Archrock, Inc. reported significant financial growth in its third quarter and year-to-date results for 2024, driven by its recent acquisition of TOPS and increased operational performance. For the three months ended September 30, 2024, the company generated revenue of $292.2 million, a 15.3% increase from $253.4 million in the same period of 2023. Year-to-date revenue reached $831.2 million, up 13.8% from $730.7 million in the prior year.

The contract operations segment was a key contributor, with revenue rising to $245.4 million for the third quarter, compared to $207.6 million in 2023, attributed to higher rates and additional horsepower from the TOPS acquisition. The aftermarket services segment also saw growth, with revenue increasing to $46.7 million from $45.8 million year-over-year.

Net income for the third quarter was $37.5 million, up from $30.9 million in the prior year, while year-to-date net income totaled $112.5 million, significantly higher than $72.0 million for the same period in 2023. Basic and diluted earnings per share for the third quarter were $0.22, compared to $0.20 in 2023.

The acquisition of TOPS, completed on August 30, 2024, involved a total consideration of $869.1 million in cash and stock, enhancing Archrock's operational capacity with an additional fleet of approximately 580,000 horsepower. The acquisition was funded through a combination of proceeds from a July equity offering, a 2032 notes offering, and borrowings under the credit facility. The company raised $700 million from the 2032 notes offering, which also facilitated a concurrent cash tender offer for its 2027 notes.

Archrock's total assets increased to $3.8 billion as of September 30, 2024, up from $2.7 billion at the end of 2023, while total liabilities rose to $2.5 billion from $1.8 billion. The company reported cash and cash equivalents of $3.7 million, a significant increase from $1.3 million at the end of 2023.

Operating expenses also rose, with selling, general, and administrative expenses increasing by $3.6 million due to higher employee compensation and legal fees. The company incurred transaction-related costs of $9.2 million associated with the TOPS acquisition during the third quarter.

Overall, Archrock's strategic acquisition and operational improvements have positioned the company for continued growth, reflected in its robust financial performance for the third quarter and year-to-date.