Archrock (AROC) 10-Q 30 Jul 19 2019 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2019	Jul. 23, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Commission File Number	001-33666
Entity Registrant Name	Archrock, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-3204509
Entity Street Address	9807 Katy Freeway
Entity Suite Number	Suite 100
Entity City	Houston
Entity State	TX
Entity Postal Zip Code	77024
City Area Code	281
Local Phone Number	836-8000
Title of each class	Common stock, $0.01 par value per share
Trading Symbol	AROC
Name of exchange on which registered	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		130,319,665
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001389050
Amendment Flag	false
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 2,015	$ 5,610
Accounts receivable, trade, net of allowance of $1,554 and $1,452, respectively	146,831	147,985
Inventory	74,159	76,333
Tax refund receivable	0	15,262
Other current assets	8,506	10,706
Current assets associated with discontinued operations	0	300
Total current assets	231,511	256,196
Property, plant and equipment, net	2,294,370	2,171,038
Operating lease ROU assets	18,022
Intangible assets, net	44,731	52,370
Contract costs, net	42,424	39,020
Other assets	21,781	26,828
Noncurrent assets associated with discontinued operations	8,467	7,063
Total assets	2,661,306	2,552,515
Current liabilities:
Accounts payable, trade	58,759	54,939
Accrued liabilities	82,687	78,997
Deferred revenue	10,865	16,509
Current liabilities associated with discontinued operations	269	297
Total current liabilities	152,580	150,742
Long-term debt	1,628,814	1,529,501
Operating lease liabilities	16,647
Deferred income taxes	4,448	2,842
Other liabilities	17,460	20,793
Noncurrent liabilities associated with discontinued operations	8,467	7,063
Total liabilities	1,828,416	1,710,941
Commitments and contingencies (Note 18)
Equity:
Preferred stock: $0.01 par value per share, 50,000,000 shares authorized, zero issued	0	0
Common stock: $0.01 par value per share, 250,000,000 shares authorized, 136,899,297 and 135,787,509 shares issued, respectively	1,369	1,358
Additional paid-in capital	3,182,247	3,177,982
Accumulated other comprehensive income (loss)	(2,772)	5,773
Accumulated deficit	(2,267,235)	(2,263,677)
Treasury stock: 6,577,558 and 6,381,605 common shares, at cost, respectively	(80,719)	(79,862)
Total equity	832,890	841,574
Total liabilities and equity	$ 2,661,306	$ 2,552,515

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 1,554	$ 1,452
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	136,899,297	135,787,509
Treasury stock, common shares (in shares)	6,577,558	6,381,605

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Revenues	$ 238,390	$ 226,870	$ 474,549	$ 438,910
Total cost of sales (excluding depreciation and amortization)	112,736	118,602	231,373	225,534
Selling, general and administrative	28,618	26,649	57,607	54,157
Depreciation and amortization	45,482	43,331	89,588	87,786
Long-lived asset impairment	8,632	6,953	11,724	11,663
Restatement and other charges	24	(1,076)	445	(591)
Interest expense	25,954	23,337	49,571	45,884
Debt extinguishment loss	3,653	2,450	3,653	2,450
Transaction-related costs	2,687	5,686	2,867	9,811
Other income, net	(2,010)	(1,644)	(2,215)	(2,789)
Income before income taxes	12,614	2,582	29,936	5,005
Provision for (benefit from) income taxes	1,191	(1,567)	(1,216)	(1,213)
Income from continuing operations	11,423	4,149	31,152	6,218
Loss from discontinued operations, net of tax	0	0	(273)	0
Net income	11,423	4,149	30,879	6,218
Less: Net income attributable to the noncontrolling interest	0	(2,212)	0	(8,097)
Net income (loss) attributable to Archrock stockholders	$ 11,423	$ 1,937	$ 30,879	$ (1,879)
Basic and diluted net income (loss) per common share attributable to Archrock common stockholders (in dollars per share)	$ 0.09	$ 0.02	$ 0.24	$ (0.02)
Weighted average common shares outstanding:
Basic (in shares)	128,328	111,296	128,261	90,589
Diluted (in shares)	128,354	111,402	128,297	90,589
Contract Operations | Contract operations
Revenue:
Revenues	$ 186,258	$ 165,450	$ 368,765	$ 326,647
Total cost of sales (excluding depreciation and amortization)	70,521	67,809	145,256	132,404
Aftermarket Services | Aftermarket services
Revenue:
Revenues	52,132	61,420	105,784	112,263
Total cost of sales (excluding depreciation and amortization)	$ 42,215	$ 50,793	$ 86,117	$ 93,130

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 11,423	$ 4,149	$ 30,879	$ 6,218
Other comprehensive income (loss), net of tax:
Interest rate swap gain (loss), net of reclassifications to earnings	(5,320)	1,720	(8,545)	6,282
Amortization of terminated interest rate swaps	0	85	0	230
Merger-related adjustments	0	5,670	0	5,670
Total other comprehensive income (loss)	(5,320)	7,475	(8,545)	12,182
Comprehensive income	6,103	11,624	22,334	18,400
Less: Comprehensive income attributable to the noncontrolling interest	0	(3,506)	0	(12,360)
Comprehensive income attributable to Archrock stockholders	$ 6,103	$ 8,118	$ 22,334	$ 6,040

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Accumulated Deficit	Noncontrolling Interest
Beginning balance at Dec. 31, 2017	$ 735,618	$ 769	$ 3,093,058	$ 1,197	$ (76,732)	$ (2,241,243)	$ (41,431)
Beginning, shares at Dec. 31, 2017		76,880,862			(5,930,380)
Increase (Decrease) in Stockholders' Equity
Cash dividends	(24,018)					(24,018)
Shares issued in employee stock purchase plan	416	$ 1	415
Shares issued in employee stock purchase plan, shares		50,046
Stock-based compensation, net of forfeitures	3,513	$ 9	3,568				(64)
Stock-based compensation, net of forfeitures, shares		883,271			(32,905)
Stock options exercised	262		262
Stock options exercised, shares		29,855
Merger-related adjustments	94,292	$ 576	52,815				40,901
Merger-related adjustments, shares		57,634,005
Treasury stock purchased	(1,041)				$ (1,041)
Treasury stock purchased, shares					(109,466)
Cash distribution to noncontrolling unitholders of the Partnership	(11,766)						(11,766)
Comprehensive income
Net income (loss)	6,218					(1,879)	8,097
Interest rate swap gain (loss), net of reclassifications to earnings	6,282			2,019			4,263
Amortization of terminated interest rate swaps	230			230
Merger-related adjustments	5,670			5,670
Impact of adoption of ASU 2018-02				258		(258)
Ending balance at Jun. 30, 2018	830,725	$ 1,355	3,150,118	9,374	$ (77,773)	(2,252,349)	0
Ending, shares at Jun. 30, 2018		135,478,039			(6,072,751)
Beginning balance at Mar. 31, 2018	737,873	$ 778	3,094,881	3,194	$ (77,773)	(2,238,800)	(44,407)
Beginning, shares at Mar. 31, 2018		77,779,797			(6,072,751)
Increase (Decrease) in Stockholders' Equity
Cash dividends	(15,486)					(15,486)
Shares issued in employee stock purchase plan	193	$ 1	192
Shares issued in employee stock purchase plan, shares		23,092
Stock-based compensation, net of forfeitures	1,968		1,968
Stock-based compensation, net of forfeitures, shares		11,290
Stock options exercised	262		262
Stock options exercised, shares		29,855
Merger-related adjustments	94,292	$ 576	52,815				40,901
Merger-related adjustments, shares		57,634,005
Comprehensive income
Net income (loss)	4,149					1,937	2,212
Interest rate swap gain (loss), net of reclassifications to earnings	1,720			426			1,294
Amortization of terminated interest rate swaps	85			85
Merger-related adjustments	5,670			5,670
Ending balance at Jun. 30, 2018	830,725	$ 1,355	3,150,118	9,374	$ (77,773)	(2,252,349)	0
Ending, shares at Jun. 30, 2018		135,478,039			(6,072,751)
Beginning balance at Dec. 31, 2018	841,574	$ 1,358	3,177,982	5,773	$ (79,862)	(2,263,677)	0
Beginning, shares at Dec. 31, 2018		135,787,509			(6,381,605)
Increase (Decrease) in Stockholders' Equity
Cash dividends	(34,437)					(34,437)
Shares issued in employee stock purchase plan	407		407
Shares issued in employee stock purchase plan, shares		48,801
Stock-based compensation, net of forfeitures	3,869	$ 11	3,858
Stock-based compensation, net of forfeitures, shares		1,062,987			(108,917)
Treasury stock purchased	(857)				$ (857)
Treasury stock purchased, shares					(87,036)
Comprehensive income
Net income (loss)	30,879					30,879
Interest rate swap gain (loss), net of reclassifications to earnings	(8,545)			(8,545)
Amortization of terminated interest rate swaps	0
Merger-related adjustments				0
Ending balance at Jun. 30, 2019	832,890	$ 1,369	3,182,247	(2,772)	$ (80,719)	(2,267,235)	0
Ending, shares at Jun. 30, 2019		136,899,297			(6,577,558)
Beginning balance at Mar. 31, 2019	842,292	$ 1,369	3,180,546	2,548	$ (80,719)	(2,261,452)	0
Beginning, shares at Mar. 31, 2019		136,876,352			(6,484,075)
Increase (Decrease) in Stockholders' Equity
Cash dividends	(17,206)					(17,206)
Shares issued in employee stock purchase plan	189		189
Shares issued in employee stock purchase plan, shares		19,073
Stock-based compensation, net of forfeitures	1,512		1,512
Stock-based compensation, net of forfeitures, shares		3,872			(93,483)
Comprehensive income
Net income (loss)	11,423					11,423
Interest rate swap gain (loss), net of reclassifications to earnings	(5,320)			(5,320)
Amortization of terminated interest rate swaps	0
Merger-related adjustments				0
Ending balance at Jun. 30, 2019	$ 832,890	$ 1,369	$ 3,182,247	$ (2,772)	$ (80,719)	$ (2,267,235)	$ 0
Ending, shares at Jun. 30, 2019		136,899,297			(6,577,558)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parentheticals) - $ / shares	3 Months Ended						6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Dividends declared and paid per common share (in dollars per share)	$ 0.132	$ 0.132	$ 0.132	$ 0.132	$ 0.120	$ 0.120	$ 0.264	$ 0.240

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 30,879	$ 6,218
Adjustments to reconcile net income to cash provided by operating activities:
Loss from discontinued operations, net of tax	273	0
Depreciation and amortization	89,588	87,786
Long-lived asset impairment	11,724	11,663
Inventory write-downs	492	1,018
Amortization of operating lease ROU assets	1,425	0
Amortization of deferred financing costs	3,041	3,094
Amortization of debt discount	545	694
Amortization of terminated interest rate swaps	0	291
Debt extinguishment loss	3,653	2,450
Interest rate swaps	(802)	327
Stock-based compensation expense	3,869	3,763
Provision for doubtful accounts	335	908
Gain on sale of assets	(1,785)	(2,188)
Deferred income tax benefit	(1,819)	(1,327)
Amortization of contract costs	10,724	6,281
Deferred revenue recognized in earnings	(25,227)	(11,274)
Changes in assets and liabilities:
Accounts receivable, trade	(5,015)	(10,458)
Inventory	2,160	(50)
Other assets	12,817	484
Contract costs	(14,128)	(15,998)
Accounts payable and other liabilities	6,102	9,858
Deferred revenue	19,747	11,781
Other	65	(106)
Net cash provided by operating activities	148,663	105,215
Cash flows from investing activities:
Capital expenditures	(234,972)	(132,172)
Proceeds from sale of property, plant and equipment	21,954	19,193
Proceeds from insurance and other settlements	676	252
Net cash used in investing activities	(212,342)	(112,727)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt	1,254,000	383,830
Repayments of long-term debt	(1,151,000)	(343,636)
Payments for debt issuance costs	(8,829)	(3,332)
Proceeds from (payments for) settlement of interest rate swaps that include financing elements	800
Proceeds from (payments for) settlement of interest rate swaps that include financing elements		(207)
Dividends paid to Archrock stockholders	(34,437)	(24,018)
Distributions paid to noncontrolling partners in the Partnership	0	(11,766)
Proceeds from stock options exercised	0	262
Proceeds from stock issued under employee stock purchase plan	407	416
Purchases of treasury stock	(857)	(1,041)
Net cash provided by financing activities	60,084	508
Net decrease in cash and cash equivalents	(3,595)	(7,004)
Cash and cash equivalents, beginning of period	5,610	10,536
Cash and cash equivalents, end of period	2,015	3,532
Supplemental disclosure of non-cash transactions:
Issuance of Archrock common stock pursuant to Merger, net of tax	$ 0	$ 53,391

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Organization and Basis of Presentation	1. Organization and Basis of Presentation We are an energy infrastructure company with a pure-play focus on midstream natural gas compression. We believe we are the leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment in the U.S. We operate in two business segments: contract operations and aftermarket services. Our predominant segment, contract operations, primarily includes designing, sourcing, owning, installing, operating, servicing, repairing and maintaining our owned fleet of natural gas compression equipment to provide natural gas compression services to our customers. In our aftermarket services business, we sell parts and components and provide operations, maintenance, overhaul and reconfiguration services to customers who own compression equipment. The accompanying unaudited condensed consolidated financial statements included herein have been prepared in accordance with GAAP and the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished includes all adjustments, consisting only of normal recurring adjustments, which are necessary to present fairly our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements presented in our 2018 Form 10-K, which contains a more comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. Certain prior year amounts have been reclassified to conform to the current year presentation. Recent Business Developments Elite Acquisition On June 23, 2019, we entered into an asset purchase agreement with Elite Compression pursuant to which we will acquire from Elite Compression substantially all of its assets, including a fleet of predominantly-large compressor units comprising approximately 430,000 horsepower, a fleet of vehicles, real personal property and parts inventory, and certain liabilities for aggregate consideration of $205.0 million cash and 21,656,683 newly-issued shares of Archrock common stock. We intend to fund the cash portion of the purchase price with borrowings on the Credit Facility. The Elite Acquisition is expected to close in the third quarter of 2019 subject to certain closing conditions and the consummation of the Harvest Sale (see below). Harvest Sale On June 23, 2019, we entered into an asset purchase agreement with Harvest pursuant to which Harvest will acquire from us approximately 80,000 active and idle compression horsepower, vehicles and parts inventory for consideration of $30 million to be paid in cash. The Harvest Sale is expected to close in the third quarter of 2019, subject to customary closing conditions. During the three and six months ended June 30, 2019, we incurred transaction costs of $2.5 million related to the Elite Acquisition and Harvest Sale, which is reflected in transaction-related costs in our condensed consolidated statements of operations.

Recent Accounting Developments

Recent Accounting Developments	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Developments	2. Recent Accounting Developments Accounting Standards Updates Implemented Leases ASC 842 Leases establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. We adopted ASC 842 Leases on January 1, 2019 using the modified retrospective transition method and elected the practical expedient package to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification of any expired or existing leases and (iii) initial direct costs for any existing leases. We did not elect the practical expedient to use hindsight in determining the lease term. Adoption of ASC 842 Leases resulted in recognition of an operating lease ROU asset of $18.6 million and an operating lease liability of $20.0 million in our condensed consolidated balance sheet at January 1, 2019. The difference of $1.4 million related to accrued rent and prepaid lease payments recorded to our consolidated balance sheet as of December 31, 2018. We did not recognize any finance lease ROU assets or liabilities upon adoption of ASC 842 Leases. There was no impact to our condensed consolidated statements of operations, equity or cash flows upon adoption. Comparative information has not been recast and continues to be reported under the accounting standards in effect for those periods. ASC 842 Leases also provides a practical expedient, elected by class of underlying asset, to not separate lease and nonlease components and instead account for those components as a single component if certain conditions are met. ASC 842 Leases also provides clarification for lessors on whether ASC 842 Leases or ASC 606 Revenue is applicable to the combined component based on determination of the predominant component. We have concluded that for our contract operations services agreements, in which we are a lessor, the services nonlease component is predominant over the compression unit lease component and therefore ongoing recognition of these agreements will continue to follow the ASC 606 Revenue guidance. We have also elected, as a lessee, to not separate lease and nonlease components as it relates to our facility leases. In addition, we have made an accounting policy election, as permitted by ASC 842 Leases, to not apply the recognition requirements of ASC 842 Leases to leases with an initial term of 12 months or less. Accounting Standards Updates Not Yet Implemented In August 2018, the FASB issued ASU 2018-13 which amends the required fair value measurements disclosures related to valuation techniques and inputs used, uncertainty in measurement and changes in measurements applied. These amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of ASU 2018-13 on our consolidated financial statements and footnote disclosures. In June 2016, the FASB issued ASU 2016-13 which changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in earlier recognition of allowance for losses. For public entities that meet the definition of an SEC filer, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. Entities will apply ASU 2016-13 provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We are currently evaluating the impact of ASU 2016-13 on our consolidated financial statements and footnote disclosures.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	3. Discontinued Operations In 2015 we completed the Spin-off. In order to effect the Spin-off and govern our relationship with Exterran Corporation after the Spin-off, we entered into several agreements with Exterran Corporation which include, but are not limited to, the tax matters agreement. The tax matters agreement governs the respective rights, responsibilities and obligations of Exterran Corporation and us with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and certain other matters regarding taxes. Subject to the provisions of this agreement, we and Exterran Corporation agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing. As of June 30, 2019 and December 31, 2018 , we had $8.5 million and $7.1 million , respectively, of unrecognized tax benefits (including interest and penalties) related to Exterran Corporation operations prior to the Spin-off recorded to noncurrent liabilities associated with discontinued operations in our condensed consolidated balance sheets. We had an offsetting indemnification asset of $8.5 million and $7.1 million related to these unrecognized tax benefits recorded to noncurrent assets associated with discontinued operations as of June 30, 2019 and December 31, 2018 , respectively. The following table summarizes the statements of operations data for discontinued operations (in thousands): Three Months Ended Six Months Ended Other income, net $ — $ (1,432 ) Provision for income taxes — 1,705 Loss from discontinued operations, net of tax $ — $ (273 ) The following table summarizes the balance sheet data for discontinued operations (in thousands): June 30, 2019 December 31, 2018 Other current assets $ — $ 300 Other assets 8,467 7,063 Total assets associated with discontinued operations $ 8,467 $ 7,363 Accrued liabilities $ 269 $ 297 Deferred income taxes 8,467 7,063 Total liabilities associated with discontinued operations $ 8,736 $ 7,360

Inventory

Inventory	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventory	4. Inventory Inventory consisted of the following (in thousands): June 30, 2019 December 31, 2018 Parts and supplies $ 64,403 $ 65,645 Work in progress 9,756 10,688 Inventory $ 74,159 $ 76,333

Property, Plant and Equipment,

Property, Plant and Equipment, Net	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	5. Property, Plant and Equipment, Net Property, plant and equipment, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Compression equipment, facilities and other fleet assets $ 3,472,300 $ 3,323,465 Land and buildings 46,517 47,067 Transportation and shop equipment 105,941 103,766 Computer hardware and software 93,434 92,174 Other 13,111 11,880 Property, plant and equipment 3,731,303 3,578,352 Accumulated depreciation (1,436,933 ) (1,407,314 ) Property, plant and equipment, net $ 2,294,370 $ 2,171,038

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Long-Term Debt	6. Long-Term Debt Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 Credit Facility $ 792,500 $ 839,500 2027 Notes 500,000 — Less: Deferred financing costs, net of amortization (8,550 ) — 491,450 — 2022 Notes 350,000 350,000 Less: Debt discount, net of amortization (2,411 ) (2,766 ) Less: Deferred financing costs, net of amortization (2,725 ) (3,133 ) 344,864 344,101 2021 Notes — 350,000 Less: Debt discount, net of amortization — (1,789 ) Less: Deferred financing costs, net of amortization — (2,311 ) — 345,900 Long-term debt $ 1,628,814 $ 1,529,501 Archrock Credit Facility In April 2018, in connection with the Merger and Amendment No. 1, the Archrock Credit Facility was terminated. As a result of the termination, we recorded a debt extinguishment loss of $2.5 million during the three and six months ended June 30, 2018. We incurred $0.2 million in commitment fees in 2018 prior to the facility’s termination and were in compliance with all covenants through its closing. Credit Facility As of June 30, 2019 , there were $15.2 million letters of credit outstanding under the Credit Facility and the applicable margin on borrowings outstanding was 2.7% . The weighted average annual interest rate on the outstanding balance under the Credit Facility, excluding the effect of interest rate swaps, was 5.3% and 5.4% at June 30, 2019 and December 31, 2018 , respectively. We incurred $0.6 million in commitment fees on the daily unused amount of the Credit Facility during each of the three months ended June 30, 2019 and 2018 and $1.1 million during each of the six months ended June 30, 2019 and 2018 . We must maintain the following consolidated financial ratios, as defined in the Credit Facility agreement: EBITDA to Interest Expense 2.5 to 1.0 Senior Secured Debt to EBITDA 3.5 to 1.0 Total Debt to EBITDA Through fiscal year 2019 5.75 to 1.0 Through second quarter of 2020 5.50 to 1.0 Thereafter (1) 5.25 to 1.0 —————— (1) Subject to a temporary increase to 5.5 to 1.0 for any quarter during which an acquisition satisfying certain thresholds is completed and for the two quarters immediately following such quarter. As of June 30, 2019 , the ratio requirements above did not constrain our undrawn capacity and as such, all of the $442.3 million of undrawn capacity was available for additional borrowings. As of June 30, 2019 , we were in compliance with all covenants under the Credit Facility agreement. 2027 Notes On March 21, 2019, we completed a private offering of $500.0 million aggregate principal amount of 6.875% senior notes due April 2027 and received net proceeds of $491.2 million after deducting issuance costs. The $8.8 million of issuance costs were recorded as deferred financing costs within long-term debt in our condensed consolidated balance sheets and are being amortized to interest expense in our condensed consolidated statement of operations over the term of the notes. The net proceeds were used to repay borrowings outstanding under the Credit Facility as of March 31, 2019. The 2027 Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the U.S. except pursuant to a registration exemption under the Securities Act and applicable state securities laws. We offered and issued the 2027 Notes only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to certain non-U.S. persons outside the U.S. in accordance with Regulation S under the Securities Act. The 2027 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by us and all of our existing subsidiaries, other than Archrock Partners, L.P. and APLP Finance Corp., which are co-issuers of the 2027 Notes, and certain of our future subsidiaries. The 2027 Notes and the guarantees rank equally in right of payment with all of our and the guarantors’ existing and future senior indebtedness. The 2027 Notes may be redeemed at any time, in whole or in part, at specified redemption prices and make-whole premiums, plus any accrued and unpaid interest. Redemption of 2021 Notes On April 5, 2019, the 2021 Notes were redeemed at 100% of their $350.0 million aggregate principal amount plus accrued and unpaid interest of $0.2 million with borrowings from the Credit Facility. We recorded a debt extinguishment loss of $3.7 million related to the redemption during the three and six months ended June 30, 2019 .

Revenue from Contract with Cust

Revenue from Contract with Customers	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	7. Revenue from Contracts with Customers Disaggregation of Revenue The following table presents our revenue from contracts with customers disaggregated by revenue source (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Contract operations (1) : 0 - 1,000 horsepower per unit $ 63,683 $ 59,600 $ 127,422 $ 119,192 1,001 - 1,500 horsepower per unit 75,598 68,948 149,938 135,178 Over 1,500 horsepower per unit 45,969 35,904 89,394 70,314 Other (2) 1,008 998 2,011 1,963 Total contract operations (3) 186,258 165,450 368,765 326,647 Aftermarket services (1) : Services 33,281 36,706 66,802 68,913 OTC parts and components sales 18,851 24,714 38,982 43,350 Total aftermarket services (4) 52,132 61,420 105,784 112,263 Total revenue $ 238,390 $ 226,870 $ 474,549 $ 438,910 —————— (1) We operate in two segments: contract operations and aftermarket services. See Note 19 (“Segments”) for further details regarding our segments. (2) Primarily related to fees associated with Archrock-owned non-compressor equipment. (3) Included $2.2 million and $1.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $4.4 million and $2.7 million for the six months ended June 30, 2019 and 2018 , respectively, related to billable maintenance on Archrock-owned units that was recognized at a point in time. All other contract operations revenue is recognized over time. (4) All service revenue within aftermarket services is recognized over time. All OTC parts and components sales revenue is recognized at a point in time. Performance Obligations As of June 30, 2019 , we had $312.9 million of remaining performance obligations related to our contract operations segment. We have elected to apply the practical expedient to not consider the effects of the time value of money, as the expected time between the transfer of services and payment for such services is less than one year. The remaining performance obligations will be recognized through 2024 as follows (in thousands): 2019 2020 2021 2022 2023 2024 Total Remaining performance obligations $ 148,323 $ 117,192 $ 37,632 $ 8,295 $ 1,122 $ 293 $ 312,857 As of June 30, 2019 we have elected to apply the practical expedient to not disclose the aggregate transaction price for the remaining performance obligations for aftermarket services, as there are no contracts with customers with an original contract term that is greater than one year. Contract Balances As of June 30, 2019 and December 31, 2018 , our receivables from contracts with customers, net of allowance for doubtful accounts, were $139.3 million and $142.1 million , respectively. As of June 30, 2019 and December 31, 2018 , our contract liabilities were $11.6 million and $17.1 million , respectively, which are included in deferred revenue and other liabilities in our condensed consolidated balance sheets. Freight billings to customers for the transport of compressor assets and milestone billings on aftermarket services often result in a contract liability. We recognized $25.2 million of our December 31, 2018 contract liability balance as revenue during the six months ended June 30, 2019 , primarily related to freight billings and aftermarket services.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	8. Leases We determine if an arrangement is a lease at inception. We determine lease classification and recognize ROU assets and liabilities on the lease commencement date based on the present value of lease payments over the lease term. As the discount rate implicit in the lease is rarely readily determinable, we estimate our incremental borrowing rate using information available at commencement date in determining the present value of the lease payments. The lease term includes options to extend when we are reasonably certain to exercise the option. Short-term leases, those with an initial term of 12 months or less, are not recorded on the balance sheet. Variable costs such as our proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease expense for lease payments is recognized on a straight-line basis over the term of the lease. As of June 30, 2019, all of our leases were operating. The facility leases discussed below, of which we are the lessee, contain lease and nonlease components for which we have elected the practical expedient to account for as a single lease component, as the nonlease components are not significant to the total consideration in the contract and separating the nonlease component would have no effect on lease classification. As it relates to our contract operations services agreements in which we are the lessor, the services nonlease component is predominant over the compression unit lease component and therefore ongoing recognition of these agreements will continue to follow the ASC 606 Revenue guidance. We have operating leases and subleases for office space, temporary housing, storage and shops. Our leases have remaining lease terms of one to 11 years and most include options to extend the lease term, at our discretion, for an additional three to five years . We are not, however, reasonably certain that we will exercise any of the options to extend and as such, they have not been included in the remaining lease terms. Balance sheet information related to our operating leases was as follows (in thousands): Classification June 30, 2019 ROU assets Operating lease ROU assets $ 18,022 Lease liabilities Current Accrued liabilities $ 2,827 Noncurrent Operating lease liabilities 16,647 Total lease liabilities $ 19,474 The components of lease cost were as follows (in thousands): Three Months Ended Six Months Ended Operating lease cost $ 970 $ 1,944 Short-term lease cost 65 238 Variable lease cost 560 942 Total lease cost $ 1,595 $ 3,124 Cash flow and noncash information related to our operating leases were as follows (in thousands): Six Months Ended Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 2,802 Operating lease ROU assets obtained in exchange for new lease liabilities 862 Other supplemental information related to our operating leases was as follows: June 30, 2019 Weighted average remaining lease term (in years) 8.5 Weighted average discount rate 5.3 % Remaining maturities of lease liabilities governed under ASC 842 Leases as of June 30, 2019 were as follows (in thousands): 2019 $ 1,569 2020 3,763 2021 3,538 2022 2,439 2023 2,131 2024 1,740 Thereafter 9,310 Total lease payments 24,490 Less: Interest (5,016 ) Total lease liabilities under ASC 842 Leases $ 19,474 Maturities of lease liabilities governed under ASC 840 Leases as of December 31, 2018 were as follows (in thousands): 2019 $ 4,317 2020 3,980 2021 3,562 2022 2,433 2023 2,170 Thereafter 11,935 Total lease liabilities under ASC 840 Leases $ 28,397

Derivatives

Derivatives	6 Months Ended
	Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	9. Derivatives We are exposed to market risks associated with changes in the variable interest rate of the Credit Facility. We use derivative instruments to manage our exposure to fluctuations in this variable interest rate and thereby minimize the risks and costs associated with financial activities. We do not use derivative instruments for trading or other speculative purposes. At June 30, 2019 , the following interest rate swaps, entered into to offset changes in expected cash flows due to fluctuations in the associated variable interest rates, were outstanding (in millions): Expiration Date Notional Value May 2020 $ 100 March 2022 300 $ 400 The counterparties to the derivative agreements are major financial institutions. We monitor the credit quality of these financial institutions and do not expect non-performance by any counterparty, although such non-performance could have a material adverse effect on us. We have no collateral posted for the derivative instruments. We have designated these interest rate swaps as cash flow hedging instruments. Changes in the fair value of the interest rate swaps are recognized as a component of other comprehensive income (loss) until the hedged transaction affects earnings. At that time, amounts are reclassified into earnings to interest expense, the same statement of operations line item to which the earnings effect of the hedged item is recorded. Cash flows from derivatives designated as hedges are classified in our condensed consolidated statements of cash flows under the same category as the cash flows from the underlying assets, liabilities or anticipated transactions, unless the derivative contract contains a significant financing element; in this case, the cash settlements for these derivatives are classified as cash flows from financing activities. We expect the hedging relationship to be highly effective as the swap terms substantially coincide with the hedged item and are expected to offset changes in expected cash flows due to fluctuations in the variable rate. We perform quarterly qualitative prospective and retrospective hedge effectiveness assessments unless facts and circumstances related to the hedging relationships change such that we can no longer assert qualitatively that the cash flow hedge relationships were and continue to be highly effective. We estimate that $0.3 million of the deferred pre-tax gain attributable to interest rate swaps included in accumulated other comprehensive income at June 30, 2019 will be reclassified into earnings as interest income at then-current values during the next 12 months as the underlying hedged transactions occur. As of June 30, 2019 , the weighted average effective fixed interest rate on the interest rate swaps was 1.8% . The following table presents the effect of the derivative instruments designated as cash flow hedging instruments in our condensed consolidated balance sheets (in thousands): June 30, 2019 December 31, 2018 Other current assets $ 336 $ 3,185 Other assets — 4,122 Total derivative assets $ 336 $ 7,307 Other liabilities $ (1,574 ) $ — The following tables present the effect of the derivative instruments designated as cash flow hedging instruments on our condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Pre-tax gain (loss) recognized in other comprehensive income (loss) $ (4,529 ) $ 2,245 $ (6,828 ) $ 6,941 Pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense 791 (39 ) 1,717 (513 ) Three Months Ended Six Months Ended 2019 2018 2019 2018 Total amount of interest expense in which the effects of cash flow hedges are recorded $ 25,954 $ 23,337 $ 49,571 $ 45,884 Amount of gain reclassified from accumulated other comprehensive income (loss) into interest expense 791 207 1,717 153 See Note 10 (“Fair Value Measurements”) and Note 17 (“Accumulated Other Comprehensive Income (Loss)”) for further details on our derivative instruments.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	10. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis On a quarterly basis, our interest rate swaps are valued based on the income approach (discounted cash flow) using market observable inputs, including London Interbank Offered Rate forward curves. These fair value measurements are classified as Level 2. The following table presents our interest rate swaps asset and liability measured at fair value on a recurring basis, with pricing levels as of the date of valuation (in thousands): June 30, 2019 December 31, 2018 Interest rate swaps asset $ 336 $ 7,307 Interest rate swaps liability (1,574 ) — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis During the six months ended June 30, 2019 , we recorded non-recurring fair value measurements related to our idle and previously-culled compressor units. Our estimate of the compressor units’ fair value was primarily based on the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. We discounted the expected proceeds, net of selling and other carrying costs, using a weighted average disposal period of four years . These fair value measurements are classified as Level 3. The fair value of our impaired compressor units was $1.6 million and $2.3 million at June 30, 2019 and December 31, 2018 , respectively. See Note 11 (“Long-Lived Asset Impairment”) for further details. Other Financial Instruments The carrying amounts of our cash, receivables and payables approximate fair value due to the short-term nature of those instruments. The carrying amount of borrowings outstanding under the Credit Facility approximates fair value due to its variable interest rate. The fair value of these outstanding borrowings was estimated using a discounted cash flow analysis based on interest rates offered on loans with similar terms to borrowers of similar credit quality, which are Level 3 inputs. The fair value of our fixed rate debt was estimated based on quoted prices in inactive markets and is considered a Level 2 measurement. The following table summarizes the carrying amount and fair value of our fixed rate debt (in thousands): June 30, 2019 December 31, 2018 Carrying amount of fixed rate debt (1) $ 836,314 $ 690,001 Fair value of fixed rate debt 881,000 674,000 —————— (1) Carrying amounts are shown net of unamortized debt discounts and unamortized deferred financing costs. See Note 6 (“Long-Term Debt”) .

Long-Lived Asset Impairment

Long-Lived Asset Impairment	6 Months Ended
	Jun. 30, 2019
Asset Impairment Charges [Abstract]
Long-Lived Asset Impairment	11. Long-Lived Asset Impairment We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressor units from our active fleet, indicate that the carrying amount of an asset may not be recoverable. We periodically review the future deployment of our idle compression assets for units that are not of the type, configuration, condition, make or model that are cost efficient to maintain and operate. Based on these reviews, we determine that certain idle compressor units should be retired from the active fleet. The retirement of these units from the active fleet triggers a review of these assets for impairment and as a result of our review, we may record an asset impairment to reduce the book value of each unit to its estimated fair value. The fair value of each unit is estimated based on the expected net sale proceeds compared to other fleet units we recently sold, a review of other units recently offered for sale by third parties or the estimated component value of the equipment we plan to use. In connection with our review of our idle compression assets, we evaluate for impairment idle units that were culled from our fleet in prior years and are available for sale. Based on that review, we may reduce the expected proceeds from disposition and record additional impairment to reduce the book value of each unit to its estimated fair value. The following table presents the results of our impairment review as recorded in our contract operations segment (dollars in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Idle compressor units retired from the active fleet 160 120 180 165 Horsepower of idle compressor units retired from the active fleet 41,000 27,000 56,000 50,000 Impairment recorded on idle compressor units retired from the active fleet $ 8,632 $ 6,953 $ 11,724 $ 11,663

Hosting Arrangements

Hosting Arrangements	6 Months Ended
	Jun. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Hosting Arrangements	12. Hosting Arrangements In the fourth quarter of 2018 we began a process and technology transformation project that will, among other things, upgrade our existing ERP system, improve our supply chain and inventory management and expand the remote monitoring capabilities of our compression fleet. Included in this project is the implementation of hosting arrangements that are service contracts related to the cloud migration of our ERP system and hosted cloud services for our new mobile workforce telematics tool. Certain costs incurred for the implementation of our hosting arrangements that are service contracts are being capitalized and will be amortized on a straight-line basis over the term of the respective contract. As of June 30, 2019 and December 31, 2018 , we had $2.0 million and $0.4 million

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The year-to-date effective tax rate for the six months ended June 30, 2019 differed significantly from our statutory rate primarily due to the reduction of a valuation allowance, which was recorded to offset the tax effect of the increase in book income in the six months ended June 30, 2019 , as well as the release of an unrecognized tax benefit due to the settlement of a tax audit. Unrecognized Tax Benefits As of June 30, 2019 , we believe it is reasonably possible that $1.9 million of our unrecognized tax benefits, including penalties, interest and discontinued operations, will be reduced prior to June 30, 2020 due to the settlement of audits or the expiration of statutes of limitations or both. However, due to the uncertain and complex application of the tax regulations, it is possible that the ultimate resolution of these matters may result in liabilities which could materially differ from this estimate.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	14. Earnings per Share Net Income (Loss) Attributable to Archrock Common Stockholders per Common Share Basic net income (loss) attributable to Archrock common stockholders per common share is computed using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic net income (loss) attributable to Archrock common stockholders per common share is determined by dividing net income (loss) attributable to Archrock common stockholders after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and stock-settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, no effect is given to participating securities because they do not have a contractual obligation to participate in our losses. Diluted net income (loss) attributable to Archrock common stockholders per common share is computed using the weighted average number of shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options, performance-based restricted stock units and stock to be issued pursuant to our employee stock purchase plan unless their effect would be anti-dilutive. The following table summarizes net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted net income (loss) per common share (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net income (loss) from continuing operations attributable to Archrock stockholders $ 11,423 $ 1,937 $ 31,152 $ (1,879 ) Loss from discontinued operations, net of tax — — (273 ) — Net income (loss) attributable to Archrock stockholders 11,423 1,937 30,879 (1,879 ) Less: Net income attributable to participating securities (261 ) (157 ) (574 ) (313 ) Net income (loss) attributable to Archrock common stockholders $ 11,162 $ 1,780 $ 30,305 $ (2,192 ) The following table shows the potential shares of common stock that were included in computing diluted net income (loss) attributable to Archrock common stockholders per common share (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted average common shares outstanding including participating securities 130,330 112,995 130,276 92,130 Less: Weighted average participating securities outstanding (2,002 ) (1,699 ) (2,015 ) (1,541 ) Weighted average common shares outstanding used in basic net income (loss) per common share 128,328 111,296 128,261 90,589 Net dilutive potential common shares issuable: On exercise of options and vesting of performance-based restricted stock units 25 99 33 * On settlement of employee stock purchase plan shares 1 7 3 * Weighted average common shares outstanding used in diluted net income (loss) per common share 128,354 111,402 128,297 90,589 —————— * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive. The following table shows the potential shares of common stock issuable that were excluded from computing diluted net income (loss) attributable to Archrock common stockholders per common share as their inclusion would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value for the period 154 187 154 205 On exercise of options and vesting of performance-based restricted stock units — — — 89 On settlement of employee stock purchase plan shares — — — 5 Net dilutive potential common shares issuable 154 187 154 299

Equity

Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Equity	15. Equity Merger Transaction In April 2018, we completed the Merger and acquired all of the common units of the Partnership not owned by us prior to the Merger. As a result of the Merger, the Partnership’s common units are no longer publicly traded. The 2021 Notes and 2022 Notes were not impacted by the Merger. As we controlled the Partnership prior to the Merger and continue to control the Partnership after the Merger, we accounted for the change in our ownership interest in the Partnership as an equity transaction in the second quarter of 2018 and no gain or loss was recognized in our condensed consolidated statements of operations as a result of the Merger. The tax effects of the Merger were reported as adjustments to other assets, noncurrent assets associated with discontinued operations, deferred income taxes, additional paid-in capital and other comprehensive income. The following table presents the effects of changes in our ownership interest in the Partnership on the equity attributable to Archrock stockholders: Six Months Ended Net loss attributable to Archrock stockholders $ (1,879 ) Decrease in Archrock stockholders’ additional paid-in capital for purchase of Partnership common units 52,815 Change from net loss attributable to Archrock stockholders and transfers from noncontrolling interest $ 50,936 Prior to the Merger, public unitholders held a 57% ownership interest in the Partnership and we owned the remaining 43% equity interest. The earnings of the Partnership that were attributed to its common units held by the public prior to the Merger are reflected in net income attributable to the noncontrolling interest in our condensed consolidated statements of operations. Cash Dividends The following table summarizes our dividends declared and paid in each of the quarterly periods of 2019 and 2018: Dividends per Common Share Total Dividends (in thousands) 2018 Q1 $ 0.120 $ 8,532 Q2 0.120 15,486 Q3 0.132 17,114 Q4 0.132 17,156 2019 Q1 $ 0.132 $ 17,231 Q2 0.132 17,206 On July 24, 2019 , our board of directors declared a quarterly dividend of $0.145 per share of common stock to be paid on August 14, 2019 to stockholders of record at the close of business on August 7, 2019

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	16. Stock-Based Compensation We have granted restricted stock, restricted stock units and performance-based restricted stock units to employees and non-employee directors under the Archrock, Inc. 2013 Stock Incentive Plan. The following table presents restricted stock, restricted stock unit, performance-based restricted stock unit and cash-settled performance unit activity during the six months ended June 30, 2019 : Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Non-vested awards, January 1, 2019 1,728 $ 9.68 Granted 1,383 10.01 Vested (402 ) 6.33 Canceled (153 ) 10.33 Non-vested awards, June 30, 2019 (1)(2) 2,556 10.35 —————— (1) Non-vested awards as of June 30, 2019 are comprised of 451,000 cash-settled restricted stock units and cash-settled performance units and 2,105,000 restricted shares and stock-settled performance units. (2) During the three months ended June 30, 2019 , the settlement terms of 99,631 performance units, with grant dates in 2018 and 2019, were modified from settlement in stock to cash. The change in award settlement from stock to cash was the only modification to these awards; the vesting, forfeiture and all other terms and conditions were unchanged. The modification resulted in a $0.2 million reclassification from additional paid-in capital to other current liabilities in our condensed consolidated balance sheets and had an immaterial impact on our condensed consolidated statements of operations. As of June 30, 2019 , we expect $18.5 million of unrecognized compensation cost related to unvested restricted stock, stock-settled restricted stock units, performance units, cash-settled restricted stock units and cash-settled performance units to be recognized over the weighted-average period of 2.2 years. Total stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Equity awards $ 1,512 $ 1,969 $ 3,869 $ 3,763 Liability awards 640 666 1,606 967 Total stock-based compensation $ 2,152 $ 2,635 $ 5,475 $ 4,730

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	17. Accumulated Other Comprehensive Income (Loss) Components of comprehensive income (loss) are net income (loss) and all changes in equity during a period except those resulting from transactions with owners. Our accumulated other comprehensive income consists of changes in the fair value of our interest rate swap derivative instruments, net of tax, which are designated as cash flow hedges, amortization of terminated interest rate swaps and adjustments related to changes in our ownership of the Partnership. The following table presents the changes in accumulated other comprehensive income (loss) of our derivative cash flow hedges, net of tax and excluding noncontrolling interest, during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning accumulated other comprehensive income $ 2,548 $ 3,194 $ 5,773 $ 1,197 Gain (loss) recognized in other comprehensive income (loss), net of tax provision of $0, $472, $0 and $888, respectively (1) (4,529 ) 479 (6,828 ) 2,051 (Gain) loss reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax benefit of $0, $(8), $0 and $(53), respectively (1)(2) (791 ) 31 (1,717 ) 456 Merger-related adjustments (3) — 5,670 — 5,670 Other comprehensive income (loss) attributable to Archrock stockholders (5,320 ) 6,180 (8,545 ) 8,177 Ending accumulated other comprehensive income (loss) $ (2,772 ) $ 9,374 $ (2,772 ) $ 9,374 —————— (1) Included adjustments of $1.1 million and $1.8 million related to an increase in the valuation allowance recorded to offset the tax effect of other comprehensive loss recorded during the three and six months ended June 30, 2019, respectively. (2) Included stranded tax effects resulting from the Tax Cuts and Jobs Act, which was implemented in December 2017, of $ 0.3 million reclassified to accumulated deficit during the six months ended June 30, 2018 . (3) Pursuant to the Merger, we reclassified a gain of $5.7 million from noncontrolling interest to accumulated other comprehensive income (loss) related to the fair value of our derivative instruments that was previously attributed to public ownership of the Partnership. See Note 9 (“Derivatives”) for further details on our interest rate swap derivative instruments.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	18. Commitments and Contingencies Performance Bonds In the normal course of business we have issued performance bonds to various state authorities that ensure payment of certain obligations. We have also issued a bond to protect our 401(k) retirement plan against losses caused by acts of fraud or dishonesty. The bonds have expiration dates in 2019 through the third quarter of 2020 and maximum potential future payments of $2.3 million . As of June 30, 2019 , we were in compliance with all obligations to which the performance bonds pertain. Tax Matters We are subject to a number of state and local taxes that are not income-based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of each of June 30, 2019 and December 31, 2018 , we accrued $4.5 million for the outcomes of non-income-based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We believe the likelihood is remote that the impact of potential unasserted claims from non-income-based tax audits could be material to our consolidated financial position, but it is possible that the resolution of future audits could be material to our consolidated results of operations or cash flows. Subject to the provisions of the tax matters agreement between Exterran Corporation and us, both parties agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing. The tax contingencies mentioned above relate to tax matters for which we are responsible in managing the audit. As of June 30, 2019 and December 31, 2018 , we recorded an indemnification liability (including penalties and interest), in addition to the tax contingency above, of $2.7 million and $2.6 million , respectively, for our share of non-income-based tax contingencies related to audits being managed by Exterran Corporation. Insurance Matters Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability and commercial automobile liability and other coverage we believe is appropriate. We believe that our insurance coverage is customary for the industry and adequate for our business; however, losses and liabilities not covered by insurance would increase our costs. Additionally, we are substantially self-insured for workers’ compensation and employee group health claims in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. Litigation and Claims In the ordinary course of business, we are involved in various pending or threatened legal actions. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from any of these actions will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends.

Segments

Segments	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Segments	19. Segments We manage our business segments primarily based on the type of product or service provided. We have two segments which we operate within the U.S.: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The aftermarket services segment provides a full range of services to support the compression needs of customers, from part sales and normal maintenance services to full operation of a customer’s owned assets. We evaluate the performance of our segments based on gross margin for each segment. Revenue includes only sales to external customers. The following table presents revenue and gross margin by segment during the three and six months ended June 30, 2019 and 2018 (in thousands): Contract Operations Aftermarket Services Total Three months ended June 30, 2019 Revenue $ 186,258 $ 52,132 $ 238,390 Gross margin 115,737 9,917 125,654 Three months ended June 30, 2018 Revenue $ 165,450 $ 61,420 $ 226,870 Gross margin 97,641 10,627 108,268 Six months ended June 30, 2019 Revenue $ 368,765 $ 105,784 $ 474,549 Gross margin 223,509 19,667 243,176 Six months ended June 30, 2018 Revenue $ 326,647 $ 112,263 $ 438,910 Gross margin 194,243 19,133 213,376 The following table reconciles total gross margin to income before income taxes (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Total gross margin $ 125,654 $ 108,268 $ 243,176 $ 213,376 Less: Selling, general and administrative 28,618 26,649 57,607 54,157 Depreciation and amortization 45,482 43,331 89,588 87,786 Long-lived asset impairment 8,632 6,953 11,724 11,663 Restatement and other charges 24 (1,076 ) 445 (591 ) Interest expense 25,954 23,337 49,571 45,884 Debt extinguishment loss 3,653 2,450 3,653 2,450 Transaction-related costs 2,687 5,686 2,867 9,811 Other income, net (2,010 ) (1,644 ) (2,215 ) (2,789 ) Income before income taxes $ 12,614 $ 2,582 $ 29,936 $ 5,005

Recent Accounting Developments

Recent Accounting Developments (Policies)	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Accounting Standards Updates Implemented and Accounting Standards Updates Not Yet Implemented	Accounting Standards Updates Implemented Leases ASC 842 Leases establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. We adopted ASC 842 Leases on January 1, 2019 using the modified retrospective transition method and elected the practical expedient package to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification of any expired or existing leases and (iii) initial direct costs for any existing leases. We did not elect the practical expedient to use hindsight in determining the lease term. Adoption of ASC 842 Leases resulted in recognition of an operating lease ROU asset of $18.6 million and an operating lease liability of $20.0 million in our condensed consolidated balance sheet at January 1, 2019. The difference of $1.4 million related to accrued rent and prepaid lease payments recorded to our consolidated balance sheet as of December 31, 2018. We did not recognize any finance lease ROU assets or liabilities upon adoption of ASC 842 Leases. There was no impact to our condensed consolidated statements of operations, equity or cash flows upon adoption. Comparative information has not been recast and continues to be reported under the accounting standards in effect for those periods. ASC 842 Leases also provides a practical expedient, elected by class of underlying asset, to not separate lease and nonlease components and instead account for those components as a single component if certain conditions are met. ASC 842 Leases also provides clarification for lessors on whether ASC 842 Leases or ASC 606 Revenue is applicable to the combined component based on determination of the predominant component. We have concluded that for our contract operations services agreements, in which we are a lessor, the services nonlease component is predominant over the compression unit lease component and therefore ongoing recognition of these agreements will continue to follow the ASC 606 Revenue guidance. We have also elected, as a lessee, to not separate lease and nonlease components as it relates to our facility leases. In addition, we have made an accounting policy election, as permitted by ASC 842 Leases, to not apply the recognition requirements of ASC 842 Leases to leases with an initial term of 12 months or less. Accounting Standards Updates Not Yet Implemented In August 2018, the FASB issued ASU 2018-13 which amends the required fair value measurements disclosures related to valuation techniques and inputs used, uncertainty in measurement and changes in measurements applied. These amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of ASU 2018-13 on our consolidated financial statements and footnote disclosures. In June 2016, the FASB issued ASU 2016-13 which changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in earlier recognition of allowance for losses. For public entities that meet the definition of an SEC filer, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. Entities will apply ASU 2016-13 provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We are currently evaluating the impact of ASU 2016-13 on our consolidated financial statements and footnote disclosures.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Summary of operating results and balance sheet data for discontinued operations	The following table summarizes the statements of operations data for discontinued operations (in thousands): Three Months Ended Six Months Ended Other income, net $ — $ (1,432 ) Provision for income taxes — 1,705 Loss from discontinued operations, net of tax $ — $ (273 ) The following table summarizes the balance sheet data for discontinued operations (in thousands): June 30, 2019 December 31, 2018 Other current assets $ — $ 300 Other assets 8,467 7,063 Total assets associated with discontinued operations $ 8,467 $ 7,363 Accrued liabilities $ 269 $ 297 Deferred income taxes 8,467 7,063 Total liabilities associated with discontinued operations $ 8,736 $ 7,360

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventory, net of reserves	Inventory consisted of the following (in thousands): June 30, 2019 December 31, 2018 Parts and supplies $ 64,403 $ 65,645 Work in progress 9,756 10,688 Inventory $ 74,159 $ 76,333

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment, net	Property, plant and equipment, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Compression equipment, facilities and other fleet assets $ 3,472,300 $ 3,323,465 Land and buildings 46,517 47,067 Transportation and shop equipment 105,941 103,766 Computer hardware and software 93,434 92,174 Other 13,111 11,880 Property, plant and equipment 3,731,303 3,578,352 Accumulated depreciation (1,436,933 ) (1,407,314 ) Property, plant and equipment, net $ 2,294,370 $ 2,171,038

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of long-term debt	We must maintain the following consolidated financial ratios, as defined in the Credit Facility agreement: EBITDA to Interest Expense 2.5 to 1.0 Senior Secured Debt to EBITDA 3.5 to 1.0 Total Debt to EBITDA Through fiscal year 2019 5.75 to 1.0 Through second quarter of 2020 5.50 to 1.0 Thereafter (1) 5.25 to 1.0 —————— (1) Subject to a temporary increase to 5.5 to 1.0 for any quarter during which an acquisition satisfying certain thresholds is completed and for the two quarters immediately following such quarter. Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 Credit Facility $ 792,500 $ 839,500 2027 Notes 500,000 — Less: Deferred financing costs, net of amortization (8,550 ) — 491,450 — 2022 Notes 350,000 350,000 Less: Debt discount, net of amortization (2,411 ) (2,766 ) Less: Deferred financing costs, net of amortization (2,725 ) (3,133 ) 344,864 344,101 2021 Notes — 350,000 Less: Debt discount, net of amortization — (1,789 ) Less: Deferred financing costs, net of amortization — (2,311 ) — 345,900 Long-term debt $ 1,628,814 $ 1,529,501

Revenue from Contract with Cu_2

Revenue from Contract with Customers (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents our revenue from contracts with customers disaggregated by revenue source (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Contract operations (1) : 0 - 1,000 horsepower per unit $ 63,683 $ 59,600 $ 127,422 $ 119,192 1,001 - 1,500 horsepower per unit 75,598 68,948 149,938 135,178 Over 1,500 horsepower per unit 45,969 35,904 89,394 70,314 Other (2) 1,008 998 2,011 1,963 Total contract operations (3) 186,258 165,450 368,765 326,647 Aftermarket services (1) : Services 33,281 36,706 66,802 68,913 OTC parts and components sales 18,851 24,714 38,982 43,350 Total aftermarket services (4) 52,132 61,420 105,784 112,263 Total revenue $ 238,390 $ 226,870 $ 474,549 $ 438,910 —————— (1) We operate in two segments: contract operations and aftermarket services. See Note 19 (“Segments”) for further details regarding our segments. (2) Primarily related to fees associated with Archrock-owned non-compressor equipment. (3) Included $2.2 million and $1.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $4.4 million and $2.7 million for the six months ended June 30, 2019 and 2018 , respectively, related to billable maintenance on Archrock-owned units that was recognized at a point in time. All other contract operations revenue is recognized over time. (4) All service revenue within aftermarket services is recognized over time. All OTC parts and components sales revenue is recognized at a point in time.
Remaining Performance Obligation	The remaining performance obligations will be recognized through 2024 as follows (in thousands): 2019 2020 2021 2022 2023 2024 Total Remaining performance obligations $ 148,323 $ 117,192 $ 37,632 $ 8,295 $ 1,122 $ 293 $ 312,857

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases Balance Sheet Location	Balance sheet information related to our operating leases was as follows (in thousands): Classification June 30, 2019 ROU assets Operating lease ROU assets $ 18,022 Lease liabilities Current Accrued liabilities $ 2,827 Noncurrent Operating lease liabilities 16,647 Total lease liabilities $ 19,474
Components of Lease Costs	The components of lease cost were as follows (in thousands): Three Months Ended Six Months Ended Operating lease cost $ 970 $ 1,944 Short-term lease cost 65 238 Variable lease cost 560 942 Total lease cost $ 1,595 $ 3,124 Cash flow and noncash information related to our operating leases were as follows (in thousands): Six Months Ended Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 2,802 Operating lease ROU assets obtained in exchange for new lease liabilities 862 Other supplemental information related to our operating leases was as follows: June 30, 2019 Weighted average remaining lease term (in years) 8.5 Weighted average discount rate 5.3 %
Operating Lease Maturity Schedule	Remaining maturities of lease liabilities governed under ASC 842 Leases as of June 30, 2019 were as follows (in thousands): 2019 $ 1,569 2020 3,763 2021 3,538 2022 2,439 2023 2,131 2024 1,740 Thereafter 9,310 Total lease payments 24,490 Less: Interest (5,016 ) Total lease liabilities under ASC 842 Leases $ 19,474
Maturities of Lease Liability Under ASC 840	Maturities of lease liabilities governed under ASC 840 Leases as of December 31, 2018 were as follows (in thousands): 2019 $ 4,317 2020 3,980 2021 3,562 2022 2,433 2023 2,170 Thereafter 11,935 Total lease liabilities under ASC 840 Leases $ 28,397

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of interest rate swaps	At June 30, 2019 , the following interest rate swaps, entered into to offset changes in expected cash flows due to fluctuations in the associated variable interest rates, were outstanding (in millions): Expiration Date Notional Value May 2020 $ 100 March 2022 300 $ 400
Effect of derivative instruments on consolidated financial position	The following table presents the effect of the derivative instruments designated as cash flow hedging instruments in our condensed consolidated balance sheets (in thousands): June 30, 2019 December 31, 2018 Other current assets $ 336 $ 3,185 Other assets — 4,122 Total derivative assets $ 336 $ 7,307 Other liabilities $ (1,574 ) $ —
Effect of derivative instruments on results of operations	The following tables present the effect of the derivative instruments designated as cash flow hedging instruments on our condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Pre-tax gain (loss) recognized in other comprehensive income (loss) $ (4,529 ) $ 2,245 $ (6,828 ) $ 6,941 Pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense 791 (39 ) 1,717 (513 ) Three Months Ended Six Months Ended 2019 2018 2019 2018 Total amount of interest expense in which the effects of cash flow hedges are recorded $ 25,954 $ 23,337 $ 49,571 $ 45,884 Amount of gain reclassified from accumulated other comprehensive income (loss) into interest expense 791 207 1,717 153

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Summary of assets and liabilities measured at fair value on recurring basis	The following table presents our interest rate swaps asset and liability measured at fair value on a recurring basis, with pricing levels as of the date of valuation (in thousands): June 30, 2019 December 31, 2018 Interest rate swaps asset $ 336 $ 7,307 Interest rate swaps liability (1,574 ) —
Schedule of carrying value and estimated fair value of debt instruments	The following table summarizes the carrying amount and fair value of our fixed rate debt (in thousands): June 30, 2019 December 31, 2018 Carrying amount of fixed rate debt (1) $ 836,314 $ 690,001 Fair value of fixed rate debt 881,000 674,000 —————— (1) Carrying amounts are shown net of unamortized debt discounts and unamortized deferred financing costs. See Note 6 (“Long-Term Debt”) .

Long-Lived Assets Impairment (T

Long-Lived Assets Impairment (Tables)	6 Months Ended
	Jun. 30, 2019
Asset Impairment Charges [Abstract]
Details of Impairment of Long-Lived Assets Held and Used by Asset	The following table presents the results of our impairment review as recorded in our contract operations segment (dollars in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Idle compressor units retired from the active fleet 160 120 180 165 Horsepower of idle compressor units retired from the active fleet 41,000 27,000 56,000 50,000 Impairment recorded on idle compressor units retired from the active fleet $ 8,632 $ 6,953 $ 11,724 $ 11,663

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Summary of net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted income (loss) per common share	The following table summarizes net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted net income (loss) per common share (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net income (loss) from continuing operations attributable to Archrock stockholders $ 11,423 $ 1,937 $ 31,152 $ (1,879 ) Loss from discontinued operations, net of tax — — (273 ) — Net income (loss) attributable to Archrock stockholders 11,423 1,937 30,879 (1,879 ) Less: Net income attributable to participating securities (261 ) (157 ) (574 ) (313 ) Net income (loss) attributable to Archrock common stockholders $ 11,162 $ 1,780 $ 30,305 $ (2,192 )
Schedule of potential shares of common stock that were included in computing diluted income (loss) attributable to Archrock common stockholders per common share	The following table shows the potential shares of common stock that were included in computing diluted net income (loss) attributable to Archrock common stockholders per common share (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted average common shares outstanding including participating securities 130,330 112,995 130,276 92,130 Less: Weighted average participating securities outstanding (2,002 ) (1,699 ) (2,015 ) (1,541 ) Weighted average common shares outstanding used in basic net income (loss) per common share 128,328 111,296 128,261 90,589 Net dilutive potential common shares issuable: On exercise of options and vesting of performance-based restricted stock units 25 99 33 * On settlement of employee stock purchase plan shares 1 7 3 * Weighted average common shares outstanding used in diluted net income (loss) per common share 128,354 111,402 128,297 90,589 —————— * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive.
Schedule of potential shares of common stock issuable, excluded from computation of diluted income (loss), attributable to Archrock common stockholders per common share	The following table shows the potential shares of common stock issuable that were excluded from computing diluted net income (loss) attributable to Archrock common stockholders per common share as their inclusion would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value for the period 154 187 154 205 On exercise of options and vesting of performance-based restricted stock units — — — 89 On settlement of employee stock purchase plan shares — — — 5 Net dilutive potential common shares issuable 154 187 154 299

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Effects of changes in ownership interest	The following table presents the effects of changes in our ownership interest in the Partnership on the equity attributable to Archrock stockholders: Six Months Ended Net loss attributable to Archrock stockholders $ (1,879 ) Decrease in Archrock stockholders’ additional paid-in capital for purchase of Partnership common units 52,815 Change from net loss attributable to Archrock stockholders and transfers from noncontrolling interest $ 50,936
Summary of entity's dividends per common share	The following table summarizes our dividends declared and paid in each of the quarterly periods of 2019 and 2018: Dividends per Common Share Total Dividends (in thousands) 2018 Q1 $ 0.120 $ 8,532 Q2 0.120 15,486 Q3 0.132 17,114 Q4 0.132 17,156 2019 Q1 $ 0.132 $ 17,231 Q2 0.132 17,206

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Restricted Stock, Restricted Stock Unit, Performance Unit, Cash Settled Restricted Stock Unit and Cash Settled Performance Unit Activity	The following table presents restricted stock, restricted stock unit, performance-based restricted stock unit and cash-settled performance unit activity during the six months ended June 30, 2019 : Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Non-vested awards, January 1, 2019 1,728 $ 9.68 Granted 1,383 10.01 Vested (402 ) 6.33 Canceled (153 ) 10.33 Non-vested awards, June 30, 2019 (1)(2) 2,556 10.35 —————— (1) Non-vested awards as of June 30, 2019 are comprised of 451,000 cash-settled restricted stock units and cash-settled performance units and 2,105,000 restricted shares and stock-settled performance units. (2) During the three months ended June 30, 2019 , the settlement terms of 99,631 performance units, with grant dates in 2018 and 2019, were modified from settlement in stock to cash. The change in award settlement from stock to cash was the only modification to these awards; the vesting, forfeiture and all other terms and conditions were unchanged. The modification resulted in a $0.2 million reclassification from additional paid-in capital to other current liabilities in our condensed consolidated balance sheets and had an immaterial impact on our condensed consolidated statements of operations.
Schedule of Allocation of Total Stock-based Compensation	Total stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Equity awards $ 1,512 $ 1,969 $ 3,869 $ 3,763 Liability awards 640 666 1,606 967 Total stock-based compensation $ 2,152 $ 2,635 $ 5,475 $ 4,730

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table presents the changes in accumulated other comprehensive income (loss) of our derivative cash flow hedges, net of tax and excluding noncontrolling interest, during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning accumulated other comprehensive income $ 2,548 $ 3,194 $ 5,773 $ 1,197 Gain (loss) recognized in other comprehensive income (loss), net of tax provision of $0, $472, $0 and $888, respectively (1) (4,529 ) 479 (6,828 ) 2,051 (Gain) loss reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax benefit of $0, $(8), $0 and $(53), respectively (1)(2) (791 ) 31 (1,717 ) 456 Merger-related adjustments (3) — 5,670 — 5,670 Other comprehensive income (loss) attributable to Archrock stockholders (5,320 ) 6,180 (8,545 ) 8,177 Ending accumulated other comprehensive income (loss) $ (2,772 ) $ 9,374 $ (2,772 ) $ 9,374 —————— (1) Included adjustments of $1.1 million and $1.8 million related to an increase in the valuation allowance recorded to offset the tax effect of other comprehensive loss recorded during the three and six months ended June 30, 2019, respectively. (2) Included stranded tax effects resulting from the Tax Cuts and Jobs Act, which was implemented in December 2017, of $ 0.3 million reclassified to accumulated deficit during the six months ended June 30, 2018 . (3) Pursuant to the Merger, we reclassified a gain of $5.7 million from noncontrolling interest to accumulated other comprehensive income (loss) related to the fair value of our derivative instruments that was previously attributed to public ownership of the Partnership.

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Revenue and other financial information by reportable segment	The following table presents revenue and gross margin by segment during the three and six months ended June 30, 2019 and 2018 (in thousands): Contract Operations Aftermarket Services Total Three months ended June 30, 2019 Revenue $ 186,258 $ 52,132 $ 238,390 Gross margin 115,737 9,917 125,654 Three months ended June 30, 2018 Revenue $ 165,450 $ 61,420 $ 226,870 Gross margin 97,641 10,627 108,268 Six months ended June 30, 2019 Revenue $ 368,765 $ 105,784 $ 474,549 Gross margin 223,509 19,667 243,176 Six months ended June 30, 2018 Revenue $ 326,647 $ 112,263 $ 438,910 Gross margin 194,243 19,133 213,376
Reconciliation of net income (loss) to gross margin	The following table reconciles total gross margin to income before income taxes (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Total gross margin $ 125,654 $ 108,268 $ 243,176 $ 213,376 Less: Selling, general and administrative 28,618 26,649 57,607 54,157 Depreciation and amortization 45,482 43,331 89,588 87,786 Long-lived asset impairment 8,632 6,953 11,724 11,663 Restatement and other charges 24 (1,076 ) 445 (591 ) Interest expense 25,954 23,337 49,571 45,884 Debt extinguishment loss 3,653 2,450 3,653 2,450 Transaction-related costs 2,687 5,686 2,867 9,811 Other income, net (2,010 ) (1,644 ) (2,215 ) (2,789 ) Income before income taxes $ 12,614 $ 2,582 $ 29,936 $ 5,005

Organization (Details)

Organization (Details) hp in Thousands, $ in Thousands	3 Months Ended			6 Months Ended
	Sep. 30, 2019USD ($)hpshares	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)segment	Jun. 30, 2018USD ($)
Accounting Policies [Abstract]
Number of reportable segments | segment				2
Property, Plant and Equipment
Payments to acquire assets				$ 234,972	$ 132,172
Proceeds from sale of property, plant and equipment				21,954	19,193
Transaction-related costs		$ 2,687	$ 5,686	2,867	$ 9,811
Forecasted | Disposed of by Sale | Harvest
Property, Plant and Equipment
Compressor units horsepower (horsepower | hp	80
Proceeds from sale of property, plant and equipment	$ 30,000
Elite Acquisition | Harvest
Property, Plant and Equipment
Transaction-related costs		$ 2,500		$ 2,500
Elite Acquisition | Forecasted
Property, Plant and Equipment
Compressor units horsepower (horsepower | hp	430
Payments to acquire assets	$ 205,000
Elite Acquisition | Forecasted | Common Stock
Property, Plant and Equipment
Shares issued as compensation for asset acquisition (shares) | shares	21,656,683

Recent Accounting Development_2

Recent Accounting Developments (Narratives) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle\
ROU assets	$ 18,022
Lease liability	$ 19,474
Prepaid rent			$ 1,400
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle\
ROU assets		$ 18,600
Lease liability		$ 20,000

Discontinued Operations (Narrat

Discontinued Operations (Narratives) (Details) - Exterran Corporation - Spinoff - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Discontinued Operations
Deferred income taxes	$ 8,467	$ 7,063
Indemnification asset	$ 8,467	$ 7,063

Discontinued Operations - Incom

Discontinued Operations - Income Statement Data for Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disposal Group, Including Discontinued Operation, Income Statement Disclosures
Loss from discontinued operations, net of tax	$ 0	$ 0	$ (273)	$ 0
Spinoff | Exterran Corporation
Disposal Group, Including Discontinued Operation, Income Statement Disclosures
Other income, net	0		(1,432)
Provision for income taxes	0		1,705
Loss from discontinued operations, net of tax	$ 0		$ (273)

Discontinued Operations - Balan

Discontinued Operations - Balance Sheet Data for Discontinued Operations (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Summary of balance sheet data for discontinued operations
Accrued liabilities	$ 269	$ 297
Spinoff | Exterran Corporation
Summary of balance sheet data for discontinued operations
Other current assets	0	300
Other assets	8,467	7,063
Total assets associated with discontinued operations	8,467	7,363
Accrued liabilities	269	297
Deferred income taxes	8,467	7,063
Total liabilities associated with discontinued operations	$ 8,736	$ 7,360

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Composition of Inventory net of reserves
Parts and supplies	$ 64,403	$ 65,645
Work in progress	9,756	10,688
Inventory	$ 74,159	$ 76,333

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment
Property, plant and equipment, gross	$ 3,731,303	$ 3,578,352
Accumulated depreciation	(1,436,933)	(1,407,314)
Property, plant and equipment, net	2,294,370	2,171,038
Compression equipment, facilities and other fleet assets
Property, Plant and Equipment
Property, plant and equipment, gross	3,472,300	3,323,465
Land and buildings
Property, Plant and Equipment
Property, plant and equipment, gross	46,517	47,067
Transportation and shop equipment
Property, Plant and Equipment
Property, plant and equipment, gross	105,941	103,766
Computer hardware and software
Property, Plant and Equipment
Property, plant and equipment, gross	93,434	92,174
Other
Property, Plant and Equipment
Property, plant and equipment, gross	$ 13,111	$ 11,880

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument
Long-term debt	$ 1,628,814	$ 1,529,501
Senior Notes | 2027 Notes
Debt Instrument
Long term debt gross	500,000	0
Less: Deferred financing costs, net of amortization	(8,550)	0
Long-term debt	491,450	0
Senior Notes | 2022 Notes
Debt Instrument
Long term debt gross	350,000	350,000
Less: Deferred financing costs, net of amortization	(2,725)	(3,133)
Less: Deferred financing costs, net of amortization	(2,411)	(2,766)
Long-term debt	344,864	344,101
Senior Notes | 2021 Notes
Debt Instrument
Long term debt gross	0	350,000
Less: Deferred financing costs, net of amortization	0	(2,311)
Less: Deferred financing costs, net of amortization	0	(1,789)
Long-term debt	0	345,900
Revolving Credit Facility | Credit Facility
Debt Instrument
Long-term debt	$ 792,500	$ 839,500

Long-Term Debt - Archrock Credi

Long-Term Debt - Archrock Credit Facility (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Line of Credit Facility
Debt extinguishment loss	$ 3,653	$ 2,450	$ 3,653	$ 2,450
Revolving Credit Facility | Terminated Credit Facility
Line of Credit Facility
Debt extinguishment loss	$ 2,500	$ 0	$ 2,500	0
Commitment fee amount				$ 200

Long-Term Debt - Credit Facilit

Long-Term Debt - Credit Facility (Details) - Revolving Credit Facility - Credit Facility - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Line of Credit Facility
Letter of credit outstanding	$ 15.2		$ 15.2
Debt instrument, variable rate (percentage)			2.70%
Debt instrument weighted average interest rate (percent)	5.30%		5.30%		5.40%
Commitment fee amount	$ 0.6	$ 0.6	$ 1.1	$ 1.1
Undrawn capacity under revolving credit facility	$ 442.3		$ 442.3

Long-Term Debt - Debt Ratios (D

Long-Term Debt - Debt Ratios (Details) - Revolving Credit Facility	6 Months Ended		12 Months Ended	21 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Mar. 30, 2022
Line of Credit Facility
EBITDA to Interest Expense		2.5
Senior Secured Debt to EBITDA		3.5
Forecasted
Line of Credit Facility
Total Debt to EBITDA ratio	5.50		5.75	5.25
Archrock Partners, L.P | Forecasted | Conditional Event
Line of Credit Facility
Total Debt to EBITDA ratio				5.5

Long-Term Debt - Notes (Details

Long-Term Debt - Notes (Details) - USD ($)	Mar. 21, 2019	Jun. 30, 2019	Jun. 30, 2018
Debt Instrument
Proceeds from borrowings of long-term debt		$ 1,254,000,000	$ 383,830,000
Senior Notes | 2027 Notes
Debt Instrument
Debt instrument face amount	$ 500,000,000
Interest rate (as a percent)	6.875%
Proceeds from borrowings of long-term debt	$ 491,200,000
Debt issuance cost	$ 8,800,000

Long-Term Debt - Redemption of

Long-Term Debt - Redemption of 2021 Notes (Details) - USD ($) $ in Thousands	Apr. 05, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt Instrument
Repayments of long-term debt				$ 1,151,000	$ 343,636
Debt extinguishment loss		$ 3,653	$ 2,450	3,653	$ 2,450
Senior Notes | 2021 Notes
Debt Instrument
Redemption rate (as a percent)	100.00%
Repayments of long-term debt	$ 350,000
Interest paid	$ 200
Debt extinguishment loss		$ 3,700		$ 3,700

Revenue from Contract with Cu_3

Revenue from Contract with Customers - Disaggregate Revenue (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)segment	Jun. 30, 2018USD ($)
Disaggregation of Revenue
Number of reportable segments | segment			2
Contract revenue	$ 238,390	$ 226,870	$ 474,549	$ 438,910
Contract Operations | Transferred at point in time
Disaggregation of Revenue
Contract revenue	2,200	1,400	4,400	2,700
Contract Operations | Contract operations
Disaggregation of Revenue
Contract revenue	186,258	165,450	368,765	326,647
Contract Operations | 0 - 1,000 horsepower per unit
Disaggregation of Revenue
Contract revenue	63,683	59,600	127,422	119,192
Contract Operations | 1,001 - 1,500 horsepower per unit
Disaggregation of Revenue
Contract revenue	75,598	68,948	149,938	135,178
Contract Operations | Over 1,500 horsepower per unit
Disaggregation of Revenue
Contract revenue	45,969	35,904	89,394	70,314
Contract Operations | Other
Disaggregation of Revenue
Contract revenue	1,008	998	2,011	1,963
Aftermarket Services | Aftermarket services
Disaggregation of Revenue
Contract revenue	52,132	61,420	105,784	112,263
Aftermarket Services | Services
Disaggregation of Revenue
Contract revenue	33,281	36,706	66,802	68,913
Aftermarket Services | OTC parts and components sales
Disaggregation of Revenue
Contract revenue	$ 18,851	$ 24,714	$ 38,982	$ 43,350

Revenue from Contract with Cu_4

Revenue from Contract with Customers - Remaining Performance Obligation (Details) $ in Thousands	Jun. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 312,857
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 148,323
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Performance obligations expected to be satisfied, expected timing	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 117,192
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 37,632
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 8,295
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 1,122
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 293
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Performance obligations expected to be satisfied, expected timing	1 year

Revenue from Contract with Cu_5

Revenue from Contract with Customers - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Disaggregation of Revenue
Accounts receivable, trade	$ 146,831		$ 147,985
Contract liability with customer	11,600		17,100
Deferred revenue recognized in earnings	25,227	$ 11,274
Contract with customers
Disaggregation of Revenue
Accounts receivable, trade	$ 139,300		$ 142,100

Leases - (Narratives) (Details)

Leases - (Narratives) (Details)	6 Months Ended
	Jun. 30, 2019
Minimum
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term (in years)	1 year
Operating lease renewal term (in years)	3 years
Maximum
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term (in years)	11 years
Operating lease renewal term (in years)	5 years

Leases - Balance Sheet Informat

Leases - Balance Sheet Information (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
ROU assets	$ 18,022
Lease liabilities
Current	2,827
Noncurrent	16,647
Total lease liabilities	$ 19,474

Leases - Components of Lease Co

Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 970	$ 1,944
Short-term lease cost	65	238
Variable lease cost	560	942
Total lease cost	$ 1,595	$ 3,124

Leases - Cash Flow and Non-cash

Leases - Cash Flow and Non-cash Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Leases [Abstract]
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities	$ 2,802
Operating lease ROU assets obtained in exchange for new lease liabilities	$ 862

Leases - Other Supplemental Inf

Leases - Other Supplemental Information (Details)	Jun. 30, 2019
Leases [Abstract]
Weighted average remaining lease term (in years)	8 years 6 months
Weighted average discount rate (percent)	5.30%

Leases - Maturity Schedule (Det

Leases - Maturity Schedule (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Operating Lease Liabilities, Payments Due
2019	$ 1,569
2020	3,763
2021	3,538
2022	2,439
2023	2,131
2024	1,740
Thereafter	9,310
Total lease payments	24,490
Less: Interest	(5,016)
Total lease liabilities under ASC 842 Leases	$ 19,474
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity
2019		$ 4,317
2020		3,980
2021		3,562
2022		2,433
2023		2,170
Thereafter		11,935
Total lease liabilities under ASC 840 Leases		$ 28,397

Derivatives - Interest Rate Ris

Derivatives - Interest Rate Risk (Details) - Derivatives designated as hedging instruments $ in Millions	Jun. 30, 2019USD ($)
Interest rate swaps
Notional Disclosures
Notional amount of interest rate swaps	$ 400
May 2020
Notional Disclosures
Notional amount of interest rate swaps	100
March 2022
Notional Disclosures
Notional amount of interest rate swaps	$ 300

Derivatives - Interest Rate R_2

Derivatives - Interest Rate Risk (Narratives) (Details) - Derivatives designated as hedging instruments - Interest rate swaps $ in Millions	Jun. 30, 2019USD ($)
Derivatives
Deferred pre-tax losses to be reclassified during next 12 months	$ 0.3
Weighted average effective fixed interest rate on interest rate swaps (as a percent)	1.80%

Derivatives - Effect of Derivat

Derivatives - Effect of Derivative Instruments on Balance Sheet (Details) - Derivatives designated as hedging instruments - Interest rate swaps - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value Asset
Derivative assets	$ 336	$ 7,307
Derivative liability	(1,574)	0
Other current assets
Fair Value Asset
Derivative assets	336	3,185
Other assets
Fair Value Asset
Derivative assets	$ 0	$ 4,122

Derivatives - Effect of Deriv_2

Derivatives - Effect of Derivative Instruments on Income Statement (Details) - Interest rate swaps - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Effect of derivative instruments on results of operations
Pre-tax gain (loss) recognized in other comprehensive income (loss)	$ (4,529)	$ 2,245	$ (6,828)	$ 6,941
Interest expense
Effect of derivative instruments on results of operations
Pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	$ 791	$ (39)	$ 1,717	$ (513)

Derivatives - Derivative Gain (

Derivatives - Derivative Gain (Loss) Recognized in Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Effect of derivative instruments on results of operations
Interest expense	$ 25,954	$ 23,337	$ 49,571	$ 45,884
Accumulated Other Comprehensive Income (Loss) | Reclassification adjustments
Effect of derivative instruments on results of operations
Interest expense	$ (791)	$ (207)	$ (1,717)	$ (153)

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Recurring basis - Level 2 - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair value measurement of assets and liabilities
Interest rate swaps asset	$ 336	$ 7,307
Interest rate swaps liability	$ (1,574)	$ 0

Fair Value Measurements (Narrat

Fair Value Measurements (Narratives) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Nonrecurring basis | Level 3
Valuation of our interest rate swaps and impaired assets
Impaired long-lived assets	$ 1.6	$ 2.3
Impaired long-lived assets
Valuation of our interest rate swaps and impaired assets
Weighted average disposal period of impaired assets	4 years

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - Fixed rate debt - Level 2 - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt, fair value	$ 836,314	$ 690,001
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt, fair value	$ 881,000	$ 674,000

Long-Lived Asset Impairment (De

Long-Lived Asset Impairment (Details) hp in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)compressor_unithp	Jun. 30, 2018USD ($)compressor_unithp	Jun. 30, 2019USD ($)compressor_unithp	Jun. 30, 2018USD ($)compressor_unithp
Impaired Long-Lived Assets Held and Used
Impairment recorded on idle compressor units retired from the active fleet	$ 8,632	$ 6,953	$ 11,724	$ 11,663
Idle compressor units
Impaired Long-Lived Assets Held and Used
Idle compressor units retired from the active fleet (compressors) | compressor_unit	160	120	180	165
Horsepower of idle compressor units retired from the active fleet (horsepower) | hp	41	27	56	50
Impairment recorded on idle compressor units retired from the active fleet	$ 8,632	$ 6,953	$ 11,724	$ 11,663

Hosting Arrangements - (Narrati

Hosting Arrangements - (Narratives) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Capitalized implementation costs	$ 2	$ 0.4

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Jun. 30, 2019USD ($)
Income Tax Disclosure [Abstract]
Potential decrease in unrecognized tax benefit	$ 1.9

Earnings Per Share - Net Income

Earnings Per Share - Net Income Attributable to Archrock Common Stockholders (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Summary of net income attributable to Archrock common stockholders used in the calculation of basic and diluted income per common share
Net income (loss) from continuing operations attributable to Archrock stockholders	$ 11,423	$ 1,937	$ 31,152	$ (1,879)
Loss from discontinued operations, net of tax	0	0	(273)	0
Net income (loss) attributable to Archrock stockholders	11,423	1,937	30,879	(1,879)
Less: Net income attributable to participating securities	(261)	(157)	(574)	(313)
Net income (loss) attributable to Archrock common stockholders	$ 11,162	$ 1,780	$ 30,305	$ (2,192)
Potential shares of common stock included in computing diluted income attributable to Exterran common stockholders per common share
Weighted average common shares outstanding including participating securities (in shares)	130,330	112,995	130,276	92,130
Less: Weighted average participating securities outstanding (in shares)	(2,002)	(1,699)	(2,015)	(1,541)
Weighted average common shares outstanding — used in basic income (loss) per common share (in shares)	128,328	111,296	128,261	90,589
Net dilutive potential common shares issuable:
Weighted average common shares outstanding - used in diluted income (loss) per common share (in shares)	128,354	111,402	128,297	90,589
On exercise of options and vesting of performance-based restricted stock units
Net dilutive potential common shares issuable:
On exercise of options (in shares)	25	99	33
On settlement of employee stock purchase plan shares
Net dilutive potential common shares issuable:
On exercise of options (in shares)	1	7	3

Earnings Per Share - Anti-dilut

Earnings Per Share - Anti-dilutive Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable
Net dilutive potential common shares issuable (shares)	154	187	154	299
On exercise of options where exercise price is greater than average market value for the period
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable
Net dilutive potential common shares issuable (shares)	154	187	154	205
On exercise of options and vesting of performance-based restricted stock units
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable
Net dilutive potential common shares issuable (shares)	0	0	0	89
On settlement of employee stock purchase plan shares
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable
Net dilutive potential common shares issuable (shares)	0	0	0	5

Equity (Narratives) (Details)

Equity (Narratives) (Details) - $ / shares	Jul. 24, 2019	Mar. 31, 2018
Class of Stock
Ownership percentage held by reporting entity (percent)		57.00%
Subsequent Event
Distributions
Dividend declared per common stock (in dollars per share)	$ 0.145
Archrock | Archrock, Inc.
Class of Stock
Ownership interest (percent)		43.00%

Equity - Effects of Changes in

Equity - Effects of Changes in Ownership Interest (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Equity [Abstract]
Net loss attributable to Archrock stockholders	$ 11,423	$ 1,937	$ 30,879	$ (1,879)
Decrease in Archrock stockholders’ additional paid-in capital for purchase of Partnership common units				52,815
Change from net loss attributable to Archrock stockholders and transfers from noncontrolling interest				$ 50,936

Equity - Cash Dividends (Detail

Equity - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Distributions
Dividends per Common Share (in dollars per share)	$ 0.132	$ 0.132	$ 0.132	$ 0.132	$ 0.120	$ 0.120	$ 0.264	$ 0.240
Total Dividends	$ 17,206	$ 17,231	$ 17,156	$ 17,114	$ 15,486	$ 8,532	$ 34,437	$ 24,018

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Activity (Details) - Restricted stock, restricted stock units, performance units, cash settled restricted stock units and cash settled performance units shares in Thousands	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Shares
Non-vested awards at the beginning of the period (in shares) | shares	1,728
Granted (in shares) | shares	1,383
Vested (in shares) | shares	(402)
Canceled (in shares) | shares	(153)
Non-vested awards at the end of the period (in shares) | shares	2,556
Weighted Average Grant Date Fair Value Per Share
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares	$ 9.68
Granted (in dollars per share) | $ / shares	10.01
Vested (in dollars per share) | $ / shares	6.33
Canceled (in dollars per share) | $ / shares	10.33
Non-vested awards at the end of the period (in dollars per share) | $ / shares	$ 10.35

Stock-Based Compensation - Re_2

Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Activity (Narratives) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Stock-Based Compensation
Additional paid-in capital	$ 3,182,247	$ 3,182,247	$ 3,177,982
Reclassification
Stock-Based Compensation
Additional paid-in capital	(200)	(200)
Other current liabilities	$ 200	$ 200
Performance units
Stock-Based Compensation
Converted (in shares)	99,631
Cash settled restricted stock units and cash settled performance units
Stock-Based Compensation
Non-vested awards at the end of the period (in shares)	451,000	451,000
Restricted stock shares, restricted stock units and performance units
Stock-Based Compensation
Non-vested awards at the end of the period (in shares)	2,105,000	2,105,000
Restricted stock, restricted stock units, performance units, cash settled restricted stock units and cash settled performance units
Stock-Based Compensation
Non-vested awards at the end of the period (in shares)	2,556,000	2,556,000	1,728,000
Unrecognized compensation
Expected unrecognized compensation cost related to unvested awards (in dollars)	$ 18,500	$ 18,500
Weighted-average period over which the expected unrecognized compensation cost related to unvested stock options will be recognized		2 years 2 months 12 days

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocated Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
Total stock-based compensation	$ 2,152	$ 2,635	$ 5,475	$ 4,730
Equity awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
Total stock-based compensation	1,512	1,969	3,869	3,763
Liability awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
Total stock-based compensation	$ 640	$ 666	$ 1,606	$ 967

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Increase (Decrease) in Stockholders' Equity
Beginning balance	$ 842,292	$ 737,873	$ 841,574	$ 735,618
Merger-related adjustments		5,670		5,670
Total other comprehensive income (loss)	(5,320)	7,475	(8,545)	12,182
Ending balance	832,890	830,725	832,890	830,725
Valuation adjustment	1,100		1,800
Adjustments related to TCJA				300
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity
Beginning balance	2,548	3,194	5,773	1,197
Gain (loss) recognized in other comprehensive income (loss), net of tax provision of $0, $472, $0 and $888, respectively (1)	(4,529)	479	(6,828)	2,051
(Gain) loss reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax benefit of $0, $(8), $0 and $(53), respectively	(791)	31	(1,717)	456
Merger-related adjustments	0	5,670	0	5,670
Total other comprehensive income (loss)	(5,320)	6,180	(8,545)	8,177
Ending balance	(2,772)	9,374	(2,772)	9,374
Gain recognized in other comprehensive income, tax	0	472	0	888
Loss reclassified from accumulated other comprehensive loss, tax	$ 0	$ (8)	$ 0	$ (53)

Commitments and Contingencies -

Commitments and Contingencies - Guarantees Not Recorded on Balance Sheet (Details) $ in Millions	Jun. 30, 2019USD ($)
Performance bonds
Commitments and contingencies
Maximum potential undiscounted payments	$ 2.3

Commitments and Contingencies (

Commitments and Contingencies (Narratives) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Loss contingency
Accrued liability for the outcomes of non-income based tax audits	$ 4.5	$ 4.5
Indemnification liability	$ 2.7	$ 2.6

Segments (Narratives) (Details)

Segments (Narratives) (Details)	6 Months Ended
	Jun. 30, 2019segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segments - Revenue and Gross Ma

Segments - Revenue and Gross Margin by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue and other financial information by reportable segment
Revenues	$ 238,390	$ 226,870	$ 474,549	$ 438,910
Total gross margin	125,654	108,268	243,176	213,376
Contract Operations
Revenue and other financial information by reportable segment
Total gross margin	115,737	97,641	223,509	194,243
Contract Operations | Contract operations
Revenue and other financial information by reportable segment
Revenues	186,258	165,450	368,765	326,647
Aftermarket Services
Revenue and other financial information by reportable segment
Total gross margin	9,917	10,627	19,667	19,133
Aftermarket Services | Aftermarket services
Revenue and other financial information by reportable segment
Revenues	$ 52,132	$ 61,420	$ 105,784	$ 112,263

Segments - Reconciliation of Ne

Segments - Reconciliation of Net Income to Gross Margin (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Reconciliation Net Income (Loss) to Gross Margin
Total gross margin	$ 125,654	$ 108,268	$ 243,176	$ 213,376
Less:
Selling, general and administrative	28,618	26,649	57,607	54,157
Depreciation and amortization	45,482	43,331	89,588	87,786
Long-lived asset impairment	8,632	6,953	11,724	11,663
Restatement and other charges	24	(1,076)	445	(591)
Interest expense	25,954	23,337	49,571	45,884
Debt extinguishment loss	3,653	2,450	3,653	2,450
Transaction-related costs	2,687	5,686	2,867	9,811
Other income, net	(2,010)	(1,644)	(2,215)	(2,789)
Income before income taxes	$ 12,614	$ 2,582	$ 29,936	$ 5,005

Uncategorized Items - a2019q210

Label	Element	Value
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 14,666,000
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	14,666,000
Accounting Standards Update 2017-12 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	383,000
Accounting Standards Update 2017-12 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 383,000