ARCHROCK, INC. J.P. Morgan Energy, Power & Renewables Conference June 22, 2022
Archrock Company Overview Returns oriented energy infrastructure company Natural gas compression company based in Houston, Texas NYSE: AROC Largest outsourced compression provider in U.S.(1) Market Cap: 1.4 billion(2) Compression…
An Attractive Energy Infrastructure Investment Archrock Investment Highlights Gathering focus; a leading provider of large HP, 81% of fleet(1) Midstream / Large HP Focus Compression is a must-run service for gas transportation…
Our Rich Company Legacy Successful 60+ year company history with proven success over time South Coast Gas 1950s 1990 2006 2007 2014 2015 Current South Coast Gas Compression Hanover Compressor founded Exterran formed by merger of…
The Leader in U.S. Natural Gas Compression Leading contract compression position supplemented by AMS capabilities Total Compression Outsourced Owned Market 30% of market 70% of market Contract Operations(1) Aftermarket Services…
Reliable and Competitive Dividend Prioritizing shareholder returns as we invest in our business Full Year Cash Available for Dividend Coverage(1) 34 consecutive quarters of cash dividends 2.8x 2.9x 1099-DIV tax reporting form 2.2x…
Top-Tier Metrics Vs. Compression Peers A unique combination of attractive attributes and valuation Dividend Yield(1) Leverage Ratio(2) Debt-to-Capitalization Cash Available for EV/EBITDA(3) (4) Ratio(2) Dividend Coverage(2) 12.1%…
OPERATIONS ARCHROCK, INC. (NYSE:AROC)
Compression 101 What Do We Do Compression increases pressure within a pipeline to transport natural gas A Must-Run Service Equipment that moves natural gas through infrastructure Benefits to customer of outsourcing systems to…
A Market Leader in Large Horsepower Leveraging the growing industry trend towards larger HP units 19% Small 81% Large 81% Large HP HP HP Fleet Allocation(1) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Drivers of Large HP…
Archrocks Focus on Midstream Our midstream focus results in greater stability UPSTREAM MIDSTREAM DOWNSTREAM Drilling Completions Gathering Processing Large Pipeline/ Refining Marketing Storage Archrocks Compression Focus We…
Recent Digital Transformation Milestones Driving new pinnacles of customer service, employee satisfaction, sustainability and profitability Contract Operations Gross Margin(1) Recent Milestones Expected Benefits Completed…
Diversified Platform Across Key Shale Basins Stability and growth opportunity across U.S. production basins Material presence and scale in all major U.S. shale production Niobrara Marcellus / Utica basins Largest U.S. provider of…
Aftermarket Services Capabilities Opportunities to service customer-owned compressors accelerating Ability to serve the entire U.S. compression market Margin contribution from customers with their own compression solutions Minimal…
Abundant and Affordable U.S. Natural Gas Supply U.S. natural gas production expected to set new records U.S. gas Bcf/d(1) 53 51 55 66 73 94 106 2000 2004 2008 2012 2016 2021 2026E U.S. natural gas production resumed growth in 2021…
Long-Term Secular Natural Gas Demand Drivers Robust demand drivers led by natural gas export opportunities U.S. Natural Gas Demand Growth(1) LNG Exports Bcf/d 105 2 -1 100 100 2 3 Pipeline Exports 94 95 90 85…
ESG ARCHROCK, INC. (NYSE:AROC)
Natural Gas Critical Role in a Greener Economy Natural gas is abundant, reliable and cleaner-burning U.S. Natural Gas Production vs. CO2 Emissions 35,000 6500 U.S. CO2 emissions reductions driven by coal to natural gas million…
Archrock: A Responsible Company Making the difference where it matters ENVIRONMENTAL SOCIAL GOVERNANCE Dedicated focus on air quality and Full range of employee benefits 7 of 9 directors are independent health Extensive training and…
Committed to Reducing Emissions Footprint Leveraging the strength of our core compression franchise as we invest in decarbonization Improved Compression Engine Emissions Invested in Decarbonization Efficiency NOx Emissions Trend…
FINANCIALS ARCHROCK, INC. (NYSE:AROC)
Solid Profitability Through Cycles A resilient business model tied to production, not commodity prices Adjusted EBITDA margin (%)(1) Oil 35% 38% 41% 35% 39% 43% 47% 46% Gas /bbl /MMBtu Track record of generating 120 6…
Executing on Balance Sheet Goals Reducing Leverage to strengthen balance sheet 328 million in absolute debt reduction since the end of 2019 Targeting 3.5-4.0x leverage ratio Deleveraging expected over time through enhanced…
Solid Balance Sheet Position Manageable leverage and no near-term debt maturities Debt Maturity Schedule(1) (MM) Balance Sheet & Funding Overview Revolving credit A No near-term debt maturities facility due November 2024 C…
Prudent Stewards of Capital Capital policy based on balancing three objectives 1 Focusing on strategic, high-quality customers in key basins Capital 150 MM Pre-funded 2022 capex with non-core asset sales Investment 2022 growth…
Key Takeaways We are the leader in U.S. natural gas compression Structural, Midstream / Resilience Long-Term Solid Financial Sustainable Large HP Focus Through Cycles Demand Drivers Position Future 29 ARCHROCK, INC. (NYSE:AROC)
APPENDIX ARCHROCK, INC. (NYSE:AROC)
Management Overview Highly qualified and experienced management team D. Bradley Childers, President and Chief Executive Officer Brad Childers is President, Chief Executive Officer and a director of Archrock, Inc. Previously, he served…
Management Overview Cont. Highly qualified and experienced management team Jason G. Ingersoll, Senior Vice President, Sales and Operations Support Jason Ingersoll is Senior Vice President of Marketing & Sales of Archrock Inc., where…
Archrock Addendum I-A Archrock, Inc. Gross margin, a non-GAAP measure, is defined as total revenue less cost of sales (excluding depreciation and amortization). Gross margin percentage is defined as gross margin divided by revenue.…
AROC Addendum I-C Reconciliation of Net Income (Loss) to Gross Margin (in thousands) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Net income (loss) 19,456 11,423 20,407 46,044 (61,187) (30,381)…
AROC Addendum I-D Reconciliation of Net Income (Loss) to Adjusted EBITDA ( in thousands) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Net income (loss) 19,456 11,423 20,407 46,044 (61,187) (30,381)…
AROC Addendum I-E Reconciliation of Net Income (Loss) to Adjusted EBITDA ( in thousands) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net income (loss) (355,308) (37,696) 126,606 88,661 (125,697) (65,243) 18,410 29,160…
AROC Addendum I-F Reconciliation of Net Income (Loss) to Adjusted EBITDA and Cash Available for Dividend ( in thousands) Q1-19 Q2-19 Q3-19 Q4-19 2019 Q1-20 Q2-20 Q3-20 Q4-20 2020 Q1-21 Q2-21 Q3-21 Q4-21 2021 Q1-22 . Net income…
AROC Addendum I-F (cont.) Reconciliation of Cash Flows from Operating Activities to Cash Available for Dividend ( in thousands) Q1-19 Q2-19 Q3-19 Q4-19 2019 Q1-20 Q2-20 Q3-20 Q4-20 2020 Q1-21 Q2-21 Q3-21 Q4-21 2021 Q1-22 Cash flows…
Archrock Addendum I-G Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend Full-Year 2022 Guidance (1) Low High Net income (2) 22,000 52,000 Interest expense 97,000 97,000 Provision for income taxes…
CONTACT US Investor Relations Megan Repine, VP of Investor Relations (281) 836-8360 investor.relationsarchrock.com www.archrock.com/aroc Corporate Headquarters 9807 Katy Freeway Suite 100 Houston, TX 77024 ARCHROCK, INC.…
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