The transaction resulted in APLP unitholders being considered to have sold their APLP units for AROC shares in a taxable transaction for U.S. federal income tax purposes. Accordingly, a U.S. holder of APLP units should recognize a gain or loss on the receipt of AROC shares in exchange for APLP units.
You will not be able calculate your final gain or loss on the transaction until you receive your final APLP Schedule K-1 and supporting documentation (expected to be delivered in March 2019).
Prior to that time, you can estimate your gain or loss from the transaction through the following process:
The tax consequences of the transaction to each APLP unitholder will be unique and depend on the APLP unitholder's particular facts and circumstances. You should consult your own tax advisor to determine the specific consequences to you of the transaction, including under the laws of any applicable federal, state, local or foreign jurisdiction, and under any applicable U.S. federal laws other than those pertaining to income taxes.
You can also visit the website https://www.taxpackagesupport.com/aplp to estimate your gain or loss on this transaction via the online K-1 support. Unitholders not registered with the website will need to register to access the website. Please note the gain/loss calculator will currently calculate a unitholder's estimated gain or loss based on the unitholders tax basis at December 31, 2017. It will not have final information from the transaction close until March 2019. Any ordinary gain generated from the transaction may be reduced by any passive loss carryforwards to the extent such passive loss carryforwards are available.
THE LINK TO THE TAX PACKAGE SUPPORT WEBSITE IS PROVIDED FOR CONVENIENCE ONLY, AND THE INFORMATION CONTAINED ON THE TAX PACKAGE SUPPORT WEBSITE IS EXPRESSLY NOT INCORPORATED BY REFERENCE INTO THIS DOCUMENT. YOUR ORIGINAL BASIS INFORMATION WAS PROVIDED TO THE OPERATOR OF THE TAX PACKAGE SUPPORT WEBSITE BY YOUR BROKER AND YOU SHOULD CONSULT YOUR BROKER AND TAX ADVISOR TO CONFIRM YOUR BASIS INFORMATION. ARCHROCK DOES NOT OPERATE THE WEBSITE, CANNOT GUARANTEE THE ACCURACY OF THE INFORMATION ON THE WEBSITE AND DISCLAIMS ANY RESPONSIBILITY FOR SUCH INFORMATION.
APLP unitholders: You will receive a final Tax Package that will include a Schedule K-1, an Ownership Schedule, a Sales Worksheet, and a State Tax Schedule (expected to be delivered in March 2019).
AROC stockholders: You will not receive any tax documents as a result of the APLP transaction.
These materials are available online at www.sec.gov and on Archrock’s investor relations website at http://www.archrock.com/aroc and http://www.archrock.com/aplp.