Archrock, Inc. Leases Disclosure
8. Leases
We have operating leases for office space, temporary housing, storage and shops. Our leases have remaining lease terms of less than one year to approximately seven years and most include options to extend the lease term, at our discretion, for an additional to ten years. We are not, however, reasonably certain that we will exercise any of the options to extend them and as such, they have not been included in the remaining lease terms.
Financial and other supplemental information related to our operating leases is as follows:
| December 31, | |||||||
(in thousands) | | Classification | | 2025 | | 2024 | ||
ROU assets |
| Operating lease ROU assets | $ | 13,581 | $ | 15,365 | ||
Lease liabilities |
| |
| |
| | ||
Current |
| $ | 4,314 | $ | 4,121 | |||
Noncurrent |
| Operating lease liabilities |
| 10,220 |
| 12,415 | ||
| | $ | 14,534 | $ | 16,536 | |||
Year Ended December 31, | |||||||||
(in thousands) | 2025 | 2024 | 2023 | ||||||
Operating lease cost | $ | 5,620 | $ | 4,607 | $ | 4,131 | |||
Short-term lease cost |
| 872 |
| 390 |
| 412 | |||
Variable lease cost |
| 2,446 |
| 1,901 |
| 1,881 | |||
Total lease cost | $ | 8,938 | $ | 6,898 | $ | 6,424 | |||
Year Ended December 31, | |||||||||
(in thousands) | 2025 | 2024 | 2023 | ||||||
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities | $ | 5,837 | $ | 6,692 | $ | 6,157 | |||
Operating lease ROU assets obtained in exchange for lease liabilities, net (1) |
| 2,848 |
| 5,120 |
| 710 | |||
December 31, | |||||||
2025 | 2024 | 2023 | |||||
Weighted-average remaining lease term (in years) | 4.2 | 4.9 | 6.0 | ||||
Weighted-average discount rate | 5.9 | % | 5.6 | % | 4.9 | % | |
Remaining maturities of our lease liabilities as of December 31, 2025 are as follows:
(in thousands) | |||
2026 | $ | 4,675 | |
2027 | 3,658 | ||
2028 |
| 2,950 | |
2029 |
| 2,771 | |
2030 | 1,902 | ||
Thereafter |
| 435 | |
Total lease payments |
| 16,391 | |
Less: Interest |
| (1,857) | |
Total lease liabilities | $ | 14,534 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 21, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.