Archrock (AROC) Investor presentation summary

Strategic positioning and market fundamentals

• Operates as a leading outsourced compression provider with a focus on large horsepower and electric motor drive units, serving all major U.S. gas and oil basins with fee-based, long-term contracts.

• Maintains strong relationships with top-tier, investment-grade customers, with 81% of operating horsepower under long-term or strategic agreements.

• Benefits from robust U.S. natural gas production growth, high equipment utilization (95% average over 15 quarters), and increasing demand driven by LNG exports, data centers, and pipeline exports.

• Positioned in low-cost basins, with the Permian and Eagle Ford representing about 76% of operating horsepower.

Financial performance and capital allocation

• Issued tightened 2026 guidance: adjusted EBITDA of $865–$885 million, contract operations revenue of $1.325–$1.335 billion, and contract operations adjusted gross margin of 71.0–71.5%.

• Achieved a 7th consecutive quarter with contract operations adjusted gross margin at or above 70%.

• Increased quarterly dividend to $0.23, up ~10% year-over-year, with strong dividend coverage of 3.1x and $113.2 million remaining under share repurchase authorization.

• Maintains a leverage ratio of 2.6x and targets a long-term debt-to-EBITDA ratio of 3.0–3.5x, with no near-term bond maturities until 2032.

• Plans $1.4–$1.6 billion in cumulative growth capex from 2027–2030, focusing on high-return large HP/electric units in advantaged basins.

Operational excellence and transformation

• Underwent multi-year fleet high-grading, increasing average horsepower per unit by 71% and reducing fleet age by 16% since 2017.

• Average time on location for units increased 61% since 2021 to 73 months, with larger units staying even longer.

• Aftermarket Services business expands addressable market and provides diversification, leveraging existing infrastructure and customer network.

• Maintains best-in-class safety record, with a TRIR of 0.22 in 2025, well ahead of industry targets.