Archrock Thrives with Impressive 2024 Financial Performance
Archrock Reports Significant Growth for 2024
HOUSTON — Archrock, Inc. (NYSE: AROC) has announced an outstanding performance for the year 2024, showcasing significant increases in revenue and net income. The company reported a fourth-quarter revenue of $326.4 million, a remarkable rise from $259.6 million recorded in the same quarter of the previous year. For the entire year, Archrock achieved a total revenue of $1,157.6 million, compared to $990.3 million in 2023.
Financial Highlights for 2024
The financial accomplishments of Archrock for the fourth quarter of 2024 are notable. The net income soared to $59.8 million, resulting in earnings per share (EPS) of $0.34, which is a significant increase from $33.0 million and EPS of $0.21 in the fourth quarter of 2023. Over the full year, the company reported a total net income of $172.2 million and an EPS of $1.05, illustrating a strong leap from $105.0 million and $0.67, respectively, in 2023.
Adjusted Earnings
Archrock’s adjusted net income for Q4 reached $61.5 million, an improvement from the previous year’s $33.0 million. This led to an adjusted EPS of $0.35, up from $0.21 year-over-year. When considering the entire year, adjusted net income totaled $185.2 million, compared to $105.0 million in the same period last year, showing a steady upward trend.
Adjusted EBITDA Growth
The company’s adjusted EBITDA for the fourth quarter hit $183.8 million, up from $120.3 million in the previous year. For the entire year, adjusted EBITDA climbed to $595.4 million, showcasing a year-over-year increase from $450.4 million. This reflects Archrock's ongoing commitment to operational excellence and effective management strategies.
Management Insights and 2025 Forecast
Brad Childers, Archrock’s President and CEO, expressed his pride in the company's performance: "Archrock’s exceptional fourth quarter rounded out a record-setting year characterized by high utilization and profitability. We managed to improve our adjusted gross margins significantly and return $124 million to our shareholders through dividends and stock buybacks, indicating our robust commitment to enhancing shareholder value," he stated.
Looking forward, Archrock’s prospects in 2025 appear equally bright, with indications of sustained high demand for natural gas and the company's commitment to utilizing innovative technologies.
Capital Allocation and Strategic Growth
The company is now entering 2025 with a well-prepared investment strategy, focusing on profitable growth opportunities within the midstream sector and electric motor drive compression. Archrock remains dedicated to developing high-quality assets and providing top-notch service to its clients.
Strong Market Position
“Our strong market position is attributed to the increasing energy demand that necessitates natural gas for expanding LNG exports and power generation. With a significant backlog for 2025, we anticipate continuing to meet customer demands and expanding our equipment deliveries into 2026 while maintaining a careful balance on leveraging and capital investments," Childers remarked.
Fourth Quarter and Full Year 2024 Financial Results Overview
Throughout 2024, Archrock's balance sheet was robust, with a long-term debt of $2.2 billion and available liquidity totaling $688 million as of the fourth quarter's conclusion. The leverage ratio stood at 3.3x, down from 3.5x in the prior year. Additionally, the company declared a quarterly dividend of $0.19 per share, a 15% increase sequentially from the previous year, marking a dividend coverage of 3.5x in Q4.
Frequently Asked Questions
What were Archrock's total revenues for 2024?
Archrock reported total revenues of $1,157.6 million for the year 2024.
How did Archrock's earnings per share change in 2024?
In 2024, Archrock's EPS rose to $1.05 from $0.67 in the previous year.
What was Archrock's adjusted EBITDA for the fourth quarter of 2024?
The adjusted EBITDA for Q4 2024 was $183.8 million, an increase from $120.3 million in Q4 2023.
What is Archrock's outlook for 2025?
Archrock expects continued strong demand and has a large backlog for 2025, indicating promising growth opportunities.
How much was the quarterly dividend declared for Q4 2024?
Archrock declared a quarterly dividend of $0.19 per share, a 15% increase from the previous year.
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