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Rising LNG Exports & AI-Driven Power Demand Drive Growth for Archrock
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Key Takeaways
Archrock has kept fleet utilization near 95% for 11 straight quarters, showing strong demand.
AROC said U.S. LNG projects with FID may add about 14 Bcf/d by 2030, boosting gas production investment.
Archrock says AI and data center growth are raising power demand, boosting the need for gas infrastructure.
Archrock Inc. (AROC - Free Report) primarily focuses on providing natural gas compression services that support gas production, processing and transportation. The company has maintained an average fleet utilization rate of 95% for 11 consecutive quarters, which demonstrates the high quality of its compression equipment and efficiency in operations.
The United States remains the largest exporter of liquefied natural gas (LNG) globally, and the export capacity is expected to grow further in 2026. Archrock has mentioned in its latest earnings call that U.S. LNG projects that have already reached a final investment decision (FID) are expected to add around 14 billion cubic feet per day (Bcf/d) through 2030. The expansion of LNG export capacity is anticipated to drive investments in natural gas production and compression infrastructure.
The rapid growth of data centers and artificial intelligence is increasing power demand. This demand was earlier considered a long-term possibility but is now consolidating into real infrastructure development. To meet the high energy requirements of these new data centers and related facilities, natural gas is expected to play a key role. As the demand for natural gas used for power and electricity generation rises, the need for infrastructure that supports natural gas production, transportation and processing is likely to increase.
These developments are expected to positively impact Archrock’s business, providing sustained growth opportunities for the company in the coming years.
Other Energy Sector Players to Benefit From Rising Natural Gas Demand
The rise of data centers and higher gas-fired power demand presents an opportunity for Enbridge Inc. (ENB - Free Report) to capitalize on. The data centers require a huge amount of electricity, which is driving rapid growth in gas demand. The shift from coal to gas for power generation is increasing gas demand. Enbridgeis expected to gain from the expansion of its natural gas storage facilities.
Baker Hughes (BKR - Free Report) is well positioned to capitalize on the rapid growth in energy demand from data centers. In response to rising data-center demand, the company is enhancing its capabilities through organic investments in this domain. With nearly $1 billion in data-center-related orders registered in 2025, the company is working toward reaching its target of $3 billion in three years. The rise in power demand is expected to drive energy-infrastructure investments, contributing to higher demand for Baker Hughes’ IET offerings.
AROC’s Price Performance, Valuation & Estimates
Shares of AROC have jumped 40.5% over the past year compared with the 43% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, AROC trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.97X. This is above the broader industry average of 9.11X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AROC’s 2026 earnings has witnessed upward revisions over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Rising LNG Exports & AI-Driven Power Demand Drive Growth for Archrock
Key Takeaways
Archrock Inc. (AROC - Free Report) primarily focuses on providing natural gas compression services that support gas production, processing and transportation. The company has maintained an average fleet utilization rate of 95% for 11 consecutive quarters, which demonstrates the high quality of its compression equipment and efficiency in operations.
The United States remains the largest exporter of liquefied natural gas (LNG) globally, and the export capacity is expected to grow further in 2026. Archrock has mentioned in its latest earnings call that U.S. LNG projects that have already reached a final investment decision (FID) are expected to add around 14 billion cubic feet per day (Bcf/d) through 2030. The expansion of LNG export capacity is anticipated to drive investments in natural gas production and compression infrastructure.
The rapid growth of data centers and artificial intelligence is increasing power demand. This demand was earlier considered a long-term possibility but is now consolidating into real infrastructure development. To meet the high energy requirements of these new data centers and related facilities, natural gas is expected to play a key role. As the demand for natural gas used for power and electricity generation rises, the need for infrastructure that supports natural gas production, transportation and processing is likely to increase.
These developments are expected to positively impact Archrock’s business, providing sustained growth opportunities for the company in the coming years.
Other Energy Sector Players to Benefit From Rising Natural Gas Demand
The rise of data centers and higher gas-fired power demand presents an opportunity for Enbridge Inc. (ENB - Free Report) to capitalize on. The data centers require a huge amount of electricity, which is driving rapid growth in gas demand. The shift from coal to gas for power generation is increasing gas demand. Enbridgeis expected to gain from the expansion of its natural gas storage facilities.
Baker Hughes (BKR - Free Report) is well positioned to capitalize on the rapid growth in energy demand from data centers. In response to rising data-center demand, the company is enhancing its capabilities through organic investments in this domain. With nearly $1 billion in data-center-related orders registered in 2025, the company is working toward reaching its target of $3 billion in three years. The rise in power demand is expected to drive energy-infrastructure investments, contributing to higher demand for Baker Hughes’ IET offerings.
AROC’s Price Performance, Valuation & Estimates
Shares of AROC have jumped 40.5% over the past year compared with the 43% improvement of the composite stocks belonging to the industry.
From a valuation standpoint, AROC trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.97X. This is above the broader industry average of 9.11X.
The Zacks Consensus Estimate for AROC’s 2026 earnings has witnessed upward revisions over the past 30 days.
Image Source: Zacks Investment Research
AROC currently sports a Zacks Rank #1 (Strong Buy), while ENB and BKR carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank stocks here.