Archrock Links Long-Term Agreement With Existing Customer for About 665,000 Horsepower
Key Facts
Archrock announced on August 4 a long-term agreement with an existing strategic customer covering about 665,000 horsepower, expanding the company’s commitment to operating gas compression equipment for the customer. The agreement has a base term of 8 years, with an option to extend for 2 years. The announcement comes as management said the compression market remains supported by sustained demand for natural gas and a structural shortage of compression equipment. Chief Executive Brad Childers said, "The outlook for the compression market remains very supportive." The company also linked its positive outlook to long-term support from liquefied natural gas exports and energy demand.
In the same update, Archrock kept the low end of its annual adjusted earnings before interest, taxes, depreciation and amortization forecast at 865 million dollars, but lowered the high end to 885 million dollars from 915 million. The company attributed the revision to near-term costs, including lubricants. The forecast provides a framework for assessing operating performance through the rest of the year, while the long-term agreement adds visibility extending over several years. In the second quarter of 2026, revenue was 371.2 million dollars, compared with 383.2 million in the same period a year earlier. Net income rose to 66.7 million dollars from 63.4 million, and earnings per share increased to 0.38 dollars from 0.36 dollars.
By segment, contract operations revenue rose 3% year over year in the second quarter to 329.3 million dollars, compared with 318.3 million a year earlier. Aftermarket services revenue, by contrast, fell to 42.0 million dollars from 64.8 million. The company attributed the decline to lower parts sales and weaker customer demand for major maintenance services. Revenue in the third quarter of 2025 was 382.4 million dollars, with net income of 71.2 million and earnings per share of 0.40 dollars, while adjusted earnings per share were 0.42 dollars. Archrock shares closed at 30.34 dollars on November 2, 2026.
The company had set November 3, 2026, for a discussion of its third-quarter results, with the call scheduled to begin at 8:30 a.m. Eastern time. It said its earnings report would be released before the call. The date follows the August agreement announcement and annual outlook update, putting third-quarter results among the milestones for tracking the company’s guidance and the performance of its two segments. The second-quarter backdrop combines growth in contract operations with a decline in aftermarket services. The year-earlier comparison for the third quarter also included revenue, net income and adjusted earnings per share, metrics from 2025 results.