Archrock (AROC) Up 20% on Double Its AVD; Announces Lower Dividend

Bolton Flautt  |

A very active stock today has been Archrock (AROC) having gained 20 percent on heavy volume. In late trading, shares of Archrock were up $1.22 per share at $7.34 per share on volume of 2.1 million shares. Archrock has a market capitalization of $502 million and an average daily volume of 900,363 shares. The company has a 52-week range between $3.41 and $35.00 per share.

On Monday, Archrock issued a dividend of $0.095 per common share to its shareholders of record at the close of business on May 12, 2016. This dividend is only about half its fourth quarter 2015 dividend.

Commenting on the significant dividend reduction in a press release, “To address leverage concerns in this challenging market, Archrock Partners reduced its distribution by 50 percent for the first quarter ended March 31, 2016. As a result of the reduced distributions Archrock will receive from Archrock Partners, we are reducing the cash dividend at Archrock,” said Brad Childers, Archrock’s President and Chief Executive Officer. “We believe the steps we are taking at this time will strengthen both companies and increase the long-term value of our businesses.”

Archrock reported revenue for the first quarter of 2016 of $213 million, a 16 percent decrease compared to the first quarter of 2015 results of $253 million. Analysts expect Archrock to report a loss of ($0.02) per share for the first quarter of 2016 and EPS of $0.10 for full year of fiscal 2016.

Archrock is a pure-play U.S. natural gas contract compression services business and a leading supplier of aftermarket services to customers that own compression equipment in the United States. Archrock holds interests in Archrock Partners, L.P., a master limited partnership and the leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the United States. Archrock is headquartered in Houston, Texas, operating in the major oil and gas producing regions in the United States, with approximately 1,900 employees.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AROC.W Archrock Inc n/a n/a n/a 0 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     

INTERVIEW: CEO Dr. Martin Eaton - Heads Up Checkup

Equities.com Host & Contributor Silvia Davi interviewing CEO of Heads Up Checkup, Dr. Martin Eaton.