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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from         to        

Commission File No. 001-33666

Archrock, Inc.

(Exact name of registrant as specified in its charter)

Delaware

74-3204509

(State or other jurisdiction of incorporation or organization)

or organization)

(I.R.S. Employer Identification No.)

9807 Katy Freeway, Suite 100, Houston, Texas 77024

(Address of principal executive offices, zip code)

(281) 836-8000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

  

Trading Symbol

  

Name of exchange on which registered

Common stock, $0.01 par value per share

AROC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

Number of shares of the common stock of the registrant outstanding as of October 26, 2023: 156,057,991 shares.

TABLE OF CONTENTS

Page

Glossary

3

Forward-Looking Statements

4

Part I. Financial Information

Item 1. Financial Statements (unaudited)

5

Condensed Consolidated Balance Sheets

5

Condensed Consolidated Statements of Operations

6

Condensed Consolidated Statements of Comprehensive Income

7

Condensed Consolidated Statements of Equity

8

Condensed Consolidated Statements of Cash Flows

10

Notes to Unaudited Condensed Consolidated Financial Statements

11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3. Quantitative and Qualitative Disclosures About Market Risk

31

Item 4. Controls and Procedures

31

Part II. Other Information

Item 1. Legal Proceedings

32

Item 1A. Risk Factors

32

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

32

Item 3. Defaults Upon Senior Securities

32

Item 4. Mine Safety Disclosures

32

Item 5. Other Information

32

Item 6. Exhibits

33

Signatures

34

2

GLOSSARY

The following terms and abbreviations appearing in the text of this report have the meanings indicated below.

2022 Form 10-K

Annual Report on Form 10-K for the year ended December 31, 2022

2023 Share Repurchase Program

Share repurchase program approved by our Board of Directors on April 27, 2023 that allows us to repurchase up to $50.0 million of outstanding common stock

2027 Notes

$500.0 million of 6.875% senior notes due April 2027, issued in March 2019

2028 Notes

$800.0 million of 6.25% senior notes due April 2028, $500.0 million of which was issued in December 2019, $300.0 million of which was issued in December 2020

Archrock, our, we, us

Archrock, Inc., individually and together with its wholly-owned subsidiaries

Amended and Restated Credit Agreement

Amended and Restated Credit Agreement, dated May 16, 2023, which amended and restated that Credit Agreement, dated as of March 30, 2017, which governs the Credit Facility

ASU

Accounting Standards Update

Credit Facility

$750.0 million asset-based revolving credit facility due May 2028, as governed by the Amended and Restated Credit Agreement, dated May 16, 2023, which amended and restated that Credit Agreement, dated as of March 30, 2017

ECOTEC

Ecotec International Holdings, LLC

ESPP

Employee Stock Purchase Plan

Exchange Act

Securities Exchange Act of 1934, as amended

FASB

Financial Accounting Standards Board

Financial Statements

Condensed consolidated financial statements included in Part I Item 1 of this Quarterly Report on Form 10-Q

GAAP

U.S. generally accepted accounting principles

Hilcorp

Hilcorp Energy Company

LIBOR

London Interbank Offered Rate

Old Ocean Reserves

Old Ocean Reserves, LP, formerly JDH Capital Holdings, L.P.

OTC

Over-the-counter, as related to aftermarket services parts and components

SEC

U.S. Securities and Exchange Commission

SG&A

Selling, general and administrative

SOFR

Secured Overnight Financing Rate

U.S.

United States of America

WACC

Weighted average cost of capital

3

FORWARD–LOOKING STATEMENTS

This Quarterly Report on Form 10–Q (this “Form 10-Q”) contains “forward–looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this Form 10–Q are forward–looking statements within the meaning of the Exchange Act, including, without limitation, our business growth strategy and projected costs; future financial position; the sufficiency of available cash flows to fund continuing operations and pay dividends; the expected amount of our capital expenditures; anticipated cost savings; future revenue, gross margin and other financial or operational measures related to our business; the future value of our equipment; and plans and objectives of our management for our future operations. You can identify many of these statements by words such as “believe,” “expect,” “intend,” “project,” “anticipate,” “estimate,” “will continue” or similar words or the negative thereof.

Such forward–looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this Form 10–Q. Although we believe that the expectations reflected in these forward–looking statements are based on reasonable assumptions, no assurance can be given that these expectations will prove to be correct. Known material factors that could cause our actual results to differ materially from the expectations reflected in these forward–looking statements include the risk factors described in our 2022 Form 10–K and those set forth from time to time in our filings with the SEC, which are available through our website at www.archrock.com and through the SEC’s website at www.sec.gov.

All forward–looking statements included in this Form 10–Q are based on information available to us on the date of this Form 10–Q. Except as required by law, we undertake no obligation to publicly update or revise any forward–looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward–looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout this Form 10–Q.

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Archrock, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except par value and share amounts)

(unaudited)

    

September 30, 2023

    

December 31, 2022

Assets

 

  

 

  

Current assets:

 

  

 

  

Cash and cash equivalents

$

482

$

1,566

Accounts receivable, net of allowance of $988 and $1,674, respectively

 

129,306

 

137,544

Inventory

 

87,942

 

84,622

Other current assets

 

7,147

 

8,228

Total current assets

 

224,877

 

231,960

Property, plant and equipment, net

 

2,302,417

 

2,199,253

Operating lease right-of-use assets

 

14,866

 

16,706

Intangible assets, net

 

31,681

 

37,077

Contract costs, net

 

37,954

 

34,736

Deferred tax assets

 

10,984

 

33,353

Other assets

 

41,463

 

37,079

Non-current assets of discontinued operations

 

7,868

 

8,586

Total assets

$

2,672,110

$

2,598,750

Liabilities and Stockholders' Equity

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable, trade

$

52,000

$

64,324

Accrued liabilities

 

101,101

 

76,915

Deferred revenue

 

6,274

 

7,332

Total current liabilities

 

159,375

 

148,571

Long-term debt

 

1,604,554

 

1,548,334

Operating lease liabilities

 

12,928

 

14,861

Deferred tax liabilities

 

1,418

 

854

Other liabilities

 

24,874

 

17,569

Non-current liabilities of discontinued operations

 

7,868

 

7,868

Total liabilities

 

1,811,017

 

1,738,057

Commitments and contingencies (Note 7)

 

  

 

  

Equity:

 

  

 

  

Preferred stock: $0.01 par value per share, 50,000,000 shares authorized, zero issued

 

 

Common stock: $0.01 par value per share, 250,000,000 shares authorized, 164,959,743 and 163,439,013 shares issued, respectively

 

1,649

 

1,634

Additional paid-in capital

 

3,467,051

 

3,456,777

Accumulated deficit

 

(2,508,743)

 

(2,509,133)

Treasury stock: 8,839,652 and 7,810,548 common shares, at cost, respectively

 

(98,864)

 

(88,585)

Total equity

 

861,093

 

860,693

Total liabilities and equity

$

2,672,110

$

2,598,750

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

Archrock, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2023

    

2022

    

2023

    

2022

Revenue:

 

  

 

  

 

  

 

  

Contract operations

$

207,552

$

170,497

$

596,417

$

500,451

Aftermarket services

 

45,815

 

43,171

 

134,327

 

126,246

Total revenue

 

253,367

 

213,668

 

730,744

 

626,697

Cost of sales (excluding depreciation and amortization):

 

Contract operations

 

75,273

 

71,694

 

230,788

 

204,550

Aftermarket services

 

36,688

 

35,833

 

105,939

 

106,181

Total cost of sales (excluding depreciation and amortization)

 

111,961

 

107,527

 

336,727

 

310,731

Selling, general and administrative

 

28,558

 

30,500

 

83,632

 

85,964

Depreciation and amortization

 

42,155

 

39,953

 

123,546

 

124,348

Long-lived and other asset impairment

 

2,922

 

4,154

 

8,383

 

16,217

Restructuring charges

592

1,554

Interest expense

 

28,339

 

25,177

 

83,550

 

74,879

Gain on sale of assets, net

(3,237)

(12,695)

(8,018)

(33,755)

Other expense (income), net

 

(235)

 

(585)

 

1,831

 

(52)

Income before income taxes

 

42,312

 

19,637

 

99,539

 

48,365

Provision for income taxes

 

11,454

 

4,266

 

27,543

 

14,527

Net income

$

30,858

$

15,371

$

71,996

$

33,838

Basic and diluted earnings per common share

$

0.20

$

0.10

$

0.46

$

0.21

Weighted average common shares outstanding:

 

  

 

  

 

  

 

  

Basic

 

154,163

 

153,550

 

154,210

 

153,168

Diluted

 

154,401

 

153,687

 

154,398

 

153,297

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

Archrock, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2023

    

2022

    

2023

    

2022

Net income

$

30,858

    

$

15,371

    

$

71,996

    

$

33,838

Other comprehensive income, net of tax:

 

  

 

  

 

  

 

  

Interest rate swap gain, net of reclassifications to earnings

 

 

 

 

574

Amortization of dedesignated interest rate swap

 

 

 

 

410

Total other comprehensive income, net of tax

 

 

 

 

984

Comprehensive income

$

30,858

$

15,371

$

71,996

$

34,822

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

Archrock, Inc.

Condensed Consolidated Statements of Equity

(in thousands, except shares and per share amounts)

(unaudited)

Accumulated

Additional

Other

Common Stock

Paid-in

Accumulated

Comprehensive

Treasury Stock

    

Amount

Shares

  

Capital

  

Deficit

Loss

Amount

Shares

Total

Balance at June 30, 2022

$

1,633

163,385,390

$

3,450,603

$

(2,489,814)

$

$

(88,504)

(7,740,919)

$

873,918

Shares withheld related to net settlement of equity awards

 

 

 

 

(31)

(3,636)

 

(31)

Cash dividends ($0.145 per common share)

 

 

(22,559)

 

 

 

(22,559)

Shares issued under ESPP

27,390

 

167

 

 

 

 

167

Stock-based compensation, net of forfeitures

 

2,998

 

 

 

(56,595)

 

2,998

Net proceeds from issuance of common stock

(48)

(48)

Net income

 

 

15,371

 

 

 

15,371

Balance at September 30, 2022

$

1,633

163,412,780

$

3,453,720

$

(2,497,002)

$

$

(88,535)

(7,801,150)

$

869,816

Balance at June 30, 2023

$

1,649

164,940,249

$

3,463,668

$

(2,515,351)

$

$

(94,433)

(8,440,673)

$

855,533

Shares repurchased

 

 

 

(4,422)

(354,012)

(4,422)

Shares withheld related to net settlement of equity awards

 

 

 

 

(9)

(717)

 

(9)

Cash dividends ($0.155 per common share)

 

 

(24,250)

 

 

 

(24,250)

Shares issued under ESPP

19,494

 

192

 

 

 

 

192

Stock-based compensation, net of forfeitures

 

3,191

 

 

 

(44,250)

 

3,191

Net income

 

 

30,858

 

 

 

30,858

Balance at September 30, 2023

$

1,649

164,959,743

$

3,467,051

$

(2,508,743)

$

$

(98,864)

(8,839,652)

$

861,093

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8

Archrock, Inc.

Condensed Consolidated Statements of Equity

(in thousands, except shares and per share amounts)

(unaudited)

Accumulated

Additional

Other

Common Stock

Paid-in

Accumulated

Comprehensive

Treasury Stock

  

Amount

Shares

  

Capital

  

Deficit

Loss

Amount

Shares

Total

Balance at December 31, 2021

$

1,615

161,482,852

$

3,440,059

$

(2,463,114)

$

(984)

$

(86,138)

(7,417,401)

$

891,438

Shares withheld related to net settlement of equity awards

 

 

 

 

(2,397)

(276,342)

 

(2,397)

Cash dividends ($0.435 per common share)

 

 

(67,726)

 

 

 

(67,726)

Shares issued under ESPP

66,236

 

462

 

 

 

 

462

Stock-based compensation, net of forfeitures

14

1,416,672

 

9,021

 

 

 

(107,407)

 

9,035

Net proceeds from issuance of common stock

4

447,020

4,178

4,182

Comprehensive income:

 

Net income

 

 

33,838

 

 

 

33,838

Other comprehensive income

984

984

Balance at September 30, 2022

$

1,633

163,412,780

$

3,453,720

$

(2,497,002)

$

$

(88,535)

(7,801,150)

$

869,816

Balance at December 31, 2022

$

1,634

163,439,013

$

3,456,777

$

(2,509,133)

$

$

(88,585)

(7,810,548)

$

860,693

Shares repurchased

 

 

 

(6,495)

(576,262)

(6,495)

Shares withheld related to net settlement of equity awards

 

 

 

 

(3,784)

(384,684)

 

(3,784)

Cash dividends ($0.455 per common share)

 

 

(71,606)

 

 

 

(71,606)

Shares issued under ESPP

1

61,494

 

573

 

 

 

 

574

Stock-based compensation, net of forfeitures

14

1,459,236

 

9,701

 

 

 

(68,158)

 

9,715

Net income

 

 

71,996

 

 

 

71,996

Balance at September 30, 2023

$

1,649

164,959,743

$

3,467,051

$

(2,508,743)

$

$

(98,864)

(8,839,652)

$

861,093

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

9

Archrock, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine Months Ended

September 30, 

    

2023

    

2022

Cash flows from operating activities:

  

  

Net income

$

71,996

$

33,838

Adjustments to reconcile net income to net cash provided by operating activities:

 

  

 

  

Depreciation and amortization

 

123,546

 

124,348

Long-lived and other asset impairment

 

8,383

 

16,217

Non-cash restructuring charges

211

Unrealized change in fair value of investment in unconsolidated affiliate

1,996

Inventory write-downs

 

381

 

1,040

Amortization of operating lease right-of-use assets

2,488

2,407

Amortization of deferred financing costs

4,599

3,864

Amortization of debt premium

(1,504)

(1,504)

Amortization of capitalized implementation costs

1,841

Amortization of dedesignated interest rate swap

410

Interest rate swaps

 

 

631

Stock-based compensation expense

 

9,715

 

9,035

Benefit from credit losses

 

(234)

 

(28)

Gain on sale of assets, net

 

(8,018)

 

(5,535)

Gain on sale of business

(28,220)

Deferred income tax provision

 

26,411

 

13,624

Amortization of contract costs

15,636

14,211

Deferred revenue recognized in earnings

(11,043)

(15,709)

Changes in operating assets and liabilities:

 

 

Accounts receivable, net

(7,315)

(29,130)

Inventory

(1,672)

(8,339)

Other assets

(1,635)

697

Contract costs

(18,854)

(22,486)

Accounts payable and other liabilities

10,745

37,251

Deferred revenue

10,733

19,614

Other

62

96

Net cash provided by operating activities

 

238,468

 

166,332

Cash flows from investing activities:

 

  

 

  

Capital expenditures

 

(261,977)

 

(171,032)

Proceeds from sale of business

99,785

Proceeds from sale of property, equipment and other assets

 

54,663

 

13,348

Proceeds from insurance and other settlements

1,157

3,353

Investments in unconsolidated entities

(2,000)

(12,000)

Net cash used in investing activities

 

(208,157)

 

(66,546)

Cash flows from financing activities:

 

  

 

  

Borrowings of long-term debt

 

577,725

 

579,483

Repayments of long-term debt

 

(522,075)

 

(611,983)

Payments of debt issuance costs

 

(5,734)

 

Payments for settlement of interest rate swaps that include financing elements

 

 

(1,334)

Dividends paid to stockholders

 

(71,606)

 

(67,726)

Net proceeds from issuance of common stock

4,182

Repurchases of common stock

(6,495)

Taxes paid related to net share settlement of equity awards

(3,784)

(2,397)

Proceeds from stock issued under ESPP

 

574

 

462

Net cash used in financing activities

 

(31,395)

 

(99,313)

Net increase (decrease) in cash and cash equivalents

 

(1,084)

 

473

Cash and cash equivalents, beginning of period

 

1,566

 

1,569

Cash and cash equivalents, end of period

$

482

$

2,042

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

10

Table of Contents

Archrock, Inc.

Notes to Condensed Consolidated Financial Statements

1. Description of Business and Basis of Presentation

We are an energy infrastructure company with a pure play focus on midstream natural gas compression. We are the leading provider of natural gas compression services, in terms of total compression fleet horsepower, to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment in the U.S. We operate in two business segments: contract operations and aftermarket services. Our predominant segment, contract operations, primarily includes designing, sourcing, owning, installing, operating, servicing, repairing and maintaining our owned fleet of natural gas compression equipment to provide natural gas compression services to our customers. In our aftermarket services business, we sell parts and components and provide operations, maintenance, overhaul and reconfiguration services to customers who own compression equipment.

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by GAAP. Therefore, this information should be read in conjunction with our consolidated financial statements and notes contained in our 2022 Form 10-K. The information furnished herein reflects all adjustments that are, in the opinion of management, of a normal recurring nature and considered necessary for a fair statement of the results of the interim periods reported. All intercompany balances and transactions have been eliminated in consolidation. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

2. Recent Accounting Developments

Accounting Standards Updates Not Yet Implemented

Business Combinations – Joint Venture Formations

In August 2023, the FASB issued ASU 2023-05, to reduce diversity in practice and provide decision-useful information to a joint venture’s investors by requiring that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture will recognize and initially measure its assets and liabilities at fair value, with exceptions to fair value measurement that are consistent with the business combinations guidance, on the date of formation.  ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.  Additionally, a joint venture that was formed before January 1, 2025, may elect to apply the amendments retrospectively if it has sufficient information to do so. Early adoption is permitted in any interim or annual period in which financial statements have not been issued or been made available for issuance, either prospectively or retrospectively. We expect that the adoption of ASU 2023-05 will have no impact on our consolidated financial statements.

3. Inventory

Inventory is comprised of the following:

September 30, 

December 31, 

(in thousands)

2023

2022

Parts and supplies

$

72,933

$

70,228

Work in progress

 

15,009

 

14,394

Inventory

$

87,942

$

84,622

11

Table of Contents

Archrock, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

4. Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

    

September 30, 

    

December 31, 

(in thousands)

2023

2022

Compression equipment, facilities and other fleet assets

$

3,300,366

$

3,234,239

Land and buildings

 

37,947

 

44,304

Transportation and shop equipment

 

98,421

 

93,189

Computer hardware and software

 

77,483

 

77,357

Other

 

6,228

 

5,754

Property, plant and equipment

 

3,520,445

 

3,454,843

Accumulated depreciation

 

(1,218,028)

 

(1,255,590)

Property, plant and equipment, net

$

2,302,417

$

2,199,253

5. Investment in Unconsolidated Affiliate

Investments in which we are deemed to exert significant influence, but not control, are accounted for using the equity method of accounting, except in cases where the fair value option is elected. For such investments where we have elected the fair value option, the election is irrevocable and is applied on an investment–by–investment basis at initial recognition.

As of September 30, 2023, our ownership interest in ECOTEC, a company specializing in methane detection, monitoring and management, is 25% and included in other assets in our unaudited condensed consolidated balance sheets. For greater transparency, we have elected the fair value option for this investment.

Changes in the fair value of this investment are recognized in other expense (income), net in our unaudited condensed consolidated statements of operations. See Note 14 (“Fair Value Measurements”) for further details on fair value accounting.

6. Long-Term Debt

Long–term debt is comprised of the following:

September 30, 

December 31, 

(in thousands)

    

2023

2022

Credit Facility

$

306,900

$

251,250

6.25% senior notes due April 2028:

Principal outstanding

 

800,000

 

800,000

Unamortized debt premium

9,026

 

10,530

Unamortized debt issuance costs

 

(7,498)

 

(8,744)

 

801,528

 

801,786

6.875% senior notes due April 2027:

Principal outstanding

500,000

 

500,000

Unamortized debt issuance costs

(3,874)

 

(4,702)

496,126

 

495,298

Long-term debt

$

1,604,554

$

1,548,334

12

Table of Contents

Archrock, Inc.

Notes to Condensed Consolidated Financial Statements (continued)

As of September 30, 2023, there were $4.5 million letters of credit outstanding under the Credit Facility and the applicable margin on borrowings outstanding was 2.4%. The weighted average annual interest rate on the outstanding balance under the Credit Facility, excluding the effect of interest rate swaps, was 7.9% and 6.9% at September 30, 2023 and December 31, 2022, respectively. We incurred $0.4 million and $0.5 million of commitment fees on the daily unused amount of the Credit Facility during the three months ended September 30, 2023 and 2022, respectively, and $1.3 million and $1.5 million during the nine months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023, we were in compliance with all covenants under our Credit Facility agreement. Additionally, all undrawn capacity on our Credit Facility was available for borrowings as of September 30, 2023.

Amended and Restated Credit Agreement

On May 16, 2023, we amended and restated our Credit Facility to, among other things:

extend the maturity date of the Credit Facility from November 8, 2024 to May 16, 2028 (or December 2, 2026 or December 3, 2027 if any portion of 2027 Senior Notes and 2028 Senior Notes, respectively, remain outstanding at such date);
change the referenced rate from LIBOR to SOFR so that borrowings under the Credit Facility bear interest at, based on our election, either a base rate or SOFR, plus an applicable margin;
increase the portion of the Credit Facility available for the issuance of