Archrock (AROC) 1 May 242024 Q1 Earnings call transcript

Good morning. Welcome to the Archrock First Quarter 2024 Conference Call.

Your host for today's call is Megan Repine, Vice President of Investor Relations at Archrock. I will now turn the call over to Ms. Repine.

begin. now may You

Financial Hello, first me thanks President today of operating Aron, Executive Ally. released Yesterday, today's financial XXXX. its and joining call. Officer and Chief Doug and With are for Archrock; of everyone, you, Archrock. for Archrock the and results us Chief Officer quarter Thank Brad Childers,

www.archrock.com. can on the information you not If the have received find a website copy, at you company's

XXE of this current the Section to During well we meaning of by Act available forward-looking will beliefs made management information and as our Securities within statements the XXXX call, make expectations as on Exchange assumptions team. Archrock's currently and of based and

no correct. reflected prove believes the expectations assurance such management such give that in to expectations will statements are be forward-looking Although that reasonable, can it

this with in Please that factors materially cause list to latest refer forward-looking our the SEC statements from for a to of the during actual call. differ those results may filings made

our discussion gross margin In margin, non-GAAP flow free cash flow, dividend. available including free after gross today cash measures, for certain addition, and EBITDA, percentage, cash adjusted will reference dividend financial

of these results, see Form measures provide update to Brad press quarter and to non-GAAP our first results please now our the of GAAP to X-K an call release financial and SEC. with to over financial yesterday's furnished our I'll reconciliations the For turn discuss business. Archrock's

reflecting our $XX in was year. processes a in and everyone. XXXX, first and be up books, execution, morning, from Thank operational in is quarter technology. With promising net looks XXXX. strong the a Among of power first base excellent million our highlights, carrying Archrock's million you, the $XX asset Momentum good of income and innovative exciting high-quality Megan, to XXXX quarter earnings into and the

X.Xx. maintained year our across the Adjusted increase XX% We EBITDA position, driving our profitability all period. sector-leading pricing to and gains $XX an million prior was million by $XXX versus low segments. leverage of ratio driven of This up or financial was all-time

returns. We increase continue shareholder to

Our ago, robust share coverage the up quarterly compared XX% maintaining for of while quarter. a X.Xx year dividend dividend was per to all

In totaling addition, of million $XX share. program than an average under inception-to-date authorization. our buyback shares With $XX.XX now more we purchases continued per at repurchasing price

As our Doug our because will raised and the outlook, of of have confidence first strong our discuss, adjusted performance the for quarter EBITDA we in guidance year. midpoint full business

operational pause take consistency things. we've and as Given we've and financial to the execution as the well a a and moment couple say the to like I'd magnitude of of achieved improvements demonstrated,

First, I our thank to employees. want

at to a the leading and Our and every and performance for operating leading the our excellent is team. day. the to job performance Thank result employees expertise you customer bring done. well service deliver and you of each dedication Thank for safety Archrock

Friday. ringing I we Second, New This to XXth with business bell celebrations on Stock the the want off And and founding. kicked last opening further anniversary built. we've York year our expand company's the of of the enduring Exchange of remarkable the marks

actions base, been, our has enhance transformed our opportunity recent known ahead efforts, digitization the the and we've compression excellent to in From taken business milestone standardized should company our benefit the for the emissions years we've first This for reduction field business. our company reflect us we customer fleet our to are and lies of promise has the to and given which rate where that on our the to built customer highly performance service premier come. to most

which see truck. should primary for sustained strong market drivers compression to X and also our have opportunity continue the We a confidence support in fundamentals set

for production track we The in XXXX. gas natural natural record XXXX year following production U.S. are a natural gas forecast growth production indicating production. gas First, in flat

Associated however, gas is Permian, expected still oil-producing to like increase. in production key markets the Archrock

production with in Permian in XXXX. consistent increase That in gas there have forecasted the continue and is natural we certainly experience increase to demand compression

the U.S. the of expected are addition, volume have call pause natural gas and on the visible gas sanctioned been a projects years short-lived natural be given LNG natural is X and growth gas U.S. global in U.S. production in sustained result In longer approved term. already production total slate to expected in that and to over increased next

that upside data estimates opportunity power we're gas to Domestic natural of and demand of the and provide just timing as current domestic creates. to AI centers the magnitude generation also production onshoring beginning possible could understand

across factor is second The the the discipline sector. heightened energy capital

customers, are shareholders. to and growth suppliers peers returns balancing Our with

the performance within financial increased value After we're demanding this chain financial the we and capital poor years discipline the returns, of space, higher that throughout level energy investors are supports of oil gas seeing and inflection. believe

provide Third a reliable cleaner, affordable gas. in the the and value form to and and to U.S. the energy finally, the of of natural excited we're to chain world crucial be part

the incremental We methane Through our emission detection, to to our and as and decades intend Archrock's of infrastructure emissions as investments of dollars use measurement generation compression, affordable of abundant do of capture Success by resource well the part. electric help for of and low reliable drive as natural sector gas come. work our use billions solutions energy bring would source to the motor in extend to existing market. a power

to Moving segments. on our

year demonstrate the in high what experiencing of to show pricing will historically profitability seeing. given to utilization, help market signs operations expect broad-based segment including business market. contract Our which tightness observations throughout we're of the few currently are strength we we strength, and levels A of continued maintain the

equipment remain Demand, robust. returns new build and for pricing

sold are We XXXX. and of equipment out book we continue to into XXXX, well

in Permian, gas further the markets, by gas its stock lift new growth tightness for being Similar other the market associated demand low While and we're like in Permian, at levels. cost for the uptime. And reliable by the activity given to Rockies. effectiveness seeing to continues supported led also equipment be including plays, demand XXXX, remains is

our evident with XX% in see performance we This what based Today, of gas near able the to the in exited to XX% and utilization operating on of maintain quarter We is quarterly lift Markets this around utilization our record in Day, expect be first represents metrics. strength the we horsepower. mid-XXs year.

utilization high industry, of Archrock we're Given and capturing the and levels prerogative the horsepower for additional increments. pricing rate maintaining

per XXth increased consecutive of quarter increases which in monthly horsepower, The X% quarter our to by revenue $XX.XX. first marks our sequential

last Continued XXX and to year-over-year basis price strong increase XX% an up and percentage XXX drove quarter. to control increases points points cost compared the margin our gross in basis

high to we're this and remain platform. investments on ambitious operating we and focused automate level our gains, of capabilities innovative defending technology as profitability the profitability driving about in increasingly digitize our ahead, leverage of additional Looking especially

higher period. The seasonally X% to Aftermarket had solid during great were driving year-over-year and Services segment customers. service a due slower Revenues typically with repeat is is up a quarter a pricing what business

exceeded shareholders. as cash profitability to as guidance quality our quarter higher flow Shifting we returns increasing approach as to on and to to remain for allocation. work. our well We're focus generation continue to our capital capital committed returns-based free higher-margin expectation XXXX. framework First capital We allocation

authorization our our by returns. an Our recently We're recently $XX will base extension up of with on investments. available XX% continuing an by needs build and and to declared basis, share million. new share of quarterly be of renewed annual of approved the Board meet These Directors per repurchase funded capacity was investments supported customer dividend our operations through attractive

sheet industry-leading we leverage maintain an and balance position. Finally,

oil are quarters, given sustainable the key over X driving we've have last last In we several associated environment, in recently, repaid debt of momentum in markets our by to Permian compression With which confidence leverage durable earnings Basin. demand ratio macro the within and years, are target the prices, summary, favorable and gas X we well led the strong in particularly the the X.Xx. more strong our

Our transform increased in Strong our funding and revenue, meaningful in quarterly flow adjusted capital is to high-return cash delivering fleet of margin return platform investments gross EBITDA. is and investors. growth

we a financial continue to maintain sheet sector-leading balance While flexibility. also and

proud our Archrock's I'm future. I call with, market XX-year the transformed But about with our more at ahead company's legacy. opened platform, I see the with am As even excited we of

like to quarter performance a XXXX provide on of and additional our first color for to Doug our call updated I'd review the that, With over guidance. turn

Thanks, Brad, and good morning, everyone.

was Let's look our first cover the gross long-lived quarter then XXXX. of income quarter results performance as of business first quarter quarter in first and noncash at for million. Underlying outlook. higher a EBITDA the sequential total $X a impairment. was asset XXXX This included we $XXX We basis. the on strong financial $XX both Net for summary our of segments million delivered a margin first million dollars adjusted reported for

million horsepower asset $X to sales. from in benefited Results further related gains sale nonstrategic net

to in segment. increase Contract our $XXX fourth the quarter, at million X% higher came to for Turning compared by quarter. first was the driven pricing. business This revenue operations up

First because primarily delivery was quarter high we exit XX,XXX took utilization to of XXXX and slightly near XXXX but all-time down revenue in units did as at begin were in XX% the fourth total an until the remained quarter of horsepower horsepower that included build horsepower units operating the generating available total March new of not but reflected compared in not April.

of contract, X%. the this resulted quarter, is percentage even the note our XX% until margin fourth Compared -- methodology This gross a newly utilization last if unless revenue which all to XX% substantially to in by in and under our units margin current grew point, we include this gross backlog operating calculation please in horsepower compared is. quarter. acquired gross On dollars not does our that resulted horsepower of are horsepower our that generating

services due slightly aftermarket quarter on compared down a reported basis. the revenue XXXX to million fourth but seasonality, year-over-year of our first quarter In segment, X% $XX to up we

$XXX of of billion quarter Variable debt with less continue the represent We XX% quarter liquidity to to than total quarter the XX%. AMS our strong available debt debt. gross rate exited and First margin of XX% total of million. of fourth long-term compared $X.X

returns with through outlook. issuer BB- unsecured also quarter This calculated BB- from months year-end remain raised committed issue of to March, rating the Global end senior In first XXXX. impressive on to leading quarter quarterly Archrock's versus maintaining S&P cycles. by the S&P Cash available dividend to trailing level consistent XXXX from X.Xx. declared our debt for at or is X Our an increased XX X.Xx a first share We a debt recently was annualized financial from described shareholders. just $X.XX $X.XXX per of Ratings rating credit dividend to This period. down B+ B+. The flexibility stable quarter dividend coverage a $XX leverage of upgraded quarter level Archrock's EBITDA. continued dividend as fourth for X.Xx total consistent up was million to to X.Xx ago divided strong totaled year ratio with and support basis. the leverage the ratio We at adjusted I capital XX% to on XXXX of

In to price we quarterly during million the approximately quarter, repurchased of our XX,XXX paying average shares share. $XX.XX per an dividend for at addition $X.X

repurchase of share up program to expire additional repurchases set allow time April Last us our authorized week, additional an reauthorized stock. months The program, reauthorized our $XX common outstanding which XX Directors million repurchase share was an Board our for to period. of in to

to Turning guidance.

pricing to We for to of of the in our year. balance the are ability utilization, levels profitability we well historically provided compared high sustain confident are executing February outlook the in and and

a This than million million. growth in million of slightly expected compared result million $XXX to guidance XXXX. of $XXX our flat performance, new compared result approximately carryover $XXX in range guidance an increase are XXXX adjusted to our EBITDA CapEx million in We prior a of is represents delayed. excellent that from cash approximately XXXX to previously. and improved and expect between growth total $XX of and $XXX first quarter CapEx in for was $XXX as The $XXX to million as million Considering higher equipment XXXX million midpoint million raising we to million range now guidance XX% $XXX was our CapEx to $XXX of XXXX $XXX annual late

if clarity, is XXXX be to expected $XXX CApEx misspoke, For guidance growth million. I our for

well Importantly, in quarter, as after dividend, still to reduced that our cash enhanced nonstrategic forecast. $XX we we net given financial sale generate performance million proceeds the generated expect in CapEx I which described, as the free the asset flow just

$XX CapEx forecast of year million to million million other and maintenance to CapEx full XXXX remain $XX of unchanged. forecast Our both $XX $XX million,

natural position In reflecting allocation, strong which for open exceptional and summary, platform primary With drivers, future like XXXX. -- bright to we'd X questions. we up a to capital a drivers for prudent to and Ally, include question compression strong for for gas demand execution, energy. meet financial are for also outlook are cleaner market the robust line our delivering Archrock's our for now the transformed growing These contributing that,

from comes Our question Instructions] [Operator first from Raymond James Rollyson James.

are your look you and to given on inflation returns side, had. the fantastic past that at willing pricing today, happened on the those ultimately would the do a themselves. And offsetting Brad you kind have of what's by another I the we're where you've times about on in if pricing -- what where is cost and allow will you have to they cycle take are customers returns do Congrats before kind kind you driven you've be like in this of upside projects ultimately conversation had gains quarter. the of operating and in, many talked

revenue presume you it Orlando, average Doug maybe think your level recently the kind pricing I'm but and isn't our power to edge mid-XXs. near-term of point, conference quarter. can the I to go mean this et curious, leading your getting it's I of X.X% mid-XXs fleet kind And month, per try of in you LNG horsepower about where bogey the I whole demand certainly asked the was to. of was it think trying aspire backdrop was in given said per at growth, cetera, stopping that where I'm understand

market that context just So edge the you And go just leading you do where is think I'm today? some backdrop? on maybe where around based think might

A few comments. Jim. Thanks,

momentum a pricing the news basis, good on pricing pricing up. we We to XX% spot year-over-year of think XX%. that see is I and when see still First, spot

in compared more though Now to the experienced the what single X over digits we years. last

guidance have that. to on excited we base, see our it an pricing Second, for reflected about to in is And sure. gains opportunity installed and know continue we the we're

pricing is the going as price well to on opportunity see market base, bring just that the opportunity installed on that's we new that basis starts. supportive we still a But And the pricing of increases. is spot what's both like the up as not

pricing future make second It's to range The a future give on prerogative level. probably comment us just not guide forward-looking or would of is I'd guidance period. pricing to the a not pricing at that we set

I'd just So like off to of that. back pull

pricing We're for for share a to to able not going target a lot of range reasons. be or a future

in new real of is of all. good, really units that and regain labor us. is cost customers question are to don't that of up the the had point for up pricing for recover is go our like we returns just there require are Pricing to all The So going want market go our but something returns at But a parts, raised pricing for and inflation price higher you your to forward going XXXX. today since that XX% inflation of to up territory. and and

capital And is on cost up. we of addition, also in But up are expectations investment returns candidly, have. and

a seeing we of as and better our that returns, because customer demands supportive the investors. deliver we believe their an base from returns that have business better As we is they're to deliver have same industry, to

coverage That's have your kind the exactly dividend with kind climbed bring here. the it. down obviously I the just switching led pricing trajectory leverage of Maybe of where what I'm on to color. dividend flow free is you Got the cash continued guys Xx gears over side, implication helpful of That's to going from to increase. mean for again

you you think cash. distributing the how think how curious that I'm and about Board or

dividend quarter. You XX% this last boosted

You the buyback just refreshed program.

your capital And opportunistic zone Or repayment, the trying using on leverage lighter the about do think users have so between program, through how growth you dividend now You how just allocating but that targeted to you debt think versus structure? like is that versus walk buyback been that are buyback buyback? maybe program? probably in far on about guys you the

today. the pull. to we're it's and generating have focused in really to our great We flexibility And balance be returns cash we're financial of structure we excited to First, an and investors. in position be exciting sheet platform about of position levers in intend on with our financial time our the and number we to on fully the the that have

So that acknowledge dividend. been XX% with starting has the year-over-year good. off We increase

financial the performance rates that with discuss about level and our dividend we is going goal a the is Board and do to be that dividend have how with thoughtful we so to revisiting note, right the every quarter be And to cycle. deliver consistent we growth a the in now, But want be. will dividend what to cycle, through at part that. our strong We're we

we being can can that's price we generate for to time. can approach we to does entire returns. buybacks, execution be debt target debt equity repurchases to going take our what share as our do of now. Second, the the That the that over easiest And because and on and are like, account best as that as equity, cash We however, when systematic going on looks we for into where is we put in the to absolutely because compute. are know opposed returns right do to that returns,

beyond. we're in I for my to the we position natural production the finally, going it gas ahead in be And U.S. going What XXXX to in comments, is a is see, market change in is and flat said where XXXX robust. and

customers getting working that. are Our for on ready

as We are ready working well. getting on for that

pause growth So right a we but ahead. bit see a now, of

finally, result to benefit funding absolutely our generate to So that that the flow free going allocation of customers. we also is for go capital cash are capital in growth with hard net allocation But that work our going -- towards to scheme. the the

that think to opportunities return that about just means more we that, it, Jim. our investors. capital we we excited way future to know the So that's have we're And

against is buyback of which [indiscernible] public not defensive, I perhaps a we, that program. At repurchase the any would offer in believe, company say horsepower, that share the Jim. intent share in I risk growth one slightly reference I are compression program. a would both growth the less and as differentiator dividend usage being when you other ones definitely second, delivering under only just

are And will appreciated the owners so that of continue both I appreciate think to Archrock all and And friendly. future. shareholder into of those have things

more It capital Doug. between against going It a a slide Absolutely, is where was relative you? dividend... wasn't just

I didn't it that take way.

Just Jim, a thanks. advertiser, but short

take to to have high-class Sure. to of path which Well, it's a many. problem choose

So congrats again, Thanks. guys.

Our from Stifel. next Selman Akyol question from comes

Thank you. Good morning.

little the wondering what the to also if customer backside and bit about gas you market, bit of a similar What off talk I And talked about expand seeing demand opportunities kind that of could you coming that. there? lift then plants you was have you're there? you Maybe a think little in of relative on transportation? economics So, see does the the do

Thanks, proportionately for I'll see fleet been first. compared the Number talk the for what Selman. basis gas horsepower on in stated grown percentage mix and and consistent have lift, with about to entire a what market a for lift percentage the has differently, gas one, we've on gas what of compression it's we opportunity basically seen gathering to lift. we gathering application

a very consistent. been but moved little It's bit, around

or So -- lift -- help wellbore used It's know, for really production. production. to pressure an relieve and directed in the the itself ESP gas is oil as you technology to facilitate to other like

oil production gathering. pure gas and as gas directly just to production lift gas tied to very opposed So

oil going it's especially the and growth that Permian. means that forecast see forward, good market in we a for And because

to to So going we're it. think, We're continue growth going good it's to, super there, from and a strong benefit I market. see

That's a gathering totally the see they're back what be applications, part the your more much of we question to post far and related applications of transportation As as recompression than... to different direct. No, plant. on

the that. lift, what gas it versus curious you one side Yes, I on pricing? same it think is same in contract versus of if it the guess about I'm the gathering same misspoke dynamics is I you Are just the or other? seeing just tenor all the the

equipment Yes. Compression The comparable. both in the are very identical. economics dynamics are applications. The is same

Can where you Understood. talk you And effort, about see how data that you then guess, is gathering. going that? I and optimization through undertook an

really to added It's years, in data technicians It's and of and unit because in stuff, to Yes. we be improve coming off to are exciting service, the X drive and data the every of out utilize a and last starting economics the great honest well on edge multiple with just the pretty that being points figure are the devices. that. over to customer telemetry end field how of engine collected to really efficiency field in through service managers front utilizing that we've very the

That's a the field before information going of air diagnose address in coming can is the about that's and We issues and we're of to with lot on look efforts automate remotely preventative that through what's great maintenance they aspects start in on What's units to predictive work increasing over perspective, downtime. with today. turn at that a do we into the what the super operating adjustments exciting. can and

of we offer of of all that, differentiated So level a a service, customer us to is allow level efficiency. higher to believe, much going continue and to

to have did expect and have touch than units this when roll for not technology we the the in to us. available We less go past the trucks

a So is That's optimization time. way the working. exciting it's that pretty

up we should expecting that see to in show Any start ideas margins? when

margins also You're customers that beauty in way, of that up service are level. seeing customer of show that is And the already. a some at by experiencing the the

we've about a be improvements as the this you to basis turn on investments into of that well. made, go-forward when given that able service amount allowed we the So we're margin business profitability that pretty delivering, in ambitious the should be think in we're that we should

your there. of following the Understood. question and terms answers And just to one, then last in of last up some

talked, ahead. you of capital about I'm robust that growth And of as sort talking and budgets mind to about CapEx just translating LNG think seeing about allocation. sort my You guess, I in

expect guess higher I to and going us 'XX? you're forward positioning So expense into 'XX

Directly, no.

be as XXXX. going that guidance as what XXXX. are while we It's going But market also there. in before expectation CapEx and robust the XXXX. And positioning providing as higher We we're is a for can seeing. still tight to the are I get yet, say It's are not we that would excited for we not really in remains

are adjusting in and framework, to dedicated not the We of allocation to guide different future. our cash of expectation returning generating not level still investors to free trying cash very to We flow. a an we're investment and remain

Our next question Josh ] comes Partners. Chan from Energy [ [indiscernible] from

was something But I to to that sort noted I an at you that and equipment expand your guys conference the just in expect couple hoping is owned. XX% rank could to you Permian, least that wanted higher. is just last why years? on where incremental over the XX% on of back exactly the you standpoint typically call of lease Permian of from percentage much horsepower is next

Thank for question. you the Yes.

is don't XXX% First, the amount operated accurate by of have on the all That is visibility known. horsepower we data this customers. owned and not complete into the

not just So that information are is but available. and our exactly comments are, accurate, not directional we because believe,

most period that caveat, So Permian is I'd time. what recent over share the with was that of the fast growing

this a we're At experienced reasons, discipline. most more before time we on midstreamers driver. by for discipline that we that that when was outsourcing including midstreamers, We capital providers, think, providers, service the think entire and industry, was the capital the supportive by producers, recent in had all and focused producers of and candidly compression capital leaning than service the the one

availability is the driver compression second experience is and The a know labor. of we thing that

the in happy because forward customer that labor was it's to I more looking us think industry for one they to expertise base outsource very of want our necessarily not that's to pocket experience and available build was themselves. and

the been aligned So the being horsepower of not gone that into with of the that we drivers with amount has those primary the think, factors, think I balance. market, Permian XX-XX that's

if been the we don't happened evidence part more has know that's estimate the that, more know the think of including fair is that ever compression And than in but Archrock market. in outsourced and like in XX-XX, it's there operated past. of We sector a by midstream as service of we has Archrock there's by that probably the way, what the providers certainly

clear. that numbers The not. think So we the is direction are

of And where question. could areas you great. might Geographically, of one to Permian maybe the That's expect around the walk just you see other growth. sort outside

other moving You Rockies 'XX. remarks. your I'm mentioned how the of in U.S. only forward curious just see markets here, the developing end into the through across 'XX you but the this prepared not year, and

we most traction to the outside and of we seen include we've Northeast. we've where Texas and the certainly growth what so the recently the the see That's the expect in pockets where South The future Permian and Rockies, CapEx experienced our growth growth, be going But the the to believe remainder. will of in XX% I'm incremental see and growth. that's where clear, going in is today is our else we everything participating into Permian and

incremental for remains Permian and an for the everything opportunity so And is else growth the growth market us.

next Ferazani Our Instructions] [Operator question comes from Steve from Sidoti.

the and XX% business continuing quarters or But contract different now aftermarket. margin It's $XX over is revenue coming on X of COVID maintenance the where million Same compression and on second Aftermarket? you're from X% is in coming I Multiple demand quarters ago, wanted you're you year-over-year. strength better. out multiple type to ask about strength about of pent-up demand anything in in to that quarters continued the talked overdue. going of or seeing out grow patterns up your

for Thanks mix. seeing of in couple that driver really things. the of but revenue, margin a expansion question. The the to one, Number is due certainly AMS the you're the

a job the amount second, parts service done work seeking team the So of margin we're with a work compared customers. certainly has pull-through. great seeing And to of higher That's And impacting margin. higher just

We today. also that to have going a with, high in to don't And finally, just workforce it's going And really however, just I'm tremendously forecast. a talented And business difficult for notoriously then demand. point abating. is I'm out that to we the labor that is necessarily tight see close market

are bullish going we're get to in still that AMS ambitious the -- from with and very that through value the caveat, segment So we of business XXXX.

retain You in for noted labor and it ends How weaker now? ability times. and it a is your the be would service Is of response in that in to and tied how personnel strength you terms has of in your market costs? other easier worked much right labor oil what to of gas

growth This beyond Correctly, the for the gas yes. production getting low has natural 'XX us business, to now and labor answer more said, still the going to labor, seeing ramp growth enough and in labor in an our be as a is in seen in That what that and going equate is that ready is slight we've pool AMS given more a opportunity in everybody particular. to get we're and market in is bit. some work cannot stabilize we right

we're fight and talent much So for really much -- train we bring the as still good still is more. can. fighting looking in to market as The as bringing

Great.

Just and on idle a the CapEx again, know maintenance was terms high-grading. the was on it that? What's in sales. of quick capacity? I'm at fleet down assuming stages your general I make-ready latter left produced one We on make-ready asset

We are. to with the our fleets We're standardize age. fleet need progress the we really happy improve to competitiveness, fleet

to technology we we sell pockets we we've basins for the and of fleet the some of added. that would be few really critical All was willing still before have in into invested right outlying price. that in But that added the a the

it. happy that as just to operate market But in, candidly, to the we with in part as are we're to continue we're

and all it's appetite a be buyers of So function going value. to the of assignment

more are questions. no There

final Mr. to Childers like call remarks. for the I'd back over Now turn to

in in quarter market Thank a look Great. you and to an enviable position forward XXXX I participating next everyone. Thank quarter. everyone, updating is call. and our you, progress on off is first Archrock great start is for to you, the strong. our

today's a call. day. Thank you We you have all wonderful attending for hope

You may all now disconnect.