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Archrock, Inc. (AROC)

NYSE - NYSE Delayed Price. Currency in USD
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9.23+0.10 (+1.10%)
At close: 04:00PM EDT
9.23 +0.00 (+0.05%)
After hours: 04:01PM EDT
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  • Y
    Yahoo Finance Insights
    Archrock is down 4.93% to 8.48
  • B
    Bill
    I love finding stocks like this. I'm buying to lock in a sustainable 13.5% dividend but hoping for at least a 50% recovery in the share price. It's hard to find companies that have both.
  • D
    DividendAristocrat
    Between the capex reductions and salary reductions it shows they have shareholders at heart. It doesn’t look to me like they’ll reduce the distribution any time soon and use the cost savings to offset the loss is revenue. Meanwhile lots of insider buying to keep investor confidence. I’m happy with their plan so far. If CCLP goes BK, that will also reduce the competition in the compressor space and provide more market opportunities for AROC and USAC.
  • B
    Bill
    I'm betting they don't reduce the dividend. As of Feb.19 guidance is it's more than 2X covered. Competitors USAC and CCLP have recently announced they are not reducing theirs.
    Bullish
  • w
    walker
    Was this reversion to its Mean (8.50 level) too fast & it got a bit ahead of itself or is there another issue today with Natural Gas / Energy Equipment suppliers? Nobody likes a 10% pullback with no news but considering its recent test from 4.50 to 7+ a pullback makes sense. If it gets back in the 5’s I’m certainly a buyer of more shares.
  • M
    Maxwell
    Congratulations on the significant improvement in gross margin in the contract operations segment. Ridding the company of the Four Corners operations area ought to provide further improvement in the quarters to come as that area has traditionally diluted that metric overall. However, I still contend that new, large horsepower units, which constitute most of the new CapEx spend, should be generating about 70% GM performance , thereby raising the overall to nearer 65 to 66%. So, better results in the quarter and, hopefully, even more to come. The share price is still well below some historical levels and everyone is hoping for a return to those levels and upward from there.
  • G
    Gary
    Why we should by CCLP! If we refinance cclp's debt with our revolver we pick up 26m in cash flow. CCLP reported 8.5m cash flow Q1. Let's annualize it at 6m/quarter so we get 50m of added cash flow plus synergies of $5m a year. We didn't buy it last year because we didn't want to be in the manufacturing business. CCLP is worth more to us at $55M cash flow then it's worth to them at $24m cash flow. We buy it with our stock and it's immediately accretive.
    Bullish
  • M
    Maxwell
    Observing share price free fall, one must assume that a large percentage of AROC's customers will not be able to pay them. Most of the recently acquired large horsepower compressors are on long term contracts so they probably are not being released. I'm sure there is some pressure being brought to bear by customers for rate reductions. Hoping that management will resist. It's taken a long time to regain any semblance of pricing power; don't throw it away easily. Compression services should be much more stable than this share price would indicate.
  • M
    Mac
    I do not believe that natural gas is going to be eliminated as an energy source but if it is some time in the future hydrogen has been mentioned as an alternative. This is way beyond my pay grade but the following is a very interesting article about how natural gas pipelines would be perfect for transporting hydrogen, and yes they would need compressors. I can't imagine this happening within 10 years, but if it did by that time I would have received roughly all my money back with the dividend at the current rate. https://www.siemens-energy.com/global/en/news/magazine/2020/repurposing-natural-gas-infrastructure-for-hydrogen.html
    How legacy infrastructure can become the backbone of a H2-based energy system.
    How legacy infrastructure can become the backbone of a H2-based energy system.
    www.siemens-energy.com
  • M
    Maxwell
    Look at the five year share price chart. Just no discernible long term upward trend. Management crows about the 63% gross margin on compression services. Those type results were sufficient for dismissal in the Hanover, Production Operators, etc., days. Since the Universal/Hanover merger in 2007, there have been several CEO's all of whom came from the failing Universal side. Incredible market value destruction ever since. Just cannot understand why the BoD does not see this incompetence for what it is and take steps to remedy it. Management and the Board (especially Gordon Hall) have failed the shareholders.
  • e
    ed
    This board is quiet indeed! I thought earnings were decent and listening to the call, seems better times are ahead. It is just not a widely followed stock as evidenced by only 1 question on the call.
    Bullish
  • w
    walker
    Strong performance on a weak day in energy & markets. IMO this has pretty good support in 4.40 range & possible resistance at 4.90. Nice job AROC stock!
  • L
    Larry
    Hello!! why is this board so quiet, we about to go into a NG boom. All the pipeline companys will need AROC's services. BUY, BUY, BUY GLTA!
  • G
    Gary
    Up 30 percent versus 7 for AROC and 6 for USAC and up 3x in a week at the high today. As I stated
    before a much superior opportunity than AROC or USAC at these prices.
  • T
    Thomas
    3.93 from a continual slide coming from 8.3. I ready for this to turnaround, trying to stay positiive, is difficult maintain my position at time.
    Neutral
  • M
    Maxwell
    I remain perplexed by the CEO's assertion that the contract compression service gross margin of 59% indicates excellent performance. Archrock's growth is largely in the big horsepower segment, an area that historically generates high (65 to 70%) margins , especially with new equipment. Couple that growth with the 20% pricing on the spot for high demand (large horsepower) units and we should be seeing much better gross margin results. Something just doesn't add up and I question why the so-called analysts are not asking about it. In the past at other companies, 59% GM would have resulted in people losing bonuses if not their jobs. Is the growth capital being wisely deployed if we cannot make good returns with it? There is one scorecard that really matters: the share price. The investing public did not receive this quarterly report favorably - SP down about 10% since.
  • p
    pal
    Why sell any natural gas midstream company when the forward NG curve is begging for more production and TTF is asking for US LNG to return?
    Bullish
  • M
    M
    Bought 10000 at $4.20 Today.
    GLTA
  • D
    DiverdanlikesBREW
    Shorts can you explain how companies like WMB are moving 10% more volume and needing less rather than more compression services......is there something I am missing?????? WMB just reported moving 13 billion cubic feet per day a 10% increase yoy. Please explain how this is bearish I would like to hear. KMI will soon be reporting
    Bullish
  • M
    Maxwell
    Five year performance has been dreadful. Not sure what the BoD sees in current management that allows continuation with generally poor prospects. Long suffering shareholders deserve better.
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