TacticScaleWhat Archrock Does & How It Makes Money (AROC)
Updated October 2026 · reflects Archrock's latest reported financials
U.S. natural gas compression services and equipment maintenance provider. Most of its revenue comes from contract operations, where customers pay fees for compression services provided by Archrock's own fleet.
How Archrock makes money
Most of its revenue comes from contract operations, where customers pay fees for compression services provided by Archrock's own fleet. It also earns money from aftermarket services: selling parts and components and doing maintenance, overhaul, and reconfiguration work on compressors that customers own.
What Archrock does
Archrock, Inc. is a Houston-based U.S. energy infrastructure company focused on natural gas compression. Its Contract Operations segment designs, sources, owns, installs, operates, services, and maintains its own fleet of compression equipment, and provides compression as a service to integrated and independent oil and natural gas processors, gatherers, and transporters. Its Aftermarket Services segment serves customers who own their compression equipment. It sells over-the-counter parts and components and provides operations, routine and major maintenance, overhaul, and reconfiguration services. The company was founded in 1990. It was formerly Exterran Holdings, Inc. and took the Archrock name in November 2015.
Products & services
- Contract natural gas compression services
- Owned compression equipment fleet
- Aftermarket parts and components sales
- Compressor operations and maintenance services
- Compressor overhaul and reconfiguration
What is Archrock worth?
On an owner-earnings DCF, Archrock's most-likely value is about $19 versus a recent price near $30 (38% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$11) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 8.1× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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