its ABL credit facility.
How will the acquisition affect Archrock's earnings?
The transaction is expected to be immediately accretive to Archrock’s 2025 earnings per share and cash available for dividend per share.
What is Archrock's primary focus in the energy sector?
Archrock primarily focuses on midstream natural gas compression, helping customers produce, compress, and transport natural gas responsibly.
How can I learn more about Archrock's commitments?
For more information, visit Archrock's website at www.archrock.com to see their commitment to powering a cleaner America.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$AROC Insider Trading Activity
$AROC insiders have traded $AROC stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $AROC stock by insiders over the last 6 months:
- DONNA A HENDERSON (VP, CHIEF ACCOUNTING OFFICER) sold 8,318 shares for an estimated $219,262
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$AROC Hedge Fund Activity
We have seen 187 institutional investors add shares of $AROC stock to their portfolio, and 134 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- APOLLO MANAGEMENT HOLDINGS, L.P. removed 3,436,825 shares (-50.0%) from their portfolio in Q4 2024, for an estimated $85,542,574
- CITADEL ADVISORS LLC added 1,816,747 shares (+1679.9%) to their portfolio in Q4 2024, for an estimated $45,218,832
- AVENTAIL CAPITAL GROUP, LP removed 1,267,751 shares (-71.7%) from their portfolio in Q4 2024, for an estimated $31,554,322
- INVESCO LTD. added 1,008,438 shares (+12.8%) to their portfolio in Q4 2024, for an estimated $25,100,021
- BANK OF AMERICA CORP /DE/ removed 845,163 shares (-9.7%) from their portfolio in Q4 2024, for an estimated $21,036,107
- GOLDMAN SACHS GROUP INC added 844,276 shares (+31.8%) to their portfolio in Q4 2024, for an estimated $21,014,029
- BLACKROCK, INC. added 843,519 shares (+3.0%) to their portfolio in Q4 2024, for an estimated $20,995,187
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
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
[email protected]
MEDIA
Andrew Siegel / Jed Repko / Kara Grimaldi
Joele Frank
212-355-4449
