Archrock (AROC) 10-Q 1 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 25, 2023
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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		156,499,576
Entity Central Index Key	0001389050
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,193	$ 1,566
Accounts receivable, net of allowance of $1,094 and $1,674, respectively	120,676	137,544
Inventory	93,128	84,622
Other current assets	8,571	8,228
Total current assets	223,568	231,960
Property, plant and equipment, net	2,300,589	2,199,253
Operating lease right-of-use assets	15,372	16,706
Intangible assets, net	33,315	37,077
Contract costs, net	36,884	34,736
Deferred tax assets	20,762	33,353
Other assets	41,556	37,079
Non-current assets of discontinued operations	7,974	8,586
Total assets	2,680,020	2,598,750
Current liabilities:
Accounts payable, trade	65,333	64,324
Accrued liabilities	71,503	76,915
Deferred revenue	5,261	7,332
Total current liabilities	142,097	148,571
Long-term debt	1,639,239	1,548,334
Operating lease liabilities	13,466	14,861
Deferred tax liabilities	1,090	854
Other liabilities	20,727	17,569
Non-current liabilities of discontinued operations	7,868	7,868
Total liabilities	1,824,487	1,738,057
Commitments and contingencies (Note 6)
Equity:
Preferred stock: $0.01 par value per share, 50,000,000 shares authorized, zero issued
Common stock: $0.01 par value per share, 250,000,000 shares authorized, 164,940,249 and 163,439,013 shares issued, respectively	1,649	1,634
Additional paid-in capital	3,463,668	3,456,777
Accumulated deficit	(2,515,351)	(2,509,133)
Treasury stock: 8,440,673 and 7,810,548 common shares, at cost, respectively	(94,433)	(88,585)
Total equity	855,533	860,693
Total liabilities and equity	$ 2,680,020	$ 2,598,750

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Accounts receivable, allowance	$ 1,094	$ 1,674
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)	164,940,249	163,439,013
Treasury stock, common shares (in shares)	8,440,673	7,810,548

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Revenues	$ 247,543	$ 215,828
Total cost of sales (excluding depreciation and amortization)	111,376	110,065
Selling, general and administrative	28,649	27,691
Depreciation and amortization	41,210	41,356
Long-lived and other asset impairment	2,892	4,647
Restructuring charges	(85)
Interest expense	28,630	24,456
Gain on sale of assets, net	(1,176)	(18,948)
Other expense (income), net	1,463	497
Income before income taxes	34,584	26,064
Provision for income taxes	9,931	9,318
Net income	$ 24,653	$ 16,746
Basic earnings per common share (in dollars per share)	$ 0.16	$ 0.11
Diluted earnings per common share(in dollars per share)	$ 0.16	$ 0.11
Weighted average common shares outstanding:
Basic (in shares)	154,358	153,033
Diluted (in shares)	154,412	153,164
Contract Operations
Revenues	$ 201,120	$ 166,298
Total cost of sales (excluding depreciation and amortization)	76,033	68,355
Aftermarket Services
Revenues	46,423	49,530
Total cost of sales (excluding depreciation and amortization)	$ 35,343	$ 41,710

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 24,653	$ 16,746	$ 41,138	$ 18,467
Other comprehensive income, net of tax:
Interest rate swap gain, net of reclassifications to earnings				574
Amortization of dedesignated interest rate swap				410
Total other comprehensive income, net of tax				984
Comprehensive income	$ 24,653	$ 16,746	$ 41,138	$ 19,451

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Treasury Stock, Common	Total
Beginning balance at Dec. 31, 2021	$ 1,615	$ 3,440,059	$ (2,463,114)	$ (984)	$ (86,138)	$ 891,438
Beginning balance (in shares) at Dec. 31, 2021	161,482,852
Treasury stock, common shares, Beginning balance (in shares) at Dec. 31, 2021					7,417,401
Increase (Decrease) in Stockholders' Equity
Shares withheld related to net settlement of equity awards					$ (2,366)	(2,366)
Shares withheld related to net settlement of equity awards (in shares)					272,706
Cash dividends			(45,167)			(45,167)
Shares issued in ESPP		295				295
Shares issued in ESPP (in shares)	38,846
Stock-based compensation, net of forfeitures	$ 14	6,023				6,037
Stock-based compensation, net of forfeitures (in shares)	1,416,672				50,812
Net proceeds from issuance of common stock	$ 4	4,226				4,230
Net proceeds from issuance of common stock (in shares)	447,020
Comprehensive income
Net income			18,467			18,467
Other comprehensive income				$ 984		984
Ending balance at Jun. 30, 2022	$ 1,633	3,450,603	(2,489,814)		$ (88,504)	873,918
Ending balance (in shares) at Jun. 30, 2022	163,385,390
Treasury stock, common shares, Ending balance (in shares) at Jun. 30, 2022					7,740,919
Beginning balance at Mar. 31, 2022	$ 1,629	3,443,261	(2,484,066)		$ (88,501)	872,323
Beginning balance (in shares) at Mar. 31, 2022	162,919,584
Treasury stock, common shares, Beginning balance (in shares) at Mar. 31, 2022					7,698,812
Increase (Decrease) in Stockholders' Equity
Shares withheld related to net settlement of equity awards					$ (3)	(3)
Shares withheld related to net settlement of equity awards (in shares)					303
Cash dividends			(22,494)			(22,494)
Shares issued in ESPP		146				146
Shares issued in ESPP (in shares)	18,786
Stock-based compensation, net of forfeitures		2,970				2,970
Stock-based compensation, net of forfeitures (in shares)					41,804
Net proceeds from issuance of common stock	$ 4	4,226				4,230
Net proceeds from issuance of common stock (in shares)	447,020
Comprehensive income
Net income			16,746			16,746
Ending balance at Jun. 30, 2022	$ 1,633	3,450,603	(2,489,814)		$ (88,504)	873,918
Ending balance (in shares) at Jun. 30, 2022	163,385,390
Treasury stock, common shares, Ending balance (in shares) at Jun. 30, 2022					7,740,919
Beginning balance at Dec. 31, 2022	$ 1,634	3,456,777	(2,509,133)		$ (88,585)	$ 860,693
Beginning balance (in shares) at Dec. 31, 2022	163,439,013
Treasury stock, common shares, Beginning balance (in shares) at Dec. 31, 2022					7,810,548	7,810,548
Increase (Decrease) in Stockholders' Equity
Shares repurchased					$ (2,073)	$ (2,073)
Shares repurchased (in shares)					222,250
Shares withheld related to net settlement of equity awards					$ (3,775)	(3,775)
Shares withheld related to net settlement of equity awards (in shares)					383,967
Cash dividends			(47,356)			(47,356)
Shares issued in ESPP	$ 1	381				382
Shares issued in ESPP (in shares)	42,000
Stock-based compensation, net of forfeitures	$ 14	6,510				6,524
Stock-based compensation, net of forfeitures (in shares)	1,459,236				23,908
Comprehensive income
Net income			41,138			41,138
Ending balance at Jun. 30, 2023	$ 1,649	3,463,668	(2,515,351)		$ (94,433)	$ 855,533
Ending balance (in shares) at Jun. 30, 2023	164,940,249
Treasury stock, common shares, Ending balance (in shares) at Jun. 30, 2023					8,440,673	8,440,673
Beginning balance at Mar. 31, 2023	$ 1,649	3,460,259	(2,516,500)		$ (92,358)	$ 853,050
Beginning balance (in shares) at Mar. 31, 2023	164,903,900
Treasury stock, common shares, Beginning balance (in shares) at Mar. 31, 2023					8,207,390
Increase (Decrease) in Stockholders' Equity
Shares repurchased					$ (2,073)	(2,073)
Shares repurchased (in shares)					222,250
Shares withheld related to net settlement of equity awards					$ (2)	(2)
Shares withheld related to net settlement of equity awards (in shares)					201
Cash dividends			(23,504)			(23,504)
Shares issued in ESPP		212				212
Shares issued in ESPP (in shares)	21,749
Stock-based compensation, net of forfeitures		3,197				3,197
Stock-based compensation, net of forfeitures (in shares)	14,600				10,832
Comprehensive income
Net income			24,653			24,653
Ending balance at Jun. 30, 2023	$ 1,649	$ 3,463,668	$ (2,515,351)		$ (94,433)	$ 855,533
Ending balance (in shares) at Jun. 30, 2023	164,940,249
Treasury stock, common shares, Ending balance (in shares) at Jun. 30, 2023					8,440,673	8,440,673

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended						6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statements of Equity
Dividend declared per common stock (in dollars per share)	$ 0.150	$ 0.150	$ 0.145	$ 0.145	$ 0.145	$ 0.145	$ 0.15	$ 0.145

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 41,138	$ 18,467
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	81,391	84,395
Long-lived and other asset impairment	5,461	12,063
Unrealized change in fair value of investment in unconsolidated affiliate	1,996
Inventory write-downs	359	721
Amortization of operating lease right-of-use assets	1,649	1,575
Amortization of deferred financing costs	3,468	2,576
Amortization of debt premium	(1,003)	(1,003)
Amortization of capitalized implementation costs	1,202
Amortization of dedesignated interest rate swap		410
Interest rate swaps		631
Stock-based compensation expense	6,524	6,037
Provision for (benefit from) credit losses	(140)	365
Gain on sale of assets, net	(4,781)	(4,344)
Gain on sale of business		(16,716)
Deferred income tax provision	15,417	9,473
Amortization of contract costs	10,250	9,249
Deferred revenue recognized in earnings	(8,754)	(11,541)
Changes in operating assets and liabilities:
Accounts receivable, net	(5,462)	(30,370)
Inventory	(6,642)	(5,779)
Other assets	(2,109)	(1,182)
Contract costs	(12,398)	(13,007)
Accounts payable and other liabilities	(16,102)	13,051
Deferred revenue	7,106	14,032
Other	(172)	421
Net cash provided by operating activities	118,398	89,524
Cash flows from investing activities:
Capital expenditures	(187,476)	(106,066)
Proceeds from sale of business		55,523
Proceeds from sale of property, equipment and other assets	38,093	9,728
Proceeds from insurance and other settlements	437	2,781
Investments in unconsolidated entities	(2,000)	(8,000)
Net cash used in investing activities	(150,946)	(46,034)
Cash flows from financing activities:
Borrowings of long-term debt	417,825	405,733
Repayments of long-term debt	(327,300)	(404,500)
Payments of debt issuance costs	(5,528)
Payments for settlement of interest rate swaps that include financing elements		(1,334)
Dividends paid to stockholders	(47,356)	(45,167)
Net proceeds from issuance of common stock		4,230
Repurchases of common stock	(2,073)
Taxes paid related to net share settlement of equity awards	(3,775)	(2,366)
Proceeds from stock issued under ESPP	382	295
Net cash used in financing activities	32,175	(43,109)
Net increase (decrease) in cash and cash equivalents	(373)	381
Cash and cash equivalents, beginning of period	1,566	1,569
Cash and cash equivalents, end of period	$ 1,193	$ 1,950

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	1. Description of Business and Basis of Presentation ​ We are an energy infrastructure company with a pure play focus on midstream natural gas compression. We are the leading provider of natural gas compression services, in terms of total compression fleet horsepower, to customers in the energy 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 consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by GAAP. Therefore, this information should be read in conjunction with our consolidated financial statements and notes contained in our 2022 Form 10-K. The information furnished herein reflects all adjustments that are, in the opinion of management, of a normal recurring nature and considered necessary for a fair statement of the results of the interim periods reported. All intercompany balances and transactions have been eliminated in consolidation. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. ​ ​

Inventory

Inventory	6 Months Ended
	Jun. 30, 2023
Inventory
Inventory	2. Inventory ​ Inventory is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (in thousands) ​ 2023 ​ 2022 Parts and supplies ​ $ 78,953 ​ $ 70,228 Work in progress ​ 14,175 ​ 14,394 Inventory ​ $ 93,128 ​ $ 84,622 ​

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment
Property, Plant and Equipment	3. Property, Plant and Equipment ​ Property, plant and equipment is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (in thousands) ​ 2023 ​ 2022 Compression equipment, facilities and other fleet assets ​ $ 3,283,842 ​ $ 3,234,239 Land and buildings ​ 38,240 ​ 44,304 Transportation and shop equipment ​ 95,517 ​ 93,189 Computer hardware and software ​ 77,499 ​ 77,357 Other ​ 5,575 ​ 5,754 Property, plant and equipment ​ 3,500,674 ​ 3,454,843 Accumulated depreciation ​ (1,200,085) ​ (1,255,590) Property, plant and equipment, net ​ $ 2,300,589 ​ $ 2,199,253 ​

Investment in Unconsolidated Af

Investment in Unconsolidated Affiliate	6 Months Ended
	Jun. 30, 2023
Investment in Unconsolidated Affiliate
Investment in Unconsolidated Affiliate	​ 4. Investment in Unconsolidated Affiliate ​ Investments in which we are deemed to exert significant influence, but not control, are accounted for using the equity method of accounting, except in cases where the fair value option is elected. For such investments where we have elected the fair value option, the election is irrevocable and is applied on an investment–by–investment basis at initial recognition. As of June 30, 2023, our ownership interest in ECOTEC, a company specializing in methane detection, monitoring and management, is 25% and included in other assets in our unaudited condensed consolidated balance sheets. For greater transparency, we have elected the fair value option for this investment. Changes in the fair value of this investment are recognized in other expense (income), net in our unaudited condensed consolidated statements of operations. See Note 13 (“Fair Value Measurements”) for further details on fair value accounting. ​

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2023
Long-Term Debt
Long-Term Debt	5. Long-Term Debt ​ Long–term debt is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (in thousands) 2023 ​ 2022 Credit Facility ​ $ 341,775 ​ $ 251,250 ​ ​ ​ ​ ​ ​ ​ 6.25% senior notes due April 2028: ​ ​ ​ ​ ​ ​ Principal outstanding ​ 800,000 ​ 800,000 Unamortized debt premium ​ ​ 9,527 ​ 10,530 Unamortized debt issuance costs ​ (7,913) ​ (8,744) ​ ​ 801,614 ​ 801,786 ​ ​ ​ ​ ​ ​ ​ 6.875% senior notes due April 2027: ​ ​ ​ ​ ​ ​ Principal outstanding ​ ​ 500,000 ​ 500,000 Unamortized debt issuance costs ​ ​ (4,150) ​ (4,702) ​ ​ ​ 495,850 ​ 495,298 ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 1,639,239 ​ $ 1,548,334 ​ As of June 30, 2023, there were $4.5 million letters of credit outstanding under the Credit Facility and the applicable margin on borrowings outstanding was 2.4%. The weighted average annual interest rate on the outstanding balance under the Credit Facility, excluding the effect of interest rate swaps, was 7.7% and 6.9% at June 30, 2023 and December 31, 2022, respectively. We incurred $0.4 million and $0.5 million of commitment fees on the daily unused amount of the Credit Facility during the three months ended June 30, 2023 and 2022, respectively, and $0.9 million and $1.0 million during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, we were in compliance with all covenants under our Credit Facility agreement. Additionally, all undrawn capacity on our Credit Facility was available for borrowings as of June 30, 2023. ​ Amended and Restated Credit Agreement On May 16, 2023, we amended and restated our Credit Facility to, among other things: ● extend the maturity date of the Credit Facility from November 8, 2024 to May 16, 2028 (or December 2, 2026 or December 3, 2027 if any portion of 2027 Senior Notes and 2028 Senior Notes, respectively, remain outstanding at such date); ● change the referenced rate from LIBOR to SOFR so that borrowings under the Credit Facility bear interest at, based on our election, either a base rate or SOFR, plus an applicable margin; ● increase the portion of the Credit Facility available for the issuance of swing line loans from $50.0 million to $75.0 million. ​ We incurred $6.0 million in transaction costs related to the Amended and Restated Credit Agreement, which were included in other assets in our condensed consolidated balance sheets and are being amortized over the remaining term of the Credit Facility. In addition, we wrote off $1.0 million of unamortized deferred financing costs as a result of the Amended and Restated Credit Agreement, which was recorded to interest expense in our condensed consolidated statements of operations during the three and six months ended June 30, 2023.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies ​ 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. We are also self–insured for property damage to our offshore assets. ​ 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 June 30, 2023 and December 31, 2022, we had $4.0 million and $3.9 million, respectively, accrued 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. During the years ended December 31, 2022 and 2021, certain of our sales and use tax audits advanced from the audit review phase to the contested hearing phase. As of June 30, 2023 and December 31, 2022, we had $0.6 million accrued for these audits. Litigation and Claims ​ In the ordinary course of business, we are involved in various pending or threatened legal actions. While we are unable to predict the ultimate outcome of these actions, we believe 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. ​

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity
Stockholders' Equity	7. Stockholders’ Equity ​ 2023 Share Repurchase Program ​ On April 27, 2023, our Board of Directors authorized a share repurchase program that allows us to repurchase up to $50.0 million of outstanding common stock. Under the 2023 Share Repurchase Program, shares of our common stock may be repurchased periodically, including in the open market, privately negotiated transactions, or otherwise in accordance with applicable federal securities laws, at any time until April 27, 2024. The actual timing, manner, number, and value of shares repurchased under the program will be determined by us at our discretion. ​ The following table summarizes shares repurchased under the 2023 Share Repurchase Program during the three and six months ended June 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended (dollars and shares in thousands, except per share amounts) ​ June 30, 2023 ​ June 30, 2023 Total cost of shares repurchased ​ $ 2,073 ​ $ 2,073 Average price per share ​ $ 9.33 ​ $ 9.33 Total number of shares repurchased ​ 222 ​ 222 ​ Cash Dividends ​ The following table summarizes our dividends declared and paid in each of the quarterly periods of 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends per Dividends Paid (dollars in thousands, except per share amounts) Common Share (in thousands) 2023 ​ ​ Q2 ​ $ 0.150 ​ $ 23,504 Q1 ​ ​ 0.150 ​ ​ 23,852 ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ Q4 ​ $ 0.145 ​ $ 22,589 Q3 ​ 0.145 ​ 22,559 Q2 ​ 0.145 ​ 22,494 Q1 ​ 0.145 ​ 22,673 ​ On July 27, 2023, our Board of Directors declared a quarterly dividend of $0.155 per share of common stock to be paid on August 15, 2023 to stockholders of record at the close of business on August 8, 2023.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2023
Revenue from Contracts with Customers
Revenue from Contracts with Customers	8. Revenue from Contracts with Customers ​ The following table presents our revenue from contracts with customers by segment and disaggregated by revenue source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) 2023 2022 2023 2022 Contract operations: ​ ​ ​ ​ ​ ​ ​ ​ 0 ― 1,000 horsepower per unit ​ $ 43,176 ​ $ 40,489 ​ $ 83,130 ​ $ 82,331 1,001 ― 1,500 horsepower per unit ​ 88,008 ​ 68,697 ​ 169,814 ​ 135,698 Over 1,500 horsepower per unit ​ 69,672 ​ 56,885 ​ 135,386 ​ 111,479 Other (1) ​ 264 ​ 227 ​ 535 ​ 446 Total contract operations revenue (2) ​ 201,120 ​ 166,298 ​ 388,865 ​ 329,954 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Aftermarket services: ​ ​ ​ ​ Services ​ 24,567 ​ 26,001 ​ 45,816 ​ 43,138 OTC parts and components sales ​ 21,856 ​ 23,529 ​ 42,696 ​ 39,937 Total aftermarket services revenue (3) ​ 46,423 ​ 49,530 ​ 88,512 ​ 83,075 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue ​ $ 247,543 ​ $ 215,828 ​ $ 477,377 ​ $ 413,029 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $1.1 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively, and $1.9 million and $1.1 million for the six months ended June 30, 2023 and 2022, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time. (3) Services revenue within aftermarket services is recognized over time. OTC parts and components sales revenue is recognized at a point in time. ​ See Note 15 (“Segment Information”) for further information on segments. Performance Obligations ​ As of June 30, 2023, we had $413.4 million of remaining performance obligations related to our contract operations segment, which will be recognized through 2028 as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) 2023 2024 ​ 2025 2026 2027 2028 Total Remaining performance obligations ​ $ 179,142 ​ $ 142,684 ​ $ 66,507 ​ $ 20,055 ​ $ 4,246 ​ $ 795 ​ $ 413,429 ​ We do 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 Assets and Liabilities ​ Contract Assets ​ As June 30, 2023 and December 31, 2022, our receivables from contracts with customers, net of allowance for credit losses, were $115.7 million and $111.9 million, respectively. Allowance for Credit Losses ​ Our allowance for credit losses balance changed as follows during the six months ended June 30, 2023: ​ ​ ​ ​ ​ (in thousands) ​ ​ Balance at beginning of period $ 1,674 Benefit from credit losses ​ ​ (140) Write-offs charged against allowance ​ ​ (440) Balance at end of period ​ $ 1,094 ​ Contract Liabilities ​ Freight billings to customers for the transport of compression assets, customer–specified modifications of compression assets and milestone billings on aftermarket services often result in a contract liability. As of June 30, 2023 and December 31, 2022, our contract liabilities were $6.4 million and $8.0 million, respectively. During the six months ended June 30, 2023, we deferred revenue of $ million and recognized $8.8 million as revenue.

Long-Lived and Other Asset Impa

Long-Lived and Other Asset Impairment	6 Months Ended
	Jun. 30, 2023
Long-Lived and Other Asset Impairment
Long-Lived and Other Asset Impairment	9. Long-Lived and Other 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 compressors from our active fleet, indicate that the carrying amount of an asset may not be recoverable. Compression Fleet 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 compressors 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 compression fleet impairment review as recorded in our contract operations segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2023 2022 2023 2022 Idle compressors retired from the active fleet ​ 15 ​ 30 ​ 45 ​ 75 Horsepower of idle compressors retired from the active fleet ​ 9,000 ​ 26,000 ​ 23,000 ​ 57,000 Impairment recorded on idle compressors retired from the active fleet ​ $ 2,892 ​ $ 4,647 ​ $ 5,461 ​ $ 12,056 ​ See Note 13 (“Fair Value Measurements”) for further details on fair value accounting.

Restructuring Charges

Restructuring Charges	6 Months Ended
	Jun. 30, 2023
Restructuring Charges
Restructuring Charges	10. Restructuring Charges ​ During the first quarter of 2023, a plan to further streamline our organization and more fully align our teams to improve our customer service and profitability was approved by management. We expect to incur additional restructuring charges of $0.3 million related to these restructuring activities. The following table presents the changes to our accrued liability balance related to restructuring charges during the six months ended June 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ Total Balance at December 31, 2022 $ — Charges incurred ​ 962 Payments ​ ​ (962) Balance at June 30, 2023 ​ $ — ​ The following table presents restructuring charges incurred by segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract ​ Aftermarket ​ ​ ​ ​ ​ ​ (in thousands) ​ Operations ​ Services ​ Other (1) ​ Total Three months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ (101) ​ $ — ​ $ 16 ​ $ (85) Total restructuring charges ​ $ (101) ​ $ — ​ $ 16 ​ $ (85) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ 101 ​ $ — ​ $ 861 ​ $ 962 Total restructuring charges ​ $ 101 ​ $ — ​ $ 861 ​ $ 962 (1) Represents expense incurred within our corporate function and not directly attributable to our segments. The following table presents restructuring charges incurred by cost type: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended (in thousands) ​ June 30, 2023 June 30, 2023 Organizational restructuring ​ ​ ​ ​ ​ ​ Severance costs ​ $ (85) ​ $ 705 Consulting costs ​ ​ — ​ ​ 257 Total restructuring charges ​ $ (85) ​ $ 962 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Taxes
Income Taxes	11. Income Taxes ​ Valuation Allowance ​ The amount of our deferred tax assets considered realizable could be adjusted if projections of future taxable income are reduced or objective negative evidence in the form of a three–year cumulative loss is present or both. Should we no longer have a level of sustained profitability, excluding nonrecurring charges, we will have to rely more on our future projections of taxable income to determine if we have an adequate source of taxable income for the realization of our deferred tax assets, namely net operating loss, interest limitation and tax credit carryforwards. This may result in the need to record a valuation allowance against all or a portion of our deferred tax assets. Effective Tax Rate ​ The year-to-date effective tax rate for the six months ended June 30, 2023 differed significantly from our statutory rate primarily due to state taxes, unrecognized tax benefits and the limitation on executive compensation. Unrecognized Tax Benefits ​ As of June 30, 2023, we believe it is reasonably possible that $2.8 million of our unrecognized tax benefits, including penalties, interest and discontinued operations, will be reduced prior to June 30, 2024 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 that could materially differ from this estimate.

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Common Share
Earnings Per Common Share	12. Earnings Per Common Share ​ Basic earnings per common share is computed using the two–class method, which is an earnings allocation formula that determines net income 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 earnings per common share is determined by dividing net income, 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, only distributed earnings (dividends) are allocated to participating securities, as participating securities do not have a contractual obligation to participate in our undistributed losses. Diluted earnings per common share is computed using the weighted average number of common shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding performance–based restricted stock units and stock to be issued pursuant to our ESPP unless their effect would have been anti–dilutive. The following table shows the calculation of net income attributable to common stockholders, which is used in the calculation of basic and diluted earnings per common share, potential shares of common stock that were included in computing diluted earnings per common share and the potential shares of common stock issuable that were excluded from computing diluted earnings per common share as their inclusion would have been anti–dilutive: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) 2023 2022 2023 2022 Net income ​ $ 24,653 ​ $ 16,746 ​ $ 41,138 ​ $ 18,467 Less: Allocation of earnings to participating securities ​ (354) ​ (305) ​ (1,072) ​ (819) Net income attributable to common stockholders ​ $ 24,299 ​ $ 16,441 ​ $ 40,066 ​ $ 17,648 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used in basic earnings per common share ​ ​ 154,358 ​ ​ 153,033 ​ ​ 154,234 ​ ​ 152,857 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance-based restricted stock units ​ ​ 54 ​ ​ 128 ​ ​ 89 ​ ​ 123 ESPP shares ​ ​ — ​ ​ 3 ​ ​ 3 ​ ​ 2 Weighted average common shares outstanding used in diluted earnings per common share ​ ​ 154,412 ​ ​ 153,164 ​ ​ 154,326 ​ ​ 152,982 ​

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Measurements
Fair Value Measurements	13. Fair Value Measurements ​ Assets and Liabilities Measured at Fair Value on a Recurring Basis ​ As of June 30, 2023, we own a 25% equity interest in ECOTEC. The fair value is determined using an average of the income approach that includes the use of a discounted cash flow model, and the market approach that includes the financial metrics of comparable public companies under the guideline public company method. The determination of this investment primarily consisted of unobservable inputs, which creates uncertainty in the measurement of fair value as of the reporting date. Significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement. As of June 30, 2023, the fair value of our investment in ECOTEC was $12.8 million. ​ This fair value measurement is classified as Level 3. The significant unobservable inputs used in the fair value measurement are the WACC and the revenue multiples. Additional quantitative information related to the significant unobservable inputs are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant Unobservable Inputs ​ ​ Range ​ ​ Median Valuation technique: ​ ​ ​ ​ ​ ​ ​ ​ Discounted cash flow ​ WACC ​ 0% - 17.4% ​ ​ 10.0% Guideline public company ​ Revenue multiple ​ 1.6x - 10x ​ ​ 4.0x ​ The reconciliation of changes in the fair value of our investment in ECOTEC is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) ​ ​ 2023 ​ ​ 2022 ​ ​ 2023 ​ ​ 2022 Balance at beginning of period $ 14,549 $ — ​ $ 12,803 $ — Purchases of equity interests ​ ​ — ​ ​ 8,000 ​ ​ 2,000 ​ ​ 8,000 Unrealized loss (1) ​ ​ (1,742) ​ ​ — ​ ​ (1,996) ​ ​ — Balance at end of period ​ $ 12,807 ​ $ 8,000 ​ $ 12,807 ​ $ 8,000 (1) Included in other expense (income) in our unaudited condensed consolidated statement of operations. ​ See Note 4 (“Investment in Unconsolidated Affiliate”) for further details. ​ ​ Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis ​ During the six months ended June 30, 2023, we recorded nonrecurring fair value measurements related to our idle compressors. Our estimate of the compressors’ fair value was primarily based on the expected net sale proceeds compared with 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. The fair value of our compressors impaired in 2023 and 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ June 30, 2023 ​ December 31, 2022 Impaired compressors ​ ​ ​ $ 550 ​ $ 1,961 ​ These fair value measurements are classified as Level 3. The significant unobservable inputs used to develop the above fair value measurements were weighted by the relative fair value of the compressors being measured. Additional quantitative information related to our significant unobservable inputs follows: ​ ​ ​ ​ ​ ​ ​ Range Weighted Average (1) Estimated net sale proceeds: ​ ​ ​ ​ As of June 30, 2023 ​ $0 - $310 per horsepower ​ $50 per horsepower As of December 31, 2022 ​ $0 - $621 per horsepower ​ $47 per horsepower (1) Calculated based on an estimated discount for market liquidity of 38% and 51% as of June 30, 2023 and December 31, 2022, respectively. ​ See Note 9 (“Long-Lived and Other Asset Impairments”) for further details. ​ Other Financial Instruments ​ The carrying amounts of our cash, accounts receivable and accounts payable approximate fair value due to the short–term nature of these instruments. The carrying amount of borrowings outstanding under our Credit Facility approximates fair value due to the variable interest rate. The measurement of the fair value of these outstanding borrowings is a Level 3 measurement. The fair value of our fixed rate debt is estimated using yields observable in active markets, which are Level 2 inputs, and was as follows: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) June 30, 2023 December 31, 2022 Carrying amount of fixed rate debt (1) ​ $ 1,297,464 ​ $ 1,297,084 Fair value of fixed rate debt ​ 1,231,000 ​ 1,214,000 (1) Carrying amounts are shown net of unamortized premium and deferred financing costs. See Note 5 (“Long-Term Debt”). ​

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2023
Related Party Transactions
Related Party Transactions	14. Related Party Transactions ​ Old Ocean Reserves, an affiliate of our customer Hilcorp, has the right to designate one director to serve on our board of directors as long as Old Ocean Reserves or its successors (together with its affiliates) owns at least 7.5% of our outstanding common stock. As of June 30, 2023, Old Ocean Reserves owned 9.2% of our outstanding common stock. Jason C. Rebrook, Chief Executive Officer and Director of Harvest Midstream Company, a Hilcorp affiliate, has served as Old Ocean Reserves’ representative director since July 2020. Revenue from Hilcorp was $8.7 million and $9.2 million during the three months ended June 30, 2023 and 2022, respectively, and $17.8 million and $18.6 million during the six months ended June 30, 2023 and June 30, 2022, respectively. Accounts receivable, net due from Hilcorp was $3.0 million as of June 30, 2023 and as of December 31, 2022. ​

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2023
Segment Information
Segment Information	15. Segment Information ​ We manage our business segments primarily based on the type of product or service provided. We have two segments: contract operations and aftermarket services. Our contract operations segment primarily provides natural gas compression services to meet specific customer requirements. Our aftermarket services segment provides a full range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. All of our operations are located in the U.S. We evaluate the performance of our segments based on gross margin, defined as revenue less cost of sales (excluding depreciation and amortization) for each segment. Segment revenue includes only sales to external customers. Summarized financial information for our reporting segments is shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract Aftermarket ​ ​ (in thousands) Operations Services Total Three months ended June 30, 2023 ​ ​ ​ Revenue ​ $ 201,120 ​ $ 46,423 ​ $ 247,543 Gross margin ​ 125,087 ​ 11,080 ​ 136,167 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2022 ​ ​ ​ Revenue ​ $ 166,298 ​ $ 49,530 ​ $ 215,828 Gross margin ​ 97,943 ​ 7,820 ​ 105,763 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2023 ​ ​ ​ Revenue ​ $ 388,865 ​ $ 88,512 ​ $ 477,377 Gross margin ​ 233,350 ​ 19,261 ​ 252,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2022 ​ ​ ​ Revenue ​ $ 329,954 ​ $ 83,075 ​ $ 413,029 Gross margin ​ 197,098 ​ 12,727 ​ 209,825 ​ The following table reconciles total gross margin to income before income taxes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) 2023 2022 2023 2022 Total gross margin ​ $ 136,167 ​ $ 105,763 ​ $ 252,611 ​ $ 209,825 Less: ​ ​ ​ ​ Selling, general and administrative ​ 28,649 ​ 27,691 ​ 55,074 ​ 55,464 Depreciation and amortization ​ 41,210 ​ 41,356 ​ 81,391 ​ 84,395 Long-lived and other asset impairment ​ 2,892 ​ 4,647 ​ 5,461 ​ 12,063 Restructuring charges ​ ​ (85) ​ ​ — ​ ​ 962 ​ ​ — Interest expense ​ 28,630 ​ 24,456 ​ 55,211 ​ 49,702 Gain on sale of assets, net ​ ​ (1,176) ​ ​ (18,948) ​ ​ (4,781) ​ ​ (21,060) Other expense (income), net ​ 1,463 ​ 497 ​ 2,066 ​ 533 Income before income taxes ​ $ 34,584 ​ $ 26,064 ​ $ 57,227 ​ $ 28,728 ​

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2023
Description of Business and Basis of Presentation
Basis of Presentation	The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by GAAP. Therefore, this information should be read in conjunction with our consolidated financial statements and notes contained in our 2022 Form 10-K. The information furnished herein reflects all adjustments that are, in the opinion of management, of a normal recurring nature and considered necessary for a fair statement of the results of the interim periods reported. All intercompany balances and transactions have been eliminated in consolidation. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory
Schedule of inventory, net of reserves	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (in thousands) ​ 2023 ​ 2022 Parts and supplies ​ $ 78,953 ​ $ 70,228 Work in progress ​ 14,175 ​ 14,394 Inventory ​ $ 93,128 ​ $ 84,622

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment
Schedule of property, plant and equipment, net	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (in thousands) ​ 2023 ​ 2022 Compression equipment, facilities and other fleet assets ​ $ 3,283,842 ​ $ 3,234,239 Land and buildings ​ 38,240 ​ 44,304 Transportation and shop equipment ​ 95,517 ​ 93,189 Computer hardware and software ​ 77,499 ​ 77,357 Other ​ 5,575 ​ 5,754 Property, plant and equipment ​ 3,500,674 ​ 3,454,843 Accumulated depreciation ​ (1,200,085) ​ (1,255,590) Property, plant and equipment, net ​ $ 2,300,589 ​ $ 2,199,253

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2023
Long-Term Debt
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (in thousands) 2023 ​ 2022 Credit Facility ​ $ 341,775 ​ $ 251,250 ​ ​ ​ ​ ​ ​ ​ 6.25% senior notes due April 2028: ​ ​ ​ ​ ​ ​ Principal outstanding ​ 800,000 ​ 800,000 Unamortized debt premium ​ ​ 9,527 ​ 10,530 Unamortized debt issuance costs ​ (7,913) ​ (8,744) ​ ​ 801,614 ​ 801,786 ​ ​ ​ ​ ​ ​ ​ 6.875% senior notes due April 2027: ​ ​ ​ ​ ​ ​ Principal outstanding ​ ​ 500,000 ​ 500,000 Unamortized debt issuance costs ​ ​ (4,150) ​ (4,702) ​ ​ ​ 495,850 ​ 495,298 ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 1,639,239 ​ $ 1,548,334

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity
Summary of shares repurchased	​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended (dollars and shares in thousands, except per share amounts) ​ June 30, 2023 ​ June 30, 2023 Total cost of shares repurchased ​ $ 2,073 ​ $ 2,073 Average price per share ​ $ 9.33 ​ $ 9.33 Total number of shares repurchased ​ 222 ​ 222
Summary of entity's dividends per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends per Dividends Paid (dollars in thousands, except per share amounts) Common Share (in thousands) 2023 ​ ​ Q2 ​ $ 0.150 ​ $ 23,504 Q1 ​ ​ 0.150 ​ ​ 23,852 ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ Q4 ​ $ 0.145 ​ $ 22,589 Q3 ​ 0.145 ​ 22,559 Q2 ​ 0.145 ​ 22,494 Q1 ​ 0.145 ​ 22,673

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contracts with Customers
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) 2023 2022 2023 2022 Contract operations: ​ ​ ​ ​ ​ ​ ​ ​ 0 ― 1,000 horsepower per unit ​ $ 43,176 ​ $ 40,489 ​ $ 83,130 ​ $ 82,331 1,001 ― 1,500 horsepower per unit ​ 88,008 ​ 68,697 ​ 169,814 ​ 135,698 Over 1,500 horsepower per unit ​ 69,672 ​ 56,885 ​ 135,386 ​ 111,479 Other (1) ​ 264 ​ 227 ​ 535 ​ 446 Total contract operations revenue (2) ​ 201,120 ​ 166,298 ​ 388,865 ​ 329,954 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Aftermarket services: ​ ​ ​ ​ Services ​ 24,567 ​ 26,001 ​ 45,816 ​ 43,138 OTC parts and components sales ​ 21,856 ​ 23,529 ​ 42,696 ​ 39,937 Total aftermarket services revenue (3) ​ 46,423 ​ 49,530 ​ 88,512 ​ 83,075 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue ​ $ 247,543 ​ $ 215,828 ​ $ 477,377 ​ $ 413,029 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $1.1 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively, and $1.9 million and $1.1 million for the six months ended June 30, 2023 and 2022, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time. (3) Services revenue within aftermarket services is recognized over time. OTC parts and components sales revenue is recognized at a point in time.
Schedule of remaining Performance Obligation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) 2023 2024 ​ 2025 2026 2027 2028 Total Remaining performance obligations ​ $ 179,142 ​ $ 142,684 ​ $ 66,507 ​ $ 20,055 ​ $ 4,246 ​ $ 795 ​ $ 413,429
Summary of changes in allowance for credit losses	​ ​ ​ ​ ​ (in thousands) ​ ​ Balance at beginning of period $ 1,674 Benefit from credit losses ​ ​ (140) Write-offs charged against allowance ​ ​ (440) Balance at end of period ​ $ 1,094

Long-Lived and Other Asset Im_2

Long-Lived and Other Asset Impairment (Tables)	6 Months Ended
	Jun. 30, 2023
Long-Lived and Other Asset Impairment
Schedule of impairment of long-lived assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2023 2022 2023 2022 Idle compressors retired from the active fleet ​ 15 ​ 30 ​ 45 ​ 75 Horsepower of idle compressors retired from the active fleet ​ 9,000 ​ 26,000 ​ 23,000 ​ 57,000 Impairment recorded on idle compressors retired from the active fleet ​ $ 2,892 ​ $ 4,647 ​ $ 5,461 ​ $ 12,056

Restructuring Charges (Tables)

Restructuring Charges (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring Charges
Schedule of changes to accrued liability balance related to restructuring charges	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ Total Balance at December 31, 2022 $ — Charges incurred ​ 962 Payments ​ ​ (962) Balance at June 30, 2023 ​ $ —
Schedule of restructuring charges by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract ​ Aftermarket ​ ​ ​ ​ ​ ​ (in thousands) ​ Operations ​ Services ​ Other (1) ​ Total Three months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ (101) ​ $ — ​ $ 16 ​ $ (85) Total restructuring charges ​ $ (101) ​ $ — ​ $ 16 ​ $ (85) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ 101 ​ $ — ​ $ 861 ​ $ 962 Total restructuring charges ​ $ 101 ​ $ — ​ $ 861 ​ $ 962 (1) Represents expense incurred within our corporate function and not directly attributable to our segments.
Schedule of restructuring charges by type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended (in thousands) ​ June 30, 2023 June 30, 2023 Organizational restructuring ​ ​ ​ ​ ​ ​ Severance costs ​ $ (85) ​ $ 705 Consulting costs ​ ​ — ​ ​ 257 Total restructuring charges ​ $ (85) ​ $ 962

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Common Share
Schedule calculation of basic and diluted net income (loss) per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) 2023 2022 2023 2022 Net income ​ $ 24,653 ​ $ 16,746 ​ $ 41,138 ​ $ 18,467 Less: Allocation of earnings to participating securities ​ (354) ​ (305) ​ (1,072) ​ (819) Net income attributable to common stockholders ​ $ 24,299 ​ $ 16,441 ​ $ 40,066 ​ $ 17,648 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used in basic earnings per common share ​ ​ 154,358 ​ ​ 153,033 ​ ​ 154,234 ​ ​ 152,857 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance-based restricted stock units ​ ​ 54 ​ ​ 128 ​ ​ 89 ​ ​ 123 ESPP shares ​ ​ — ​ ​ 3 ​ ​ 3 ​ ​ 2 Weighted average common shares outstanding used in diluted earnings per common share ​ ​ 154,412 ​ ​ 153,164 ​ ​ 154,326 ​ ​ 152,982

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair value
Schedule of carrying value and estimated fair value of debt instruments	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) June 30, 2023 December 31, 2022 Carrying amount of fixed rate debt (1) ​ $ 1,297,464 ​ $ 1,297,084 Fair value of fixed rate debt ​ 1,231,000 ​ 1,214,000 (1) Carrying amounts are shown net of unamortized premium and deferred financing costs. See Note 5 (“Long-Term Debt”).
Compressors
Fair value
Schedule of significant unobservable inputs	​ ​ ​ ​ ​ ​ ​ Range Weighted Average (1) Estimated net sale proceeds: ​ ​ ​ ​ As of June 30, 2023 ​ $0 - $310 per horsepower ​ $50 per horsepower As of December 31, 2022 ​ $0 - $621 per horsepower ​ $47 per horsepower (1) Calculated based on an estimated discount for market liquidity of 38% and 51% as of June 30, 2023 and December 31, 2022, respectively.
Schedule of non-recurring fair value assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ June 30, 2023 ​ December 31, 2022 Impaired compressors ​ ​ ​ $ 550 ​ $ 1,961
Ecotec | Equity investment
Fair value
Schedule of significant unobservable inputs	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant Unobservable Inputs ​ ​ Range ​ ​ Median Valuation technique: ​ ​ ​ ​ ​ ​ ​ ​ Discounted cash flow ​ WACC ​ 0% - 17.4% ​ ​ 10.0% Guideline public company ​ Revenue multiple ​ 1.6x - 10x ​ ​ 4.0x
Schedule of changes in assets measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) ​ ​ 2023 ​ ​ 2022 ​ ​ 2023 ​ ​ 2022 Balance at beginning of period $ 14,549 $ — ​ $ 12,803 $ — Purchases of equity interests ​ ​ — ​ ​ 8,000 ​ ​ 2,000 ​ ​ 8,000 Unrealized loss (1) ​ ​ (1,742) ​ ​ — ​ ​ (1,996) ​ ​ — Balance at end of period ​ $ 12,807 ​ $ 8,000 ​ $ 12,807 ​ $ 8,000 (1) Included in other expense (income) in our unaudited condensed consolidated statement of operations.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Information
Summary of revenue and other financial information by reportable segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract Aftermarket ​ ​ (in thousands) Operations Services Total Three months ended June 30, 2023 ​ ​ ​ Revenue ​ $ 201,120 ​ $ 46,423 ​ $ 247,543 Gross margin ​ 125,087 ​ 11,080 ​ 136,167 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2022 ​ ​ ​ Revenue ​ $ 166,298 ​ $ 49,530 ​ $ 215,828 Gross margin ​ 97,943 ​ 7,820 ​ 105,763 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2023 ​ ​ ​ Revenue ​ $ 388,865 ​ $ 88,512 ​ $ 477,377 Gross margin ​ 233,350 ​ 19,261 ​ 252,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2022 ​ ​ ​ Revenue ​ $ 329,954 ​ $ 83,075 ​ $ 413,029 Gross margin ​ 197,098 ​ 12,727 ​ 209,825
Reconciliation of total gross margin to income before taxes	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ June 30, ​ June 30, (in thousands) 2023 2022 2023 2022 Total gross margin ​ $ 136,167 ​ $ 105,763 ​ $ 252,611 ​ $ 209,825 Less: ​ ​ ​ ​ Selling, general and administrative ​ 28,649 ​ 27,691 ​ 55,074 ​ 55,464 Depreciation and amortization ​ 41,210 ​ 41,356 ​ 81,391 ​ 84,395 Long-lived and other asset impairment ​ 2,892 ​ 4,647 ​ 5,461 ​ 12,063 Restructuring charges ​ ​ (85) ​ ​ — ​ ​ 962 ​ ​ — Interest expense ​ 28,630 ​ 24,456 ​ 55,211 ​ 49,702 Gain on sale of assets, net ​ ​ (1,176) ​ ​ (18,948) ​ ​ (4,781) ​ ​ (21,060) Other expense (income), net ​ 1,463 ​ 497 ​ 2,066 ​ 533 Income before income taxes ​ $ 34,584 ​ $ 26,064 ​ $ 57,227 ​ $ 28,728

Description of Business and B_3

Description of Business and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2023 segment
Description of Business and Basis of Presentation
Number of reportable segments	2

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Composition of Inventory net of reserves
Parts and supplies	$ 78,953	$ 70,228
Work in progress	14,175	14,394
Inventory	$ 93,128	$ 84,622

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment
Property, plant and equipment	$ 3,500,674	$ 3,454,843
Accumulated depreciation	(1,200,085)	(1,255,590)
Property, plant and equipment, net	2,300,589	2,199,253
Compression equipment, facilities and other fleet assets
Property, Plant and Equipment
Property, plant and equipment	3,283,842	3,234,239
Land and buildings
Property, Plant and Equipment
Property, plant and equipment	38,240	44,304
Transportation and shop equipment
Property, Plant and Equipment
Property, plant and equipment	95,517	93,189
Computer hardware and software
Property, Plant and Equipment
Property, plant and equipment	77,499	77,357
Other
Property, Plant and Equipment
Property, plant and equipment	$ 5,575	$ 5,754

Investment in Unconsolidated _2

Investment in Unconsolidated Affiliate (Details)	Jun. 30, 2023
Ecotec
Investments
Ownership interest (as a percent)	25%

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instruments
Long-term debt	$ 1,639,239	$ 1,548,334
Credit Facility
Debt Instruments
Long-term debt	341,775	251,250
6.25% senior notes due April 2028
Debt Instruments
Principal outstanding	800,000	800,000
Unamortized debt premium	9,527	10,530
Unamortized debt issuance costs	(7,913)	(8,744)
Long-term debt	$ 801,614	$ 801,786
Interest rate (as a percent)	6.25%	6.25%
6.875% senior notes due April 2027
Debt Instruments
Principal outstanding	$ 500,000	$ 500,000
Unamortized debt issuance costs	(4,150)	(4,702)
Long-term debt	$ 495,850	$ 495,298
Interest rate (as a percent)	6.875%	6.875%

Long-Term Debt - Credit Facilit

Long-Term Debt - Credit Facility (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	May 16, 2023	Mar. 31, 2023	Dec. 31, 2022
Credit Facility
Line of Credit Facility
Letter of credit outstanding	$ 4.5		$ 4.5
Debt instrument, variable rate (percentage)			2.40%
Debt instrument weighted average interest rate (percent)	7.70%		7.70%				6.90%
Commitment fee amount	$ 0.4	$ 0.5	$ 0.9	$ 1
Debt issuance cost written off			$ 1
Swing Line Loans, Credit Facility
Line of Credit Facility
Maximum borrowing capacity					$ 75	$ 50
Credit Facility, Amendment 4
Line of Credit Facility
Transaction costs					$ 6

Commitments and Contingencies-

Commitments and Contingencies- Tax Matters - Loss contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Non-income based tax audits
Loss Contingencies
Accrued liability	$ 4	$ 3.9
Non-income based tax audits in contested hearing phase
Loss Contingencies
Accrued liability	$ 0.6	$ 0.6

Stockholders' Equity - 2023 Sha

Stockholders' Equity - 2023 Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Apr. 27, 2023
Treasury Stock
Total cost of shares repurchased (in dollars)	$ 2,073	$ 2,073
2023 Share Repurchase Program
Treasury Stock
Shares authorized to be repurchased (in dollars)			$ 50,000
Total cost of shares repurchased (in dollars)	$ 2,073	$ 2,073
Average price per share (in dollars per share)	$ 9.33	$ 9.33
Total number of shares repurchased (in shares)	222	222

Stockholders' Equity - Cash Div

Stockholders' Equity - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended						6 Months Ended
	Aug. 08, 2023	Jul. 27, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Distributions
Declared Dividends per Common Share (in dollars per share)			$ 0.150	$ 0.150	$ 0.145	$ 0.145	$ 0.145	$ 0.145	$ 0.15	$ 0.145
Dividends Paid (in dollars)			$ 23,504	$ 23,852	$ 22,589	$ 22,559	$ 22,494	$ 22,673	$ 47,356	$ 45,167
Forecasted
Distributions
Dividends Paid (in dollars per share)	$ 0.155
Subsequent Event.
Distributions
Declared Dividends per Common Share (in dollars per share)		$ 0.155

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregate Revenue (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) hp	Jun. 30, 2022 USD ($) hp	Jun. 30, 2023 USD ($) hp	Jun. 30, 2022 USD ($) hp
Disaggregation of Revenue
Revenue	$ 247,543	$ 215,828	$ 477,377	$ 413,029
Contract Operations
Disaggregation of Revenue
Revenue	201,120	166,298	388,865	329,954
Contract Operations | Transferred at Point in Time
Disaggregation of Revenue
Revenue	1,100	900	1,900	1,100
Contract Operations | 0 - 1,000 horsepower per unit
Disaggregation of Revenue
Revenue	$ 43,176	$ 40,489	$ 83,130	$ 82,331
Contract Operations | 0 - 1,000 horsepower per unit | Minimum
Disaggregation of Revenue
Compressor unit horsepower (horsepower) | hp	0	0	0	0
Contract Operations | 0 - 1,000 horsepower per unit | Maximum
Disaggregation of Revenue
Compressor unit horsepower (horsepower) | hp	1,000	1,000	1,000	1,000
Contract Operations | 1,001 - 1,500 horsepower per unit
Disaggregation of Revenue
Revenue	$ 88,008	$ 68,697	$ 169,814	$ 135,698
Contract Operations | 1,001 - 1,500 horsepower per unit | Minimum
Disaggregation of Revenue
Compressor unit horsepower (horsepower) | hp	1,001	1,001	1,001	1,001
Contract Operations | 1,001 - 1,500 horsepower per unit | Maximum
Disaggregation of Revenue
Compressor unit horsepower (horsepower) | hp	1,500	1,500	1,500	1,500
Contract Operations | Over 1,500 horsepower per unit
Disaggregation of Revenue
Revenue	$ 69,672	$ 56,885	$ 135,386	$ 111,479
Contract Operations | Over 1,500 horsepower per unit | Minimum
Disaggregation of Revenue
Compressor unit horsepower (horsepower) | hp	1,500	1,500	1,500	1,500
Contract Operations | Other
Disaggregation of Revenue
Revenue	$ 264	$ 227	$ 535	$ 446
Aftermarket Services
Disaggregation of Revenue
Revenue	46,423	49,530	88,512	83,075
Aftermarket Services | Services
Disaggregation of Revenue
Revenue	24,567	26,001	45,816	43,138
Aftermarket Services | OTC parts and components sales
Disaggregation of Revenue
Revenue	$ 21,856	$ 23,529	$ 42,696	$ 39,937

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Performance Obligations (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 413,429
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 179,142
Performance obligations expected to be satisfied, expected timing	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 142,684
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 66,507
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 20,055
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 4,246
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 795
Performance obligations expected to be satisfied, expected timing	1 year

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Contract Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contracts with Customers
Accounts receivable, net of allowance - Customer related	$ 115.7	$ 111.9

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Changes in the allowance for credit losses balance
Balance at beginning of period	$ 1,674
Benefit from credit losses	(140)	$ 365
Write-offs charged against the allowance	(440)
Balance at end of period	$ 1,094

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue from Contracts with Customers
Contract liability	$ 6,400		$ 8,000
Deferred revenue	7,106	$ 14,032
Deferred revenue recognized in earnings	$ 8,754	$ 11,541

Long-Lived and Other Asset Im_3

Long-Lived and Other Asset Impairment (Details) - Idle Compressor Units hp in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) CompressorUnit hp	Jun. 30, 2022 USD ($) CompressorUnit hp	Jun. 30, 2023 USD ($) CompressorUnit hp	Jun. 30, 2022 USD ($) CompressorUnit hp
Impaired Long-Lived Assets Held and Used
Idle compressors retired from the active fleet | CompressorUnit	15	30	45	75
Horsepower of idle compressors retired from the active fleet | hp	9	26	23	57
Impairment recorded on idle compressors retired from the active fleet | $	$ 2,892	$ 4,647	$ 5,461	$ 12,056
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income	Long-lived and other asset impairment	Long-lived and other asset impairment	Long-lived and other asset impairment	Long-lived and other asset impairment

Restructuring Charges - Changes

Restructuring Charges - Changes to accrued liability balance (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)
Restructuring Charges
Expected additional charges	$ 300	$ 300
Changes to accrued liability balance related to restructuring
Restructuring charges	$ (85)	962
Payments		$ (962)

Restructuring Charges - By segm

Restructuring Charges - By segment (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)
Restructuring charges
Restructuring charges	$ (85)	$ 962
Expected additional charges	300	300
Organizational Restructuring
Restructuring charges
Restructuring charges	(85)	962
Corporate
Restructuring charges
Restructuring charges	16	861
Corporate | Organizational Restructuring
Restructuring charges
Restructuring charges	16	861
Contract Operations | Operating
Restructuring charges
Restructuring charges	(101)	101
Contract Operations | Operating | Organizational Restructuring
Restructuring charges
Restructuring charges	$ (101)	$ 101

Restructuring Charges - By type

Restructuring Charges - By type (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Restructuring charges
Restructuring charges	$ (85)	$ 962
Organizational Restructuring
Restructuring charges
Restructuring charges	(85)	962
Severance costs | Organizational Restructuring
Restructuring charges
Restructuring charges	$ (85)	705
Consulting costs | Organizational Restructuring
Restructuring charges
Restructuring charges		$ 257

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Jun. 30, 2023 USD ($)
Income Taxes
Potential decrease in unrecognized tax benefit in next twelve months	$ 2.8

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Common Share
Net income	$ 24,653	$ 16,746	$ 41,138	$ 18,467
Less: Allocation of earnings to participating securities	(354)	(305)	(1,072)	(819)
Net income (loss) attributable to common stockholders, basic	24,299	16,441	40,066	17,648
Net income (loss) attributable to common stockholders, diluted	$ 24,299	$ 16,441	$ 40,066	$ 17,648
Weighted average common shares outstanding including participating securities	154,358	153,033	154,234	152,857
Effect of dilutive securities:
Performance-based restricted stock units (in shares)	54	128	89	123
ESPP shares (in shares)		3	3	2
Weighted average common shares outstanding used in diluted income (loss) per common share (in shares)	154,412	153,164	154,326	152,982

Fair Value Measurements - FV on

Fair Value Measurements - FV on Recurring Basis - Investment (Details) - Ecotec $ in Millions	Jun. 30, 2023 USD ($)
Fair value measurement of assets and liabilities
Ownership interest (as a percent)	25%
Investment	$ 12.8

Fair Value Measurements - Inves

Fair Value Measurements - Investment unobservable inputs (Details) - Ecotec - Equity investment - Level 3	Jun. 30, 2023
Discounted cash flow | WACC | Minimum
Fair value measurement of assets and liabilities
Equity Securities, FV-NI, Measurement Input	0
Discounted cash flow | WACC | Maximum
Fair value measurement of assets and liabilities
Equity Securities, FV-NI, Measurement Input	0.174
Discounted cash flow | WACC | Median
Fair value measurement of assets and liabilities
Equity Securities, FV-NI, Measurement Input	0.100
Guideline public company | Revenue multiple | Minimum
Fair value measurement of assets and liabilities
Equity Securities, FV-NI, Measurement Input	1.6
Guideline public company | Revenue multiple | Maximum
Fair value measurement of assets and liabilities
Equity Securities, FV-NI, Measurement Input	10
Guideline public company | Revenue multiple | Median
Fair value measurement of assets and liabilities
Equity Securities, FV-NI, Measurement Input	4

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of changes in FV of investment (Details) - Ecotec - Equity investment - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of changes in fair value
Balance, beginning of period	$ 14,549		$ 12,803
Purchases of equity interests		$ 8,000	2,000	$ 8,000
Unrealized loss	(1,742)		(1,996)
Balance, end of period	$ 12,807	$ 8,000	$ 12,807	$ 8,000

Fair Value Measurements - Measu

Fair Value Measurements - Measured on Nonrecurring Basis (Details) - Level 3 - Impaired Long-Lived Assets - Compressors $ in Thousands	Jun. 30, 2023 USD ($) $ / hp Y	Dec. 31, 2022 USD ($) $ / hp
Measurement Input, Weighted average disposal period
Fair value
Measurement input | Y	4
Measurement Input, Sale proceeds | Minimum
Fair value
Measurement input	0	0
Measurement Input, Sale proceeds | Maximum
Fair value
Measurement input	310	621
Measurement Input, Sale proceeds | Weighted average
Fair value
Measurement input	50	47
Measurement Input, Discount for market liquidity
Fair value
Measurement input	0.38	0.51
Nonrecurring Basis
Fair value
Impaired assets | $	$ 550	$ 1,961

Fair Value Measurements - Other

Fair Value Measurements - Other Financial Instruments (Details) - Fixed Rate Debt - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt, fair value	$ 1,297,464	$ 1,297,084
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt, fair value	$ 1,231,000	$ 1,214,000
Long-Term Debt, Fair Value by Fair Value Hierarchy Level	us-gaap:FairValueInputsLevel2Member	us-gaap:FairValueInputsLevel2Member

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) director	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Related Party Transaction
Revenue	$ 247,543	$ 215,828	$ 477,377	$ 413,029
Accounts receivable, net of allowance - Customer related	115,700		115,700		$ 111,900
Accounts receivable, net of allowance of $1,487 and $2,152, respectively	120,676		120,676		137,544
Affiliated entity
Related Party Transaction
Revenue	8,700	$ 9,200	17,800	$ 18,600
Accounts receivable, net of allowance - Customer related	$ 3,000		$ 3,000		$ 3,000
Revenue, Related Party, Name [Extensible Enumeration]	aroc:HilcorpAndAffiliatesMember	aroc:HilcorpAndAffiliatesMember	aroc:HilcorpAndAffiliatesMember	aroc:HilcorpAndAffiliatesMember
Accounts Receivable, after Allowance for Credit Loss, Current, Related Party, Name [Extensible Enumeration]	aroc:HilcorpAndAffiliatesMember		aroc:HilcorpAndAffiliatesMember		aroc:HilcorpAndAffiliatesMember
Affiliated entity | Old Ocean Reserves | Archrock, Inc.
Related Party Transaction
Ownership interest (percent)	9.20%		9.20%
Affiliated entity | Old Ocean Reserves
Related Party Transaction
Number of directors shareholders have right to designate | director			1
Minimum ownership interest of outstanding shares required to elect a board of director (percent)	7.50%		7.50%

Segment Information - Number (D

Segment Information - Number (Details)	6 Months Ended
	Jun. 30, 2023 segment
Segment Information
Number of reportable segments	2

Segment Information - Revenue a

Segment Information - Revenue and Gross Margin by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue and other financial information by reportable segment
Revenue	$ 247,543	$ 215,828	$ 477,377	$ 413,029
Gross margin	136,167	105,763	252,611	209,825
Contract Operations
Revenue and other financial information by reportable segment
Revenue	201,120	166,298	388,865	329,954
Gross margin	125,087	97,943	233,350	197,098
Aftermarket Services
Revenue and other financial information by reportable segment
Revenue	46,423	49,530	88,512	83,075
Gross margin	$ 11,080	$ 7,820	$ 19,261	$ 12,727

Segment Information - Reconcili

Segment Information - Reconciliation of gross margin to income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of total gross margin to income
Total gross margin	$ 136,167	$ 105,763	$ 252,611	$ 209,825
Less:
Selling, general and administrative	28,649	27,691	55,074	55,464
Depreciation and amortization	41,210	41,356	81,391	84,395
Long-lived and other asset impairment	2,892	4,647	5,461	12,063
Restructuring charges	(85)		962
Interest expense	28,630	24,456	55,211	49,702
Gain on sale of assets, net	(1,176)	(18,948)	(4,781)	(21,060)
Other expense (income), net	1,463	497	2,066	533
Income before income taxes	$ 34,584	$ 26,064	$ 57,227	$ 28,728

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 24,653	$ 16,746	$ 41,138	$ 18,467

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false