Archrock (AROC), a provider of natural gas compression services, is expected to benefit from rising LNG exports, higher Permian Basin production, increasing data-center power demand and a larger investment plan through 2030, though near-term cost pressure may weigh on results, RBC Capital Markets said Friday in a report.

ArchRock plans to spend $1.4 billion to $1.6 billion on projects from 2027 through 2030, adding about 1 million horsepower to meet expected demand from LNG exports and power generation, which should support long-term gains, RBC said.

A new eight-year agreement covering 665,000 horsepower may signal longer customer contracts and stronger demand for secured compression capacity, the report said.

RBC lowered its adjusted EBITDA forecasts to $875 million from $891 million in 2026 and to $945 million from $960 million in 2027, citing higher costs and weaker aftermarket services expectations.

Still, the compression market should remain tight, with long equipment lead times encouraging customers to secure capacity earlier, the report said.

RBC raised its price target on Archrock stock to $46 from $44 and maintained its outperform rating.

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