Archrock Inc (AROC): Carlson Capital Lowers Its Stake

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A freshly amended 13D filing with the SEC revealed that Clint Carlson‘s Carlson Capital has lowered its stake in Archrock Inc (NYSE:AROC). The fund now owns 6.02 million shares, which account for 8.65% of the stock’s float, while its stake in the company previously contained 6.83 million shares, amassing 9.81% of the float. The filing also revealed that Carlson Capital might enter into negotiations with the management of the company concerning its business plans, with the main goal being to increase the value of Archock’s shares, which the fund finds undervalued. Carlson Capital plans to propose some ways to raise the value of those shares, such as altering the company’s capital allocation, lowering its expenses, or changing the composition of the company’s board.

Archrock Inc (NYSE:AROC), previously known as Exterran Holdings, is a company that provides professional services to the gas and oil industry. Year-to-date, the company’s stock is up by 80.85%. Recently, Scotiabank downgraded its rating on Archrock’s stock to ‘Hold’. In its financial report for the third quarter of 2016, the company disclosed contract operations revenue of $156.6 million, down from revenue of $191.7 million for the same period a year earlier.

Clint Carlson

At the end of the third quarter, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on Archrock Inc (NYSE:AROC), up by two from the previous quarter. Some of the most bullish hedge funds were Joel Greenblatt’s Gotham Asset Management, with an $11 million position, David E. Shaw’s D E Shaw, and Israel Englander’s Millennium Management.

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Among the hedge funds that initiated new positions in Archrock Inc (NYSE:AROC) during the third quarter were Steve Cohen’s Point72 Asset Management, which had $6.1 million invested in the company, and Glenn Russell Dubin’s Highbridge Capital Management, with a $1.7 million position. The other funds with brand new AROC positions were Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, George Hall’s Clinton Group, and Andrew Weiss’ Weiss Asset Management.

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 6,024,105 0 6,024,105 6,024,105 EXCLUDES CERTAIN SHARES 8.65%
Double Black Diamond Offshore Ltd 0 3,290,109 0 3,290,109 3,290,109 EXCLUDES CERTAIN SHARES 4.73%
Black Diamond Relative Value Offshore Ltd 0 800,409 0 800,409 800,409 EXCLUDES CERTAIN SHARES 1.15%
Black Diamond Relative Value Cayman 0 149,758 0 149 149,758 EXCLUDES CERTAIN SHARES 0.22%
Black Diamond Offshore Ltd 0 220,218 0 220,218 220,218 EXCLUDES CERTAIN SHARES 0.32%
Black Diamond SRI Offshore Ltd 0 0 0 0 0 EXCLUDES CERTAIN SHARES 0%
Black Diamond Thematic Offshore Ltd 0 1,358,623 0 1,358,623 1,358,623 EXCLUDES CERTAIN SHARES 1.95%
Black Diamond Energy L S Offshore Ltd 0 204,988 0 204,988 204,988 EXCLUDES CERTAIN SHARES 0.29%
Asgard Investment Corp. II 0 6,024,105 0 6,024,105 6,024,105 EXCLUDES CERTAIN SHARES 8.65%
Asgard Investment Corp 0 6,024,105 0 6,024,105 6,024,105 EXCLUDES CERTAIN SHARES 8.65%
Clint D. Carlson 0 6,024,105 0 6,024,105 6,024,105 EXCLUDES CERTAIN SHARES 8.65%

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Page 1 of 25 – SEC Filing

Washington, D.C. 20549
Under the Securities Exchange Act of 1934
(Amendment No. 4 )*
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
2100 McKinney Avenue
Dallas, TX 75201
(214) 932-9600
 (Name, Address and Telephone Number of Person
 Authorizsed to Receive Notices and Communications)
  December 16, 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.  ☒
(Page 1 of 27 Pages)

* The remainder of this cover page shall be filled out for a reporting person’s 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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