Archrock Sees Strong Demand Ahead

Archrock Inc., the nation’s largest contract compression firm, grew its contract operations revenue 13% and its average operating horsepower 8% during the first quarter of 2019, compared with the same period in 2018.

Brad Childers, Archrock’s president and CEO, said record gas production in 2018 caused the build-out of more midstream infrastructure and continued strong demand for contract compression equipment and services.

Archrock posted net income of US$19.5 million for the first quarter compared to US$2.1 million a year ago. Operating horsepower at the end of the first quarter was 3.6 million, up 7% from 3.3 million a year earlier. Utilization was 88% compared with 86% a year earlier.

Childers said the company’s 2019 business would equal or exceed 2018 totals, as it is experiencing more demand than it can meet. Some high-demand units deployed to customers’ sites are getting 20% year-over-year price increases.

Archrock plans to spend US$250 million to US$300 million to grow its fleet this year, supporting between 285,000 and 345,000 of new horsepower. Customers have contracted for nearly 95% of that capacity.

The investments will be focused on large horsepower units for midstream applications, about half destined for the Permian Basin of West Texas and southeastern New Mexico.

Related Articles

Ransomware Attack Closes U.S. Compressor Station
Burckhardt, GRZ To Develop Hydrogen Compressor
Büchner Nominated New Burckhardt Chairman
Burckhardt Introduces Cost-Saving Supply Method For API 618 Compressors
Cook Names Service Partner for Poland
DOE Awards $25 Million For Gas Projects
Highlights From Conference On Compressors
Sauer, TMC Form Strategic Partnership

Latest News

USA Compression Partners Cuts 2020 Capex
Gas Production, Exports Likely To Rise: EIA
Ransomware Attack Closes U.S. Compressor Station
Burckhardt, GRZ To Develop Hydrogen Compressor
Hoerbiger adds former, new faces to North American team
EFRC Seeking Board Nominations
GMRC Call For Papers
New Regional Directors For Cooper
Hoerbiger Buys Share Of Austria’s Ragsol

Log In

Forgotten Password?

Haven’t got an account? Click here to register.