Archrock (AROC): Reviewing Valuation After Cheaper Financing From Amended Credit Facility

Archrock (AROC) just tweaked its revolving credit facility again, locking in lower interest margins and fees. This latest amendment matters because cheaper borrowing can directly support cash flow, growth spending, and shareholder returns.

See our latest analysis for Archrock.

That tweak to Archrock’s credit facility comes as the stock trades around $25.80, with a solid 10.35% 1 month share price return and a powerful 5 year total shareholder return of 290.02%. This suggests momentum is broadly holding up even if near term moves are choppy.

If this kind of funding move has you thinking about where else capital and management conviction are lining up, now is a good time to explore fast growing stocks with high insider ownership.

With analysts seeing upside to around $31.55 and Archrock trading near $25.80 despite solid growth and returns, is this compression specialist still undervalued, or is the market already factoring in the next leg of expansion?

Most Popular Narrative Narrative: 18.2% Undervalued

With Archrock last closing at $25.80 against a narrative fair value near $31.56, the story leans bullish and hinges on multi year earnings power.

The company's ongoing transformation to a modern, high horsepower fleet and longer customer commitments (average contract duration now exceeding six years) is translating to higher margins, enhanced operational stability, and increased earnings visibility.

Read the complete narrative.

Want to see what kind of revenue climb, margin lift, and future earnings multiple are baked into that fair value, and why it rivals premium energy names?

Result: Fair Value of $31.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, even this upbeat setup leans on resilient U.S. gas demand and supportive regulation, and faster decarbonization or tougher policy could quickly dent compression economics.

Find out about the key risks to this Archrock narrative.

Build Your Own Archrock Narrative

If you see the story differently or simply want to dive into the numbers yourself, you can build a personalized view in minutes by using Do it your way.

A great starting point for your Archrock research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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