debt_leverage_profile
0.26x Total Debt / Equity (Conservative)
High
SEC-XBRL
interest_rate_sensitivity
A 200bps rate increase raises annual interest expense ~$20-25M given ~$1.6B floating-rate debt, compressing net income by ~15-20%
Inferred
Agent_Inference
geopolitical_supply_exposure
High intensity; OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.
Medium
GICS-commodity-overlay-v1
supply_chain_dependency
Gulf Coast fabrication hubs (hurricane/storm risk) and domestic steel supply chains dependent on US mill concentration
Inferred
Agent_Inference
international_expansion_readiness
Archrock is predominantly US-domestic; international revenue exposure is negligible, so sovereign currency devaluation risk is near-zero
Inferred
Agent_Inference
geographic_footprint
Operations concentrated in US onshore basins (Permian, Haynesville, Eagle Ford); minimal international footprint eliminates material FX devaluation risk
Inferred
Agent_Inference
commodity_exposure_profile
High intensity; commodities: Crude Oil, Natural Gas, Coal, Refined Petroleum Products, Uranium, Steel (equipment); geopolitical: OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.
Medium
GICS-commodity-overlay-v1
vendor_lock_dependency_score
Caterpillar and GE/Waukesha engines represent critical non-substitutable compression equipment inputs; likely >30% of equipment capex
Inferred
Agent_Inference
business_model_type_primary
Archrock runs physical compression infrastructure on-premise at customer sites; cloud termination would disrupt back-office ERP/billing but not core operations
Inferred
Agent_Inference
business_model_type_secondary
Contract operations and aftermarket services rely on field technicians and physical assets, not cloud-hosted revenue-generating infrastructure
Inferred
Agent_Inference
switching_cost_profile
Low API coupling risk; business is asset-intensive field services, not software-driven; ERP/SCADA integrations are standard industrial protocols
Inferred
Agent_Inference
howey_test_risk_index
Fails Howey Test; Archrock sells contract compression services for cash fees, not investment contracts with profit expectations from others' efforts
Inferred
Agent_Inference
regulatory_burden_tier
High
Medium
GICS-regulatory-overlay-v1
data_sovereignty_risk
Minimal GDPR/CCPA exposure; customers are US oil & gas operators, no significant consumer PII collected or EU data residency obligations
Inferred
Agent_Inference
antitrust_exposure_flag
Moderate; Archrock and Exterran are dominant US contract compression duopoly; DOJ scrutiny possible on acquisitions but current market share ~20-25%
Inferred
Agent_Inference
regulatory_exposure_profile
High burden; regimes: EPA, FERC, DOE, CFTC, OSHA, SEC; Accelerating emissions mandates and methane rules threaten capex economics.
Medium
GICS-regulatory-overlay-v1
revenue_model_type
~85-90% recurring via multi-year contract compression agreements; ~10-15% transactional aftermarket parts and services
Inferred
Agent_Inference
monetization_vector
Recurring monthly compression service fees per horsepower deployed under 3-5 year take-or-pay contracts
Inferred
Agent_Inference
pricing_architecture
Fee-per-horsepower model with fuel pass-through provisions; inflation escalators in newer contracts partially offset input cost increases
Inferred
Agent_Inference
pricing_power_rating
Moderate-to-high; limited substitutes for large-scale contract compression, but competition from Kodiak/CSI Compressco caps aggressive repricing; 7/10
Inferred
Agent_Inference
target_gross_margin_bracket
48.6% Gross Margin (Strong (40-60%))
High
SEC-XBRL
churn_vulnerability_index
Low free-rider risk; physical asset deployment requires formal contracts; churn risk elevated at contract renewal when customers evaluate owned compression
Inferred
Agent_Inference
headcount_cost_structure
Sublinear but not highly scalable; field technician headcount grows roughly 0.6x revenue growth rate as route density improves with scale
Inferred
Agent_Inference
marginal_cost_of_growth
Marginal cost of growth is capital-intensive (compressor fleet additions ~$800-1,000/HP) but incremental OpEx per unit declines with route density
Inferred
Agent_Inference
franchise_compliance_risk
Not applicable; Archrock does not operate a franchise model
Inferred
Agent_Inference
customer_acquisition_metric
At 10x scale, CAC becomes negligible relative to LTV given multi-year contracts; bottleneck shifts to fleet availability and fabrication capacity
Inferred
Agent_Inference
network_effect_present
No meaningful network effects; value delivered is physical compression capacity per site, not platform-based; durability depends on fleet scale advantage
Inferred
Agent_Inference
asset_efficiency_ratio
9.7% Return on Assets (Excellent)
High
SEC-XBRL
recession_resistance_tier
Tier 2 moderate resilience; natural gas production underpins demand, but E&P capex cuts in severe recessions reduce new compression deployments
Inferred
Agent_Inference
customer_segment_primary
Large and mid-size US onshore natural gas E&P operators (EQT, Comstock, Coterra type customers)
Inferred
Agent_Inference
customer_segment_secondary
Midstream gathering and processing companies requiring compression along pipeline infrastructure
Inferred
Agent_Inference
characteristic_occupations
["11-0000 Management Occupations", "13-0000 Business and Financial Operations Occupations", "15-0000 Computer and Mathematical Occupations", "17-0000 Architecture and Engineering Occupations", "19-0000 Life, Physical, and Social Science Occupations", "23-0000 Legal Occupations", "41-0000 Sales and Related Occupations", "43-0000 Office and Administrative Support Occupations", "47-0000 Construction and Extraction Occupations", "49-0000 Installation, Maintenance, and Repair Occupations", "53-0000 Transportation and Material Moving Occupations"]
High
SOC-2018/GICS-overlay
agent_automatable_labor_share
0.33 (HIL — ~33% of characteristic roles agent-automatable)
Medium
SOC-2018 + agentic-exposure-v1
capital_expenditure_profile
Capital reallocation is evident: new large-horsepower (>1,000 HP) units replacing older smaller fleet, targeting higher-margin natural gas gathering applications
Inferred
Agent_Inference
sec_cik
0001389050
High
SEC-EDGAR
ticker
AROC
High
SEC-EDGAR