Archrock, Inc. (AROC) 2024 Q2 法說會逐字稿

Portions of this transcript marked (technical difficulty) indicate audio problems. The missing text will be supplied if a replay becomes available.

本逐字稿中標示（技術困難）的部分表示音訊出現問題。若日後提供重播版本，將補上缺漏文字。

Megan Repine, Vice President of Investor Relations at Archrock. I will now turn the call over to Mr. Repine, you may begin.

Archrock 投資人關係副總裁 Megan Repine。現在我將把電話會議交給 Repine 先生，您可以開始了。

Thank you, [Jail]. Hello, everyone, and thanks for joining us on today's call. With me today are Brad Childers, President and Chief Executive Officer of Achrock, and Doug Aron, our Chief Financial Officer of Archrock. Yesterday, Archrock released its financial and operating results for the second quarter of 2024. If you have not received a copy, you can find the information on the company's website at www.archrock.com.

謝謝，[Jail]。各位好，感謝大家參加今天的電話會議。今天與我一同出席的有 Archrock 總裁兼執行長 Brad Childers，以及我們的 Archrock 財務長 Doug Aron。昨天，Archrock 公布了 2024 年第二季的財務與營運結果。若您尚未收到副本，可至公司網站 www.archrock.com 查閱相關資訊。

During this call, we will make forward looking statements within the meaning of Section 21E, of the Securities and Exchange Act of 1934 based on our current beliefs and expectations as well as assumptions made by and information currently available to Archrock management team.

在本次電話會議中，我們將依據 1934 年《證券交易法》第 21E 條之意涵，基於我們目前的信念與預期，以及 Archrock 管理團隊所作之假設與目前可得資訊，發表前瞻性陳述。

Although management believes that the expectation reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.

儘管管理層認為此等前瞻性陳述所反映之預期屬合理，但無法保證該等預期將被證實為正確。請參閱我們最近向美國證券交易委員會（SEC）提交的文件，其中列示可能導致實際結果與本次電話會議所作前瞻性陳述存在重大差異的因素。

In addition, our discussion today will reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted gross margin, adjusted gross margin percentage, free cash flow, free cash flow after dividend and cash available for dividend. For reconciliations of these non-GAAP financial measures to our GAAP financial results, please see yesterday's press release and our Form 8-K, furnished to the SEC.

此外，我們今天的討論將提及若干非 GAAP 財務衡量指標，包括調整後 EBITDA、調整後毛利、調整後毛利率、自由現金流、股利後自由現金流，以及可供發放股利之現金。關於上述非 GAAP 財務衡量指標與 GAAP 財務結果之調節，請參閱昨天的新聞稿以及我們提交給 SEC 的 Form 8-K。

I'll now turn the call over to Brad to discuss Archrock second quarter results and to provide an update of our business.

現在我將把電話會議交給 Brad，請他說明 Archrock 第二季業績並提供我們業務的最新進展。

Thank you, Megan. And good morning, everyone. Archrock's second quarter performance reflects the earnings power we built through our investments in high-quality assets, exceptional customer service and efficient execution, the long-term in year-over-year strength and durability we see in our overall performance and as reflected in our second quarter results. Is also supported by the affordability, an abundance of US natural gas, which will continue to fuel growth and demand use and production. And this strong performance as well as strength and durability are both further bolstered structurally by the continued capital discipline being employed across the energy sector.

謝謝你，Megan。各位早安。Archrock 第二季的表現反映了我們透過投資高品質資產、卓越的客戶服務與高效率的執行所建立的獲利能力，也展現了我們整體表現年對年長期的強勁與韌性，並體現在第二季的結果中。這也受到美國天然氣的可負擔性與充沛供給所支持，將持續推動成長、需求使用與產量。此外，這樣的強勁表現以及強度與韌性，也在結構上進一步受惠於能源產業持續採行的資本紀律。

Now, that backdrop. Let me start today's call with a summary of key highlights from the second quarter. Our net income of $34 million was up from $25 million in the second quarter of 2023. Adjusted EBITDA of $130 million was up 15% versus the prior year period. The increase was driven primarily by higher pricing, combined with a sharp focus on cost management leading to strong profitability.

在這樣的背景之下。我先以第二季幾項重點摘要作為今天電話會議的開場。我們的淨利為 3,400 萬美元，高於 2023 年第二季的 2,500 萬美元。調整後 EBITDA 為 1.30 億美元，較去年同期成長 15%。此增幅主要來自較高的定價，並結合對成本管理的高度聚焦，帶動強勁的獲利能力。

We maintained our sector leading financial position, including a leverage ratio of 3.2 times. We continued to deliver meaningful returns to our shareholders. Our quarterly dividend per share was up 6% compared to a year ago, all while maintaining robust dividend coverage of 2.6 times for the quarter.

我們維持產業領先的財務狀況，包括 3.2 倍的槓桿比率。我們持續為股東提供具意義的回報。我們每股季度股利較一年前提高 6%，同時維持本季 2.6 倍的穩健股利覆蓋倍數。

This was a great quarter for Archrock, thanks to a fantastic team of dedicated employees who work hard every day to deliver safe and excellent service to our customers and attractive returns to our shareholders.

對 Archrock 而言，這是一個非常出色的季度，這要歸功於一支優秀的團隊與敬業的員工，他們每天努力為客戶提供安全且卓越的服務，並為股東帶來具吸引力的回報。

And now, with the acquisition of past that we announced last week, we will further enhance our position as the premier contract compression services company in the US, and I'll expand on that in a bit.

此外，隨著我們上週宣布的對 past 的收購，我們將進一步強化我們作為美國首屈一指合約壓縮服務公司的地位，我稍後會再多加說明。

Turning to Archrock operations. Market conditions for compression remain highly constructive, predominantly in oil plays with associated gas production like the Permian Basin.

接著談 Archrock 的營運。壓縮服務的市場狀況仍然相當有利，主要集中在伴生氣產量的油氣區塊，例如二疊紀盆地（Permian Basin）。

The robust market is reflected in our Q2 contract operations, operating and financial results. Our fleet remained fully utilized with utilization exiting the quarter at a rate of 95%. Booking activity increased sequentially as we continue to build an order book into 2025. We expect to see sustained compression booking demand well into the future as our customers' plans for the call on natural gas production to support LNG export capacity growth and incremental electric generation demand from AI and data centers. On pricing with utilization at historic highs and continued strong booking activity were maintaining the pricing prerogative and capturing additional rate increments.

強勁的市場也反映在我們第二季的合約營運、營運與財務結果上。我們的機隊維持滿載使用，季度末的使用率為 95%。隨著我們持續建立延伸至 2025 年的訂單簿，預訂活動較前一季增加。我們預期壓縮服務的預訂需求在未來仍將持續，因為客戶規劃提高天然氣產量，以支援 LNG 出口產能成長，以及因 AI 與資料中心帶動的新增發電需求。在定價方面，隨著使用率處於歷史高位且預訂活動持續強勁，我們維持定價主導權並取得額外的費率上調。

The second quarter marks, a 11 consecutive quarter of sequential increases in our monthly revenue per horsepower, which increased to $20.85. Continued price increases and strong cost control drove adjusted gross margin percentage to 65% of 300 basis points year-over-year and consistent with the prior quarter.

第二季標誌著我們每馬力月營收連續第 11 季逐季成長，提升至 20.85 美元。持續的價格上調與嚴格的成本控管，帶動調整後毛利率達 65%，年對年提升 300 個基點，且與前一季一致。

The aftermarket service segment had another solid quarter. Revenues totaling $45 million remained elevated has great service is driving repeat business with customers. Second quarter adjusted gross margin of 22% exceeded our full year guidance expectations, as we continue to focus on high quality and high margin work.

售後服務部門本季也有另一個穩健的季度。總營收 4,500 萬美元仍維持在高檔，優質服務正帶動客戶的重複業務。第二季調整後毛利率為 22%，高於我們全年指引預期，因為我們持續聚焦於高品質與高毛利的工作。

From our first rate customer base, for a highly standardized fleet and excellent customer service we're known for in the field to our most recent digitization and emission reduction efforts. The actions we've taken to enhance our business should benefit our performance for years to come.

從我們一流的客戶基礎、高度標準化的機隊，以及我們在現場以卓越客戶服務著稱，到我們近期在數位化與減排方面的努力。我們為強化業務所採取的行動，應能在未來多年持續帶動我們的表現。

The acquisition of TOPS aligned with this strategic focus and is an exceptional opportunity to expand our contract compression operations. Earnings and cash available for dividends. With TOPS we're at 580,000 horsepower of young assets, including approximately 500,000 operating horsepower and the substantial and contracted backlog of new equipment.

對 TOPS 的收購與此一策略重點一致，並且是擴大我們合約壓縮業務的絕佳機會。獲利與可供發放股利之現金。透過 TOPS，我們將擁有 58 萬馬力的較新資產，其中約 50 萬馬力為在營運馬力，並具備大量且已簽約的新設備積壓訂單。

As we've previously discussed, this strategic and immediately accretive acquisition carries four main benefits. First, the acquisition of highly of high quality assets with contracted cash flows as meaningful low risk growth. The TOPS fleet has an average age of three years is 95% utilized and backed by fee-based contracts with blue-chip customers.

如同我們先前所討論，這項具策略性且可立即增厚的收購帶來四項主要效益。第一，收購高品質資產並具備已簽約的現金流，提供具意義、低風險的成長。TOPS 的機隊平均機齡為三年，使用率為 95%，並由與藍籌客戶簽訂的按費率計價合約所支撐。

Second, the acquisition enhances our scale and complements our existing Permian Basin compression capacity. The addition of pass is expected to increase Archrock Permian Basin compression capacity by 30% to approximately 2.2 million, operating horsepower.

第二，此次收購擴大了我們的規模，並補強我們在二疊紀盆地既有的壓縮能力。預期新增的 pass 將使 Archrock 在二疊紀盆地的壓縮能力提升 30%，至約 220 萬運轉馬力。

Third, this acquisition accelerates the growth of our electric motor drive fleets and augments our internal electrical expertise. TOPS is the leading provider of electric motor drive compression. With this acquisition, we expect our electric compression fleet to increase to 648,000 horsepower or 15% of our pro forma fleet.

第三，此次收購加速我們電動馬達驅動機組車隊的成長，並強化我們內部的電氣專業能力。TOPS 是電動馬達驅動壓縮領域的領先供應商。透過此次收購，我們預期電動壓縮車隊將增加至 648,000 馬力，約占我們備考（pro forma）車隊的 15%。

And fourth, this transaction is consistent with our financial and capital allocation priorities, and we expect it will facilitate the accelerated return of capital to shareholders.

第四，這筆交易符合我們的財務與資本配置優先事項，我們預期將有助於加速向股東回饋資本。

We're buying a rapidly growing business with a substantial and contracted backlog. And we expect the acquisition to be more than 10% accretive to earnings per share and at least 20% accretive to cash available for dividend per share in 2025. TOPS has both high-caliber equipment and a talented team that we're excited to walk into Archrock. The transaction is expected to close by the end of 2024, and we're confident in our ability to effectively integrate the acquired assets into our existing business.

我們正在收購一家快速成長、且擁有可觀且已簽約在手訂單（backlog）的企業。我們預期該收購在 2025 年將使每股盈餘（EPS）增益超過 10%，並使每股股利可用現金至少增益 20%。TOPS 兼具高品質設備與優秀團隊，我們很期待他們加入 Archrock。預期交易將於 2024 年底前完成，我們對於能有效將所收購資產整合至既有業務充滿信心。

In summary, with today's robust market of growing natural gas production and compression demand, one of our top priorities has been investing in high-quality and high-return compression assets. And equally as important, we've been funding these investments within our cash flow so that we've been able to do over on our commitments to increasing cash returns to investors while maintaining a strong balance sheet.

總結而言，在當前天然氣產量成長與壓縮需求強勁的市場環境下，我們的首要任務之一一直是投資於高品質且高報酬的壓縮資產。同樣重要的是，我們一直在現金流範圍內為這些投資提供資金，使我們得以在維持強健資產負債表的同時，持續履行提高對投資人現金回饋的承諾。

The acquisition of TOPS aligns with the strategic focus and is an exciting milestone for Archrock builds on a meaningful progress we've made orienting our business for the future and for long-term success.

收購 TOPS 符合我們的策略重點，對 Archrock 而言是一個令人振奮的里程碑，也建立在我們為面向未來與長期成功而調整業務方向所取得的重大進展之上。

With that, I'd like to turn the call over to Doug, for a review of our second quarter performance, 2024 stand-alone guidance and financing strategy for the TOPS acquisition.

接下來，我想把電話會議交給 Doug，請他回顧我們第二季表現、2024 年單獨（stand-alone）財測，以及 TOPS 收購案的融資策略。

Thanks, Brad, and good morning, everyone. Archrock delivered another strong quarter of financial results. Net income for the second quarter of 2024 was $34 million. This included a non-cash $4.4 million long lives and other asset impairment as well as transaction related expenses of approximately $1.8 million.

謝謝你，Brad，各位早安。Archrock 再次交出強勁的一季財務成果。2024 年第二季淨利為 3,400 萬美元。其中包含 440 萬美元的非現金長壽命資產及其他資產減損，以及約 180 萬美元的交易相關費用。

We reported adjusted EBITDA of $130 million for the second quarter 2024. Underlying business performance was strong in the second quarter as we delivered a higher total adjusted gross margin on a sequential basis. For the second quarter growth capital expenditures totaled $62 million, bringing year-to-date growth CapEx to $140 million.

我們公布 2024 年第二季調整後 EBITDA 為 1.30 億美元。第二季基礎業務表現強勁，因為我們的總調整後毛利率較前一季提高。2024 年第二季成長型資本支出合計 6,200 萬美元，使年初至今成長型資本支出達到 1.40 億美元。

We expect our 2024, growth capital will be first-half weighted. Maintenance and other CapEx for the second quarter of 2024 was $29 million, bringing the total for the first half of 2024 to $51 million. Turning to the balance sheet, we exited the quarter with long-term debt of $1.6 billion. Our leverage ratio at the end of the quarter was 3.2 times, calculated as total debt divided by our trailing 12 month adjusted EBITDA.

我們預期 2024 年的成長型資本支出將偏重上半年。2024 年第二季維護及其他資本支出為 2,900 萬美元，使 2024 年上半年合計達到 5,100 萬美元。談到資產負債表，我們在本季末的長期負債為 16 億美元。本季末槓桿比率為 3.2 倍，計算方式為總負債除以過去 12 個月的調整後 EBITDA。

As Brad mentioned earlier, we are acquiring TOPS for total consideration of $983 million, which will be funded with a combination of $826 million in cash and $6.87 million, -- $6.87 million newly issued common Archrock shares to the seller. Archrock intends to fund the $826 million cash portion of the total consideration with a combination of equity and debt.

如 Brad 先前提到，我們以總對價 9.83 億美元收購 TOPS，資金來源為 8.26 億美元現金，以及向賣方發行 687 萬股新發行的 Archrock 普通股。Archrock 擬以股權與債務的組合來籌措總對價中 8.26 億美元的現金部分。

On the equity portion. Last week, we announced the pricing of a common stock offering, raising net proceeds of $256 million at an offering price of $21 per share. The funding structure keeps us on track to achieve our financial targets, including maintaining a consistent leverage ratio of between 3.0 times and 3.5 times. Post transaction announcement and equity raised all three rating agencies reaffirmed their Archrock credit ratings and outlook.

就股權部分而言。上週我們宣布普通股發行定價，以每股 21 美元的發行價募集淨收益 2.56 億美元。此融資結構使我們持續朝財務目標前進，包括將槓桿比率維持在 3.0 倍至 3.5 倍之間的一致水準。在交易公告及完成股權募資後，三家信用評等機構皆重申 Archrock 的信用評等與展望。

The strong financial flexibility, I just described, continued to support increased capital returns to our shareholders. We recently declared a second-quarter dividend of $0.165 per share or $0.66 on an annualized basis. This is consistent with the first quarter of 2024 dividend level and up 6% versus the year-ago period. Cash available for dividend for the second quarter of 2024 totaled $72 million, leading to an impressive quarterly dividend coverage of 2.6 times.

我剛才所描述的強勁財務彈性，持續支持我們提高對股東的資本回饋。我們近期宣告第二季股利為每股 0.165 美元，年化為 0.66 美元。此水準與 2024 年第一季股利一致，且較去年同期提高 6%。2024 年第二季可用於發放股利的現金合計 7,200 萬美元，使季度股利覆蓋倍數達到亮眼的 2.6 倍。

Importantly, we believe the increase in pro forma discretionary cash flow from the addition of TOPS will further enhance our financial flexibility and capacity to increase dividends to our shareholders over time. As you saw in our earnings release issued yesterday, Archrock reaffirmed its full year 2024 annual EBITDA and capital extended -- expenditure guidance.

重要的是，我們相信納入 TOPS 後備考（pro forma）自由裁量現金流的增加，將進一步提升我們的財務彈性，以及隨時間提高股東股利的能力。如各位在昨日發布的財報新聞稿中所見，Archrock 重申其 2024 全年 EBITDA 與資本支出指引。

Our guidance excludes the pending acquisition of TOPS. We plan to announce our expectations for the combined company wants to transaction closes by the end of 2024. Excluding TOPS, our 2024 adjusted EBITDA is expected to range from $510 million to $540 million, which represents an increase of 17% compared to $450 million in 2023. 2024 growth CapEx is expected to total approximately $190 million, this is flat compared to the growth CapEx of $190 million in 2023.

我們的指引不包含尚待完成的 TOPS 收購案。我們計畫在交易於 2024 年底前完成後，公布對合併公司之預期。不含 TOPS，我們預期 2024 年調整後 EBITDA 將介於 5.10 億至 5.40 億美元，較 2023 年的 4.50 億美元增加 17%。2024 年成長型資本支出預期約為 1.90 億美元，與 2023 年 1.90 億美元的成長型資本支出持平。

Our full year 2024 maintenance CapEx forecast of $80 million to $85 million and other CapEx forecast of $20 million to $25 million, both remain unchanged. In closing, the market remains as strong as we've ever seen it in Archrock is in the strongest position and the company's 70 year history.

我們對 2024 全年維護型資本支出 8,000 萬至 8,500 萬美元，以及其他資本支出 2,000 萬至 2,500 萬美元的預估，皆維持不變。最後，市場依然是我們在 Archrock 所見過最強勁的水準，而公司也正處於其 70 年歷史以來最強勢的位置。

We have and opportunities rich market and expect to invest in high-return opportunities to profitably grow our business while prioritizing and growing shareholder returns and maintaining an industry leading balance sheet. We are excited to welcome the TOPS team, and we look forward to building an even stronger Archrock together for the benefit of our employees, our customers and our investors.

我們所處的市場充滿機會，並預期將投資於高報酬機會，以在優先並提升股東報酬、同時維持業界領先的資產負債表之下，實現獲利性成長並壯大我們的業務。我們很高興歡迎 TOPS 團隊加入，也期待攜手打造更強大的 Archrock，造福我們的員工、客戶與投資人。

Jail. With that, we a re now ready to open the line for questions.

監獄。那麼，我們現在準備開放提問。

(operator instructions)

（接線員指示）

Jim Rollyson, Raymond James.

Jim Rollyson，Raymond James。

Hey, good morning, guys.

嘿，各位早安。

Good morning

早安

Brad. So year to date, you've obviously spent well more than half of your growth CapEx, which implies a softer second half on that front. But just curious, your horsepower totals haven't moved that much in the active category so far. Just maybe and I know you've got to realize from proceeds from selling some stuff still, but maybe just a little color on kind of free dynamics, like how much horsepower you've delivered, how much has been put in the field, how much have you sold? Just kind of color on that, if you don't mind.

Brad。所以截至目前，你們顯然已經花掉了超過一半的成長型資本支出（growth CapEx），這意味著下半年在這方面會比較疲弱。但我只是好奇，你們在「在役（active）」類別的總馬力到目前為止並沒有變動太多。也許——我知道你們還得把出售一些資產的款項入帳——但能否請你們補充一下整體的動態，例如你們交付了多少馬力、多少已投入現場、以及賣出了多少？如果方便的話，請稍微說明一下。

On the overall position as the horsepower in the business, we're super excited to just maintain the 95% utilization rate that we've achieved. One of the impacts of that. As you can imagine, it does mean that we've put to work a ton of the idle fleet horsepower that we previously had maintaining it at a high rate.

就業務中的整體馬力配置而言，我們非常高興能維持目前達成的 95% 使用率。這帶來的其中一個影響是——如你所想，這確實意味著我們已讓先前閒置機隊中的大量馬力投入運作，並將其維持在高水準。

And that also means there's less horsepower in the fleet to go back to work. So the trade-off is we get to book less of that, but it's because of the active working and highly profitable. So that's one dynamic that you're seeing on the relatively flat for per quarter-over-quarter.

這也代表機隊中可再投入運作的馬力變少了。因此取捨是，我們能「新增投入」的量會比較少，但原因是目前在役運作的馬力本身就很活躍且獲利性很高。所以你看到的其中一個動態，就是馬力在季對季看起來相對持平。

The second thing will note is that, the market has definitely cooled a bit as we've seen a little bit of a give back in some of the dry gas plays. Fortunately, as you can see in the numbers, it's completely immaterial and to our overall fleet position as the vast bulk of our horsepower is going to work in the liquids rich plays 60% of it work in the Permian on a bookings basis right now. So those are a couple of dynamics we've seen and what I think is a relatively flat period of time, but finally, on a really good news front.

第二點要提的是，市場確實稍微降溫，我們在部分乾氣（dry gas）區塊看到一些回吐。幸運的是，如你從數字所見，這對我們整體機隊配置完全無關緊要，因為我們絕大部分馬力都在液體含量高（liquids rich）的區塊運作；以目前的接單（bookings）來看，其中 60% 在二疊紀盆地（Permian）投入運作。所以這是我們在我認為相對持平的一段期間所看到的幾個動態；不過最後，還有一個非常好的消息。

Bookings has continued to remain robust. And so even though the horsepower activity itself is a little bit flattish for us in this current period, what 2025 offers is still a very robust bookings set from our customers as they prepare for future natural gas production growth starting in 2025 to LNG projects come online.

接單（bookings）仍持續強勁。因此，即便在這個期間我們的馬力活動本身略顯持平，但 2025 年仍呈現非常強勁的客戶接單組合，因為客戶正為 2025 年起的未來天然氣產量成長做準備，屆時 LNG 專案將陸續上線。

That's a lot of what you're seeing. And finally, I'd point out that actually, you're right that the CapEx budget for the year 2024 was definitely front end loaded.

你看到的很大一部分就是這些因素。最後我也要指出，你說得沒錯，2024 年度的資本支出預算確實是前期投入較多（front end loaded）。

Yep, I appreciate that color. And just kind of since you brought up the newbuild part of that equation or new orders, just maybe kind of a status update on what lead times look like today. And in another thing that's been helping in addition to the tight market drive pricing is just the fact that the cost of equipment has gone up. And maybe just some color on kind of what inflation's been there. Is that starting to level off, et cetera?

好的，感謝這些補充。既然你提到新造（newbuild）或新訂單這一塊，能否請你更新一下目前的交期大概是什麼狀況？另外，除了市場緊俏推升價格之外，另一個助力是設備成本上升。也請你談談這方面的通膨幅度大概如何。這是否開始趨於持平等等？

Factually on the easy stuff. Lead times are in the 40 weeks and plus or minus to being funded category equipment. But we would describe it as a very normalized market. Inflation has returned to more historic levels, and that is for equipment coming into the system in the 3% to 5% range on a per annum increase basis. That's our expectation is what we're seeing and it's our expectation. So that's the easy stuff to point out.

就比較容易回答、以事實為基礎的部分來說：交期大約在 40 週左右，視是否屬於已取得資金支持（being funded）的類別設備而上下浮動。但我們會形容這是一個非常正常化的市場。通膨已回到較符合歷史的水準，對於進入系統的設備而言，年增幅大約在 3% 到 5% 的區間。這是我們目前看到的情況，也是我們的預期。以上是比較容易指出的部分。

But what we also see then is just robust bookings continuing going forward with that. What's exciting about the market today, though, it's not about lead times, that's constraining the market. Equipment costs are definitely up. And that means the price and that's has gotten bigger and further reinforce a lot of discipline in the market.

但我們同時也看到，往後接單仍持續強勁。不過，當前市場令人振奮之處並不在於交期限制了市場。設備成本確實上升。這也意味著價格——而且價格差距變得更大——進一步強化了市場中的自律。

Capital still remains at elevated levels of that cost is enforced, discipline on the market. But all of this goes to is the thing, we think is really driving a lot of discipline in the market is the investors' demand and focus on free cash flow generation, strong balance sheets and continued growth in returns to investors. That level of discipline means that no one's going to borrow expensive money to in place expensive bets without the security of a commitment and a booking with a contract in place with the customer already. That's what's really driving the market. We think it's about capital discipline. We don't think it's about supply chain constraints.

資本成本仍維持在較高水準，而這種成本壓力也在市場上強化了自律。但歸根結底，我們認為真正驅動市場高度自律的，是投資人對自由現金流（free cash flow）創造、強健資產負債表，以及持續提升投資人報酬的需求與關注。這種自律程度意味著，沒有人會在缺乏保障的情況下，去借昂貴的資金、做昂貴的押注；除非已經有客戶承諾，並且已有合約在手、完成接單（booking）。這才是真正驅動市場的因素。我們認為這是資本自律。我們不認為是供應鏈限制。

Got it. Yeah, certainly nice to see, and I'll let somebody else ask questions. Appreciate the time.

了解。是的，確實很高興看到這樣的情況，我就把時間留給其他人提問。感謝你們的時間。

Steve Ferazani, Sidoti.

Steve Ferazani，Sidoti。

Morning, Brad, morning Doug, appreciate all the detail on the call. Obviously impressive continued growth on the revenue per horsepower. Just trying to get a sense now. Are we getting closer to spot? Is there's still a lot of room to go as you reset pricing on previous contraction, and with the new capacity coming online?

早安，Brad，早安 Doug，感謝你們在電話會議中提供這麼多細節。每馬力營收（revenue per horsepower）持續成長，確實令人印象深刻。我想了解一下目前的狀況。我們是否已更接近即期（spot）水準？或者在你們重新調整先前合約的定價、以及新產能上線之後，仍有很大的上調空間？

At these levels of high utilization, we still believe we have pricing prerogative. Spot pricing remains elevated compared to where the entire fleet is, and we will continue to opportunistically bring the fleet up to market pricing as our contracts permit us to do so over time.

在如此高的使用率水準下，我們仍相信我們具備定價主導權。即期（spot）價格相較於整體機隊目前的水準仍然偏高，而我們將在合約條款允許的情況下，持續把握機會，隨時間推進逐步將機隊價格提升至市場水準。

And on the good news front, when we evaluate our ability to either increase pricing because the key contracted eligible for us because it has a negotiation in it or it has an automatic price increase to four, we have the ability to drive pricing into the contract terms.

在好消息方面，當我們評估是否有能力提高定價時——因為關鍵合約對我們而言符合調價資格，可能是因為合約內含協商條款，或是有自動調價機制——我們有能力在合約條款中推動提高價格。

We estimate that over the next 18 months will still be able to increase pricing on -- the eligible to increase pricing on 80% to 90%, the horsepower fleet. So overtime, we expect to continue to work on meaning that gap -- narrowing that gap.

我們估計在未來18個月內，仍能對——符合調價資格的80%到90%的馬力機隊——提高價格。因此隨著時間推移，我們預期會持續努力縮小那個差距——讓差距收斂。

You talked about, you have less idle capacity to bring back. The only number that surprised me in the quarter was the higher maintenance CapEx, yet your guidance didn't change, which implies this is by far the highest quarter.

你提到你們可恢復的閒置產能較少。本季唯一讓我意外的數字是維護性資本支出（CapEx）較高，但你們的指引沒有改變，這意味著這一季遠遠是最高的一季。

Usually that's because of higher make-ready. Is that what happens if you just have to happen to have more idle capacity coming back this quarter? Was there something else in the higher maintenance CapEx?

通常那是因為整備（make-ready）成本較高。是不是因為你們剛好在本季有更多閒置產能回到運作？或是維護性資本支出偏高還有其他原因？

No, Steve, I definitely would not read anything into that. I think we had some parts expense, some timing in the quarter. Some of that can vary just depending on when the work gets done. So as you said, we think our current guidance is absolutely good, and I wouldn't read into it anything beyond that.

不，Steve，我絕對不會從中解讀出任何特別訊號。我認為本季有一些零件費用，以及時間點落在本季的因素。其中一部分會因為工作何時完成而有所波動。所以如你所說，我們認為目前的指引完全沒有問題，我也不會做超出這些之外的解讀。

Okay. That's helpful. And last one for me. Just on the continued strength with the aftermarket business. Is this a new reasonable run rate for the aftermarket. And can you maintain these above 20% margins for you? What's your outlook? Any changes?

好的。這很有幫助。我最後一個問題。關於售後市場業務持續強勁。這是否是售後市場新的合理常態運行水準（run rate）？你們能否維持20%以上的利潤率？你的展望如何？有任何變化嗎？

With the market is tight as it is not just In contract operations, but also in the fleets of our customers.Our customers are very focused on maintaining their horsepower, candidly better than they have in the past. There's less idle capacity. And so that's driving a lot of really good service activity, which has higher margin and higher price of work to Archrock.

在市場如此吃緊的情況下，不僅是合約營運，客戶的機隊也同樣緊張。我們的客戶非常專注於維護其馬力設備，坦白說，比過去做得更好。閒置產能更少。因此帶動了大量非常好的服務活動，而這些對Archrock而言具有更高的毛利與更高的工單價格。

And our team is doing an excellent job of capturing it and executing on it. So I believe is the market remains at these elevated levels of utilization. That translates into strength and continued profitability both on the revenue line as well as in the process we can obtain in our aftermarket service business.

而我們的團隊在掌握並執行這些機會方面做得非常出色。所以我相信，只要市場維持在這些較高的使用率水準，就會轉化為我們售後服務業務在營收端以及獲利能力上的強勁與持續性（也包括我們在流程中能取得的價格）。

Thanks, Brad. Thanks, Doug.

謝謝你，Brad。謝謝你，Doug。

Selman Akyol, Stifel.

Selman Akyol，Stifel。

Thank you. I wanted to follow up on a couple of comments. In your prepared remarks, I think you talked about, the market has cooled some give back in dry gas plays and you're repositioning those assets into liquid plays. Can you maybe quantify how long that takes and how much horsepower relooking at? And should we see some sort of bump from redeploying those assets, in the third or fourth quarter?

謝謝。我想追問幾點評論。在你們的事先準備講稿中，我想你提到市場降溫了一些，乾氣（dry gas）區塊有些回落，而你們正把那些資產重新配置到液體（liquids）區塊。你能否量化一下這需要多久，以及涉及多少馬力？而我們是否會在第三或第四季看到因重新部署這些資產而帶來的某種增量？

Thanks Selman. We should not expect to see a bump, you should not expect to see if any, real impact to the redeployment of those assets. What I was suggesting, however, is that with the small amount of horsepower in the dry gas plays, that was reduced in the quarter and we're talking about a fractional percentage of our fleet is still has an impact in marginal growth at a period of time when equipment is not going back to work as aggressively in 2024 as it did in 2023.

謝謝你，Selman。不應預期會看到增量，你也不應預期這些資產重新部署會帶來任何（即使有也很有限的）實質影響。不過我想表達的是，在乾氣區塊中那小部分馬力，本季有所減少——我們談的是機隊中極小的比例——但在2024年設備回到工作崗位的速度不如2023年積極的時期，這仍會對邊際成長造成影響。

So I don't think you should expect to see any negative impact on that at all. Other than that equipment will go back to work probably in some of the dry gas plays, some of that we have redeployed elsewhere over time, but it's so marginal that it will not be transparent from a financial perspective or from a cost perspective as what I really should say.

所以我不認為你應該預期會有任何負面影響。除了那些設備可能會在某些乾氣區塊重新投入運作之外；其中一部分我們也已隨時間重新部署到其他地方，但幅度非常小，從財務角度或成本角度來看都不會顯著——更準確地說，是不會清楚反映出來。

Understood. And then, just following up sort of on the last questioning. In terms about getting closer to spot. I think you talked -- you said over the next 18 months, you get price increases on 80% to 90% of the eligible fleet. And I was wondering if I could push and just ask how much of the fleet is eligible over the next 18 months to be repriced?

了解。另外，延續上一位的提問。關於讓價格更接近現貨（spot）。我想你提到——你說在未來18個月內，你們能對符合資格機隊的80%到90%取得調價。我想再追問一下：未來18個月內，整個機隊中有多少比例是符合重新定價資格的？

So that was the number between 80% and 90% of the fleet should be eligible for repricing in that period of time?

所以那個數字就是：在那段期間內，機隊中有80%到90%應該符合重新定價資格？

Okay, understood. Thank you very much.

好的，了解。非常感謝。

There are no more questions. Now, I'd like to turn the call back over to Mr. Childers for final remarks.

沒有更多問題了。現在，我想把電話交回給Childers先生作結語。

Great. Thank you, everyone, for participating in our Q2 review call. Archrock underlying business performance is outstanding, and we're excited about the top still, which we believe will create substantial shareholder value. I look forward to updating you on our progress in the future. Thanks everyone.

很好。感謝各位參與我們的第二季（Q2）回顧電話會議。Archrock的核心業務表現非常出色，我們也對未來仍然感到振奮；我們相信這將為股東創造可觀的價值。我期待未來向各位更新我們的進展。謝謝大家。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以掛線。