Archrock Increases Quarterly Cash Dividend
HOUSTON, Jan. 26, 2023 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) today announced that its Board of Directors has declared an increased quarterly dividend of $0.15 per share of common stock, or $0.60 per share on an annualized basis. The fourth quarter 2022 dividend will be paid on February 14, 2023 to all stockholders of record on February 7, 2023.
The fourth quarter 2022 dividend per share amount represents an increase of 3.3 percent over the Archrock third quarter 2022 dividend level.
“Resilient demand for natural gas, compression market momentum and strong execution set us up to deliver robust results in 2023, a year that we expect to lay the foundation for a multi-year upcycle in our business,” said Brad Childers, Archrock’s President and Chief Executive Officer. “With our horsepower utilization exiting December 2022 at 93%, we expect 2023 financial performance to benefit from a full year of record-high utilization and spot pricing.
“We have also made significant progress on our balance sheet over the past several years, including the repayment of more than $300 million in borrowings since the end of 2019. Proactive debt reduction and a visible increase in future earnings power give us line of sight to achieving a leverage ratio of below 4.0 times. Our increased dividend is supported by a consistent and prudent expected dividend coverage ratio of approximately 2.0 times in 2023.
“We remain committed to a balanced, all-of-the above capital allocation approach: investing in our business at attractive returns to grow profitably with our customers and increasing cash returned to our stockholders over time, while maintaining a healthy balance sheet and financial flexibility,” concluded Childers.
Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is the leading provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICA™, visit www.archrock.com.
This press release contains forward-looking statements, which include statements about Archrock’s future financial performance and dividends. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Archrock expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in Archrock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and as set forth from time to time in Archrock’s filings with the Securities and Exchange Commission. These filings are available online at www.sec.gov and www.archrock.com.
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