every proud and value great morning delivering generating I'm and investors. Paul, our of performance customers working day, quarter. everyone. our good third employees safely you, dedication in our Thank Archrock delivered service the strong for and their for to
quarter’s share of the me some Let highlights.
platform. operating successfully closed team of integrated and horsepower and we Compression acquisition have On Xst, the August into the Archrock Elite’s Elite
of XXXX the compression Elite. affiliate the Archrock closing XX% an and with increase related of a Midstream record of quarter. of the include adjusted quarterly over the of assets third represents a $X Our to gain quarter to sale Harvest year for million concurrent quarter $XXX the Results for third of EBITDA million prior for an
We margins third We increased XX% at bringing guidance our $X.XXX high-end recently XX% dividend gross achieved for end Archrock’s our quarter by both aftermarket for X.X contract per the and to at operating over XXX,XXX total We of ranges. operating horsepower our of announced of horsepower million. share. services, quarter approximately operations
our XX% dividend this reflects X well quarter delivering our the the times third end times latest ratio Our last leading sub to leverage increase of at toward reduced of continue X.X finally, last And dividend over same of quarter, XXXX. year, times. of leverage X.X coverage target as peer time by we times the from ratio quarter X.X the we of
practice moved starting of performance XXXX. And guidance million will keeps for annual track quarter providing Many million. at our from and I’m annual adjusted share guidance we our that of you between recall the $XXX beginning prior of on the EBITDA to providing to us that achieve our of to pleased quarterly $XXX guidance
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at the in continue our approximately into we annualized million transaction of XXXX. deal to of assets EBITDA least communicated in announcement. cost annual And expect Elite incorporated $X million time complete with our now we're confident generate We synergies Archrock, the to to the $XX adjusted and the and at the ability of assets achieve teams
in configuration is customers. our The one XX,XXX if equipments equipment of in to we the that completed the During type compression non-core include the horsepower equipment as Midstream is XX,XXX point connection also areas. basins horsepower growth fleet of in does each compete or Harvest of acquisition these meets horsepower criteria as current and units core the standardized our with large or grading transaction our divestments Elite efficient these acquisitions sold our strategy a high for located Elite an our which I quarter divestiture quarter, of are well maintaining more assets typically performance of divestment, age of in improving for well point strategy of business. will redeployment to of highly not of and operating in our and profitability a growth focused return consistent with continuously shortly. A and the other operations and
EBITDA delivered grow market. have by and which gas XXX,XXX natural the growth industry of horsepower to U.S. about and quarter XXXX, quarter $XXX million the Now we the of has or third that improvement the end for production million improved demand of will an XXXX XXXX, in for turning business. XXXX $XX our benefited Since record of operating XXXX The a directly we energy our XX% this gas continue Long-term, in natural of last adjusted to XX%. our to grow. believe
and dry to to volume readily and and U.S. the associated We for abundant including gas exports gas, increases steady demand LNG, expect prices gas petrochemical for power plants will and natural and available both in low natural that Mexico, continue support natural generation.
the services. market however, demand In for XXXX This backdrop to XXXX. to a reflects to return those gas single-digit growth expect for rates moderate natural the from but an in range we and the healthy equipment normalized in to more rest growth still demand XXXX expected we the XXXX lower our compression support saw and a in extreme near-term, continued
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come our good for a have at customers are XXXX. provide still to Planning a little timeframes in visibility into but level
is of negotiations expected and our to on firm half have under over we new XXXX customers capital fact commitments units. the In build already active remaining
few the we rate double-digit of years the deceleration moderated price with is constructive. units increases production in has expected. consistent that remains which is last But pricing over on placed service growth that Spot the in annual the experienced
units team performance market on evidenced Our of our focus so all as year. by our far for this to margin continues achieving rates
on for the has the few delay customers margins levels that aftermarket and our quarter continue on to expect on maintenance our cannot fourth revenues focused trend. has endure activities, AMS high despite over margin business and indefinitely but Activity relatively have business revenues to elected compression our slowed quarters impact XXXX. lower-than-expected strong. practice Several business spending remain gross the we and remain being We that maintaining past in a a services
the increased over dropped and the has help the near-term, have over levels the compression several sustain years base long-term. past activity the While in in AMS will business of the own field the
of a corporate would April simplification we I move Now, in to established a capital three-year to transaction the of time like of strategy. At XXXX, capital allocation our our plan. discussion
proud the we're XXXX. As XXXX, track period to laid allocation plan out objectives I’m the stand we sit as ahead this looking of where well on in we final today in of we here to achieve capital
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track XXXX. X on We're times reduce to to in reduction. leverage our Second, leverage below
X.X ratio stands a current about at of Our from turn X reduction year-end times, leverage XXXX.
continuing to are CapEx combined with our growth expect be As target. reduction improvement, we $XXX XXXX positioned less well profitability million to than our believe now XXXX we we leverage achieve our
the dividend and capital to generate XX% successful We the of Third, quarters and positive in position to delivering dividend. And We're to ongoing through has another XXXX. quarterly promise the free XXXX committed we’re by XXXX our provide the of to end the our strategy us in put increased return. dividend on XX% an of of cash execution growing shareholders second each the flow to XX% by and growing significantly, return by payment XXXX. a the in our of
managing Over generate were business to positioning the committed long-term and cash flow. to free positive this
began beyond. as plans focused let for and share year, with with and to you for Finally, their next our XXXX are we needs what on me we working customers understand
to needs meet our the continue First and customers of we safely work foremost day. every will to diligently
As every our tirelessly delivering today. that will competitive a employees large this, and levels which horsepower we accomplish continued committed of in we're and meant fleet our business. do to equipment This in place is is hydrate work compression worked highest to categories growth demand grow quality. the To has investing of of to part service most so high have the the
XX% Since well We today. operating and operating increased systems XXXX as superior service for platform for as to committed just our drive to continue percentage returns as the profitability that our remain of a as approximately our technology, large horsepower to customers will in from XX% investors. investing fleet and equipments continuing our equipment has
fleet, contract our gross improvement we to into to contributor most profit operating we recent that were platform the Together to made operations we've from made with XXXX improvements substantial business, this improvements have the quarter. driven our XX% in in elevating XX% the to margins our
these XXXX, our efforts in delivering on and our including and to capital flow invest in fleet, commitment XXXX. our will profitability objectives, to support continue and high-grade our high-grade into technology operations free deliver Looking our allocation cash
detailed over review call a performance. for like third turn more I to Now, of Doug to our would the quarter
