Archrock announces Q3 adjusted EPS of 42 cents, matching consensus expectations.
Q3 Revenue Performance: The company reported Q3 revenue of $382.4 million, exceeding the consensus estimate of $379.29 million.
Operational Strength: The third quarter showcased strong operations in the natural gas and compression markets, highlighted by excellent customer service and profitability.
Fleet and Revenue Growth: The fleet expanded by 56,000 horsepower, and there was notable growth in contract operations revenue and adjusted gross margin.
Financial Metrics: The company increased net income and adjusted EBITDA, achieved a leverage ratio of 3.1x, raised its quarterly dividend by 20% year-over-year, and repurchased over 1 million shares for approximately $25 million.
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- Financing Size: Archrock Services, L.P. successfully completed an $800 million offering of 6.000% senior notes, intended to repay a portion of outstanding borrowings under its revolving credit facility, thereby optimizing the company's capital structure and reducing financial costs.
- Compliance Note: The notes are unregistered under the Securities Act of 1933 and are offered only to qualified institutional buyers and non-U.S. persons, ensuring adherence to relevant laws and minimizing legal risks.
- Market Positioning: Archrock focuses on natural gas compression services, committed to providing safe and environmentally responsible solutions for energy industry clients, thereby solidifying its leading position in the U.S. market and promoting sustainable development.
- Forward-Looking Statements: The company cautions investors that future performance may be influenced by various factors, including economic conditions and industry changes, highlighting its sensitivity to market dynamics and ability to respond effectively.
- Transformational Innovation: SEI Investments Co. (market cap $10 billion) is modernizing traditional wealth management through its SEI Wealth Platform, which analysts believe will enhance its market share and drive future growth.
- Analyst Rating Upgrades: In December, Piper Sandler and Keefe, Bruyette & Woods upgraded SEIC from Neutral to Outperform, while Morgan Stanley raised its price target to $117, with an average target of $107 from three firms, indicating nearly 23% upside from current levels.
- Price Breakout: SEIC's stock has surged past both the 50-day and 200-day simple moving averages, with a bullish crossover in the Moving Average Convergence Divergence (MACD) indicator, signaling strong market momentum and boosting investor confidence.
- Optimistic Market Outlook: Analysts' strong bullish sentiment towards SEI Investments reflects its potential in the wealth-tech sector, with expectations of significant growth by 2026, attracting increased investor interest.
- Upsized Offering: Archrock Services has priced an $800 million offering of 6.000% senior notes due 2034, expected to close on January 21, 2026, aimed at optimizing capital structure and reducing financial costs.
- Debt Repayment Strategy: The net proceeds from this offering will be used to repay a portion of Archrock's outstanding borrowings under its revolving credit facility, thereby enhancing the company's financial flexibility and improving liquidity.
- Compliance and Market Positioning: The notes are not registered under the Securities Act and will be offered only to qualified institutional buyers, ensuring compliance with relevant laws while broadening the company's financing avenues.
- Industry Context: As a leading provider of natural gas compression services in the U.S., Archrock's financing initiative will support its ongoing development in the energy infrastructure sector, particularly in the current volatile oil and gas market environment.
Dividend Investment Strategy: Dividend investors focus on identifying profitable companies that are undervalued, using a proprietary DividendRank formula to rank stocks based on profitability and valuation for further research.
Archrock Inc Dividend Details: Archrock Inc pays an annualized dividend of $0.84 per share, distributed quarterly, with its most recent ex-dividend date on November 4, 2025, highlighting the importance of analyzing a company's dividend history.
Importance of Dividend History: Examining a company's past dividend payments can provide insights into the sustainability of its current dividend, which is crucial for investors.
Disclaimer on Views: The opinions expressed in the report are those of the author and do not necessarily represent the views of Nasdaq, Inc.

ExxonMobil's MoU with Gabon: Exxon Mobil Corporation has signed a memorandum of understanding with the Gabonese government to explore deepwater oil and gas reserves, indicating a potential return to the country amid its declining production levels.
Gabon’s Production Challenges: Gabon is facing a decrease in crude production, dropping from 370,000 barrels per day in 1997 to 240,000 bbl/day in August 2025, prompting the government to seek new resources to reverse this trend.
Cheniere Energy's Expansion: Cheniere Energy has achieved a milestone with the first production from its Corpus Christi Stage 3 Liquefaction Project, which aims to enhance its LNG production capacity to meet growing global demand.
Bloom Energy and Archrock Developments: Bloom Energy is positioned to benefit from the rising demand for clean power solutions, while Archrock focuses on midstream natural gas compression services, anticipating sustained demand in the energy transition.

Baker Hughes Q3 2025 Earnings: Baker Hughes reported adjusted earnings of 68 cents per share, surpassing estimates, with total revenues of $7,010 million, also exceeding expectations and showing growth from the previous year.
Segment Performance: The Industrial & Energy Technology segment saw a 15% revenue increase to $3,374 million, while the Oilfield Services and Equipment segment experienced an 8% decline in revenue to $3,636 million, impacted by lower volume and inflation.
Financial Overview: Total costs and expenses rose to $6,189 million, and the company generated a free cash flow of $699 million, with a long-term debt of $5,988 million and a debt-to-capitalization ratio of 24.8%.
Market Position and Competitors: Baker Hughes holds a Zacks Rank #3 (Hold), while competitors like Cheniere Energy and Bloom Energy have stronger rankings, indicating a competitive landscape in the energy sector.









