Archrock Inc. (AROC) is a pure-play U.S. natural gas contract compression services business and a leading supplier of aftermarket services to customers that own compression equipment in the United States. Archrock received a notice from the New York Stock Exchange (the”NYSE”) indicating that the company is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria establish in Section 802.01E of the NYSE listed company manual as a result of continuous disappointments in filing the Quarterly Report on form 10-Q for three months ended March 31st 2016.
After the company had completed the spin-off (the “Spin-off”) of its international contract operations, international aftermarket services and global fabrication businesses into a standalone public company operating as Exterran Corporation on November 3, 2015. As previously disclosed in its Form 8-K dated April 26, 2016 and its Notification of Late Filing on Form 12b-25 filed with the SEC on May 10, 2016, Archrock’s management and the Audit Committee of its Board of Directors are in the process of determining the impact to Archrock’s pre-Spin-off historical financial statements of Exterran Corporation’s identification of possible errors relating to the application of percentage-of-completion accounting principles to specific engineering, procurement and construction projects in the Middle East by its Belleli subsidiary, as described in Exterran Corporation’s Form 8-K filed on April 26, 2016. Because the investigation into the matter and the process of determining the impact to Archrock’s pre-Spin-off historical financial statements is ongoing, Archrock was not able to file the Form 10-Q by the required filing date.
Therefore, NYSE informed Archrock, Inc. that under their rules, the company would have six months from May17, 2016 to file the form 10-Q in order for them to regain compliance with the NYSE listing standards at any time before the final date provided to them. Also, if the company fails to submit the 10-Q form it is not sure that NYSE can grant them another 6-month extension as it all depends on the circumstances.
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’s control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: Archrock’s financial and operational strategies and ability to successfully effect those strategies. While Archrock 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 those factors is the company’s ability to come into compliance with SEC filing obligations; Local, regional and national economic conditions and the impact they may have on Archrock and its customers in the future.