Jim [Unknown]'s questions to Archrock Inc (AROC) leadership • Q4 2024
Question
Jim [Unknown] asked about the sustainability of Archrock's high gross margins and their potential ceiling, and followed up with a request for details on the 2025 growth CapEx, including expected horsepower additions and the mix between traditional and gas lift units.
Answer
President and CEO Brad Childers stated that while margin expansion will slow, the focus is now on growing the profitable business. He detailed that the 2025 CapEx will add over 200,000 horsepower, with about 80% for large gas drive engines and 20-25% for electric motor drive. CFO Doug Aron clarified that $15 million of the 2025 CapEx is a carryover from 2024.