Gab Moreen

Gab Moreen asked about Archrock's capital return strategy, specifically if the company considers making share buybacks more programmatic and if there's a lower bound leverage level that management would not want to go below. He also inquired if Archrock is exploring more direct participation in power procurement, given the 'arms race' around power generation.

Answer

Doug Aron (Senior VP and CFO) stated that Archrock is uniquely positioned to do 'all of the above' – deploy capital for growth, grow dividends, and execute share repurchases. He noted consistent quarterly repurchases and that while leverage is trending below the target range, the company has the luxury and desire to continue all capital return methods. Brad Childers (President and CEO) emphasized that Archrock's primary focus is deploying compression infrastructure to support the significant natural gas production growth required for power generation, especially for LNG and data centers, rather than direct power procurement.

Gab Moreen inquired about Archrock's capital return strategy, specifically if share buybacks might become more programmatic and if there's a lower bound leverage level the company aims to maintain. He also asked if Archrock is considering more direct participation in power procurement given the growing demand for power generation.

Answer

Senior VP and CFO Doug Aron stated that Archrock is uniquely positioned to deploy capital for growth, grow its dividend, and repurchase shares, with leverage trending towards and potentially below its target range. He indicated consistent quarterly repurchases. President and CEO Brad Childers clarified that Archrock's primary focus regarding power generation demand is to deploy capital to grow its compression infrastructure, supporting natural gas production as the critical feedstock for power growth, rather than direct power procurement.