Archrock Partners, L.P. repres (APLP)

HOUSTON--(BUSINESS WIRE)--Archrock Partners, L.P. (NASDAQ:APLP) today announced a cash distribution of $0.285 per limited partner unit, which corresponds to $1.14 per limited partner unit on an annualized basis, payable on November 14, 2016, to unitholders of record at the close of business on November 10, 2016. The third-quarter 2016 distribution covers the period from July 1, 2016, through September 30, 2016. The distribution to be paid in November 2016 is unchanged from the second-quarter 2016 distribution. For the third quarter of 2016, net loss was $0.6 million, compared to net income of $3.3 million for the second quarter of 2016 and net income of $11.5 million for the third quarter of 2015. EBITDA, as adjusted (as defined below), was $67.9 million for the third quarter of 2016, compared to $71.2 million for the second quarter of 2016 and $78.2 million for the third quarter of 2015. Revenue was $135.5 million for the third quarter of 2016, compared to $140.1 million for the second quarter of 2016 and $163.3 million for the third quarter of 2015. Gross margin was $84.6 million, or 62% of revenue, in the third quarter of 2016, compared to $90.7 million, or 65% of revenue, in the second quarter of 2016 and $99.4 million, or 61% of revenue, in the third quarter of 2015. Selling, general and administrative expenses were $17.9 million for the third quarter of 2016 compared to $19.7 million for the second quarter of 2016 and $20.7 million for the third quarter of 2015. Cash flow from operations was $64.8 million for the third quarter of 2016, compared to $42.9 million for the second quarter of 2016 and $78.2 million for the third quarter of 2015. Distributable cash flow (as defined below) was $43.7 million for the third quarter of 2016, compared to $46.7 million for the second quarter of 2016 and $45.2 million for the third quarter of 2015. Distributable cash flow coverage was 2.50x for the third quarter of 2016, compared to 2.67x for the second quarter of 2016. “Compared to the first half of 2016, improved market conditions in the third quarter contributed to increased stability in our business and lower net operating horsepower returns,” said Brad Childers, Chairman, President and Chief Executive Officer of Archrock Partners’ managing general partner. “Additionally, we delivered strong cost management with solid contract operations gross margins, further SG&A reductions, and lower capital expenditures, which enabled us to reduce debt by $40 million in the third quarter at the Partnership. Finally, third quarter 2016 results were impacted by approximately $10 million in impairment and restructuring charges as we continued to modernize our fleet and reduce our cost structure.” “Today we also announced an all equity financed acquisition of approximately 150,000 horsepower by Archrock Partners for total consideration of approximately $85 million to Archrock, which is expected to close in the fourth quarter of 2016,” continued Childers. “The acquisition combined with $40 million of debt reduction enhances the credit profile of Archrock Partners and the Partnership’s ability to grow its distribution per unit if market conditions continue to improve.” “Looking into 2017, we see indications of the market stabilizing. As a result of the work we have done to lower our cost structure and enhance our credit profile, we will be well positioned to capitalize on growth opportunities as and when the predicted growth in U.S. natural gas production occurs. We continue to expect to benefit from the increased demand for natural gas from LNG and pipeline exports, petrochemical feedstock and power generation,” concluded Childers. Net income, excluding the items listed in the following sentence, for the third quarter of 2016 was $9.3 million, or $0.15 per diluted limited partner unit. The excluded items consisted of a non-cash long-lived asset impairment charge of $7.9 million and restructuring charges of $1.9 million. Net income, excluding the items listed in the following sentence, for the second quarter of 2016 was $12.8 million, or $0.21 per diluted limited partner unit. The excluded items consisted of a non-cash long-lived asset impairment charge of $8.3 million and restructuring charges of $1.2 million. Net income, excluding the item listed in the following sentence, for the third quarter of 2015 was $18.7 million, or $0.23 per diluted limited partner unit. The excluded item consisted of a non-cash long-lived asset impairment charge of $7.2 million. Conference Call Details Archrock, Inc. and Archrock Partners, L.P. will host a joint conference call on Tuesday, November 1, 2016, to discuss their third-quarter 2016 financial results. The call will begin at 11:00 a.m. Eastern Time. To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1-888-771-4371 in the United States and Canada, or +1-847-585-4405 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference Archrock conference call number 43614259. A replay of the conference call will be available on Archrock’s website for approximately seven days. Also, a replay may be accessed by dialing 1-888-843-7419 in the United States and Canada, or +1-630-652-3042 for international calls. The access code is 4361 4259#. EBITDA, as adjusted, a non-GAAP measure, is defined as net income (loss) (a) excluding income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of interest rate swaps), depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, other items and non-cash selling, general and administrative (“SG&A”) costs. A reconciliation of EBITDA, as adjusted, to net income (loss), the most directly comparable GAAP measure, appears below. Distributable cash flow, a non-GAAP measure, is defined as net income (loss) (a) plus depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, non-cash SG&A costs and interest expense (b) less cash interest expense (excluding amortization of deferred financing fees, amortization of debt discount and non-cash transactions related to interest rate swaps) and maintenance capital expenditures, and (c) excluding gains or losses on asset sales and other items. Distributable cash flow coverage is defined as distributable cash flow divided by total distributions. A reconciliation of distributable cash flow to cash flows from operating activities, the most directly comparable GAAP measure, appears below. Gross margin, a non-GAAP measure, is defined as total revenue less cost of sales (excluding depreciation and amortization expense). Gross margin percentage is defined as gross margin divided by revenue. A reconciliation of gross margin to net income, the most directly comparable GAAP measure, appears below. About Archrock Partners Archrock Partners, L.P., a master limited partnership, is the leading provider of natural gas contract compression services to customers throughout the United States. Archrock, Inc. (NYSE:AROC) owns an equity interest in Archrock Partners, including all of the general partner interest. For more information, visit www.archrock.com. Forward-Looking Statements All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Archrock Partners’ control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: statements about the expected completion of the acquisition transaction and the timing of the closing; the anticipated benefits of the transaction to Archrock Partners; Archrock Partners’ financial and operational strategies and ability to successfully effect those strategies; Archrock Partners’ expectations regarding future economic and market conditions; Archrock Partners’ financial and operational outlook and ability to fulfill that outlook; statements about Archrock Partners’ distributions; demand for Archrock Partners’ services; and Archrock Partners’ cost reduction plans. While Archrock Partners believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional and national economic conditions and the impact they may have on Archrock Partners and its customers; changes in tax laws that impact master limited partnerships; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; changes in safety, health, environmental and other regulations; the financial condition of Archrock Partners’ customers; the failure of any customer to perform its contractual obligations; and the performance of Archrock, Inc. These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock Partners Annual Report on Form 10-K for the year ended December 31, 2015, and those set forth from time to time in Archrock Partners’ filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock Partners expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise. including incentive distribution rights and Archrock Partners (at period end) (2) and Archrock Partners (at period end) (3)

HOUSTON--(BUSINESS WIRE)--Archrock Partners, L.P. (NASDAQ:APLP) today reported net income of $3.3 million for the second quarter of 2016, compared to net income of $0.5 million for the first quarter of 2016 and net income of $22.3 million for the second quarter of 2015. EBITDA, as adjusted (as defined below), was $71.2 million for the second quarter of 2016, compared to $69.4 million for the first quarter of 2016 and $83.2 million for the second quarter of 2015. Gross margin in the quarter was $90.7 million, or 65% of revenue in the second quarter of 2016, compared to $93.6 million, or 62% of revenue, in the first quarter of 2016 and $101.9 million, or 61% of revenue, in the second quarter of 2015. Cash flow from operations was $42.9 million for the second quarter of 2016, compared to $66.0 million for the first quarter of 2016 and $42.0 million for the second quarter of 2015. Distributable cash flow (as defined below) was $46.7 million for the second quarter of 2016, compared to $44.0 million for the first quarter of 2016 and $48.3 million for the second quarter of 2015. Distributable cash flow coverage was 2.67x for the second quarter of 2016, compared to 2.51x for the first quarter of 2016. Selling, general and administrative expenses were $19.7 million for the second quarter of 2016 compared to $23.7 million for the first quarter of 2016 and $20.7 million for the second quarter of 2015. “Second quarter results included significantly improved contract operations gross margin percentage and sharply lower SG&A expense as strong cost management mitigated the impact of reduced horsepower and continued pricing pressure. Additionally, we saw a modest increase in new orders in the second quarter,” said Brad Childers, Chairman, President and Chief Executive Officer of Archrock Partners’ managing general partner. “If the recent improvement in market conditions is sustained, we expect the increased level of customer activity experienced in the second quarter to continue and a moderation of horsepower returns in the second half of the year.” “For the remainder of 2016, our focus remains on providing excellent service to our customers while maximizing our cash flow, maintaining liquidity, and strengthening our financial position through aggressive cost and capital management,” continued Childers. “We believe this approach will support our successful navigation of the current cycle, and position Archrock Partners well for the expected secular growth in U.S. natural gas production ahead. When this growth occurs, we expect to grow our business by capitalizing on our strong market position in the basins that will supply natural gas to meet the increasing demand for LNG and pipeline exports, petrochemical feedstock, and power generation.” Revenue was $140.1 million for the second quarter of 2016, compared to $151.4 million for the first quarter of 2016 and $167.8 million for the second quarter of 2015. Net income, excluding the items listed in the following sentence, for the second quarter of 2016 was $12.8 million, or $0.21 per diluted limited partner unit. The excluded items included a non-cash long-lived asset impairment charge of $8.3 million and restructuring charges of $1.2 million. Net income, excluding the items listed in the following sentence, for the first quarter of 2016 was $11.1 million, or $0.18 per diluted limited partner unit. The excluded items included a non-cash long-lived asset impairment charge of $6.3 million, restructuring charges of $4.1 million, and expensed acquisition costs of $0.2 million. Net income, excluding the item listed in the following sentence, for the second quarter of 2015 was $24.5 million, or $0.33 per diluted limited partner unit. The excluded items included a non-cash long-lived asset impairment charge of $1.8 million and expensed acquisition costs of $0.3 million. Conference Call Details Archrock, Inc. and Archrock Partners, L.P. will host a joint conference call on Thursday, August 4, 2016, to discuss their second-quarter 2016 financial results. The call will begin at 10:00 a.m. Eastern Time. To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1-888-771-4371 in the United States and Canada, or +1-847-585-4405 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference Archrock conference call number 43019367. A replay of the conference call will be available on Archrock’s website for approximately seven days. Also, a replay may be accessed by dialing 1-888-843-7419 in the United States and Canada, or +1-630-652-3042 for international calls. The access code is 43019367#. EBITDA, as adjusted, a non-GAAP measure, is defined as net income (loss) (a) excluding income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of interest rate swaps), depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, other items and non-cash selling, general and administrative (“SG&A”) costs. A reconciliation of EBITDA, as adjusted, to net income (loss), the most directly comparable GAAP measure, appears below. Distributable cash flow, a non-GAAP measure, is defined as net income (loss) (a) plus depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, non-cash SG&A costs and interest expense (b) less cash interest expense (excluding amortization of deferred financing fees, amortization of debt discount and non-cash transactions related to interest rate swaps) and maintenance capital expenditures, and (c) excluding gains or losses on asset sales and other items. Distributable cash flow coverage is defined as distributable cash flow divided by total distributions. A reconciliation of distributable cash flow to cash flows from operating activities, the most directly comparable GAAP measure, appears below. Gross margin, a non-GAAP measure, is defined as total revenue less cost of sales (excluding depreciation and amortization expense). Gross margin percentage is defined as gross margin divided by revenue. A reconciliation of gross margin to net income, the most directly comparable GAAP measure, appears below. About Archrock Partners Archrock Partners, L.P., a master limited partnership, is the leading provider of natural gas contract compression services to customers throughout the United States. Archrock, Inc. (NYSE:AROC) owns an equity interest in Archrock Partners, including all of the general partner interest. For more information, visit www.archrock.com. Forward-Looking Statements All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Archrock Partners’ control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: Archrock Partners’ financial and operational strategies and ability to successfully effect those strategies; Archrock Partners’ expectations regarding future economic and market conditions; Archrock Partners’ financial and operational outlook and ability to fulfill that outlook; statements about Archrock Partners’ distributions and the anticipated impact of the distribution rate on its business and prospects; demand for Archrock Partners’ services; and Archrock Partners’ cost reduction plans. While Archrock Partners believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional and national economic conditions and the impact they may have on Archrock Partners and its customers; changes in tax laws that impact master limited partnerships; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; changes in safety, health, environmental and other regulations; the financial condition of Archrock Partners’ customers; the failure of any customer to perform its contractual obligations; and the performance of Archrock, Inc. These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock Partners Annual Report on Form 10-K for the year ended December 31, 2015, and those set forth from time to time in Archrock Partners’ filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock Partners expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise. Restructuring charges Weighted average common units outstanding used in income per limited partner unit(1): Income per limited partner unit(1): (1) Basic and diluted income per limited partner unit is computed using the two-class method. Under the two-class method, basic and diluted income per limited partner unit is determined by dividing income allocated to the limited partner units after deducting the amounts allocated to our general partner (including distributions to our general partner on its incentive distribution rights) and participating securities (phantom units with nonforfeitable tandem distribution equivalent rights to receive cash distributions), by the weighted average number of outstanding limited partner units excluding the weighted average number of outstanding participating securities during the period. Gross margin(1) EBITDA, as adjusted(1) Distributable cash flow(2) including incentive distribution rights Distributable cash flow coverage(3) Debt(4) Gross margin(1) EBITDA, as adjusted(1) Distributable cash flow(2) Distributable cash flow(2) Diluted income per limited partner unit, excluding items(1) (1) Management believes EBITDA, as adjusted, diluted income per limited partner unit, excluding items, and gross margin provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period to period comparisons. Total available horsepower (at period end)(1)(2) Total operating horsepower (at period end)(1)(3) Total available contract operations horsepower of Archrock, Inc. and Archrock Partners (at period end)(2) Total operating contract operations horsepower of Archrock, Inc. and Archrock Partners (at period end)(3)

HOUSTON--(BUSINESS WIRE)--Archrock Partners, L.P. (NASDAQ:APLP) today announced a cash distribution of $0.285 per limited partner unit, which corresponds to $1.14 per limited partner unit on an annualized basis, payable on May 13, 2016, to unitholders of record at the close of business on May 12, 2016. The first-quarter 2016 distribution covers the period from January 1, 2016, through March 31, 2016. The distribution to be paid in May 2016 is approximately 50 percent lower than the fourth-quarter 2015 distribution. In conjunction with the distribution adjustment, Archrock Partners has entered into an amendment to its senior secured credit agreement, which among other things, increases the maximum Total Leverage Ratio, as defined in the credit agreement, to 5.95x through the fourth quarter of 2017. “With the challenging industry conditions and limited visibility on the timing of a recovery, Archrock Partners is taking proactive steps to address leverage concerns while avoiding the issuance of dilutive equity,” said Brad Childers, Chairman, President and Chief Executive Officer of Archrock Partners’ managing general partner. “While the decision to reduce the distribution was difficult, we believe that it is the right step to take at this time to improve our credit profile and position Archrock Partners to take advantage of growth opportunities when market conditions improve.” Additionally, Archrock Partners reported EBITDA, as further adjusted (as defined below), of $69.4 million for the first quarter of 2016, compared to $75.3 million for the fourth quarter of 2015 and $78.7 million for the first quarter of 2015. Distributable cash flow (as defined below) was $43.9 million for the first quarter of 2016, compared to $46.3 million for the fourth quarter of 2015 and $51.0 million for the first quarter of 2015. Revenue was $151.4 million for the first quarter of 2016, compared to $161.4 million for the fourth quarter of 2015 and $164.3 million for the first quarter of 2015. Net income, excluding certain items, for the first quarter of 2016 was $11.1 million, or $0.18 per diluted limited partner unit, compared to net income, excluding certain items, of $16.3 million, or $0.19 per diluted limited partner unit, for the fourth quarter of 2015, and $23.6 million, or $0.35 per diluted limited partner unit, for the first quarter of 2015. In the first quarter of 2016, excluded items primarily included non-cash long-lived asset impairments of $6.3 million and $4.1 million of restructuring charges. Net income for the first quarter of 2016 was $0.5 million, or $0.01 per diluted limited partner unit, compared to net loss of $137.9 million, or $2.34 per diluted limited partner unit, for the fourth quarter of 2015 and net income of $20.1 million, or $0.28 per diluted limited partner unit, for the first quarter of 2015. In addition to increasing the Total Leverage Ratio as described above, the credit agreement amendment includes, among other things, a reduction in aggregate revolving commitments by $75 million; a maximum Total Leverage Ratio of 5.75x in the first quarter of 2018 and 5.25x thereafter; and a maximum Senior Secured Leverage ratio, as defined in the agreement, of 3.5x through the fourth quarter of 2017, 3.75x in the first quarter of 2018, and 4.0x thereafter. Conference Call Details Archrock, Inc. and Archrock Partners, L.P. will host a joint conference call on Tuesday, May 3, 2016, to discuss their first-quarter 2016 results. The call will begin at 11:00 a.m. Eastern Time. To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 800-446-2782 in the United States and Canada, or +1-847-413-3235 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference Archrock conference call number 42398716. A replay of the conference call will be available on Archrock’s website for approximately seven days. Also, a replay may be accessed by dialing 888-843-7419 in the United States and Canada, or +1-630-652-3042 for international calls. The access code is 42398716#. EBITDA, as further adjusted, a non-GAAP measure, is defined as net income (loss) excluding income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of interest rate swaps), depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, other items and non-cash selling, general and administrative (“SG&A”) costs. Distributable cash flow, a non-GAAP measure, is defined as net income (loss) (a) plus depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, non-cash SG&A costs and interest expense (b) less cash interest expense (excluding amortization of deferred financing fees, amortization of debt discount and non-cash transactions related to interest rate swaps) and maintenance capital expenditures, and (c) excluding gains or losses on asset sales and other items. Gross margin, a non-GAAP measure, is defined as total revenue less cost of sales (excluding depreciation and amortization expense). Gross margin percentage is defined as gross margin divided by revenue. About Archrock Partners Archrock Partners, L.P., a master limited partnership, is the leading provider of natural gas contract compression services to customers throughout the United States. Archrock, Inc. (NYSE:AROC) owns an equity interest in Archrock Partners, including all of the general partner interest. For more information, visit www.archrock.com. Forward-Looking Statements All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Archrock Partners’ control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: Archrock Partners’ financial and operational strategies and ability to successfully effect those strategies; Archrock Partners’ expectations regarding future economic and market conditions; Archrock Partners’ financial and operational outlook and ability to fulfill that outlook; demand for Archrock Partners’ services; Archrock Partners’ cost reduction plans; and statements about Archrock Partners’ distributions, the anticipated impact of the distribution rate on its business and the anticipated impact of Archrock Partners’ actions on its balance sheet, liquidity position and need for future equity capital. While Archrock Partners believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional and national economic conditions and the impact they may have on Archrock Partners and its customers; changes in tax laws that impact master limited partnerships; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; changes in safety, health, environmental and other regulations; the financial condition of Archrock Partners’ customers; the failure of any customer to perform its contractual obligations; and the performance of Archrock, Inc. These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock Partners Annual Report on Form 10-K for the year ended December 31, 2015, and those set forth from time to time in Archrock Partners’ filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock Partners expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise. including incentive distribution rights December 31, and Archrock Partners (at period end) (2) and Archrock Partners (at period end)(3)

HOUSTON--(BUSINESS WIRE)--Archrock Partners, L.P. (NASDAQ:APLP) today reported EBITDA, as further adjusted (as defined below), of $75.3 million for the fourth quarter 2015, compared to $78.2 million for the third quarter 2015 and $80.5 million for the fourth quarter 2014. Distributable cash flow (as defined below) was $46.3 million for the fourth quarter 2015, compared to $45.2 million for the third quarter 2015 and $53.4 million for the fourth quarter 2014. Revenue was $161.4 million for the fourth quarter 2015, compared to $163.3 million for the third quarter 2015 and $161.1 million for the fourth quarter 2014. Net income, excluding certain items, for the fourth quarter 2015 was $16.3 million, or $0.19 per diluted limited partner unit, compared to net income, excluding certain items, of $18.7 million, or $0.23 per diluted limited partner unit, for the third quarter 2015, and $23.8 million, or $0.36 per diluted limited partner unit, for the fourth quarter 2014. In the fourth quarter 2015, excluded items include a non-cash goodwill impairment of $127.8 million and a non-cash long-lived asset impairment of $26.5 million. EBITDA, as further adjusted, was $315.5 million for 2015, compared to $280.2 million for 2014. Distributable cash flow totaled $190.7 million in 2015, compared to $177.6 million in 2014. Revenue was $656.8 million for 2015, compared to $581.0 million for 2014. Net income, excluding certain items, for 2015 was $83.0 million, or $1.09 per diluted limited partner unit. Net income, excluding certain items, for 2014 was $77.7 million, or $1.18 per diluted limited partner unit. In 2015, excluded items include a non-cash goodwill impairment of $127.8 million, a non-cash long-lived asset impairments of $39.0 million, and expensed acquisition cost of $0.3 million. “In the fourth quarter, Archrock Partners performed well and continued to demonstrate the relative stability of our production-related services business despite the difficult market environment,” said Brad Childers, Chairman, President and Chief Executive Officer of Archrock Partners’ managing general partner. “Going forward, we are highly focused on cost management and working with our customers to maintain operating horsepower through this challenging period.” For the fourth quarter 2015, Archrock Partners’ quarterly cash distribution was $0.5725 per limited partner unit, or $2.29 per limited partner unit on an annualized basis. The fourth-quarter 2015 distribution was unchanged from the third-quarter 2015 distribution and $0.015 higher than the fourth-quarter 2014 distribution of $0.5575 per limited partner unit. Conference Call Details Archrock, Inc. and Archrock Partners, L.P. will host a joint conference call on Thursday, Feb. 25, 2016, to discuss their fourth-quarter 2015 financial results. The call will begin at 11:00 a.m. Eastern Time. To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1-800-446-1671 in the United States and Canada or +1-847-413-3362 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference Archrock conference call number 41861269. A replay of the conference call will be available on Archrock’s website for approximately seven days. Also, a replay may be accessed by dialing 1-888-843-7419 in the United States and Canada, or +1-630-652-3042 for international calls. The access code is 41861269#. EBITDA, as further adjusted, a non-GAAP measure, is defined as net income (loss) (a) excluding income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of interest rate swaps), depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, other items and non-cash selling, general and administrative (“SG&A”) costs (b) plus the amounts reimbursed to us by Archrock, Inc. as a result of caps on cost of sales and SG&A costs provided in the omnibus agreement to which Archrock, Inc. and Archrock Partners are parties (the “Omnibus Agreement”), which amounts are treated as capital contributions from Archrock, Inc. for accounting purposes. EBITDA, as further adjusted (without the benefit of the cost caps), a non-GAAP measure, is defined as EBITDA, as further adjusted, less the amounts reimbursed to us by Archrock, Inc. as a result of caps on cost of sales and SG&A costs provided in the Omnibus Agreement. Distributable cash flow, a non-GAAP measure, is defined as net income (loss) (a) plus depreciation and amortization expense, impairment charges, restructuring charges, expensed acquisition costs, non-cash SG&A costs, interest expense and any amounts reimbursed to us by Archrock, Inc. as a result of the caps on cost of sales and SG&A costs provided in the Omnibus Agreement, which amounts are treated as capital contributions from Archrock, Inc. for accounting purposes, (b) less cash interest expense (excluding amortization of deferred financing fees, amortization of debt discount and non-cash transactions related to interest rate swaps) and maintenance capital expenditures, and (c) excluding gains or losses on asset sales and other items. Distributable cash flow (without the benefit of cost caps), a non-GAAP measure, is defined as distributable cash flow less the amounts reimbursed to us by Archrock, Inc. as a result of caps on cost of sales and SG&A costs provided in the Omnibus Agreement. Gross margin, a non-GAAP measure, is defined as total revenue less cost of sales (excluding depreciation and amortization expense). Gross margin percentage is defined as gross margin divided by revenue. About Archrock Partners Archrock Partners, L.P., a master limited partnership, is the leading provider of natural gas contract compression services to customers throughout the United States. Archrock, Inc. (NYSE:AROC) owns an equity interest in Archrock Partners, including all of the general partner interest. For more information, visit www.archrock.com. Forward-Looking Statements All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Archrock Partners’ control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: Archrock Partners’ financial and operational strategies and ability to successfully effect those strategies; Archrock Partners’ expectations regarding future economic and market conditions; Archrock Partners’ financial and operational outlook and ability to fulfill that outlook; and demand for Archrock Partners’ services; and Archrock Partners’ cost reduction plans. While Archrock Partners believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional and national economic conditions and the impact they may have on Archrock Partners and its customers; changes in tax laws that impact master limited partnerships; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; changes in safety, health, environmental and other regulations; the financial condition of Archrock Partners’ customers; the failure of any customer to perform its contractual obligations; and the performance of Archrock, Inc. These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock Partners’ (formerly Exterran Partners, L.P.) Annual Report on Form 10-K for the year ended December 31, 2014, and those set forth from time to time in Archrock Partners’ filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock Partners expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise. including incentive distribution rights 2014 Total available contract operations horsepower of Archrock, Inc. and Archrock Partners (at period end) Total operating contract operations horsepower of Archrock, Inc. and Archrock Partners (at period end)