Archrock increases quarterly dividend by 11 percent

Published 25/07/2025, 04:36
Archrock increases quarterly dividend by 11 percent

HOUSTON - Archrock, Inc. (NYSE:AROC) announced Thursday that its Board of Directors has declared an increased quarterly dividend of $0.21 per share of common stock, representing an annualized rate of $0.84 per share. The company has maintained consistent dividend payments for 12 consecutive years, with the current yield standing at 3.25%, according to InvestingPro data.

The second quarter 2025 dividend will be paid on August 12 to stockholders of record as of August 5. This marks the company’s second dividend increase in 2025, reflecting an 11 percent rise from the first quarter and a 27 percent increase compared to the second quarter of 2024.

Brad Childers, Archrock’s President and Chief Executive Officer, attributed the dividend increase to strong demand for natural gas and compression services, as well as successful integration of two acquisitions completed over the past year.

"Our capital allocation prioritizes disciplined and profitable growth, which still provides us with the financial flexibility to consistently increase cash returns to shareholders, while maintaining prudent dividend coverage and leverage ratios," Childers said in a press release statement.

Archrock describes itself as an energy infrastructure company focused on midstream natural gas compression, providing compression services to customers throughout the United States and aftermarket services to compression equipment owners.

The company is headquartered in Houston, Texas.

In other recent news, Archrock Inc. reported impressive financial results for the first quarter of 2025. The company achieved an earnings per share of $0.42, surpassing the analyst forecast of $0.39. Revenues also exceeded expectations, coming in at $347.2 million compared to the anticipated $342.59 million. RBC Capital Markets maintained an Outperform rating on Archrock, with a consistent price target of $31.00, following the release of these financial results and the company’s revised guidance. Analysts at RBC emphasized Archrock’s strong utilization rates and the benefits of its late-cycle compression services. These factors contribute to the company’s favorable positioning in the market. Archrock’s operational flexibility and visibility were also noted as advantages in its recent 10-Q filing. Investors have shown optimism following these developments.

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