
ZP Better Together Earns Top Score on 2025 Disability Index® for Sixth Consecutive Year
The Disability Index is a nationally respected benchmarking tool that evaluates businesses on their disability inclusion policies and practices. The index is considered the gold standard for assessing corporate commitment to disability inclusion across various dimensions, including culture, leadership, accessibility, employment, community engagement, and supplier diversity.
'This sixth consecutive score of 100 is not just an achievement—it's a reflection of who we are,' said Sherri Turpin, CEO of ZP Better Together. 'We don't treat accessibility and inclusion as a checklist. It's embedded in our DNA, in how we design, lead, hire, and serve. I'm beyond proud of our ZP team, whose collective passion and purpose continue to drive change and foster equity across the communities we serve.'
With a top score, ZP earns the distinction of being recognized as a 'Best Place to Work for Disability Inclusion.' This benchmark enables organizations to assess their progress toward inclusive excellence and pinpoint areas that still require improvement. Learn more via @DisabilityIN at disabilityin.org.
'As we release this year's Disability Index report, we celebrate the continued progress made by businesses around the world. Today, hundreds of the world's leading companies are using this tool to benchmark and drive their disability inclusion efforts. Together, we are creating a global economy accelerated by disability inclusion,' said Jill Houghton, President and CEO of Disability:IN.
ZP continues to lead in its core service areas, which include Video Relay Service (VRS), Video Remote Interpreting (VRI), Communication Access Real-Time Translation (CART), and On-Site Interpreting, while adopting inclusive practices at every level of operation. Its tagline, 'Every Conversation Matters,' emphasizes ZP's mission to connect communities and promote communication equity, regardless of the setting.
As the global disability inclusion landscape evolves, ZP remains dedicated to promoting policies and practices that reflect its firm belief: everyone deserves to be seen, heard, and valued.
To learn more about ZP Better Together and its commitment to accessibility, please visit www.zpbettertogether.com.
To view the American Sign Language (ASL) version of this press release, please visit here.
About ZP Better Together
ZP Better Together is a communications solution provider dedicated to delivering the highest quality and most innovative communication services to meet the unique needs of each Deaf and hard-of-hearing individual. Our commitment covers hardware, software, and in-person solutions across four key areas: Video Relay Service (VRS), Video Remote Interpreting (VRI), Communication Access Real-Time Translation (CART), and On-Site Interpreting. These four pillars form the foundation of our belief that every conversation matters. Whether at home, on the go, at school, or in the workplace, our mission is to bridge two worlds with innovative, accessible communication solutions, creating more opportunities for our Deaf and hard-of-hearing community. For more information, please visit ZP Better Together.
About the Disability Index®
The Disability Index® is the leading independent, third-party resource for the annual, confidential benchmarking of disability inclusion policies and programs in business. Now trusted by over 70% of the Fortune 100 and nearly half of the Fortune 500, the tool helps companies determine data-driven actions that can achieve tangible business impact.
About Disability:IN
Disability:IN is the leading nonprofit resource for business disability inclusion worldwide. Together with the world's leading companies, Disability:IN drives progress through initiatives, tools, and expertise that deliver long-term business impact. Join us at disabilityin.org/AreYouIN.
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Acquisition of Energy West Montana Assets In July 2024, NW Corp entered into an Asset Purchase Agreement with Hope Utilities to acquire its Energy West natural gas distribution and system operations serving approximately 33,000 customers located in Great Falls, Cut Bank, and West Yellowstone, Montana. In May 2025, the MPSC approved this acquisition and on July 1, 2025, NW Corp completed this acquisition for approximately $36.5 million in cash, which is subject to certain post-close working capital adjustments that we expect to finalize in the second half of 2025. Montana Wildfire Risk Mitigation The Montana Legislature approved House Bill 490 in April 2025, with broad bipartisan support in both the House (90-0) and Senate (40-8), and the Governor signed this bill into law in May 2025. This bill requires development, approval, and implementation of electric facilities providers' wildfire mitigation plans. 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The legislation also defines the availability of damages by allowing noneconomic personal injury damages only when there is bodily injury and punitive damages only when an injured party proves by clear and convincing evidence that an electric facilities provider's actions were grossly negligent or intentional. We expect to file our wildfire mitigation plan with the MPSC in the third quarter of 2025 for review and approval. Montana Data Centers In July 2025, we entered into a nonbinding letter of intent with Quantica Infrastructure to evaluate the transmission infrastructure and generation resources needed to support their proposed Phase 1 need of 5 megawatts in 2026 with growth up to 500 megawatts by 2030. This is our third signed letter of intent for data center load growth. In December 2024, we announced two separate nonbinding letters of intent to provide electric supply services for data centers being developed in Montana with a combined energy service requirement expected to be 75 megawatts beginning in early 2026 with growth of up to 400 megawatts or more by 2030. We anticipate that service could be provided through our regulated business, pending further evaluation and regulatory considerations. Montana Electric Transmission Construction In May 2025, Senate Bill 301 was passed by the Montana Legislature with unanimous bipartisan support and signed into law. The intention of this bill is to expedite and streamline the process for a public utility to construct electric transmission lines to serve the increasing demand for electricity, enhance grid reliability, and address current transmission congestion within Montana. This bill allows a public utility to request a Certificate of Public Convenience & Necessity for electric transmission lines rated higher than 69 kilovolts from the MPSC and also provides a process for a public utility to apply for advanced cost approval of electric transmission lines and related facilities before actual construction begins. Colstrip Acquisitions and Requests for Cost Recovery As previously disclosed, we entered into definitive agreements with Avista Corporation (Avista) and Puget Sound Energy (Puget) to acquire their respective interests in Colstrip Units 3 and 4 for $0 and expect to complete these acquisitions on December 31, 2025. Accordingly, we will be responsible for associated operating costs on January 1, 2026. Puget and Avista will remain responsible for their respective pre-closing share of environmental and pension liabilities attributed to events or conditions existing prior to the closing of the transaction and for any future decommissioning and demolition costs associated with the existing facilities that comprise their interests. During the second half of 2025 we intend to make filings with the MPSC and the Federal Energy Regulatory Commission (FERC) associated with these transactions, including recovery of incremental operating costs. Three Months Ended June 30, 2025 vs. 2024 Variance in revenue and fuel, purchased supply, and direct transmission expense (1) items impacting net income: Rates 19.4 (4.9 ) 14.5 0.23 Electric transmission revenue 5.7 (1.4 ) 4.3 0.07 Natural gas transportation 1.6 (0.4 ) 1.2 0.02 Production tax credits, offset within income tax benefit 1.2 (1.2 ) — — Natural gas retail volumes (4.0 ) 1.0 (3.0 ) (0.05 ) Montana property tax tracker collections (4.3 ) 1.1 (3.2 ) (0.05 ) Electric retail volumes (2.9 ) 0.7 (2.2 ) (0.04 ) Non-recoverable Montana electric supply costs (2.0 ) 0.5 (1.5 ) (0.02 ) Other (0.2 ) 0.1 (0.1 ) — Variance in expense items (2) impacting net income: Depreciation (5.5 ) 1.4 (4.1 ) (0.07 ) Interest expense (4.4 ) 1.1 (3.3 ) (0.05 ) Operating, maintenance, and administrative (10.0 ) 2.5 (7.5 ) (0.12 ) Property and other taxes not recoverable within trackers (1.5 ) 0.4 (1.1 ) (0.02 ) Other (4.4 ) (0.1 ) (4.5 ) (0.07 ) Dilution from higher share count — Second Quarter, 2025 $ 24.6 $ (3.4 ) $ 21.2 $ 0.35 Change in Net Income $ (10.5 ) $ (0.17 ) Expand (1) Exclusive of depreciation and depletion shown separately below (2) Excluding fuel, purchased supply, and direct transmission expense (3) Income Tax (Expense) Benefit calculation on reconciling items assumes blended federal plus state effective tax rate of 25.3%. Expand EXPLANATION OF CONSOLIDATED RESULTS Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024 Consolidated gross margin for the three months ended June 30, 2025 was $94.5 million as compared with $92.8 million in 2024, an increase of $1.7 million, or 1.8 percent. This increase was primarily due to higher retail rates, higher electric transmission, and natural gas transportation revenues. These were partly offset by lower retail natural gas and electric usage primarily driven by weather, Montana property tax tracker collections, non-recoverable Montana electric supply costs, depreciation, and operating and maintenance costs. ($ in millions) Three Months Ended June 30, Reconciliation of gross margin to utility margin: 2025 2024 Operating Revenues $ 342.7 $ 319.9 Less: Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) 75.3 76.5 Less: Operating and maintenance 62.3 57.4 Less: Property and other taxes 48.2 36.2 Less: Depreciation and depletion 62.4 57.0 Gross Margin 94.5 92.8 Operating and maintenance 62.3 57.4 Property and other taxes 48.2 36.2 Depreciation and depletion 62.4 57.0 Utility Margin (1) $ 267.4 $ 243.4 Expand (1) Non-GAAP financial measure. See 'Non-GAAP Financial Measures' below. Expand Three Months Ended June 30, ($ in millions) 2025 2024 Change % Change Utility Margin Electric $ 219.8 $ 199.2 $ 20.6 10.3 % Natural Gas 47.6 44.2 3.4 7.7 Total Utility Margin (1) $ 267.4 $ 243.4 $ 24.0 9.9 % Expand (1) Non-GAAP financial measure. See 'Non-GAAP Financial Measures' below. Expand Consolidated utility margin for the three months ended June 30, 2025 was $267.4 million as compared with $243.4 million for the same period in 2024, an increase of $24.0 million, or 9.9 percent. Primary components of the change in utility margin include the following: ($ in millions) Utility Margin Utility Margin Items Impacting Net Income Interim rates (subject to refund) $ 17.9 Transmission revenue due to market conditions and rates 5.7 Montana natural gas transportation 1.6 Base rates 1.5 Montana property tax tracker collections (4.3 ) Natural gas retail volumes (4.0 ) Electric retail volumes (2.9 ) Non-recoverable Montana electric supply costs (2.0 ) Other (0.2 ) Change in Utility Margin Items Impacting Net Income 13.3 Utility Margin Items Offset Within Net Income Property and other taxes recovered in revenue, offset in property and other taxes 10.4 Production tax credits, offset in income tax expense 1.2 Operating expenses recovered in revenue, offset in operating and maintenance expense (0.9 ) Change in Utility Margin Items Offset Within Net Income 10.7 Increase in Consolidated Utility Margin (1) $ 24.0 Expand (1) Non-GAAP financial measure. See 'Non-GAAP Financial Measures' below. Expand Lower electric retail volumes were driven by unfavorable spring weather in all jurisdictions impacting residential demand, and lower commercial and industrial demand, partly offset by customer growth in all jurisdictions. Lower natural gas retail volumes were driven by unfavorable weather in all jurisdictions, partly offset by customer growth in all jurisdictions. Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding qualifying facility costs) are allocated 90 percent to Montana customers and 10 percent to shareholders. For the three months ended June 30, 2025, we under-collected supply costs of $7.6 million resulting in an increase to our under collection of costs, and recorded a decrease in pre-tax earnings of $0.8 million (10 percent of the PCCAM Base cost variance). For the three months ended June 30, 2024, we over-collected supply costs of $11.0 million resulting in a reduction to our under collection of costs, and recorded an increase in pre-tax earnings of $1.2 million (10 percent of the PCCAM Base cost variance). Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $206.7 million for the three months ended June 30, 2025, as compared with $181.9 million for the three months ended June 30, 2024. Primary components of the change include the following: (1) In order to present the total change in labor and benefits, we have included the change in the non-service cost component of our pension and other postretirement benefits, which is recorded within other income on our Condensed Consolidated Statements of Income. This change is offset within this table as it does not affect our operating expenses. Expand We estimate property taxes throughout each year, and update those estimates based on valuation reports received from the Montana Department of Revenue. Under Montana law, we are allowed to track the increases and decreases in the actual level of state and local taxes and fees and adjust our rates to recover the increase or decrease between rate cases less the amount allocated to FERC-jurisdictional customers and net of the associated income tax benefit. Consolidated operating income for the three months ended June 30, 2025 was $60.8 million as compared with $61.6 million in the same period of 2024. This decrease was primarily due to lower retail natural gas and electric usage primarily driven by weather, Montana property tax tracker collections, non-recoverable Montana electric supply costs, depreciation, and operating, administrative and general costs. These were partly offset by higher retail rates, higher electric transmission, and natural gas transportation revenues. Consolidated interest expense was $36.3 million for the three months ended June 30, 2025 as compared with $31.9 million for the same period of 2024. This increase was due to higher borrowings and interest rates and lower capitalization of Allowance for Funds Used During Construction (AFUDC). Consolidated other income was $0.1 million for the three months ended June 30, 2025 as compared with $6.2 million for the same period of 2024. This decrease was primarily due to lower capitalization of AFUDC, a decrease in the value of deferred shares held in trust for deferred compensation, higher non-service component pension expense, and a $1.0 million expense accrual related to an estimated penalty for the previously disclosed Community Renewable Energy Project informed by a recent MPSC ruling. Consolidated income tax expense was $3.4 million for the three months ended June 30, 2025 as compared to $4.2 million for the same period of 2024. Our effective tax rate for the three months ended June 30, 2025 was 13.7% as compared with 11.8% for the same period in 2024. The following table summarizes the differences between our effective tax rate and the federal statutory rate: We compute income tax expense for each quarter based on the estimated annual effective tax rate for the year, adjusted for certain discrete items. Our effective tax rate typically differs from the federal statutory tax rate primarily due to the regulatory impact of flowing through federal and state tax benefits of repairs deductions, state tax benefit of accelerated tax depreciation deductions (including bonus depreciation when applicable) and production tax credits. Liquidity and Capital Resources As of June 30, 2025, our total net liquidity was approximately $317.9 million, including $2.9 million of cash and $315.0 million of revolving credit facility availability with no letters of credit outstanding. This compares to total net liquidity one year ago at June 30, 2024 of $393.4 million. Earnings Per Share Basic earnings per share are computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of common stock equivalent shares that could occur if unvested shares were to vest. Common stock equivalent shares are calculated using the treasury stock method, as applicable. The dilutive effect is computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding plus the effect of the outstanding unvested restricted stock and performance share awards. Average shares used in computing the basic and diluted earnings per share are as follows: (1) Performance share awards are included in diluted weighted average number of shares outstanding based upon what would be issued if the end of the most recent reporting period was the end of the term of the award. Expand Six Months Ended June 30, 2025 June 30, 2024 Basic computation 61,360,252 61,277,418 Dilutive effect of: Performance share awards (1) 95,733 56,065 Diluted computation 61,455,985 61,333,483 Expand As of June 30, 2025, there were 68,107 shares from performance and restricted share awards which were antidilutive and excluded from the earnings per share calculations, compared to 35,933 shares as of June 30, 2024. Adjusted Non-GAAP Earnings We reported GAAP earnings of $0.35 per diluted share for the three months ended June 30, 2025 and $0.52 per diluted share for the same period in 2024. Adjusted Non-GAAP earnings per diluted share for the same periods are $0.40 and $0.53, respectively. A reconciliation of items factored into our Adjusted Non-GAAP diluted earnings are summarized below. The amount below represents a non-GAAP measure that may provide users of this data with additional meaningful information regarding the impact of certain items on our expected earnings. More information on this measure can be found in the "Non-GAAP Financial Measures" section below. (1) Income tax rate on reconciling items assumes blended federal plus state effective tax rate of 25.3%. Expand Company Hosting Earnings Webinar NorthWestern will host an investor earnings webinar on Thursday, July 31, 2025, at 3:30 p.m. Eastern time to review its financial results for the quarter ending June 30, 2025. To register for the webinar, please visit Please go to the site at least 15 minutes in advance of the webinar to register. An archived webinar will be available shortly after the event and remain active for one year. NorthWestern Energy Group, Inc., doing business as NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 842,100 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. Our operations in Montana and Yellowstone National Park are conducted through our subsidiary, NW Corp, and our operations in South Dakota and Nebraska are conducted through our subsidiary, NWE Public Service. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002. Non-GAAP Financial Measures This press release includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered 'non-GAAP financial measures.' Generally, a non-GAAP financial measure is a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. We define Utility Margin as Operating Revenues less fuel, purchased supply, and direct transmission expense (exclusive of depreciation and depletion) as presented in our Condensed Consolidated Statements of Income. This measure differs from the GAAP definition of Gross Margin due to the exclusion of Operating and maintenance, Property and other taxes, and Depreciation and depletion expenses, which are presented separately in our Condensed Consolidated Statements of Income. A reconciliation of Utility Margin to Gross Margin, the most directly comparable GAAP measure, is included in the press release above. Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and associated regulatory mechanisms. This information is intended to enhance an investor's overall understanding of results. Under our various state regulatory mechanisms, as detailed below, our supply costs are generally collected from customers. In addition, Utility Margin is used by us to determine whether we are collecting the appropriate amount of energy costs from customers to allow for recovery of operating costs, as well as to analyze how changes in loads (due to weather, economic or other conditions), rates and other factors impact our results of operations. Our Utility Margin measure may not be comparable to that of other companies' presentations or more useful than the GAAP information provided elsewhere in this report. Management also believes the presentation of Adjusted Non-GAAP pre-tax income, Adjusted Non-GAAP net income, and Adjusted Non-GAAP Diluted EPS is more representative of normal earnings than GAAP pre-tax income, net income, and EPS due to the exclusion (or inclusion) of certain impacts that are not reflective of ongoing earnings. The presentation of these non-GAAP measures is intended to supplement investors' understanding of our financial performance and not to replace other GAAP measures as an indicator of actual operating performance. Our measures may not be comparable to other companies' similarly titled measures. Special Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under "Reconciliation of Non-GAAP Items." Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that we will achieve our projections. Factors that may cause such differences include, but are not limited to: adverse determinations by regulators, such as adverse outcomes from the denial of interim rates or final rates not consistent with a reasonable ability to earn our allowed returns, as well as potential adverse federal, state, or local legislation or regulation, including costs of compliance with existing and future environmental requirements, and wildfire damages in excess of liability insurance coverage, could have a material effect on our liquidity, results of operations and financial condition; the impact of extraordinary external events and natural disasters, such as a wide-spread or global pandemic, geopolitical events, earthquake, flood, drought, lightning, weather, wind, and fire, could have a material effect on our liquidity, results of operations and financial condition; acts of terrorism, cybersecurity attacks, data security breaches, or other malicious acts that cause damage to our generation, transmission, or distribution facilities, information technology systems, or result in the release of confidential customer, employee, or Company information; supply chain constraints, recent high levels of inflation for product, services and labor costs, and their impact on capital expenditures, operating activities, and/or our ability to safely and reliably serve our customers; changes in availability of trade credit, creditworthiness of counterparties, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which could adversely affect our liquidity and results of operations; unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase operating costs or may require additional capital expenditures or other increased operating costs; and adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories. Our 2024 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Business Wire
an hour ago
- Business Wire
Aris Water Announces Seven-Year Extension of Water Gathering and Disposal Agreement with ConocoPhillips and Provides Operational Update
HOUSTON--(BUSINESS WIRE)--Aris Water Solutions, Inc. (NYSE: ARIS) ('Aris') today announced the extension of its Water Gathering and Disposal Agreement (the 'Agreement') with ConocoPhillips, extending the primary term of the Agreement from May 31, 2033, to May 31, 2040. The Agreement's terms will otherwise remain unchanged as the parties extend their successful operational relationship. This extension further aligns the interests of both parties and complements their recently executed long-term water supply contract. Aris will continue to provide long-term full-cycle water infrastructure services to ConocoPhillips, including recycled water supply, produced water transportation and produced water handling operations in the Northern Delaware Basin. 'ConocoPhillips is one of our most important customers and long-term partners, and Aris has consistently demonstrated its ability to deliver reliable, full-cycle water infrastructure solutions. This extension represents a significant milestone for Aris—lengthening the acreage-weighted remaining term of our produced water contracts from approximately six years to over ten years,' said Amanda Brock, President and CEO of Aris Water Solutions. 'This extension also provides Aris with substantial long-term revenue visibility, supported by ConocoPhillips' highly economic, multi-decade remaining inventory.' Aris continues to see strong activity levels from dedicated customers and associated produced water volume growth. For the second quarter of 2025, Aris expects to report Adjusted EBITDA at the high end of its guidance range. Aris is also reaffirming its full-year financial outlook, underpinned by the activity of its long-term customers in premier acreage. Aris will host a conference call to discuss its second quarter 2025 results on Tuesday, August 12, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Aris will issue its second quarter 2025 earnings release after market close on August 11, 2025. Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook, business strategy, our future revenue, our ability to perform under, and benefit from, our contracts with ConocoPhillips, our expected results for the second quarter of 2025 and our full-year guidance for 2025, as well as other statements that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as 'expect,' 'will,' 'intend,' 'believe,' 'may' and variations of such words or similar expressions. Forward-looking statements are based on our current expectations and assumptions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated or implied by the forward-looking statements. Risks and uncertainties include, but are not limited to, those detailed in Aris' most recent Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. All forward-looking statements, expressed or implied, included in this press release and any oral statements made in connection with this press release are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Non-GAAP Financial Information Aris uses financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ('GAAP'), including Adjusted EBITDA. Although this non-GAAP financial measure is an important factor in assessing Aris' operating results, it should not be considered in isolation or as a substitute for net income or any other measure prepared under GAAP. Aris calculates Adjusted EBITDA as net income (loss) plus: interest expense; income taxes; depreciation, amortization and accretion expense; abandoned well costs, asset impairment and abandoned project charges; losses on the sale of assets; transaction costs; research and development expense; change in payables related to the Tax Receivable Agreement liability as a result of state tax rate changes; loss on debt extinguishment; stock-based compensation expense; and other non-recurring or unusual expenses or charges (such as litigation expenses, severance costs and amortization expense related to the implementation costs of our new enterprise resource planning system), less any gains on the sale of assets. Aris believes that Adjusted EBITDA is used by investors and professional research analysts to assess the ability of our assets to generate sufficient cash to meet our business needs and return capital to equity holders, as well as for the valuation, comparison, rating and investment recommendations of companies within our industry. Similarly, Aris' management uses this information for comparative purposes as well. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as alternatives to net income (loss). Additionally, Adjusted EBITDA as defined by Aris may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net income (loss) and other measures prepared in accordance with GAAP. About Aris Water Solutions, Inc. Aris Water Solutions, Inc. is a leading, growth-oriented environmental infrastructure and solutions company that directly helps its customers reduce their water and carbon footprints. Aris delivers full-cycle water handling and recycling solutions that increase the sustainability of energy company operations. Its integrated pipelines and related infrastructure create long-term value by delivering high-capacity, comprehensive produced water management, recycling and supply solutions to operators in the core areas of the Permian Basin.