Archrock Inc. (AROC): Carlson Capital Increase Its Stake; Plans to Go Activist

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According to a recent 13D filing with the US Securities and Exchange Commission,  Clint Carlson‘s Carlson Capital owns 9.26 million shares of Archrock Inc. (NYSE:AROC), which amass 13.30% of the company’s outstanding stock. This is slightly more compared to almost 8.6 million shares Carlson Capital disclosed in its previous 13G filingCarlson Capital also announced in the 13D filing that it may proposing new ideas regarding the management of the company, or by nominating candidates to the board, acquiring more shares, entering into discussions with the rest of the shareholders, disposing some or total amount of securities in the open market, or by doing other necessary moves in order to help the undervaluation of common shares be fixed.

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Archrock is a provider of natural gas contract compression services, aftermarket services and used equipment covering needs of oil and natural gas industries across the US. Over the past 12 months, the company’s shares have dropped by 79.7%. For the first quarter of 2016, Archrock reported EPS of $0.18 and revenue of $151.4 million versus  estimates of $0.17 and $165.3 million, respectively.

At the end of December, the most valuable position in Archroc (NYSE:AROC) was reported by Alec Litowitz And Ross Laser’s Magnetar Capital worth around $41.2 million, followed by Israel Englander’s Millennium Management with a $28,6 million holding. Other hedge funds that were bullish on this stock encompass D. E. Shaw’s D E Shaw, Frank Brosens’s Taconic Capital, and Ken Griffin’s Citadel Investment Group.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Carlson Capital 0 9,258,249 0 9,258,249 9,258,249 EXCLUDES CERTAIN SHARES 13.30%
Double Black Diamond Offshore Ltd 0 5,498,738 0 5,498,738 5,498,738 EXCLUDES CERTAIN SHARES 7.90%
Black Diamond Relative Value Offshore Ltd 0 1,262,697 0 1,262,697 1,262,697 EXCLUDES CERTAIN SHARES 1.81%
Black Diamond Relative Value Cayman 0 237,432 0 237,432 237,432 EXCLUDES CERTAIN SHARES 0.34%
Black Diamond Offshore Ltd 0 367,486 0 367,486 367,486 EXCLUDES CERTAIN SHARES 0.53%
Black Diamond SRI Offshore Ltd 0 31,700 0 31,700 31,700 EXCLUDES CERTAIN SHARES 0.05%
Black Diamond Thematic Offshore Ltd 0 1,509,883 0 1,509,883 1,509,883 EXCLUDES CERTAIN SHARES 2.17%
Black Diamond Energy L S Offshore Ltd 0 306,409 0 306,409 306,409 EXCLUDES CERTAIN SHARES 0.44%
Worldwide Transactions Ltd 0 43,904 0 43,904 43,904 EXCLUDES CERTAIN SHARES 0.06%
Asgard Investment Corp. II 0 9,258,249 0 9,258,249 9,258,249 EXCLUDES CERTAIN SHARES 13.30%
Asgard Investment Corp 0 9,258,249 0 9,258,249 9,258,249 EXCLUDES CERTAIN SHARES 13.30%
Clint D. Carlson 0 9,258,249 0 9,258,249 9,258,249 EXCLUDES CERTAIN SHARES 13.30%

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Page 1 of 20 – SEC Filing



Washington, D.C. 20549




Under the Securities Exchange Act of 1934

(Amendment No.     )*



Archrock Inc.

(Name of Issuer)

Common Stock, $0.01 par value per share

(Title of Class of Securities)


(CUSIP Number)

Carlson Capital, L.P.

Attn: Shahla Ali

McKinney Avenue

Dallas, TX 75201

(214) 932-9600

Address and Telephone Number of Person Authorized to Receive Notices and Communications)

May 4, 2016

(Date of Event Which Requires Filing of This Statement)



If the filing person has
previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13D-1(e), rule 13d-1(f) or Rule 13d-1(g), check the following box.  x

* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information
which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be
deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (the Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).

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