Archrock (AROC) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
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		175,172,118
Entity Central Index Key	0001389050
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 3,749	$ 1,338
Accounts receivable, net of allowance of $638 and $587, respectively	149,019	124,069
Inventory	84,366	81,761
Other current assets	7,547	5,989
Total current assets	244,681	213,157
Property, plant and equipment, net	3,261,026	2,301,982
Operating lease right-of-use assets	15,222	14,097
Goodwill	116,937
Intangible assets, net	78,197	30,182
Contract costs, net	35,938	37,739
Deferred tax assets	2,138	3,192
Other assets	54,241	47,733
Non-current assets of discontinued operations	7,868	7,868
Total assets	3,816,248	2,655,950
Current liabilities:
Accounts payable, trade	70,120	61,026
Accrued liabilities	119,303	85,381
Deferred revenue	5,238	5,736
Total current liabilities	194,661	152,143
Long-term debt	2,236,131	1,584,869
Operating lease liabilities	12,536	12,271
Deferred tax liabilities	41,394	4,921
Other liabilities	32,922	22,857
Non-current liabilities of discontinued operations	7,868	7,868
Total liabilities	2,525,512	1,784,929
Commitments and contingencies (Note 8)
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, 185,333,786 and 164,984,401 shares issued, respectively	1,854	1,650
Additional paid-in capital	3,877,203	3,470,576
Accumulated deficit	(2,467,142)	(2,499,931)
Treasury stock: 10,158,142 and 9,020,454 common shares, at cost, respectively	(121,179)	(101,274)
Total equity	1,290,736	871,021
Total liabilities and equity	$ 3,816,248	$ 2,655,950

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Accounts receivable, allowance	$ 638	$ 587
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)	185,333,786	164,984,401
Treasury stock, common shares (in shares)	10,158,142	9,020,454

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue	$ 292,161	$ 253,367	$ 831,175	$ 730,744
Total cost of sales, exclusive of depreciation and amortization	114,205	111,961	341,384	336,727
Selling, general and administrative	34,059	28,558	96,887	83,632
Depreciation and amortization	48,377	42,155	135,065	123,546
Long-lived and other asset impairment	2,509	2,922	9,478	8,383
Restructuring charges		592	0	1,554
Debt extinguishment loss	3,181		3,181
Interest expense	30,179	28,339	85,372	83,550
Transaction-related costs	9,220		11,002
Gain on sale of assets, net	(2,218)	(3,237)	(5,175)	(8,018)
Other expense (income), net	(304)	(235)	(37)	1,831
Income before income taxes	52,953	42,312	154,018	99,539
Provision for income taxes	15,437	11,454	41,545	27,543
Net income	$ 37,516	$ 30,858	$ 112,473	$ 71,996
Basic earnings per common share (in dollars per share)	$ 0.22	$ 0.20	$ 0.70	$ 0.46
Diluted earnings per common share (in dollars per share)	$ 0.22	$ 0.20	$ 0.70	$ 0.46
Weighted average common shares outstanding:
Basic (in shares)	165,847	154,163	158,205	154,210
Diluted (in shares)	166,173	154,401	158,518	154,398
Contract operations
Revenue	$ 245,420	$ 207,552	$ 693,939	$ 596,417
Total cost of sales, exclusive of depreciation and amortization	79,810	75,273	236,831	230,788
Aftermarket services
Revenue	46,741	45,815	137,236	134,327
Total cost of sales, exclusive of depreciation and amortization	$ 34,395	$ 36,688	$ 104,553	$ 105,939

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock, Common	Total
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
Increase (Decrease) in Stockholders' Equity
Shares repurchased				$ (6,495)	(6,495)
Shares repurchased (in shares)				576,262
Shares withheld related to net settlement of equity awards				$ (3,784)	(3,784)
Shares withheld related to net settlement of equity awards (in shares)				384,684
Cash dividends			(71,606)		(71,606)
Shares issued in ESPP	$ 1	573			574
Shares issued in ESPP (in shares)	61,494
Stock-based compensation, net of forfeitures	$ 14	9,701			9,715
Stock-based compensation, net of forfeitures (in shares)	1,459,236			68,158
Net income			71,996		71,996
Ending balance at Sep. 30, 2023	$ 1,649	3,467,051	(2,508,743)	$ (98,864)	861,093
Ending balance (in shares) at Sep. 30, 2023	164,959,743
Treasury stock, common shares, Ending balance (in shares) at Sep. 30, 2023				8,839,652
Beginning balance at Jun. 30, 2023	$ 1,649	3,463,668	(2,515,351)	$ (94,433)	855,533
Beginning balance (in shares) at Jun. 30, 2023	164,940,249
Treasury stock, common shares, Beginning balance (in shares) at Jun. 30, 2023				8,440,673
Increase (Decrease) in Stockholders' Equity
Shares repurchased				$ (4,422)	(4,422)
Shares repurchased (in shares)				354,012
Shares withheld related to net settlement of equity awards				$ (9)	(9)
Shares withheld related to net settlement of equity awards (in shares)				717
Cash dividends			(24,250)		(24,250)
Shares issued in ESPP		192			192
Shares issued in ESPP (in shares)	19,494
Stock-based compensation, net of forfeitures		3,191			3,191
Stock-based compensation, net of forfeitures (in shares)				44,250
Net income			30,858		30,858
Ending balance at Sep. 30, 2023	$ 1,649	3,467,051	(2,508,743)	$ (98,864)	861,093
Ending balance (in shares) at Sep. 30, 2023	164,959,743
Treasury stock, common shares, Ending balance (in shares) at Sep. 30, 2023				8,839,652
Beginning balance at Dec. 31, 2023	$ 1,650	3,470,576	(2,499,931)	$ (101,274)	$ 871,021
Beginning balance (in shares) at Dec. 31, 2023	164,984,401
Treasury stock, common shares, Beginning balance (in shares) at Dec. 31, 2023				9,020,454	9,020,454
Increase (Decrease) in Stockholders' Equity
Shares repurchased				$ (13,337)	$ (13,337)
Shares repurchased (in shares)				732,826
Shares withheld related to net settlement of equity awards				$ (6,568)	(6,568)
Shares withheld related to net settlement of equity awards (in shares)				391,868
Cash dividends			(79,684)		(79,684)
Shares issued in ESPP		815			815
Shares issued in ESPP (in shares)	49,602
Stock-based compensation, net of forfeitures	$ 8	11,207			11,215
Stock-based compensation, net of forfeitures (in shares)	776,133			12,994
Net proceeds from issuance of common stock	$ 127	255,620			255,747
Net proceeds from issuance of common stock (in shares)	12,650,000
Shares issued for TOPS Acquisition	$ 69	138,985			139,054
Shares issued for TOPS Acquisition (in shares)	6,873,650
Net income			112,473		112,473
Ending balance at Sep. 30, 2024	$ 1,854	3,877,203	(2,467,142)	$ (121,179)	$ 1,290,736
Ending balance (in shares) at Sep. 30, 2024	185,333,786
Treasury stock, common shares, Ending balance (in shares) at Sep. 30, 2024				10,158,142	10,158,142
Beginning balance at Jun. 30, 2024	$ 1,658	3,478,597	(2,476,793)	$ (108,966)	$ 894,496
Beginning balance (in shares) at Jun. 30, 2024	165,793,798
Treasury stock, common shares, Beginning balance (in shares) at Jun. 30, 2024				9,493,262
Increase (Decrease) in Stockholders' Equity
Shares repurchased				$ (12,107)	(12,107)
Shares repurchased (in shares)				649,854
Shares withheld related to net settlement of equity awards				$ (106)	(106)
Shares withheld related to net settlement of equity awards (in shares)				5,291
Cash dividends			(27,865)		(27,865)
Shares issued in ESPP		263			263
Shares issued in ESPP (in shares)	14,485
Stock-based compensation, net of forfeitures		3,738			3,738
Stock-based compensation, net of forfeitures (in shares)	1,853			9,735
Net proceeds from issuance of common stock	$ 127	255,620			255,747
Net proceeds from issuance of common stock (in shares)	12,650,000
Shares issued for TOPS Acquisition	$ 69	138,985			139,054
Shares issued for TOPS Acquisition (in shares)	6,873,650
Net income			37,516		37,516
Ending balance at Sep. 30, 2024	$ 1,854	$ 3,877,203	$ (2,467,142)	$ (121,179)	$ 1,290,736
Ending balance (in shares) at Sep. 30, 2024	185,333,786
Treasury stock, common shares, Ending balance (in shares) at Sep. 30, 2024				10,158,142	10,158,142

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended							9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Equity
Dividend declared per common stock (in dollars per share)	$ 0.165	$ 0.165	$ 0.165	$ 0.155	$ 0.155	$ 0.150	$ 0.150	$ 0.495	$ 0.455

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 112,473	$ 71,996
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	135,065	123,546
Long-lived and other asset impairment	9,478	8,383
Non-cash restructuring charges		211
Unrealized change in fair value of investment in unconsolidated affiliate		1,996
Inventory write-downs	568	381
Amortization of operating lease right-of-use assets	2,789	2,488
Amortization of deferred financing costs	3,575	4,599
Amortization of debt premium	(1,504)	(1,504)
Amortization of capitalized implementation costs	2,259	1,841
Debt extinguishment loss	3,181
Stock-based compensation expense	11,215	9,715
Provision for (benefit from) credit losses	95	(234)
Gain on sale of assets, net	(5,175)	(8,018)
Deferred income tax provision	40,483	26,411
Amortization of contract costs	17,771	15,636
Deferred revenue recognized in earnings	(9,707)	(11,043)
Changes in operating assets and liabilities:
Accounts receivable, net	(4,883)	(7,315)
Inventory	3,449	(1,672)
Other assets	(3,303)	(1,635)
Contract costs	(15,970)	(18,854)
Accounts payable and other liabilities	(7,126)	10,745
Deferred revenue	10,598	10,733
Other	(78)	62
Net cash provided by operating activities	305,253	238,468
Cash flows from investing activities:
Capital expenditures	(261,044)	(261,977)
Proceeds from sale of property, equipment and other assets	24,204	54,663
Proceeds from insurance and other settlements	45	1,157
Cash paid in TOPS Acquisition, net of cash acquired	(866,568)
Investments in unconsolidated entities	(1,307)	(2,000)
Net cash used in investing activities	(1,104,670)	(208,157)
Cash flows from financing activities:
Borrowings of long-term debt	1,133,425	577,725
Repayments of long-term debt	(974,275)	(522,075)
Proceeds from 2032 Notes offering	700,000
Partial repayment of 2027 Notes	(201,987)
Payments of debt issuance costs	(12,308)	(5,734)
Dividends paid to stockholders	(79,684)	(71,606)
Repurchases of common stock	(13,337)	(6,495)
Taxes paid related to net share settlement of equity awards	(6,568)	(3,784)
Net proceeds from issuance of common stock	255,747
Proceeds from stock issued under ESPP	815	574
Net cash provided by (used in) financing activities	801,828	(31,395)
Net increase (decrease) in cash and cash equivalents	2,411	(1,084)
Cash and cash equivalents, beginning of period	1,338	1,566
Cash and cash equivalents, end of period	3,749	$ 482
Supplemental disclosure of non-cash investing transactions:
Issuance of Archrock common stock pursuant to TOPS Acquisition	$ 139,054

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Basis of Presentation and Significant Accounting Policies
Description of Business and Basis of Presentation	1. Description of Business and Basis of Presentation ​ We are an energy infrastructure company with a primary focus on midstream natural gas compression. We are a premier 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 condensed 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 2023 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 nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. ​ ​

Recent Accounting Developments

Recent Accounting Developments	9 Months Ended
	Sep. 30, 2024
Recent Accounting Developments
Recent Accounting Developments	2. Recent Accounting Developments ​ Accounting Standards Updates Not Yet Implemented Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require significant additional disclosures, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, and should be applied on a prospective basis, with a retrospective option. Early adoption is permitted. We are evaluating the impact that the adoption of ASU 2023-09 will have on our consolidated financial statements and related disclosures. Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will require disclosures of significant expenses for each reportable segment, as well as certain other disclosures to help investors understand how the chief operating decision maker evaluates segment expenses and operating results. ASU 2023-07 will also allow disclosure of multiple measures of segment profitability if those measures are used to allocate resources and assess performance. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis, unless impracticable. Early adoption is permitted. We are evaluating the impact that the adoption of ASU 2023-07 will have on our segment disclosures. We expect that the adoption of ASU 2023-07 will not have a material impact on our consolidated financial statements. Business Combinations – Joint Venture Formations In August 2023, the FASB issued ASU 2023-05, to reduce diversity in practice and provide decision-useful information to a joint venture’s investors by requiring that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture will recognize and initially measure its assets and liabilities at fair value, with exceptions to fair value measurement that are consistent with the business combinations guidance, on the date of formation. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025, may elect to apply the amendments retrospectively if it has sufficient information to do so. Early adoption is permitted in any interim or annual period in which financial statements have not been issued or been made available for issuance, either prospectively or retrospectively. We expect that the adoption of ASU 2023-05 will have no impact on our consolidated financial statements.

Business Transactions

Business Transactions	9 Months Ended
	Sep. 30, 2024
Business Transactions
Business Transactions	3. Business Transactions ​ TOPS Acquisition ​ On August 30, 2024, we completed the TOPS Acquisition, whereby we acquired all of the issued and outstanding equity interests in TOPS, including a fleet of approximately 580,000 horsepower, including approximately 530,000 operating horsepower, for aggregate consideration consisting of $869.1 million in cash and 6,873,650 shares of common stock with an acquisition date fair value of $139.1 million. The cash portion of the purchase price was funded with proceeds from the July 2024 Equity Offering and the 2032 Notes offering and borrowings under the Credit Facility. The purchase price paid is subject to customary post-closing adjustments in accordance with the terms of the purchase and sale agreement. ​ The TOPS Acquisition was accounted for using the acquisition method of accounting, which requires, among other things, assets acquired and liabilities assumed to be recorded at their fair value on the acquisition date. The excess of the consideration transferred over those fair values is recorded as goodwill. The preliminary allocation of the purchase price, which is subject to certain adjustments, was based upon preliminary valuations. Our estimates and assumptions are subject to change upon the completion of management’s review of the final valuations. We are in the process of finalizing valuations related to property, plant and equipment, identifiable intangible assets and goodwill. Post-closing adjustments to the purchase price could impact future depreciation and amortization as well as income tax expense. The final valuation of net assets acquired is expected to be completed as soon as practicable, but no later than one year from the acquisition date. ​ The following table summarizes the preliminary purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date: ​ ​ ​ ​ ​ (in thousands) ​ ​ Cash $ 2,498 Accounts receivable ​ ​ 9,694 Inventory ​ ​ 6,944 Other current assets ​ ​ 495 Property, plant and equipment ​ ​ 872,053 Operating lease right-of-use assets ​ ​ 1,424 Goodwill ​ ​ 116,937 Intangible assets ​ ​ 52,775 Other assets ​ ​ 4,032 Accounts payable, trade ​ ​ (48,609) Accrued liabilities ​ ​ (4,666) Operating lease liabilities ​ ​ (1,424) Other liabilities ​ ​ (4,032) Purchase price ​ $ 1,008,121 ​ The valuation methodologies and significant inputs for fair value measurements are detailed by asset class below. The fair value measurements for property, plant and equipment and intangible assets are based on significant inputs that are not observable in the market and therefore represent Level 3 measurements. ​ Property, Plant and Equipment ​ The preliminary amount of property, plant and equipment is primarily comprised of electric motor drive compression equipment that will depreciate on a straight-line basis over an estimated average remaining useful life of 25 years. The preliminary fair value of the property, plant and equipment was determined using both the cost and market approach. Under the cost approach, we estimated the replacement cost of the assets by evaluating recent purchases of similar assets or published data, then adjusted replacement cost for physical deterioration and functional and economic obsolescence, as applicable. We then considered the market approach by comparing our estimated dollar per horsepower to market comparables and market participant assumptions and adjusted as necessary. ​ Other fixed assets were valued using the indirect cost method, whereby we applied asset-specific trend information using published indexes to calculate the estimated replacement cost of assets that were identified to be reflected at historical cost. Other assets were depreciated based on published normal useful life estimates and prior experience with similar assets. ​ Intangible Assets ​ The intangible assets consist of customer relationships and trade names that have estimated useful lives of 12 years and five years, respectively. The preliminary amount of intangible assets and their associated useful life were determined based on the period over which the assets are expected to contribute directly or indirectly to our future cash flows. ​ The fair value of the identifiable intangible assets related to customer relationships was determined using the multi-period excess earnings method, which is a specific application of the discounted cash flow method, an income approach, whereby we estimated and then discounted the future cash flows of the intangible asset by adjusting overall business revenue for attrition, obsolescence, cost of sales, operating expenses, taxes and the required returns attributable to other contributory assets acquired. Significant estimates made in arriving at expected future cash flows included our expected customer attrition rate and the amount of earnings attributable to the assets. To discount the estimated future cash flows, we utilized a discount rate that was at a premium to our WACC to reflect the less liquid nature of the customer relationships relative to the tangible assets acquired. ​ It is generally accepted that the fair market value of a trade name is best measured by the relief-from-royalty method under the income approach, whereby we calculated the royalty savings by estimating a reasonable royalty rate that a third party would negotiate in a licensing agreement expressed as a percentage of total revenue involving a trade name. The revenue related to the trade name was multiplied by the selected royalty rate over the estimated expected useful life of the trade name to arrive at the royalty savings. The royalty savings were tax effected and discounted to present value using a discount rate commensurate with the risk profile of the trade name relative to our WACC and the return on the other acquired assets of TOPS. ​ Goodwill ​ The preliminary amount of goodwill resulting from the TOPS Acquisition is attributable to the expansion of our services in the Permian Basin where we currently operate and was allocated to our contract operations segment. The goodwill recorded is considered to have an indefinite life and will be reviewed annually for impairment or more frequently if indicators of potential impairment exist. All of the goodwill recorded for the TOPS Acquisition is expected to be deductible for U.S. federal income tax purposes. ​ Tax Contingency and Indemnification Asset In connection with the TOPS Acquisition, we recorded a non-income tax based contingency of $4.3 million and a corresponding indemnification asset of $4.3 million based on facts existing on the date of acquisition. The tax contingency arose from pre-acquisition activities of TOPS. As part of the acquisition, the sellers agreed to indemnify us for certain tax contingencies up to $21.6 million as of the acquisition date. Dependent upon facts and circumstances, the sellers’ indemnification obligation may be reduced over a period of five years from the acquisition date but may also be extended until the resolution of claims timely submitted to the sellers. The results of operations attributable to the TOPS Acquisition have been included in our condensed consolidated financial statements as part of our contract operations segment since the date of acquisition. Revenue attributable to the assets acquired from the acquisition date through September 30, 2024 was $15.6 million. We are unable to provide earnings attributable to the assets and liabilities acquired since the acquisition date, as we do not prepare full stand-alone earnings reports for those assets and liabilities. ​ Transaction-Related Costs ​ In connection with the TOPS Acquisition, we recorded $9.2 million and $11.0 million of transaction-related costs in our condensed consolidated statements of operations during the three and nine months ended September 30, 2024, respectively. ​ The following table presents transaction-related cost incurred by cost type: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended (in thousands) ​ September 30, 2024 September 30, 2024 Professional fees (1) ​ $ 8,762 ​ $ 10,544 Compensation-related costs (2) ​ ​ 363 ​ ​ 363 Other costs ​ ​ 95 ​ ​ 95 Total transaction-related costs ​ $ 9,220 ​ $ 11,002 (1) Professional fees include legal, advisory, consulting and other fees. (2) Compensation-related costs include amounts related to employee retention and other compensation related arrangements associated with the acquisition. Payments are due and payable at various times up to and including the two-year anniversary of the TOPS Acquisition. ​ Unaudited Pro Forma Financial Information ​ The unaudited pro forma financial information for the three and nine months ended September 30, 2024 and 2023 was derived by adjusting our historical financial statements in order to give effect to the assets and liabilities acquired in the TOPS Acquisition. The TOPS Acquisition is presented in this unaudited pro forma financial information as though the acquisition occurred as of January 1, 2023, and reflects the following: ​ ● the effects of the employee retention and other compensation-related arrangements associated with the TOPS Acquisition; ​ ● the application of our accounting policies and adjusting the results of TOPS to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant, and equipment, and intangible assets had been applied from January 1, 2023; ​ ● the interest expense resulting from the 2032 Notes, the 2027 Notes Tender Offer, and the First Amendment to the Amended and Restated Credit Agreement; ​ ● the exclusion of $8.8 million and $10.5 million of nonrecurring financial advisory, legal, audit and other professional fees incurred related to the acquisition and recorded to transaction-related costs in our condensed consolidated statements of operations during the three and nine months ended September 30, 2024, respectively. The nine months ended September 30, 2023 pro forma earnings were adjusted to reflect these charges; and ​ ● the income tax effects of the adjustments based on the estimated blended statutory tax rate of 23% . ​ The unaudited pro forma financial information below is presented for informational purposes only and is not necessarily indicative of our results of operations that would have occurred had the transaction been consummated at the beginning of the period presented, nor is it necessarily indicative of future results. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Revenue ​ $ 321,775 ​ $ 282,657 ​ $ 940,244 ​ $ 806,243 Net income attributable to Archrock stockholders ​ ​ 49,494 ​ ​ 29,318 ​ ​ 133,164 ​ ​ 50,791 ​

Inventory

Inventory	9 Months Ended
	Sep. 30, 2024
Inventory
Inventory	4. Inventory ​ Inventory was comprised of the following as of September 30, 2024 and December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, (in thousands) ​ 2024 ​ 2023 Parts and supplies ​ $ 70,824 ​ $ 70,759 Work in progress ​ 13,542 ​ 11,002 Inventory ​ $ 84,366 ​ $ 81,761 ​

Property, Plant and Equipment,

Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net	5. Property, Plant and Equipment, Net ​ Property, plant and equipment, net was comprised of the following as of September 30, 2024 and December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, (in thousands) ​ 2024 ​ 2023 Compression equipment, facilities and other fleet assets ​ $ 4,301,892 ​ $ 3,326,919 Land and buildings ​ 31,936 ​ 30,169 Transportation and shop equipment ​ 117,296 ​ 100,474 Computer hardware and software ​ 77,912 ​ 77,532 Other ​ 6,106 ​ 5,678 Property, plant and equipment ​ 4,535,142 ​ 3,540,772 Accumulated depreciation ​ (1,274,116) ​ (1,238,790) Property, plant and equipment, net ​ $ 3,261,026 ​ $ 2,301,982 ​

Investments in Unconsolidated A

Investments in Unconsolidated Affiliates	9 Months Ended
	Sep. 30, 2024
Investments in Unconsolidated Affiliates
Investment in Unconsolidated Affiliate	​ 6. Investments in Unconsolidated Affiliates ​ 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. ​ In April 2022, we agreed to acquire for cash a 25% equity interest in ECOTEC, a company specializing in methane emissions detection, monitoring and management. We have elected the fair value option to account for this investment, and during the nine months ended September 30, 2023, we recognized unrealized losses of $2.0 million related to the change in fair value of our investment (see Note 15 (“Fair Value Measurements”)). Changes in the fair value of this investment are recognized in other expense ​ For ownership interests that are not accounted for under the equity method and that do not have readily determinable fair values, we have elected the fair value measurement alternative to record these investments at cost minus impairment, if any, including adjustments for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Investments in equity securities measured using the fair value measurement alternative are reviewed for impairment or observable price changes in orderly transactions each reporting period. ​ In November 2023, we agreed to serve as the lead investor in a series A preferred financing round for Ionada, a global carbon capture technology company committed to reducing GHG emissions and creating a sustainable future. Ionada has developed a post-combustion carbon capture solution to reduce carbon dioxide emissions from various small- to mid-sized industrial emitters in the energy, marine and e-fuels industries, among others. We have elected the fair value measurement alternative to account for this investment (see Note 15 (“Fair Value Measurements”)). Adjustments to the carrying value are recognized in other expense, net in our condensed consolidated statements of operations. As of September 30, 2024, the carrying value of our investment in Ionada was $4.3 million, which includes our initial investment of $3.8 million; and our fully diluted ownership interest in Ionada was 10%, which is included in other assets in our condensed consolidated balance sheets. Subject to certain conditions, our ownership interest will increase to 24% over the next two years. ​ ​

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2024
Long-Term Debt
Long-Term Debt	7. Long-Term Debt ​ Long-term debt was comprised of the following as of September 30, 2024, and December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) September 30, 2024 December 31, 2023 Credit Facility ​ $ 446,175 ​ $ 287,025 ​ ​ ​ ​ ​ ​ ​ 6.625% senior notes due September 2032: ​ ​ ​ ​ ​ ​ Principal outstanding ​ ​ 700,000 ​ — Unamortized debt issuance costs ​ ​ (9,629) ​ — ​ ​ ​ 690,371 ​ — 6.25% senior notes due April 2028: ​ ​ ​ ​ ​ ​ Principal outstanding ​ 800,000 ​ 800,000 Unamortized debt premium ​ ​ 7,020 ​ 8,524 Unamortized debt issuance costs ​ (5,816) ​ (7,081) ​ ​ 801,204 ​ 801,443 6.875% senior notes due April 2027: ​ ​ ​ ​ ​ ​ Principal outstanding ​ ​ 300,000 ​ 500,000 Unamortized debt issuance costs ​ ​ (1,619) ​ (3,599) ​ ​ ​ 298,381 ​ 496,401 ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 2,236,131 ​ $ 1,584,869 ​ 2032 Notes ​ On August 26, 2024, we completed a private offering of $700.0 million aggregate principal amount of 6.625% senior notes due September 2032 and received net proceeds of $690.3 million after deducting issuance costs. The $9.7 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. A portion of the net proceeds were used to fund a portion of the cash consideration for the TOPS Acquisition, the 2027 Notes Tender Offer and to repay borrowings outstanding under our Credit Facility. The 2032 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 2032 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 2032 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by us, and by all of our existing subsidiaries, other than Archrock Partners Finance Corp., which is the issuer of the 2032 Notes. The 2032 Notes and the guarantees rank equally in right of payment with all of our and the guarantors’ existing and future senior indebtedness. We may, at our option, redeem all of part of the 2032 Notes at any time on or after September 1, 2027, at specified redemption prices, plus any accrued and unpaid interest. In addition, prior to September 1, 2027, we may redeem up to 40% of the 2032 Notes at specified redemption prices and make-whole premiums, plus any accrued and unpaid interest. ​ 2027 Notes Tender Offer In connection with the offering of the 2032 Notes, we completed a concurrent cash tender offer of $202.0 million, which reflects approximately 101% of the aggregate principal amount of the tendered 2027 Notes and $0.2 million of agent and legal fees. On the date of tender, the net carrying value of the tendered 2027 Notes was $198.8 million and we recorded a debt extinguishment loss of $3.2 million in our condensed consolidated statements of operations. First Amendment to the Amended and Restated Credit Agreement On August 28, 2024, we amended our Amended and Restated Credit Agreement to, among other things: ● increase the borrowing capacity of the Credit Facility from $750.0 million to $1.1 billion; ● increase the portion of the Credit Facility available for the issuance of swing line loans from $75.0 million to $110.0 million; ● increase the cash dominion trigger threshold amount from $75.0 million to $110.0 million; ● add certain financial institutions as lenders under the Credit Facility; ● join a newly formed wholly owned subsidiary of Archrock Services, L.P. as a guarantor and grantor under the Credit Facility; and ● modify certain other covenants to which we are subject to. During both the three and nine months ended September 30, 2024, we incurred $2.6 million in transaction costs related to the First Amendment 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. ​ 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 the 2027 Notes and 2028 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; and ● increase the portion of the Credit Facility available for the issuance of swing line loans from $50.0 million to $75.0 million. During the second quarter of 2023, 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, during the second quarter of 2023, 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 nine months ended September 30, 2023. As of September 30, 2024, there were $4.1 million letters of credit outstanding under the Credit Facility and the applicable margin on borrowings outstanding was 2.1%. The weighted-average annual interest rate on the outstanding balance under the Credit Facility was 7.2% and 7.7% at September 30, 2024 and December 31, 2023, respectively. We incurred $0.6 million and $0.4 million of commitment fees on the daily unused amount of the Credit Facility during the three months ended September 30, 2024 and 2023, respectively, and $1.5 million and $1.3 million during the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, we were in compliance with all covenants under our Credit Facility. Additionally, all undrawn capacity on our Credit Facility was available for borrowings as of September 30, 2024. ​

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies
Commitments and Contingencies	8. 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 September 30, 2024 and December 31, 2023, we had $8.9 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. As of both September 30, 2024 and December 31, 2023, $0.6 million of the tax contingencies mentioned above related to audits that have advanced from the audit review phase to the contested hearing phase. As of September 30, 2024, $4.3 million of the tax contingencies mentioned above had an offsetting indemnification asset. None were indemnified as of December 31, 2023. 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	9 Months Ended
	Sep. 30, 2024
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity ​ July 2024 Equity Offering On July 24, 2024, Archrock sold, pursuant to a public underwriting offering, 12,650,000 shares, including 1,650,000 shares pursuant to an over-allotment option. Archrock received net proceeds of $255.7 million, after deducting underwriting discounts, commissions and offering expenses. Proceeds from this equity offering were used to fund a portion of the TOPS Acquisition. TOPS Acquisition On August 30, 2024, we completed the TOPS Acquisition and issued 6,873,650 shares of common stock to the sellers as part of the acquisition purchase price. The acquisition date fair value was $139.1 million and is reflected in common stock and additional paid-in capital in our condensed consolidated statements of equity. See Note 3 (“Business Transactions”) for further details. Share Repurchases ​ Share Repurchase Program ​ On April 27, 2023, our Board of Directors authorized a share repurchase program that allowed us to repurchase up to $50.0 million of outstanding common stock. Under the 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. On April 25, 2024, our Board of Directors approved an extension of the Share Repurchase Program upon expiry of the current authorization on April 27, 2024, for an additional 24-month period. Through September 30, 2024, we had repurchased 1,483,200 common shares at an average price of $14.97 per share for an aggregate of $22.2 million. In connection with the extension, the Board of Directors replenished the amount of shares authorized for repurchase under the Share Repurchase Program, resulting in available capacity of $50.0 million. The actual timing, manner, number, and value of shares repurchased under the program will be determined by us at our discretion. ​ Shares Withheld to Cover ​ The 2020 Plan and 2013 Plan allow us to withhold shares upon vesting of restricted stock at the then-current market price to cover taxes required to be withheld on the vesting date. The following table summarizes shares repurchased: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, 2024 ​ September 30, 2024 (dollars in thousands, except per share amounts) ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased Shares repurchased under the Share Repurchase Program ​ ​ 649,854 ​ $ 18.63 ​ $ 12,107 ​ ​ 732,826 ​ $ 18.20 ​ $ 13,337 Shares withheld related to net settlement of equity awards ​ ​ 5,291 ​ ​ 20.05 ​ ​ 106 ​ ​ 391,868 ​ ​ 16.76 ​ ​ 6,568 Total ​ ​ 655,145 ​ $ 18.64 ​ $ 12,213 ​ ​ 1,124,694 ​ $ 17.70 ​ $ 19,905 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, 2023 ​ September 30, 2023 (dollars in thousands, except per share amounts) ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased Shares repurchased under the Share Repurchase Program ​ ​ 354,012 ​ $ 12.49 ​ $ 4,422 ​ ​ 576,262 ​ $ 11.27 ​ $ 6,495 Shares withheld related to net settlement of equity awards ​ ​ 717 ​ ​ 12.75 ​ ​ 9 ​ ​ 384,684 ​ ​ 9.84 ​ ​ 3,784 Total ​ ​ 354,729 ​ $ 12.49 ​ $ 4,431 ​ ​ 960,946 ​ $ 10.70 ​ $ 10,279 ​ Cash Dividends ​ The following table summarizes our dividends declared and paid in each of the quarterly periods of 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends per ​ (dollars in thousands, except per share amounts) Common Share Dividends Paid 2024 ​ ​ Q3 ​ $ 0.165 ​ $ 27,865 Q2 ​ ​ 0.165 ​ ​ 25,819 Q1 ​ ​ 0.165 ​ ​ 26,000 ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ Q4 ​ $ 0.155 ​ $ 24,190 Q3 ​ 0.155 ​ 24,250 Q2 ​ 0.150 ​ 23,504 Q1 ​ 0.150 ​ 23,852 ​ On October 24, 2024, our Board of Directors declared a quarterly dividend of $0.175 per share of common stock to be paid on November 13, 2024 to stockholders of record at the close of business on November 6, 2024.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
	Sep. 30, 2024
Revenue from Contracts with Customers
Revenue from Contracts with Customers	10. 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 ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Contract operations: ​ ​ ​ ​ ​ ​ ​ ​ 0 ― 1,000 horsepower per unit ​ $ 60,589 ​ $ 43,142 ​ $ 151,250 ​ $ 126,272 1,001 ― 1,500 horsepower per unit ​ 96,160 ​ 90,016 ​ 286,517 ​ 259,830 Over 1,500 horsepower per unit ​ 88,529 ​ 74,140 ​ 255,684 ​ 209,526 Other (1) ​ 142 ​ 254 ​ 488 ​ 789 Total contract operations revenue (2) ​ 245,420 ​ 207,552 ​ 693,939 ​ 596,417 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Aftermarket services: ​ ​ ​ ​ Services ​ 27,396 ​ 24,860 ​ 78,509 ​ 70,676 OTC parts and components sales ​ 19,029 ​ 20,955 ​ 58,411 ​ 63,651 Other ​ ​ 316 ​ ​ — ​ ​ 316 ​ ​ — Total aftermarket services revenue (3) ​ 46,741 ​ 45,815 ​ 137,236 ​ 134,327 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue ​ $ 292,161 ​ $ 253,367 ​ $ 831,175 ​ $ 730,744 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $1.5 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively, and $3.8 million and $2.9 million for the nine months ended September 30, 2024 and 2023, 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 and other revenue is recognized at a point in time. ​ See Note 17 (“Segment Information”) for further details. Performance Obligations ​ As of September 30, 2024, we had $828.3 million of remaining performance obligations related to our contract operations segment, which will be recognized through 2029 as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ 2024 ​ 2025 ​ 2026 2027 2028 2029 Total Remaining performance obligations ​ ​ $ 175,887 ​ $ 387,950 ​ $ 208,119 ​ $ 41,617 ​ $ 12,350 ​ $ 2,403 ​ $ 828,326 ​ 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 September 30, 2024 and December 31, 2023, our receivables from contracts with customers, net of allowance for credit losses, were $141.1 million and $119.7 million, respectively. Allowance for Credit Losses ​ Our allowance for credit losses balance changed as follows during the nine months ended September 30, 2024: ​ ​ ​ ​ ​ (in thousands) ​ ​ Balance at beginning of period $ 587 Provision for credit losses ​ ​ 95 Write-offs charged against allowance ​ ​ (44) Balance at end of period ​ $ 638 ​ 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 September 30, 2024 and December 31, 2023, our contract liabilities were $7.9 million and $7.0 million, respectively. During the nine months ended September 30, 2024, we deferred revenue of $10.6 million and recognized $9.7 million as revenue.

Long-Lived and Other Asset Impa

Long-Lived and Other Asset Impairment	9 Months Ended
	Sep. 30, 2024
Long-Lived and Other Asset Impairment
Long-Lived and Other Asset Impairment	11. 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 ​ Nine Months Ended ​ ​ September 30, ​ September 30, (dollars in thousands) 2024 2023 2024 2023 Idle compressors retired from the active fleet ​ 15 ​ 30 ​ 80 ​ 75 Horsepower of idle compressors retired from the active fleet ​ 12,000 ​ 16,000 ​ 58,000 ​ 39,000 Impairment recorded on idle compressors retired from the active fleet ​ $ 2,509 ​ $ 2,922 ​ $ 9,478 ​ $ 8,383 ​ See Note 15 (“Fair Value Measurements”) for further details.

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2024
Restructuring Charges
Restructuring Charges	12. 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 did not incur restructuring charges during the nine months ended September 30, 2024, and we do not expect to incur additional restructuring charges related to these restructuring activities. ​ The following table presents restructuring charges incurred by segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract ​ Aftermarket ​ ​ ​ ​ ​ ​ (in thousands) ​ Operations ​ Services ​ Other (1) ​ Total Three months ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ — ​ $ 387 ​ $ 205 ​ $ 592 Total restructuring charges ​ $ — ​ $ 387 ​ $ 205 ​ $ 592 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ 101 ​ $ 387 ​ $ 1,066 ​ $ 1,554 Total restructuring charges ​ $ 101 ​ $ 387 ​ $ 1,066 ​ $ 1,554 (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 ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) ​ 2023 2023 Organizational Restructuring ​ ​ ​ ​ ​ ​ Severance costs ​ $ 592 ​ $ 1,296 Consulting costs ​ ​ — ​ ​ 258 Total restructuring costs ​ $ 592 ​ $ 1,554 ​

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Taxes
Income Taxes	13. 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 expense 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 nine months ended September 30, 2024 differed significantly from our statutory rate primarily due to state taxes, unrecognized tax benefits and the limitation on executive compensation offset by the benefit from equity-settled long-term incentive compensation. Unrecognized Tax Benefits ​ As of September 30, 2024, we believe it is reasonably possible that $3.5 million of our unrecognized tax benefits, including penalties, interest and discontinued operations, will be reduced prior to September 30, 2025 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	9 Months Ended
	Sep. 30, 2024
Earnings per Common Share
Net Income (Loss) per Common Share	14. Earnings Per Common Share ​ Basic earnings per common share is computed using the two-class method, which is an earnings allocation formula that determines earnings 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 ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Net income ​ $ 37,516 ​ $ 30,858 ​ $ 112,473 ​ $ 71,996 Less: Allocation of earnings to participating securities ​ (430) ​ (434) ​ (1,607) ​ (1,418) Net income attributable to common stockholders ​ $ 37,086 ​ $ 30,424 ​ $ 110,866 ​ $ 70,578 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Allocation of earnings to cash or share settled restricted stock units ​ ​ (129) ​ ​ — ​ ​ (352) ​ ​ — Diluted net income attributable to common stockholders ​ $ 36,957 ​ $ 30,424 ​ $ 110,514 ​ $ 70,578 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding used in basic earnings per common share ​ ​ 165,847 ​ ​ 154,163 ​ ​ 158,205 ​ ​ 154,210 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance-based restricted stock units ​ ​ 325 ​ ​ 235 ​ ​ 306 ​ ​ 181 ESPP shares ​ ​ 1 ​ ​ 3 ​ ​ 7 ​ ​ 7 Weighted-average common shares outstanding used in diluted earnings per common share ​ ​ 166,173 ​ ​ 154,401 ​ ​ 158,518 ​ ​ 154,398 ​

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
Fair Value Measurements
Fair Value Measurements	15. Fair Value Measurements ​ Assets and Liabilities Measured at Fair Value on a Recurring Basis ​ Investment in ECOTEC ​ As of September 30, 2024, we owned a 25% equity interest in ECOTEC (see Note 6 (“Investments in Unconsolidated Affiliates”)). We have elected the fair value option to account for this investment. As of September 30, 2024, the fair value of our investment in ECOTEC was $16.2 million and is classified as Level 3. ​ The fair value determination of this investment primarily consisted of unobservable inputs, which creates uncertainty in the measurement of fair value as of the reporting date. The significant unobservable inputs used in the fair value measurement, which was valued through an average of an income approach (discounted cash flow method) and a market approach (guideline public company method), are the WACC and the revenue multiples. Significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement. ​ Additional quantitative information related to the significant unobservable inputs are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant ​ Three Months Ended ​ Three Months Ended ​ ​ Unobservable ​ September 30, 2024 ​ September 30, 2023 ​ ​ Inputs ​ Range ​ Median ​ Range ​ Median Valuation technique: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Discounted cash flow ​ WACC ​ 0.4% - 20.0% ​ ​ 13.5% ​ 0.0% - 17.4% ​ ​ 10.0% Guideline public company ​ Revenue multiple ​ 1.5x - 7.2x ​ ​ 3.8x ​ 1.6x - 10.0x ​ ​ 4.0x ​ ​ The reconciliation of changes in the fair value of our investment in ECOTEC is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) ​ ​ 2024 ​ ​ 2023 ​ ​ 2024 ​ ​ 2023 Balance at beginning of period $ 14,905 $ 12,807 ​ $ 14,905 $ 12,803 Purchases of equity interests ​ ​ 1,250 ​ ​ — ​ ​ 1,250 ​ ​ 2,000 Unrealized loss (1) ​ ​ — ​ ​ — ​ ​ — ​ ​ (1,996) Balance at end of period ​ $ 16,155 ​ $ 12,807 ​ $ 16,155 ​ $ 12,807 (1) Included in other expense , net in our unaudited condensed consolidated statement of operations. ​ Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis ​ Investment in Ionada As of September 30, 2024, we had a fully diluted ownership equity interest in Ionada of 10% (see Note 6 (“Investments in Unconsolidated Affiliates”)). We have elected the fair value measurement alternative to account for this investment. As of September 30, 2024, the carrying value of our investment in Ionada was $4.3 million, which includes our initial investment of $3.8 million and cumulative transaction costs of $0.5 million. There had been no upward adjustments, impairments downward adjustments Compressors ​ During the nine months ended September 30, 2024, 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. These fair value measurements are classified as Level 3. The fair value of our compressors impaired as of September 30, 2024 and December 31, 2023 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ September 30, 2024 ​ December 31, 2023 Impaired compressors ​ ​ ​ $ 853 ​ $ 1,423 ​ 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 September 30, 2024 ​ $0 - $211 per horsepower ​ $49 per horsepower As of December 31, 2023 ​ $0 - $294 per horsepower ​ $50 per horsepower (1) Calculated based on an estimated discount for market liquidity of 25% and 33% as of September 30, 2024 and December 31, 2023, respectively. ​ See Note 11 (“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) September 30, 2024 December 31, 2023 Carrying amount of fixed rate debt (1) ​ $ 1,789,956 ​ $ 1,297,844 Fair value of fixed rate debt ​ 1,823,000 ​ 1,289,000 (1) Carrying amounts are shown net of unamortized premium and deferred financing costs. See Note 7 (“Long-Term Debt”).

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2024
Related Party Transactions
Related Party Transactions	16. Related Party Transactions ​ ECOTEC ​ During both the three and nine months ended September 30, 2024, we made purchases of $0.3 million from our unconsolidated affiliate ECOTEC for use in our operations. Hilcorp From August 2019 to present, our Board of Directors has included a member affiliated with our customer Hilcorp or its subsidiaries or affiliates. ​

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2024
Segment Information
Segments	17. Segment Information We manage our business segments primarily based on the type of product or service provided. We have two segments that we operate within the U.S.: 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. We evaluate the performance of our segments based on adjusted gross margin, defined as revenue less cost of sales, exclusive of 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 September 30, 2024 ​ ​ ​ Revenue ​ $ 245,420 ​ $ 46,741 ​ $ 292,161 Adjusted gross margin ​ 165,610 ​ 12,346 ​ 177,956 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2023 ​ ​ ​ Revenue ​ $ 207,552 ​ $ 45,815 ​ $ 253,367 Adjusted gross margin ​ 132,279 ​ 9,127 ​ 141,406 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2024 ​ ​ ​ Revenue ​ $ 693,939 ​ $ 137,236 ​ $ 831,175 Adjusted gross margin ​ 457,108 ​ 32,683 ​ 489,791 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2023 ​ ​ ​ Revenue ​ $ 596,417 ​ $ 134,327 ​ $ 730,744 Adjusted gross margin ​ 365,629 ​ 28,388 ​ 394,017 ​ The following table reconciles total adjusted gross margin to income before income taxes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Total adjusted gross margin ​ $ 177,956 ​ $ 141,406 ​ $ 489,791 ​ $ 394,017 Less: ​ ​ ​ ​ Selling, general and administrative ​ 34,059 ​ 28,558 ​ 96,887 ​ 83,632 Depreciation and amortization ​ 48,377 ​ 42,155 ​ 135,065 ​ 123,546 Long-lived and other asset impairment ​ 2,509 ​ 2,922 ​ 9,478 ​ 8,383 Restructuring charges ​ ​ — ​ ​ 592 ​ ​ — ​ ​ 1,554 Debt extinguishment loss ​ ​ 3,181 ​ ​ — ​ ​ 3,181 ​ ​ — Interest expense ​ 30,179 ​ 28,339 ​ 85,372 ​ 83,550 Transaction-related costs ​ ​ 9,220 ​ ​ — ​ ​ 11,002 ​ ​ — Gain on sale of assets, net ​ ​ (2,218) ​ ​ (3,237) ​ ​ (5,175) ​ ​ (8,018) Other expense (income), net ​ (304) ​ (235) ​ (37) ​ 1,831 Income before income taxes ​ $ 52,953 ​ $ 42,312 ​ $ 154,018 ​ $ 99,539 ​

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 37,516	$ 30,858	$ 112,473	$ 71,996

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
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

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2024
Basis of Presentation and Significant Accounting Policies
Basis of Presentation	The accompanying unaudited condensed 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 2023 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 nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
Accounting Standards Updates Implemented and Accounting Standards Updates Not Yet Implemented	Accounting Standards Updates Not Yet Implemented Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require significant additional disclosures, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, and should be applied on a prospective basis, with a retrospective option. Early adoption is permitted. We are evaluating the impact that the adoption of ASU 2023-09 will have on our consolidated financial statements and related disclosures. Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will require disclosures of significant expenses for each reportable segment, as well as certain other disclosures to help investors understand how the chief operating decision maker evaluates segment expenses and operating results. ASU 2023-07 will also allow disclosure of multiple measures of segment profitability if those measures are used to allocate resources and assess performance. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis, unless impracticable. Early adoption is permitted. We are evaluating the impact that the adoption of ASU 2023-07 will have on our segment disclosures. We expect that the adoption of ASU 2023-07 will not have a material impact on our consolidated financial statements. Business Combinations – Joint Venture Formations In August 2023, the FASB issued ASU 2023-05, to reduce diversity in practice and provide decision-useful information to a joint venture’s investors by requiring that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture will recognize and initially measure its assets and liabilities at fair value, with exceptions to fair value measurement that are consistent with the business combinations guidance, on the date of formation. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025, may elect to apply the amendments retrospectively if it has sufficient information to do so. Early adoption is permitted in any interim or annual period in which financial statements have not been issued or been made available for issuance, either prospectively or retrospectively. We expect that the adoption of ASU 2023-05 will have no impact on our consolidated financial statements.

Business Transactions (Tables)

Business Transactions (Tables)	9 Months Ended
	Sep. 30, 2024
Business Transactions
Summary of fair values of assets acquired and liabilities assumed	The following table summarizes the preliminary purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date: ​ ​ ​ ​ ​ (in thousands) ​ ​ Cash $ 2,498 Accounts receivable ​ ​ 9,694 Inventory ​ ​ 6,944 Other current assets ​ ​ 495 Property, plant and equipment ​ ​ 872,053 Operating lease right-of-use assets ​ ​ 1,424 Goodwill ​ ​ 116,937 Intangible assets ​ ​ 52,775 Other assets ​ ​ 4,032 Accounts payable, trade ​ ​ (48,609) Accrued liabilities ​ ​ (4,666) Operating lease liabilities ​ ​ (1,424) Other liabilities ​ ​ (4,032) Purchase price ​ $ 1,008,121
Schedule of transaction-related costs incurred by cost type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended (in thousands) ​ September 30, 2024 September 30, 2024 Professional fees (1) ​ $ 8,762 ​ $ 10,544 Compensation-related costs (2) ​ ​ 363 ​ ​ 363 Other costs ​ ​ 95 ​ ​ 95 Total transaction-related costs ​ $ 9,220 ​ $ 11,002 (1) Professional fees include legal, advisory, consulting and other fees. (2) Compensation-related costs include amounts related to employee retention and other compensation related arrangements associated with the acquisition. Payments are due and payable at various times up to and including the two-year anniversary of the TOPS Acquisition.
Schedule of pro forma financial information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Revenue ​ $ 321,775 ​ $ 282,657 ​ $ 940,244 ​ $ 806,243 Net income attributable to Archrock stockholders ​ ​ 49,494 ​ ​ 29,318 ​ ​ 133,164 ​ ​ 50,791

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory
Schedule of inventory	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, (in thousands) ​ 2024 ​ 2023 Parts and supplies ​ $ 70,824 ​ $ 70,759 Work in progress ​ 13,542 ​ 11,002 Inventory ​ $ 84,366 ​ $ 81,761 ​

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment, Net
Schedule of property, plant and equipment, net	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, (in thousands) ​ 2024 ​ 2023 Compression equipment, facilities and other fleet assets ​ $ 4,301,892 ​ $ 3,326,919 Land and buildings ​ 31,936 ​ 30,169 Transportation and shop equipment ​ 117,296 ​ 100,474 Computer hardware and software ​ 77,912 ​ 77,532 Other ​ 6,106 ​ 5,678 Property, plant and equipment ​ 4,535,142 ​ 3,540,772 Accumulated depreciation ​ (1,274,116) ​ (1,238,790) Property, plant and equipment, net ​ $ 3,261,026 ​ $ 2,301,982 ​

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Long-Term Debt
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) September 30, 2024 December 31, 2023 Credit Facility ​ $ 446,175 ​ $ 287,025 ​ ​ ​ ​ ​ ​ ​ 6.625% senior notes due September 2032: ​ ​ ​ ​ ​ ​ Principal outstanding ​ ​ 700,000 ​ — Unamortized debt issuance costs ​ ​ (9,629) ​ — ​ ​ ​ 690,371 ​ — 6.25% senior notes due April 2028: ​ ​ ​ ​ ​ ​ Principal outstanding ​ 800,000 ​ 800,000 Unamortized debt premium ​ ​ 7,020 ​ 8,524 Unamortized debt issuance costs ​ (5,816) ​ (7,081) ​ ​ 801,204 ​ 801,443 6.875% senior notes due April 2027: ​ ​ ​ ​ ​ ​ Principal outstanding ​ ​ 300,000 ​ 500,000 Unamortized debt issuance costs ​ ​ (1,619) ​ (3,599) ​ ​ ​ 298,381 ​ 496,401 ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 2,236,131 ​ $ 1,584,869

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2024
Stockholders' Equity
Summary of shares repurchased	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, 2024 ​ September 30, 2024 (dollars in thousands, except per share amounts) ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased Shares repurchased under the Share Repurchase Program ​ ​ 649,854 ​ $ 18.63 ​ $ 12,107 ​ ​ 732,826 ​ $ 18.20 ​ $ 13,337 Shares withheld related to net settlement of equity awards ​ ​ 5,291 ​ ​ 20.05 ​ ​ 106 ​ ​ 391,868 ​ ​ 16.76 ​ ​ 6,568 Total ​ ​ 655,145 ​ $ 18.64 ​ $ 12,213 ​ ​ 1,124,694 ​ $ 17.70 ​ $ 19,905 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, 2023 ​ September 30, 2023 (dollars in thousands, except per share amounts) ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased ​ Total Number of Shares Repurchased ​ Average Price per Share ​ Total Cost of Shares Repurchased Shares repurchased under the Share Repurchase Program ​ ​ 354,012 ​ $ 12.49 ​ $ 4,422 ​ ​ 576,262 ​ $ 11.27 ​ $ 6,495 Shares withheld related to net settlement of equity awards ​ ​ 717 ​ ​ 12.75 ​ ​ 9 ​ ​ 384,684 ​ ​ 9.84 ​ ​ 3,784 Total ​ ​ 354,729 ​ $ 12.49 ​ $ 4,431 ​ ​ 960,946 ​ $ 10.70 ​ $ 10,279
Summary of dividends declared and paid	​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends per ​ (dollars in thousands, except per share amounts) Common Share Dividends Paid 2024 ​ ​ Q3 ​ $ 0.165 ​ $ 27,865 Q2 ​ ​ 0.165 ​ ​ 25,819 Q1 ​ ​ 0.165 ​ ​ 26,000 ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ Q4 ​ $ 0.155 ​ $ 24,190 Q3 ​ 0.155 ​ 24,250 Q2 ​ 0.150 ​ 23,504 Q1 ​ 0.150 ​ 23,852

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contracts with Customers
Schedule of revenue from contracts with customers by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Contract operations: ​ ​ ​ ​ ​ ​ ​ ​ 0 ― 1,000 horsepower per unit ​ $ 60,589 ​ $ 43,142 ​ $ 151,250 ​ $ 126,272 1,001 ― 1,500 horsepower per unit ​ 96,160 ​ 90,016 ​ 286,517 ​ 259,830 Over 1,500 horsepower per unit ​ 88,529 ​ 74,140 ​ 255,684 ​ 209,526 Other (1) ​ 142 ​ 254 ​ 488 ​ 789 Total contract operations revenue (2) ​ 245,420 ​ 207,552 ​ 693,939 ​ 596,417 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Aftermarket services: ​ ​ ​ ​ Services ​ 27,396 ​ 24,860 ​ 78,509 ​ 70,676 OTC parts and components sales ​ 19,029 ​ 20,955 ​ 58,411 ​ 63,651 Other ​ ​ 316 ​ ​ — ​ ​ 316 ​ ​ — Total aftermarket services revenue (3) ​ 46,741 ​ 45,815 ​ 137,236 ​ 134,327 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue ​ $ 292,161 ​ $ 253,367 ​ $ 831,175 ​ $ 730,744 (1) Primarily relates to fees associated with owned non-compression equipment. (2) Includes $1.5 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively, and $3.8 million and $2.9 million for the nine months ended September 30, 2024 and 2023, 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 and other revenue is recognized at a point in time.
Schedule of remaining performance obligations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ 2024 ​ 2025 ​ 2026 2027 2028 2029 Total Remaining performance obligations ​ ​ $ 175,887 ​ $ 387,950 ​ $ 208,119 ​ $ 41,617 ​ $ 12,350 ​ $ 2,403 ​ $ 828,326
Summary of changes in allowance for credit losses	​ ​ ​ ​ ​ (in thousands) ​ ​ Balance at beginning of period $ 587 Provision for credit losses ​ ​ 95 Write-offs charged against allowance ​ ​ (44) Balance at end of period ​ $ 638

Long-Lived and Other Asset Im_2

Long-Lived and Other Asset Impairment (Tables)	9 Months Ended
	Sep. 30, 2024
Long-Lived and Other Asset Impairment
Schedule of impairment of long-lived assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (dollars in thousands) 2024 2023 2024 2023 Idle compressors retired from the active fleet ​ 15 ​ 30 ​ 80 ​ 75 Horsepower of idle compressors retired from the active fleet ​ 12,000 ​ 16,000 ​ 58,000 ​ 39,000 Impairment recorded on idle compressors retired from the active fleet ​ $ 2,509 ​ $ 2,922 ​ $ 9,478 ​ $ 8,383

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2024
Restructuring Charges
Schedule of restructuring charges by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract ​ Aftermarket ​ ​ ​ ​ ​ ​ (in thousands) ​ Operations ​ Services ​ Other (1) ​ Total Three months ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ — ​ $ 387 ​ $ 205 ​ $ 592 Total restructuring charges ​ $ — ​ $ 387 ​ $ 205 ​ $ 592 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Organizational restructuring ​ $ 101 ​ $ 387 ​ $ 1,066 ​ $ 1,554 Total restructuring charges ​ $ 101 ​ $ 387 ​ $ 1,066 ​ $ 1,554 (1) Represents expense incurred within our corporate function and not directly attributable to our segments.
Schedule of restructuring charges by type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) ​ 2023 2023 Organizational Restructuring ​ ​ ​ ​ ​ ​ Severance costs ​ $ 592 ​ $ 1,296 Consulting costs ​ ​ — ​ ​ 258 Total restructuring costs ​ $ 592 ​ $ 1,554 ​

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings per Common Share
Schedule of calculation of basic and diluted net income per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Net income ​ $ 37,516 ​ $ 30,858 ​ $ 112,473 ​ $ 71,996 Less: Allocation of earnings to participating securities ​ (430) ​ (434) ​ (1,607) ​ (1,418) Net income attributable to common stockholders ​ $ 37,086 ​ $ 30,424 ​ $ 110,866 ​ $ 70,578 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Allocation of earnings to cash or share settled restricted stock units ​ ​ (129) ​ ​ — ​ ​ (352) ​ ​ — Diluted net income attributable to common stockholders ​ $ 36,957 ​ $ 30,424 ​ $ 110,514 ​ $ 70,578 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding used in basic earnings per common share ​ ​ 165,847 ​ ​ 154,163 ​ ​ 158,205 ​ ​ 154,210 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance-based restricted stock units ​ ​ 325 ​ ​ 235 ​ ​ 306 ​ ​ 181 ESPP shares ​ ​ 1 ​ ​ 3 ​ ​ 7 ​ ​ 7 Weighted-average common shares outstanding used in diluted earnings per common share ​ ​ 166,173 ​ ​ 154,401 ​ ​ 158,518 ​ ​ 154,398 ​

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
Fair value
Schedule of carrying value and estimated fair value of debt instruments	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) September 30, 2024 December 31, 2023 Carrying amount of fixed rate debt (1) ​ $ 1,789,956 ​ $ 1,297,844 Fair value of fixed rate debt ​ 1,823,000 ​ 1,289,000 (1) Carrying amounts are shown net of unamortized premium and deferred financing costs. See Note 7 (“Long-Term Debt”).
Compressors
Fair value
Schedule of significant unobservable inputs	​ ​ ​ ​ ​ ​ ​ Range Weighted Average (1) Estimated net sale proceeds: ​ ​ ​ ​ As of September 30, 2024 ​ $0 - $211 per horsepower ​ $49 per horsepower As of December 31, 2023 ​ $0 - $294 per horsepower ​ $50 per horsepower (1) Calculated based on an estimated discount for market liquidity of 25% and 33% as of September 30, 2024 and December 31, 2023, respectively.
Schedule of non-recurring fair value assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ September 30, 2024 ​ December 31, 2023 Impaired compressors ​ ​ ​ $ 853 ​ $ 1,423
ECOTEC | Equity investment
Fair value
Schedule of significant unobservable inputs	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant ​ Three Months Ended ​ Three Months Ended ​ ​ Unobservable ​ September 30, 2024 ​ September 30, 2023 ​ ​ Inputs ​ Range ​ Median ​ Range ​ Median Valuation technique: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Discounted cash flow ​ WACC ​ 0.4% - 20.0% ​ ​ 13.5% ​ 0.0% - 17.4% ​ ​ 10.0% Guideline public company ​ Revenue multiple ​ 1.5x - 7.2x ​ ​ 3.8x ​ 1.6x - 10.0x ​ ​ 4.0x
Schedule of changes in assets measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) ​ ​ 2024 ​ ​ 2023 ​ ​ 2024 ​ ​ 2023 Balance at beginning of period $ 14,905 $ 12,807 ​ $ 14,905 $ 12,803 Purchases of equity interests ​ ​ 1,250 ​ ​ — ​ ​ 1,250 ​ ​ 2,000 Unrealized loss (1) ​ ​ — ​ ​ — ​ ​ — ​ ​ (1,996) Balance at end of period ​ $ 16,155 ​ $ 12,807 ​ $ 16,155 ​ $ 12,807 (1) Included in other expense , net in our unaudited condensed consolidated statement of operations.

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Information
Summary of revenue and other financial information by reportable segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract Aftermarket ​ ​ (in thousands) Operations Services Total Three months ended September 30, 2024 ​ ​ ​ Revenue ​ $ 245,420 ​ $ 46,741 ​ $ 292,161 Adjusted gross margin ​ 165,610 ​ 12,346 ​ 177,956 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, 2023 ​ ​ ​ Revenue ​ $ 207,552 ​ $ 45,815 ​ $ 253,367 Adjusted gross margin ​ 132,279 ​ 9,127 ​ 141,406 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2024 ​ ​ ​ Revenue ​ $ 693,939 ​ $ 137,236 ​ $ 831,175 Adjusted gross margin ​ 457,108 ​ 32,683 ​ 489,791 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, 2023 ​ ​ ​ Revenue ​ $ 596,417 ​ $ 134,327 ​ $ 730,744 Adjusted gross margin ​ 365,629 ​ 28,388 ​ 394,017
Reconciliation of total gross margin to income before taxes	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2024 2023 2024 2023 Total adjusted gross margin ​ $ 177,956 ​ $ 141,406 ​ $ 489,791 ​ $ 394,017 Less: ​ ​ ​ ​ Selling, general and administrative ​ 34,059 ​ 28,558 ​ 96,887 ​ 83,632 Depreciation and amortization ​ 48,377 ​ 42,155 ​ 135,065 ​ 123,546 Long-lived and other asset impairment ​ 2,509 ​ 2,922 ​ 9,478 ​ 8,383 Restructuring charges ​ ​ — ​ ​ 592 ​ ​ — ​ ​ 1,554 Debt extinguishment loss ​ ​ 3,181 ​ ​ — ​ ​ 3,181 ​ ​ — Interest expense ​ 30,179 ​ 28,339 ​ 85,372 ​ 83,550 Transaction-related costs ​ ​ 9,220 ​ ​ — ​ ​ 11,002 ​ ​ — Gain on sale of assets, net ​ ​ (2,218) ​ ​ (3,237) ​ ​ (5,175) ​ ​ (8,018) Other expense (income), net ​ (304) ​ (235) ​ (37) ​ 1,831 Income before income taxes ​ $ 52,953 ​ $ 42,312 ​ $ 154,018 ​ $ 99,539 ​

Description of Business and B_3

Description of Business and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2024 segment
Basis of Presentation and Significant Accounting Policies
Number of reportable segments	2

Business Transactions - TOPS Ac

Business Transactions - TOPS Acquisition (Details) hp in Thousands, $ in Thousands		3 Months Ended	9 Months Ended
	Aug. 30, 2024 USD ($) hp shares	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Business Transactions
Cash consideration			$ 866,568
Shares issued for TOPS Acquisition		$ 139,054	139,054
Estimated fair values of assets acquired and liabilities assumed
Goodwill		$ 116,937	$ 116,937
Total Operations and Production Services, LLC ("TOPS")
Business Transactions
Horsepower of fleet acquired in the acquisition | hp	580
Operating horsepower of fleet acquired in the acquisition | hp	530
Cash consideration	$ 869,100
Shares issued as compensation for asset acquisition (shares) | shares	6,873,650
Shares issued for TOPS Acquisition	$ 139,100
Estimated fair values of assets acquired and liabilities assumed
Cash	2,498
Accounts receivable	9,694
Inventory	6,944
Other current assets	495
Property, plant and equipment	872,053
Operating lease right-of-use assets	1,424
Goodwill	116,937
Intangible assets	52,775
Other assets	4,032
Accounts payable, trade	(48,609)
Accrued liabilities	(4,666)
Operating lease liabilities	(1,424)
Other liabilities	4,032
Purchase price	$ 1,008,121

Business Transactions - Assets

Business Transactions - Assets Acquired (Details) - Total Operations and Production Services, LLC ("TOPS")	Aug. 30, 2024
Business Transactions
Property, plant and equipment, Estimated average remaining useful life	25 years
Customer relationships
Business Transactions
Intangible assets, Estimated useful life	12 years
Trade names
Business Transactions
Intangible assets, Estimated useful life	5 years

Business Transactions - Tax Con

Business Transactions - Tax Contingency and Indemnification Asset (Details) - Total Operations and Production Services, LLC ("TOPS") - USD ($) $ in Millions		1 Months Ended
	Aug. 30, 2024	Sep. 30, 2024
Business Transactions
Revenue attributable to assets acquired from the date of acquisition		$ 15.6
Minimum
Business Transactions
Period over which seller's indemnity obligation reduces	5 years
Non-income tax based contingency
Business Transactions
Accrued liability	$ 4.3
Corresponding indemnification asset	4.3
Non-income tax based contingency | Maximum
Business Transactions
Amount of seller's indemnification obligation	$ 21.6

Business Transactions - Transac

Business Transactions - Transaction-Related Costs (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Aug. 30, 2024	Sep. 30, 2024	Sep. 30, 2024
Business Transactions
Total transaction-related costs		$ 9,220	$ 11,002
Total Operations and Production Services, LLC ("TOPS")
Business Transactions
Professional fees		8,762	10,544
Compensation related costs		363	363
Other costs		95	95
Total transaction-related costs		$ 9,220	$ 11,002
Compensation related costs, Payment period	2 years

Business Transactions - Pro for

Business Transactions - Pro forma (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Aug. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pro forma financial information
Revenue		$ 321,775	$ 282,657	$ 940,244	$ 806,243
Net income attributable to Archrock stockholders		49,494	$ 29,318	133,164	$ 50,791
Estimated blended statutory tax rate (as a percent)	23%
Proforma adjustment, Financial advisory, legal, audit and other professional fees
Pro forma financial information
Net income attributable to Archrock stockholders		$ 8,800		$ 10,500

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Composition of Inventory net of reserves
Parts and supplies	$ 70,824	$ 70,759
Work in progress	13,542	11,002
Inventory	$ 84,366	$ 81,761

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment, Net
Property, plant and equipment	$ 4,535,142	$ 3,540,772
Accumulated depreciation	(1,274,116)	(1,238,790)
Property, plant and equipment, net	3,261,026	2,301,982
Compression equipment, facilities and other fleet assets
Property, Plant and Equipment, Net
Property, plant and equipment	4,301,892	3,326,919
Land and buildings
Property, Plant and Equipment, Net
Property, plant and equipment	31,936	30,169
Transportation and shop equipment
Property, Plant and Equipment, Net
Property, plant and equipment	117,296	100,474
Computer hardware and software
Property, Plant and Equipment, Net
Property, plant and equipment	77,912	77,532
Other
Property, Plant and Equipment, Net
Property, plant and equipment	$ 6,106	$ 5,678

Investment in Unconsolidated Af

Investment in Unconsolidated Affiliate (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Aug. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Nov. 30, 2023	Apr. 30, 2022
Investments
Investments in unconsolidated entities		$ 1,307	$ 2,000
ECOTEC
Investments
Total potential equity interest to be acquired (as a percent)					25%
Ownership interest (as a percent)		25%
Unrealized loss recognized due to change in fair value			$ 2,000
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income			Other Nonoperating Income (Expense)
Investments in unconsolidated entities	$ 1,300
Ionada
Investments
Total potential equity interest to be acquired (as a percent)		24%
Ownership interest (as a percent)		10%
Carrying value of investment		$ 4,300
Amount of initial investment				$ 3,800
Period over which ownership interest will be acquired to reach agreed upon ownership percentage		2 years

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Aug. 26, 2024	Dec. 31, 2023
Debt Instruments
Long-term debt	$ 2,236,131		$ 1,584,869
Credits Facility, Amended and Restated
Debt Instruments
Long-term debt	446,175		287,025
6.625% senior notes due September 2032
Debt Instruments
Principal outstanding	700,000
Unamortized debt issuance costs	(9,629)
Long-term debt	$ 690,371
Interest rate (as a percent)	6.625%	6.625%
6.25% senior notes due April 2028
Debt Instruments
Principal outstanding	$ 800,000		800,000
Unamortized debt premium	7,020		8,524
Unamortized debt issuance costs	(5,816)		(7,081)
Long-term debt	$ 801,204		$ 801,443
Interest rate (as a percent)	6.25%		6.25%
6.875% senior notes due April 2027
Debt Instruments
Principal outstanding	$ 300,000		$ 500,000
Unamortized debt issuance costs	(1,619)		(3,599)
Long-term debt	$ 298,381		$ 496,401
Interest rate (as a percent)	6.875%		6.875%

Long-Term Debt - Notes (Details

Long-Term Debt - Notes (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Aug. 26, 2024	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Debt Instruments
Debt extinguishment loss		$ 3,181	$ 3,181
6.625% senior notes due September 2032
Debt Instruments
Aggregate principal amount	$ 700,000
Interest rate (as a percent)	6.625%	6.625%	6.625%
Proceeds from issuance of debt	$ 690,300
Issuance costs	$ 9,700
Maximum percentage of notes that may be redeemed at specified redemption prices	40%
6.875% senior notes due April 2027
Debt Instruments
Interest rate (as a percent)		6.875%	6.875%	6.875%
Amount of cash tender offer of notes	$ 202,000
Repurchase amount of debt as a percentage of aggregate principal amount	101%
Amount of agent and legal fees	$ 200
Net carrying amount	198,800
Debt extinguishment loss	$ 3,200
6.25% senior notes due April 2028
Debt Instruments
Interest rate (as a percent)		6.25%	6.25%	6.25%

Long-Term Debt - Amended and Re

Long-Term Debt - Amended and Restated Credit Agreement (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Aug. 28, 2024	Jun. 30, 2024	Dec. 31, 2023	May 16, 2023	Mar. 31, 2023
Credits Facility, Amended and Restated
Line of Credit Facility
Maximum borrowing capacity						$ 1,100	$ 750
Cash dominion trigger threshold amount						110	75
Debt issuance cost written off			$ 1
Letter of credit outstanding	$ 4.1			$ 4.1
Debt instrument, variable rate (percentage)				2.10%
Debt instrument weighted average interest rate (percent)	7.20%			7.20%				7.70%
Commitment fee amount	$ 0.6	$ 0.4		$ 1.5	$ 1.3
Swing Line Loans, Credit Facility
Line of Credit Facility
Maximum borrowing capacity						$ 110	$ 75		$ 75	$ 50
Amended and Restated Credit Agreement, August 28, 2024
Line of Credit Facility
Transaction costs	$ 2.6			$ 2.6
Amended and Restated Credit Agreement, May 16, 2023
Line of Credit Facility
Transaction costs			$ 6

Commitments and Contingencies-

Commitments and Contingencies- Tax Matters - Loss contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Non-income based tax audits
Loss Contingencies
Accrued liability	$ 8.9	$ 3.9
Contingency with offsetting indemnification asset	4.3	0
Non-income based tax audits in contested hearing phase
Loss Contingencies
Accrued liability	$ 0.6	$ 0.6

Stockholders' Equity - Issuance

Stockholders' Equity - Issuance of Shares (Details) - USD ($) $ in Thousands			3 Months Ended	9 Months Ended
	Aug. 30, 2024	Jul. 24, 2024	Sep. 30, 2024	Sep. 30, 2024
Equity
Net proceeds from issuance of common stock (in dollars)				$ 255,747
Shares issued for TOPS Acquisition (in dollars)			$ 139,054	$ 139,054
Total Operations and Production Services, LLC ("TOPS")
Equity
Shares issued as compensation for asset acquisition (shares)	6,873,650
Shares issued for TOPS Acquisition (in dollars)	$ 139,100
Underwriting Agreement
Equity
Stock issued (in shares)		12,650,000
Net proceeds from issuance of common stock (in dollars)		$ 255,700
Underwriters
Equity
Stock issued (in shares)		1,650,000

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended		17 Months Ended
	Apr. 27, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Apr. 27, 2023
Treasury Stock
Total Number of Shares Repurchased (in shares)		655,145	354,729	1,124,694	960,946
Average Price per Share (in dollars per share)		$ 18.64	$ 12.49	$ 17.70	$ 10.70
Total Cost of Shares Repurchased (in dollars)		$ 12,213	$ 4,431	$ 19,905	$ 10,279
Share Repurchase Program
Treasury Stock
Shares authorized for repurchase (in dollars)							$ 50,000
Extension period	24 months
Total Number of Shares Repurchased (in shares)		649,854	354,012	732,826	576,262	1,483,200
Average Price per Share (in dollars per share)		$ 18.63	$ 12.49	$ 18.20	$ 11.27	$ 14.97
Total Cost of Shares Repurchased (in dollars)		$ 12,107	$ 4,422	$ 13,337	$ 6,495	$ 22,200
Available capacity for repurchase (in dollars)	$ 50,000
2020 and 2013 Stock Incentive Plans
Treasury Stock
Total Number of Shares Repurchased (in shares)		5,291	717	391,868	384,684
Average Price per Share (in dollars per share)		$ 20.05	$ 12.75	$ 16.76	$ 9.84
Total Cost of Shares Repurchased (in dollars)		$ 106	$ 9	$ 6,568	$ 3,784

Stockholders' Equity - Cash Div

Stockholders' Equity - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended							9 Months Ended
	Oct. 24, 2024	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Distributions
Declared Dividends per Common Share (in dollars per share)		$ 0.165	$ 0.165	$ 0.165	$ 0.155	$ 0.155	$ 0.150	$ 0.150	$ 0.495	$ 0.455
Dividends Paid (in dollars)		$ 27,865	$ 25,819	$ 26,000	$ 24,190	$ 24,250	$ 23,504	$ 23,852	$ 79,684	$ 71,606
Subsequent Event | Q3 2024 quarterly dividend
Distributions
Declared Dividends per Common Share (in dollars per share)	$ 0.175
Dividends payable, date declared	Oct. 24, 2024
Dividends payable, date to be paid	Nov. 13, 2024
Dividends payable, date of record	Nov. 06, 2024

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregate Revenue (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) hp	Sep. 30, 2023 USD ($) hp	Sep. 30, 2024 USD ($) hp	Sep. 30, 2023 USD ($) hp
Disaggregation of Revenue
Revenue	$ 292,161	$ 253,367	$ 831,175	$ 730,744
Contract operations
Disaggregation of Revenue
Revenue	245,420	207,552	693,939	596,417
Contract operations | Transferred at Point in Time
Disaggregation of Revenue
Revenue	1,500	1,000	3,800	2,900
Contract operations | 0 - 1,000 horsepower per unit
Disaggregation of Revenue
Revenue	$ 60,589	$ 43,142	$ 151,250	$ 126,272
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	$ 96,160	$ 90,016	$ 286,517	$ 259,830
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	$ 88,529	$ 74,140	$ 255,684	$ 209,526
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	$ 142	$ 254	$ 488	$ 789
Aftermarket services
Disaggregation of Revenue
Revenue	46,741	45,815	137,236	134,327
Aftermarket services | OTC parts and components sales
Disaggregation of Revenue
Revenue	19,029	20,955	58,411	63,651
Aftermarket services | Other
Disaggregation of Revenue
Revenue	316		316
Aftermarket services | Service
Disaggregation of Revenue
Revenue	$ 27,396	$ 24,860	$ 78,509	$ 70,676

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Performance Obligations (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 828,326
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 175,887
Performance obligations expected to be satisfied, expected timing	3 months
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	$ 387,950
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	$ 208,119
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	$ 41,617
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	$ 12,350
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Remaining performance obligations	$ 2,403
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	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contracts with Customers
Accounts receivable, net of allowance - Customer related	$ 141.1	$ 119.7

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Changes in the allowance for credit losses balance
Balance at beginning of period	$ 587
Benefit from credit losses	95	$ (234)
Write-offs charged against the allowance	(44)
Balance at end of period	$ 638

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Revenue from Contracts with Customers
Contract liability	$ 7,900		$ 7,000
Deferred revenue	10,598	$ 10,733
Deferred revenue recognized in earnings	$ 9,707	$ 11,043

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		9 Months Ended
	Sep. 30, 2024 USD ($) CompressorUnit hp	Sep. 30, 2023 USD ($) CompressorUnit hp	Sep. 30, 2024 USD ($) CompressorUnit hp	Sep. 30, 2023 USD ($) CompressorUnit hp
Impaired Long-Lived Assets Held and Used
Idle compressors retired from the active fleet | CompressorUnit	15	30	80	75
Horsepower of idle compressors retired from the active fleet | hp	12	16	58	39
Impairment recorded on idle compressors retired from the active fleet | $	$ 2,509	$ 2,922	$ 9,478	$ 8,383
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 - By segm

Restructuring Charges - By segment (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring charges
Restructuring charges	$ 592	$ 0	$ 1,554
Expected additional restructuring charges		$ 0
Organizational Restructuring
Restructuring charges
Restructuring charges	592		1,554
Corporate
Restructuring charges
Restructuring charges	205		1,066
Corporate | Organizational Restructuring
Restructuring charges
Restructuring charges	205		1,066
Contract operations | Operating
Restructuring charges
Restructuring charges			101
Contract operations | Operating | Organizational Restructuring
Restructuring charges
Restructuring charges			101
Aftermarket services | Operating
Restructuring charges
Restructuring charges	387		387
Aftermarket services | Operating | Organizational Restructuring
Restructuring charges
Restructuring charges	$ 387		$ 387

Restructuring Charges - By type

Restructuring Charges - By type (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring charges
Restructuring charges	$ 592	$ 0	$ 1,554
Organizational Restructuring
Restructuring charges
Restructuring charges	592		1,554
Severance costs | Organizational Restructuring
Restructuring charges
Restructuring charges	$ 592		1,296
Consulting costs | Organizational Restructuring
Restructuring charges
Restructuring charges			$ 258

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Sep. 30, 2024 USD ($)
Income Taxes
Potential decrease in unrecognized tax benefit in next twelve months	$ 3.5

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings per Common Share
Net income	$ 37,516	$ 30,858	$ 112,473	$ 71,996
Less: Allocation of earnings to participating securities	(430)	(434)	(1,607)	(1,418)
Net income attributable to common stockholders, basic	37,086	30,424	110,866	70,578
Less: Allocation of earnings to cash or share settled restricted stock units	(129)		(352)
Diluted net income attributable to common stockholders	$ 36,957	$ 30,424	$ 110,514	$ 70,578
Weighted average common shares outstanding used in basic earnings per common share (in shares)	165,847	154,163	158,205	154,210
Effect of dilutive securities:
Performance-based restricted stock units (in shares)	325	235	306	181
ESPP shares (in shares)	1	3	7	7
Weighted average common shares outstanding used in diluted earnings per common share (in shares)	166,173	154,401	158,518	154,398

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis - Investment in ECOTEC - Unobservable inputs (Details) - ECOTEC $ in Millions	Sep. 30, 2024 USD ($)	Sep. 30, 2023
Fair value measurement of assets and liabilities
Ownership interest (as a percent)	25%
Level 3
Fair value measurement of assets and liabilities
Investment	$ 16.2
Equity investment | Discounted cash flow | WACC | Minimum
Significant unobservable inputs
Equity Securities, FV-NI, Measurement Input	0.004	0
Equity investment | Discounted cash flow | WACC | Maximum
Significant unobservable inputs
Equity Securities, FV-NI, Measurement Input	0.200	0.174
Equity investment | Discounted cash flow | WACC | Median
Significant unobservable inputs
Equity Securities, FV-NI, Measurement Input	0.135	0.100
Equity investment | Guideline public company | Revenue multiple | Minimum
Significant unobservable inputs
Equity Securities, FV-NI, Measurement Input	1.5	1.6
Equity investment | Guideline public company | Revenue multiple | Maximum
Significant unobservable inputs
Equity Securities, FV-NI, Measurement Input	7.2	10
Equity investment | Guideline public company | Revenue multiple | Median
Significant unobservable inputs
Equity Securities, FV-NI, Measurement Input	3.8	4

Fair Value Measurements - Rec_2

Fair Value Measurements - Recurring Basis - Investment in ECOTEC - Changes in FV (Details) - ECOTEC - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reconciliation of changes in fair value
Unrealized loss				$ (2,000)
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income				Other Nonoperating Income (Expense)
Equity investment
Reconciliation of changes in fair value
Balance, beginning of period	$ 14,905	$ 12,807	$ 14,905	$ 12,803
Purchases of equity interests	1,250		1,250	2,000
Unrealized loss				$ (1,996)
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income				Other Nonoperating Income (Expense)
Balance, end of period	$ 16,155	$ 12,807	$ 16,155	$ 12,807

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring Basis - Investment in Ionada (Details) - USD ($) $ in Thousands	1 Months Ended		7 Months Ended	9 Months Ended
	Nov. 30, 2025	Nov. 30, 2024	Jun. 30, 2026	Sep. 30, 2024	Sep. 30, 2023	Nov. 30, 2023
Assets measured at fair value on a nonrecurring basis
Cash paid to acquire equity interest				$ 1,307	$ 2,000
Ionada
Assets measured at fair value on a nonrecurring basis
Ownership interest (as a percent)				10%
Amount of initial investment						$ 3,800
Ionada | Equity investment
Assets measured at fair value on a nonrecurring basis
Carrying value of investment				$ 4,300
Amount of initial investment				3,800
Cumulative transaction costs				500
Upward adjustments				0
Impairments				0
Downward adjustments				$ 0
Ionada | Equity investment | Forecasted
Assets measured at fair value on a nonrecurring basis
Ownership interest (as a percent)	15%	12%	24%
Cash paid to acquire equity interest	$ 1,300	$ 1,200	$ 4,800

Fair Value Measurements - Non_2

Fair Value Measurements - Nonrecurring Basis - Compressors (Details) - Level 3 - Impaired Long-Lived Assets - Compressors $ in Thousands	Sep. 30, 2024 USD ($) Y $ / hp	Dec. 31, 2023 USD ($) $ / hp Y
Measurement Input, Weighted average disposal period
Assets measured on nonrecurring basis
Measurement input | Y	4	4
Measurement Input, Sale proceeds | Minimum
Assets measured on nonrecurring basis
Measurement input	0	0
Measurement Input, Sale proceeds | Maximum
Assets measured on nonrecurring basis
Measurement input	211	294
Measurement Input, Sale proceeds | Weighted average
Assets measured on nonrecurring basis
Measurement input	49	50
Measurement Input, Discount for market liquidity
Assets measured on nonrecurring basis
Measurement input	0.25	0.33
Nonrecurring Basis
Assets measured on nonrecurring basis
Impaired assets | $	$ 853	$ 1,423

Fair Value Measurements - Other

Fair Value Measurements - Other Financial Instruments (Details) - Fixed Rate Debt - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt, fair value	$ 1,789,956	$ 1,297,844
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Long-term debt, fair value	$ 1,823,000	$ 1,289,000
Long-Term Debt, Fair Value by Fair Value Hierarchy Level	us-gaap:FairValueInputsLevel2Member	us-gaap:FairValueInputsLevel2Member

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Related Party Transaction
Capital expenditures			$ 261,044	$ 261,977
Revenue	$ 292,161	$ 253,367	831,175	730,744
Accounts receivable, net of allowance - Customer related	141,100		141,100		$ 119,700
Related parties | ECOTEC
Related Party Transaction
Capital expenditures	300		300
Related parties | Hilcorp and affiliates
Related Party Transaction
Revenue	10,200	$ 8,900	30,600	$ 26,700
Accounts receivable - Customer related	$ 3,600		$ 3,600		$ 3,800

Segment Information - Number (D

Segment Information - Number (Details)	9 Months Ended
	Sep. 30, 2024 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue and other financial information by reportable segment
Revenue	$ 292,161	$ 253,367	$ 831,175	$ 730,744
Adjusted gross margin	177,956	141,406	489,791	394,017
Capital expenditures			261,044	261,977
Contract operations
Revenue and other financial information by reportable segment
Revenue	245,420	207,552	693,939	596,417
Adjusted gross margin	165,610	132,279	457,108	365,629
Aftermarket services
Revenue and other financial information by reportable segment
Revenue	46,741	45,815	137,236	134,327
Adjusted gross margin	$ 12,346	$ 9,127	$ 32,683	$ 28,388

Segment Information - Reconcili

Segment Information - Reconciliation of gross margin to income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reconciliation of total gross margin to income
Total adjusted gross margin	$ 177,956	$ 141,406	$ 489,791	$ 394,017
Less:
Selling, general and administrative	34,059	28,558	96,887	83,632
Depreciation and amortization	48,377	42,155	135,065	123,546
Long-lived and other asset impairment	2,509	2,922	9,478	8,383
Restructuring charges		592	0	1,554
Debt extinguishment loss	3,181		3,181
Interest expense	30,179	28,339	85,372	83,550
Transaction-related costs	9,220		11,002
Gain on sale of assets, net	(2,218)	(3,237)	(5,175)	(8,018)
Other expense (income), net	(304)	(235)	(37)	1,831
Income before income taxes	$ 52,953	$ 42,312	$ 154,018	$ 99,539