AROCArchrock, Inc.

Natural Gas Transmission

Revenue: $1.5B; 29% YoY
Operating margin: —
EBITDA: —
Market cap: $5.6B
Employees: 1,350; $1M revenue each
Net debt / EBITDA: —; $1.5B net debt
AI in 10-K: 1.6; mentions per 10K words

Takeover score 1 of 13

Fixable underperformance 0 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
193% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
34% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
3% of assets
Over 40% of assets
Shareholder dissentNo
—
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$1M · 39th pct
Bottom quartile of its SIC industry
Quiet on AINo
1.6 per 10K words · 49th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedNo
$5.6B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$13M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$781M	$846M	$990M	$1.2B	$1.5B	29%
Net income	$28M	$44M	$105M	$172M	$322M	87%
Operating cash flow	$237M	$203M	$310M	$430M	$622M	45%
Capex	$98M	$240M	$299M	$359M	$502M	40%
Stock-based comp	$11M	$12M	$13M	$15M	$19M	30%
Buybacks	$2M	$2M	$9M	$13M	$70M	427%
Dividends	$89M	$90M	$96M	$110M	$142M	28%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Nov 29, 2023	Old Ocean Reserves, LP	SC 13D/A	4.7%	Passive
Oct 2, 2023	Old Ocean Reserves, LP	SC 13D/A	6.7%	Passive
Aug 23, 2023	Old Ocean Reserves, LP	SC 13D/A	8.4%	Active
Mar 3, 2023	Old Ocean Reserves, LP	SC 13D/A	37.7%	Active
Mar 5, 2021	JDH Capital Holdings, L.P.	SC 13D/A	11.5%	Active
Aug 1, 2019	JDH Capital Holdings, L.P.	SC 13D	14.3%	Active

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $13M · 7
Net: −$13M

Pay vs performance

No pay-versus-performance disclosure yet.