Overview:
Archrock (AROC) is a company that leases natural gas compression engines to E&P firms, pipelines, and other companies.
Source: Archrock Website
Compression engines are necessary to move natural gas along pipelines. So, the more natural gas volume that needs to be moved, the more compressors and compressor horsepower is needed (note, natural gas volume, not natural gas price, is the main driver). For those new to Archrock, I recommend reading, "Booming Natural Gas Volumes: Compression Companies Profit". In this earnings preview, I will be assuming you are already somewhat familiar with the