Archrock, Inc.

Thank you. I will now turn the call over to Ms. Refine. You may begin.

Thank you, Celine. Hello, everyone, and thanks for joining us on today's call. With me today are Brad Childers, President and Chief Executive Officer of R-TRAC, and Doug Aaron, Chief Financial Officer of R-TRAC. Yesterday, R-TRAC released its financial and operating results for the fourth quarter and full year 2024 as well as annual guidance for 2025. If you have not received a copy, you can find the information on the company's website at www.artrup.com. During this call, we will make forward-looking statements within the meeting 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 our DROCS management team. Although management believes that the expectations 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 of 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. In addition, our discussion today will reference certain non-GAAP financial measures, including adjusted net income, adjusted EBITDA, and adjusted EPS. For reconciliations of these non-GAAP financial measures to our GAAP financial results, please see yesterday's press release and our Form 8K furnished to the SEC. I'll now turn the call over to Brad to discuss our TRACS fourth quarter and full year results and to provide an update for our business.

Thank you, Megan, and good morning, everyone. Across the board, ArchRock delivered excellence in 2024. Excellence in safety, customer service, operational performance, and financial results. We achieved this during one of the busiest compression markets we've ever experienced, and while concurrently completing a transformative acquisition that established ArchRock as the leader in electric compression. Before turning the page to 2025, I want to take a moment to thank and congratulate our dedicated employees on an extensive list of 2024 accomplishments, which included records for almost every operational and financial metric. Among the highlights, we reported record adjusted EPS and adjusted EBITDA. Compared to 2023, we increased our adjusted EPS by 69% and adjusted EBITDA by more than 30%. Our teams worked tirelessly to meet our customers' robust demands. We increased our contract compression operating fleet by 716,000 horsepower, excluding sales of non-strategic assets. This growth reflects organic investments in new-build horsepower, as well as the acquisition of tops. We maintained an all-time high equipment utilization, ending the year at 96%. As we met this demand, we recorded over 4.5 million man hours and drove 24 million miles. In this exceptionally busy environment, and despite a dynamic labor market, we continue to deliver industry-leading safety performance. Our contract operations and aftermarket services segments delivered record-setting adjusted gross margins due to continued pricing improvement, enhanced efficiency, and a continued focus on managing costs. This step change in our earnings power enabled us to return $124 million in capital to our shareholders through dividends and share buybacks. We also concurrently delivered outstanding dividend coverage of 3.1 times for the full year 2024 and drove our year end leverage ratio to an impressive 3.3 times. And we're even more excited about what we are positioned to deliver in 2025. Our investment in high quality assets, exceptional customer service, and implementation of innovative technology it's translating into repeatable results and driving value for our customers and our shareholders. We kick off 2025 in an enviable position, and I expect our truck to continue to raise the bar for the compression industry. In 2025, we're focused on the following three business objectives. First, capturing opportunities presented by this robust market. We believe the increases in natural gas production and demand for compression is part of a structural change requiring significant investment in additional natural gas production infrastructure in which compression and our track will play a critical part. Our investment returns remain strong and support our ability to generate stable and growing cash flows today and over time. Second, maximizing the reliability of our service for our customers. In addition to the supportive macro environment, we're remaining proactive in our focus on innovation, efficiency, and improvement. We believe this is critical to our success and ongoing position as the premier compression provider. We will continue to prioritize the standardization of our field operating model and the enhanced adoption of the technology that we've implemented over the past couple of years. Third, helping answer the call on all businesses to reduce carbon emissions. We are the leader in electric motor drive compression and expertise. The planned expansion of our electric motor drive fleet not only provides environmental benefits, but should also augment customer uptime and our truck's operational efficiency. In addition, our new Ventures team is advancing opportunities to bring methane emissions detection, measurement, and capture solutions to market. These opportunities are adjacent and complementary to our core contract compression services. As these offerings move out of the pilot phase, we are working to bring these early stage products to market in order to help our customers and the industry identify, quantify, and reduce emissions. Now, let me dive deeper into the fantastic market we see for compression. The primary driver of our business is natural gas demand and production, which we see ramping up in 2025 and well into the future. Natural gas remains a reliable, affordable, and cleaner source of energy domestically, and the US continues to be a significant player in the global market for natural gas. First, on 2025. The EIA is forecasting two to 3% annual growth in production of both oil and natural gas this year. Natural gas production growth continues to be led by key R truck oil producing markets that have associated gas like the Permian. And growth in crude oil production is expected to continue driving demand for compression for gas lift applications. Looking beyond this year, we expect LNG demand exports to Mexico, power generation, and the emerging opportunity presented by the onshoring of AI data centers to require a significant call on US natural gas production. To support this production, the US will need to make substantial investments to expand the natural gas transportation infrastructure in the US. This includes gathering systems, processing plants, pipelines, and compression. Our customers need our equipment, our service, and our people. We intend to support them in what we believe will be a durable and rewarding investment cycle for natural gas production and natural gas infrastructure, including compression. With this continuing strong market for compression to support the transportation of natural gas and the production of oil, we have a substantial contract to backlog for 2025. We are booking units for 2026 delivery, and we believe we will continue to see strong customer demand for new equipment well into next year. Moving to our segments, we posted record results in contract operations during Q4 and 2024. Revenue and profitability outperformed in our pre-acquisition business, and we were able to capture the full impact of the accretive POPs transaction, which came through in our fourth quarter performance. Our fleet remained fully utilized during the quarter, with utilization exiting the quarter at a rate of 96%. Looking at period and operating horsepower in the fourth quarter compared to the third, we delivered approximately 93,000 in active horsepower growth, excluding approximately 45,000 horsepower in non-core asset sales. Average operating horsepower during the fourth quarter of 4.2 million horsepower was up from 3.8 million in the third quarter and 3.6 million a year ago, reflected the acquisition of the TOPS fleet, which closed in August 2024, as well as organic growth. Monthly revenue per horsepower also moves higher. In 2025, we expect to benefit from a full year's impact of rate increases from 2024 And we also expect additional increments throughout the year. I'm proud to say that we delivered 2024 adjusted gross margin dollars of $657 million, which was up $155 million from 2023. This translated into a 500 basis point increase in our gross margin percentage for the year. Notably, we achieved a quarterly high for 2024 of 70% during the fourth quarter. Going forward, our efforts to standardize, digitize, and automate should position us to continue delivering outstanding profitability. Moving to our aftermarket services segment, despite some seasonal softness during the fourth quarter, full-year 2024 activity stayed strong, while profitability remained substantially higher compared to historical levels as we focused on higher quality and higher margin work. This level of performance and consistency in results is the best we have seen in a long time. Great leadership and customer service by our AMS team is driving repeat business with key customers and keeps us optimistic about 2025. Shifting to our capital allocation framework for 2025, our approach continues to be rooted in a returns-based approach that balances our leveraged position investment in high-quality opportunities presented by the market, and returns to shareholders. Yesterday, we announced our 2025 capital plan, which includes between $330 and $370 million of growth investment in our fleet, the vast majority of which is already under contract. The IRRs at which we expect to invest new build capital are strong, and we will continue to meet the needs of our customer base through new build investments that support the sustainable growth in U.S. oil and gas production that we see ahead. These 2025 new build investments are focused on large midstream electric motor and electric motor drive compression units tied to natural gas and oil production in key growth plays like the Permian. The acquisition of TOPS and its book of business is a meaningful contributor to the increases in the absolute level of 2025 growth capital compared to 2024. As we invest in these compelling opportunities, we're committed to maintaining an industry-leading balance sheet and plan to maintain a leverage ratio of between three to 3.5 times. This underpins our ability to execute on our plans and opportunistically adapt to market conditions. Finally, as shareholders ourselves, Management and the board are focused on maintaining a well-covered dividend that grows along with the profitability increases in our underlying business. Given our confidence in the outlook for compression, as well as ArchRock's sector-leading financial flexibility, we recently announced a 15% year-over-year increase in our quarterly dividends. ArchRock continues to perform at an exceptional level, reflecting consistent operational execution and the successful progression of our strategic initiatives. We carry significant momentum into 2025. In addition to capturing market opportunities, we will be expanding the implementation of technology and processes to improve our operations, to drive efficiency and profitability. I'm confident in our ability to generate stable and growing cash flows today and over time. And I'm confident The best is yet to come. With that, I'd like to turn the call over to Doug for a review of our fourth quarter and full-year performance and provide additional color on our 2025 guidance.