Stock Spinoffs

Archrock Completes Spinoff Of Exterran, Name Change

On Wednesday, Exterran Holdings completed its spinoff of Exterran Corporation(EXTN) and changed its name to Archrock, Inc.(AROC). Not to be confused with a defunct seafood restaurant, or a small brewery, or perhaps the next new comic book villain, Archrock “is the leading provider of natural gas contract compression services to customers throughout the United States and a leading supplier of aftermarket services to customers that own compression equipment in the United States.”

As we discussed previously, shareholders received one share of EXTN for every two shares of the old Exterran held. Exterran Corporation “is a market leader in compression, production and processing products and services, serving customers throughout the world engaged in all aspects of the oil and natural gas industry. Its global product lines include natural gas compression, processing and treating and production equipment and water treatment solutions. Exterran Corporation is a leading provider of full-service natural gas contract compression and a supplier of new, used, OEM and aftermarket parts and services outside the United States.”

Though the company announced relatively strong earnings last week prior to the spin, with natural gas prices at historic lows amidst a glut of production, it looks to continue to be a challenging environment for both companies until prices and production stabilize.

Disclosure: The author holds no position in any stock mentioned

Exit mobile version