Updated 2024 Annual Guidance
Archrock is providing revised guidance for the full year 2024. The full-year 2024 guidance below incorporates four months of the financial impact of the TOPS acquisition that closed on August 30, 2024.
(in thousands, except percentages, per share amounts, and ratios)
| Full Year 2024 Guidance | |||||||
| Low | High | ||||||
| Net income (1) (2) | $ | 157,000 | $ | 167,000 | |||
| Adjusted EBITDA(3) | 575,000 | 585,000 | |||||
| Cash available for dividend(4) (5) | 339,000 | 349,000 | |||||
| Segment | |||||||
| Contract operations revenue | $ | 970,000 | $ | 980,000 | |||
| Contract operations adjusted gross margin percentage | 66 | % | 67 | % | |||
| Aftermarket services revenue | $ | 180,000 | $ | 185,000 | |||
| Aftermarket services adjusted gross margin percentage | 22 | % | 23 | % | |||
| Selling, general and administrative | $ | 134,000 | $ | 132,000 | |||
| Capital expenditures | |||||||
| Growth capital expenditures (6) | $ | 260,000 | $ | 260,000 | |||
| Maintenance capital expenditures | 85,000 | 85,000 | |||||
| Other capital expenditures | 25,000 | 25,000 | |||||
___________
| (1) | 2024 annual guidance for net income includes $9.5 million of long-lived and other asset impairment as of September 30, 2024, but does not include the impact of any such future costs, because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2023 and 2022 was $12.0 million and $21.4 million, respectively. |
| (2) | Reflects estimate of expenses incurred to date related to the TOPS acquisition. |
| (3) | Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons. |
| (4) | Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends. |
| (5) | A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(28.0) million and $(24.5) million for the years 2023 and 2022, respectively. |
| (6) | The $70 million increase from prior annual guidance of $190 million is exclusively related to the addition of horsepower in TOPS' backlog and payments due at delivery. |
