Market PerceptionDespite outperforming Midstream-at-large on the update, it is believed that the Street may still underappreciate the significance of AROC's revamped growth appetite and peer-leading balance sheet/profitability metrics.
Reinvestment RiskManagement framed the higher capex outlook as a shift in focus now that it has optimized profitability metrics at its existing fleet and views the next leg of growth as driven by such unit additions.
Valuation ConcernsAROC's tilt towards large-HP compression has aligned its fleet with peers, making its valuation discount appear too punitive.