Latest news with #AmandaBrock
Business Wire
30-07-2025
- Business
- 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.
Associated Press
30-07-2025
- Business
- Associated Press
Aris Water Announces Seven-Year Extension of Water Gathering and Disposal Agreement with ConocoPhillips and Provides Operational Update
HOUSTON--(BUSINESS WIRE)--Jul 30, 2025-- 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. View source version on CONTACT: David Tuerff Senior Vice President, Finance and Investor Relations (281) 501-3070 [email protected] KEYWORD: UNITED STATES NORTH AMERICA TEXAS INDUSTRY KEYWORD: RECYCLING OTHER ENERGY UTILITIES ENVIRONMENT OIL/GAS SUSTAINABILITY ENERGY SOURCE: Aris Water Solutions, Inc. Copyright Business Wire 2025. PUB: 07/30/2025 06:35 PM/DISC: 07/30/2025 06:35 PM
Yahoo
11-05-2025
- Business
- Yahoo
ARIS Q1 Earnings Call: Revenue Tops Expectations, Margin Headwinds and Strategic Initiatives in Focus
Water handling and recycling company Aris Water (NYSE:ARIS) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 16.5% year on year to $120.5 million. Its non-GAAP profit of $0.24 per share was 16.6% below analysts' consensus estimates. Is now the time to buy ARIS? Find out in our full research report (it's free). Revenue: $120.5 million vs analyst estimates of $113.1 million (16.5% year-on-year growth, 6.5% beat) Adjusted EPS: $0.24 vs analyst expectations of $0.28 (16.6% miss) Adjusted EBITDA: $56.54 million vs analyst estimates of $52.54 million (46.9% margin, 7.6% beat) EBITDA guidance for Q2 CY2025 is $52.5 million at the midpoint, below analyst estimates of $56.59 million Operating Margin: 23.1%, down from 26.9% in the same quarter last year Free Cash Flow was -$27.23 million, down from $24.23 million in the same quarter last year Sales Volumes rose 3% year on year (6% in the same quarter last year) Market Capitalization: $703.1 million Aris Water reported first quarter results driven by higher-than-expected customer activity and record produced water and water supply volumes, which management attributed to robust completion activity and strong demand for water takeaway services. CEO Amanda Brock highlighted the successful integration of the McNeill Ranch acquisition and cited the company's ability to accelerate growth as land values rise in key production regions. Management also discussed ongoing efforts to commercialize new revenue streams, including solar and surface royalty projects at the Ranch, and progress in large-scale water recycling and beneficial reuse partnerships. Looking ahead, management emphasized uncertainty in the second half of the year due to commodity price fluctuations and potential tariff impacts. CFO Stephan Tompsett described the company's capital allocation flexibility, noting that Aris Water can adjust investment in response to customer activity levels. The company remains focused on maintaining a strong balance sheet and delivering free cash flow, with Brock stating, 'We are positioned to moderate our capital investments alongside our customers if and as needed.' Aris Water's latest quarter was shaped by elevated water handling volumes, successful integration of new assets, and early contributions from strategic initiatives beyond its core business. Margin pressures and capital investment discipline were recurring themes throughout management's remarks. Record water volumes: Management credited higher-than-expected customer activity and increased spot (interruptible) volume demand for producing record sequential growth in both produced water handling and water supply. McNeill Ranch progress: The first full quarter of integrating McNeill Ranch exceeded expectations, with management reporting strong inbound interest from potential partners for solar and other surface projects, as well as new disposal permits already secured. Beneficial reuse acceleration: The company advanced its initiatives in large-scale desalination and water recycling, partnering with operators to reduce desalination costs and progressing on permitting for reservoir replenishment and industrial use. Industrial water treatment expansion: Aris Water further integrated a recently acquired team focused on industrial water treatment, aiming to expand beyond oilfield services and diversify revenue streams. Cost management and capital flexibility: Management stressed the company's ability to reduce capital spending by 25%-30% if customer activity slows, and highlighted maintaining balance sheet strength as a top priority amid ongoing volatility in oil prices and tariffs. Management's outlook for the remainder of the year centers on adapting to customer activity trends, commodity price movements, and the continued commercialization of new business lines. Customer activity and oil prices: The company's growth is closely tied to customer drilling and completion levels, which could be affected by changing oil prices. Aris Water's long-term contracts with large operators provide some revenue stability, but management remains alert to possible reductions in customer activity. Expansion of new revenue streams: Strategic efforts to monetize McNeill Ranch through surface projects and to commercialize beneficial reuse and mineral extraction (such as iodine and potentially magnesium) are expected to drive incremental revenue and margin opportunities over time. Operational flexibility amid uncertainty: Management cited the ability to scale down capital investments quickly as a key mitigant to potential downturns, aiming to protect free cash flow and maintain dividends even if market conditions worsen. Wade Suki (Capital One): Asked how Aris Water would respond if its customers shifted to maintenance mode; management explained it could reduce capital expenditures by 25%-30% and expects water cuts to remain stable. Jackie Koletas (Goldman Sachs): Queried about strong Q1 volumes and the sustainability of spot volume contributions; management noted some wells outperformed and that spot volumes are difficult to forecast, viewed as incremental rather than core. Spiro Dounis (Citi): Requested color on the timeline and commercial potential of McNeill Ranch; management described strong inbound interest and ongoing permitting progress, but said they are 'in early innings' on full monetization. Jeremy Tonet (JPMorgan): Investigated competitive positioning versus other midstreamers expanding in water; management said its geographic footprint and long-term contracts provide insulation, and it continues to pursue its own pipeline development. Derrick Whitfield (Texas Capital): Sought insight on the cost structure of desalination and potential for beneficial reuse to become cost-competitive; management stated that operational expenses are trending below $1 per barrel, though commercial scale remains in development. In upcoming quarters, the StockStory team will be monitoring (1) the sustainability of elevated water volumes and the cadence of customer drilling and completion activity, (2) progress and commercial traction at McNeill Ranch, including new surface or mineral projects, and (3) the company's ability to scale beneficial reuse and industrial water treatment initiatives. We will also watch for updates on capital allocation and any changes in customer behavior in response to commodity price or tariff shifts. Aris Water currently trades at a forward P/E ratio of 14.6×. Should you load up, cash out, or stay put? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
Aris Water Solutions, Inc. Reports First Quarter 2025 Results
As of March 31, 2025, the Company had net debt of approximately $480 million with $25 million in cash and $347 million available under its revolving credit facility. The Company's leverage ratio 3 at the end of the first quarter of 2025 was 2.2X, below the Company's target leverage of 2.5X – 3.5X. During the first quarter, Aris successfully refinanced its senior notes that were previously due in 2026, achieving a lower coupon of 7.25% and upsizing the offering from $400 to $500 million due to strong investor demand. Recognizing the Company's strengthening credit profile and strong financial metrics, Moody's upgraded Aris Water Holdings, LLC's Corporate Family Rating to "B1" from "B2". This table includes reference to non-GAAP measures. See definition and a reconciliation to the most directly comparable GAAP measure in the Appendix. "While we've had an exceptional start to 2025, we are carefully monitoring potential volatility from macroeconomic factors, tariff uncertainty, and lower oil prices. At this time, we continue to see steady activity levels on our dedicated acreage and remain in close contact with our industry leading customers, who are evaluating their development plans for the back half of the year. Thus far, we have not received any material changes in forecasts from our customers on our dedicated acreage, but should we see any slowdown in activity, we can adjust our level of capital investment accordingly. We remain well positioned to manage our business through potential market turbulence due to our continuous improvements in cost structure, highly economic dedicated acreage, well capitalized customers, and strong balance sheet," said Mrs. Brock. "Aris continued its positive momentum with an excellent first quarter. We received record-breaking volumes from our long-term contracted customers in both Produced Water and Water Solutions and surpassed the top end of our Adjusted EBITDA guidance. We maintained strong margins, achieving an Adjusted Operating Margin of $0.44 per barrel in the quarter. Margin strength was driven by continued operational efficiency, as well as an approximately $2 million benefit from the timing of planned maintenance activity which will now be incurred in the second quarter," said Amanda Brock, President and CEO of Aris. Generated Adjusted EBITDA 1 of $56.5 million for the first quarter of 2025, up 4% sequentially and 6% year-over year HOUSTON, May 06, 2025 --( BUSINESS WIRE )--Aris Water Solutions, Inc. (NYSE: ARIS) ("Aris," "Aris Water," or the "Company") today announced financial and operating results for the first quarter ended March 31, 2025. Story Continues SECOND QUARTER 2025 DIVIDEND Aris's Board of Directors declared a dividend on its Class A common stock for the second quarter of 2025 of $0.14 per share. In conjunction with the dividend payment, a distribution of $0.14 per unit will be paid to unit holders of Aris Water Holdings, LLC. The dividend will be paid on June 18, 2025, to holders of record of the Company's Class A common stock as of the close of business on June 5, 2025. The distribution to unit holders of Aris Water Holdings, LLC will be subject to the same payment and record dates. SECOND QUARTER 2025 FINANCIAL OUTLOOK "As we begin the second quarter, we continue to see strong volumes and customer activity in-line with our prior forecasts. Quarter-over-quarter, we anticipate Adjusted EBITDA to be impacted by approximately $2 million of well maintenance expenses originally scheduled for the first quarter, which will now be completed in the second quarter. Additionally, at current commodity prices, we will realize lower revenues from skim oil recoveries in the second quarter. Aside from the timing of maintenance expenses and oil prices, we expect to maintain strong margins in the second quarter given the structural cost improvements we have achieved over the past twenty-four months. "At this time, we have no update to our full year 2025 volume, Adjusted EBITDA, and capital expenditure outlook. Given the potential impact of continued lower oil prices, we remain in close contact with our customers as they evaluate their plans for the remainder of the year and can adjust our capital expenditure plans correspondingly. We believe our business will prove resilient throughout macroeconomic volatility due to the strength of our large customers and our long-term dedicated acreage with multiple decades of inventory and top tier upstream economics," said Mrs. Brock. For the second quarter of 2025 the Company expects: Produced Water Handling volumes between 1,200 and 1,250 thousand barrels of water per day Water Solutions volumes between 475 and 525 thousand barrels of water per day Adjusted Operating Margin per Barrel 2 between $0.41 and $0.43 Skim oil recoveries of approximately 1,800 - 2,000 barrels per day Adjusted EBITDA 1 between $50 and $55 million Capital Expenditures4 of $20 to $25 million CONFERENCE CALL Aris will host a conference call to discuss its first quarter 2025 results on Wednesday, May 7, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Participants should call (877) 407-5792 and refer to Aris Water Solutions, Inc. when dialing in. Participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investor Relations section of the Company's website, An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately fourteen days. It can be accessed by dialing (877) 660-6853 within the United States or (201) 612-7415 outside of the United States. The conference call replay access code is 13753162. 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 Water 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. 1 Adjusted Net Income, Adjusted EBITDA, and Diluted Adjusted Net Income per Share are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate Adjusted Net Income, Adjusted EBITDA, and Diluted Adjusted Net Income per Share and a reconciliation thereof to net income, the most directly comparable GAAP measure. 2 The Adjusted Operating Margin and Adjusted Operating Margin per Barrel measures are related to our Water Gathering and Processing segment. Adjusted Operating Margin and Adjusted Operating Margin per Barrel are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate Adjusted Operating Margin per Barrel and a reconciliation thereof to gross margin, the most directly comparable GAAP measure. 3 Represents a non-GAAP financial measure. Defined as net debt as of March 31, 2025, divided by trailing twelve months Adjusted EBITDA. Net debt is calculated as total debt less cash and cash equivalents. See the supplementary schedules in this press release for a reconciliation to the most directly comparable GAAP measure. 4 Capital Expenditures is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate Capital Expenditures and a reconciliation thereof to cash paid for property, plant, and equipment, the most directly comparable GAAP measure. 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, information, opinions or beliefs regarding our business strategy, our industry, our future profitability, business and financial performance, including our guidance for 2025, current and potential future long-term contracts, legal and regulatory developments, our ability to identify strategic acquisitions and realize expected benefits therefrom, the development of technologies for the beneficial reuse of produced water and related strategies, plans, objectives and strategic pursuits and other statements that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "guidance," "preliminary," "project," "estimate," "expect," "anticipate," "continue," "sustain," "will," "intend," "strive," "plan," "goal," "target," "believe," "forecast," "outlook," "future," "potential," "opportunity," "predict," "may," "visibility," "possible," "should," "could" and variations of such words or similar expressions. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. 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 including our guidance for 2025. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to, energy prices, trade policy of domestic and foreign governments (including the imposition of tariffs), the Russia-Ukraine and Middle Eastern conflicts, macroeconomic conditions (such as inflation) and market uncertainty related thereto, legislative and regulatory developments, customer plans and preferences, adverse results from litigation and the use of financial resources for litigation defense, technological innovations and developments, and other events discussed or referenced in our filings made from time to time with the Securities and Exchange Commission ("SEC"), including such factors discussed under "Risk Factors" in our most recent Annual Report on Form 10-K, and if applicable, our subsequent SEC filings, which are available on our Investor Relations website at or on the SEC's website at 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. Table 1 Aris Water Solutions, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except for share and Three Months Ended per share amounts) March 31, 2025 2024 Revenue Produced Water Handling $ 57,306 $ 59,106 Produced Water Handling — Affiliate 34,872 26,827 Water Solutions 20,656 11,702 Water Solutions — Affiliate 6,759 5,242 Other Revenue 898 529 Total Revenue 120,491 103,406 Cost of Revenue Direct Operating Costs 50,188 39,646 Depreciation, Amortization and Accretion 19,756 19,421 Total Cost of Revenue 69,944 59,067 Operating Costs and Expenses Abandoned Well Costs 462 335 General and Administrative 20,010 14,501 Research and Development Expense 1,128 1,065 Other Operating Expense, Net 1,112 580 Total Operating Expenses 22,712 16,481 Operating Income 27,835 27,858 Other Expense Interest Expense, Net 9,230 8,438 Other 2,535 1 Total Other Expense 11,765 8,439 Income Before Income Taxes 16,070 19,419 Income Tax Expense 70 2,589 Net Income 16,000 16,830 Net Income Attributable to Noncontrolling Interest 7,389 9,207 Net Income Attributable to Aris Water Solutions, Inc. $ 8,611 $ 7,623 Net Income Per Share of Class A Common Stock Basic $ 0.26 $ 0.23 Diluted $ 0.25 $ 0.23 Weighted Average Shares of Class A Common Stock Outstanding Basic 31,393,532 30,354,014 Diluted 32,265,653 30,354,014 Table 2 Aris Water Solutions, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except for share and per share amounts) March 31, December 31, 2025 2024 Assets Cash $ 24,574 $ 28,673 Accounts Receivable, Net 69,144 63,016 Accounts Receivable from Affiliate 32,134 12,016 Other Receivables 13,873 13,829 Other Current Assets 10,495 10,418 Total Current Assets 150,220 127,952 Fixed Assets Property, Plant and Equipment 1,213,129 1,188,781 Accumulated Depreciation (170,009 ) (160,176 ) Total Property, Plant and Equipment, Net 1,043,120 1,028,605 Intangible Assets, Net 189,185 195,223 Goodwill 34,585 34,585 Deferred Income Tax Assets, Net 10,133 1,735 Operating Lease Right-of-Use Assets, Net 14,573 15,016 Other Assets 4,064 5,284 Total Assets $ 1,445,880 $ 1,408,400 Liabilities and Stockholders' Equity Accounts Payable $ 16,731 $ 20,182 Payables to Affiliate 3,775 941 Insurance Premium Financing Liability 4,522 6,725 Accrued and Other Current Liabilities 55,505 77,339 Total Current Liabilities 80,533 105,187 Long-Term Debt, Net of Debt Issuance Costs 490,113 441,662 Asset Retirement Obligations 22,148 21,865 Tax Receivable Agreement Liability 58,700 49,844 Other Long-Term Liabilities 17,182 17,335 Total Liabilities 668,676 635,893 Stockholders' Equity Preferred Stock $0.01 par value, 50,000,000 authorized. None issued or outstanding as of March 31, 2025 and December 31, 2024 — — Class A Common Stock $0.01 par value, 600,000,000 authorized, 33,610,306 issued and 32,625,339 outstanding as of March 31, 2025; 31,516,468 issued and 30,857,526 outstanding as of December 31, 2024 335 314 Class B Common Stock $0.01 par value, 180,000,000 authorized, 26,493,565 issued and outstanding as of March 31, 2025; 27,493,565 issued and outstanding as of December 31, 2024 264 274 Treasury Stock (at Cost), 984,967 shares as of March 31, 2025; 658,492 shares as of December 31, 2024 (19,011 ) (8,988 ) Additional Paid-in-Capital 408,878 380,565 Retained Earnings 17,653 13,676 Total Stockholders' Equity Attributable to Aris Water Solutions, Inc. 408,119 385,841 Noncontrolling Interest 369,085 386,666 Total Stockholders' Equity 777,204 772,507 Total Liabilities and Stockholders' Equity $ 1,445,880 $ 1,408,400 Table 3 Aris Water Solutions, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended (in thousands) March 31, 2025 2024 Cash Flow from Operating Activities Net Income $ 16,000 $ 16,830 Adjustments to reconcile Net Income to Net Cash (used in) provided by Operating Activities: Deferred Income Tax Expense 2,181 2,129 Depreciation, Amortization and Accretion 19,756 19,421 Stock-Based Compensation 5,690 3,521 Abandoned Well Costs 462 335 Loss (Gain) on Disposal of Assets, Net 91 (54 ) Abandoned Projects 237 729 Amortization of Debt Issuance Costs, Net 619 716 Loss on Debt Extinguishment 2,535 — Other 25 323 Changes in Operating Assets and Liabilities: Accounts Receivable (6,128 ) 3,371 Accounts Receivable from Affiliate (20,118 ) (2,706 ) Other Receivables 831 1,683 Other Current Assets 153 2,014 Accounts Payable 306 3,382 Payables to Affiliate (816 ) (199 ) Accrued Liabilities and Other (28,659 ) (7,686 ) Net Cash (Used in) Provided by Operating Activities (6,835 ) 43,809 Cash Flow from Investing Activities Property, Plant and Equipment Expenditures (20,390 ) (19,582 ) Cash Paid for Acquisitions (2,000 ) — Proceeds from the Sale of Property, Plant and Equipment 120 1 Net Cash Used in Investing Activities (22,270 ) (19,581 ) Cash Flow from Financing Activities Dividends and Distributions Paid (8,555 ) (5,449 ) Repurchase of Shares for the Payment of Withholding Taxes (10,023 ) (1,310 ) Repayment of Credit Facility (89,000 ) (15,000 ) Proceeds from Credit Facility 45,000 15,000 Proceeds from 2030 Notes 500,000 — Satisfaction and Discharge of 2026 Notes (400,000 ) — Payment of Debt Issuance Costs Related to 2030 Notes (9,914 ) — Payment of Insurance Premium Financing (2,307 ) (1,878 ) Payment of Finance Leases (195 ) — Net Cash Provided by (Used in) Financing Activities 25,006 (8,637 ) Net (Decrease) Increase in Cash (4,099 ) 15,591 Cash, Beginning of Period 28,673 5,063 Cash, End of Period $ 24,574 $ 20,654 Use of Non-GAAP Financial Information The Company uses financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA, Adjusted Operating Margin, Adjusted Operating Margin per Barrel, Adjusted Net Income, net debt and leverage ratio and Capital Expenditures. Although these Non-GAAP financial measures are important factors in assessing the Company's operating results and cash flows, they should not be considered in isolation or as a substitute for net income, gross margin, net cash flows provided from operating activities or any other measures prepared under GAAP. The Company 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. The Adjusted Operating Margin and Adjusted Operating Margin per Barrel measures are related to our Water Gathering and Processing segment, as they are dependent upon the volume of produced water we gather and handle, the volume of recycled water and groundwater we sell, the fees we charge for such services and the recurring operating expenses we incur to perform such services. The Company calculates Adjusted Operating Margin as Gross Margin (Total Revenue less Total Cost of Revenue) plus depreciation, amortization and accretion. The Company defines Adjusted Operating Margin per Barrel as Adjusted Operating Margin divided by total volumes handled or sold. The Company calculates Adjusted Net Income as Net Income (Loss) plus the after-tax impacts of stock-based compensation and plus or minus the after-tax impacts of certain items affecting comparability, which are typically non-cash and/or non-recurring items. The Company calculates Diluted Adjusted Net Income Per Share as (i) Net Income (Loss) plus the after-tax impacts of stock-based compensation and plus or minus the after-tax impacts of certain items affecting comparability, which are typically non-cash and/or non-recurring items, divided by (ii) the diluted weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC interests, adjusted for the dilutive effect of outstanding equity-based awards. The Company calculates its leverage ratio as net debt as of March 31, 2025, divided by Adjusted EBITDA for the trailing twelve months. Net debt is calculated as the principal amount of total debt outstanding as of March 31, 2025, less cash and cash equivalents as of March 31, 2025. The Company calculates Capital Expenditures as cash capital expenditures for property, plant, and equipment additions less changes in accrued capital costs. The Company believes these presentations are 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 its industry. Similarly, the Company's management uses this information for comparative purposes as well. Adjusted EBITDA, Adjusted Operating Margin, Adjusted Operating Margin per Barrel, Adjusted Net Income and Capital Expenditures are not measures of financial performance under GAAP and should not be considered as measures of liquidity or as alternatives to net income (loss), gross margin, cash paid for property, plant and equipment or net cash flows provided from operating activities. Additionally, these presentations as defined by the Company 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, such as gross margin, operating income, net income, cash paid for property, plant, and equipment or net cash flows from operating activities. Although we provide forecasts for the non-GAAP measures Adjusted EBITDA, Adjusted Operating Margin per Barrel and Capital Expenditures, we are not able to forecast their most directly comparable measures (net income, gross margin, cash paid for property, plant, and equipment and net cash flows from operating activities) calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of forward-looking GAAP metrics are not predictable, making it impractical for us to forecast. Such elements include but are not limited to non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs and cost of revenue, which could have a significant impact on the GAAP measures. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. As a result, no reconciliation of forecasted non-GAAP measures is provided. Table 4 Aris Water Solutions, Inc. Operating Metrics (Unaudited) Three Months Ended March 31, December 31, 2025 2024 2024 (thousands of barrels of water per day) Produced Water Handling Volumes 1,191 1,159 1,112 Water Solutions Volumes Recycled Produced Water Volumes Sold 475 337 463 Groundwater Volumes Sold 84 27 61 Total Water Solutions Volumes 559 364 524 Total Volumes 1,750 1,523 1,636 Per Barrel Operating Metrics (1) Produced Water Handling Revenue/Barrel $ 0.86 $ 0.81 $ 0.86 Water Solutions Revenue/Barrel $ 0.55 $ 0.51 $ 0.54 Revenue/Barrel of Total Volumes (2) $ 0.76 $ 0.74 $ 0.75 Direct Operating Costs/Barrel $ 0.32 $ 0.29 $ 0.35 Gross Margin/Barrel $ 0.32 $ 0.32 $ 0.31 Adjusted Operating Margin/Barrel $ 0.44 $ 0.46 $ 0.44 This table includes information related to our Water Gathering and Processing segment. (1) Per Barrel operating metrics are calculated independently. Therefore, the sum of individual amounts may not equal the total presented. (2) Does not include Other Revenue. Table 5 Aris Water Solutions, Inc. Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Unaudited) Three Months Ended (in thousands) March 31, 2025 2024 Net Income $ 16,000 $ 16,830 Interest Expense, Net 9,230 8,438 Income Tax Expense 70 2,589 Depreciation, Amortization and Accretion 19,756 19,421 Abandoned Well Costs 462 335 Stock-Based Compensation 5,690 3,521 Abandoned Projects 237 729 Loss (Gain) on Disposal of Assets, Net 91 (54) Loss on Debt Extinguishment 2,535 — Transaction Costs 884 7 Research and Development Expense 1,128 1,065 Other 456 227 Adjusted EBITDA $ 56,539 $ 53,108 Table 6 Aris Water Solutions, Inc. Reconciliation of Gross Margin to Adjusted Operating Margin and Adjusted Operating Margin per Barrel (Unaudited) Three Months Ended (in thousands) March 31, 2025 2024 Total Revenue $ 120,251 $ 103,406 Cost of Revenue (69,316 ) (58,444 ) Gross Margin 50,935 44,962 Depreciation, Amortization and Accretion 19,128 18,798 Adjusted Operating Margin $ 70,063 $ 63,760 Total Volumes (thousands of barrels) 157,492 138,603 Gross Margin/Barrel $ 0.32 $ 0.32 Adjusted Operating Margin/Barrel $ 0.44 $ 0.46 This table includes information related to our Water Gathering and Processing segment. Table 7 Aris Water Solutions, Inc. Reconciliation of Net Income to Non-GAAP Adjusted Net Income (Unaudited) Three Months Ended (in thousands) March 31, 2025 2024 Net Income $ 16,000 $ 16,830 Adjusted items: Abandoned Well Costs 462 335 Loss (Gain) on Disposal of Assets, Net 91 (54 ) Stock-Based Compensation 5,690 3,521 Tax Effect of Adjusting Items (1) (828 ) (507 ) Adjusted Net Income $ 21,415 $ 20,125 (1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates. Table 8 Aris Water Solutions, Inc. Reconciliation of Diluted Net Income Per Share to Non-GAAP Diluted Adjusted Net Income Per Share (Unaudited) Three Months Ended March 31, 2025 2024 Diluted Net Income Per Share of Class A Common Stock $ 0.25 $ 0.23 Adjusted items: Reallocation of Net Income Attributable to Noncontrolling Interests From the Assumed Exchange of LLC Interests — 0.05 Abandoned Well Costs 0.01 0.01 Stock-Based Compensation 0.10 0.06 Tax Effect of Adjusting Items (1) (0.01 ) (0.01 ) Diluted Adjusted Net Income Per Share $ 0.35 $ 0.34 (1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates. Basic Weighted Average Shares of Class A Common Stock Outstanding 31,393,532 30,354,014 Adjusted Items: Assumed Redemption of LLC Interests 27,349,121 27,543,565 Dilutive Performance-Based Stock Units (2) 872,121 — Diluted Adjusted Fully Weighted Average Shares of Class A Common Stock Outstanding 59,614,774 57,897,579 (2) Dilutive impact of Performance-Based Stock Units already included for the three months ended March 31, 2025 and 2024. Table 9 Aris Water Solutions, Inc. Computation of Leverage Ratio (Unaudited) As of (in thousands) March 31, 2025 Principal Amount of Debt at March 31, 2025 $ 504,522 Less: Cash at March 31, 2025 (24,574 ) Net Debt $ 479,948 Net Debt $ 479,948 ÷ Trailing Twelve Months Adjusted EBITDA 215,316 Leverage Ratio 2.23 Table 10 Aris Water Solutions, Inc. Reconciliation of Capital Expenditures (Unaudited) Three Months Ended March 31, (in thousands) 2025 2024 Cash Paid for Property, Plant and Equipment $ 20,390 $ 19,582 Change in Capital Related Accruals 772 18,134 Capital Expenditures $ 21,162 $ 37,716 Table 11 Aris Water Solutions, Inc. Segment Information (Unaudited) (in thousands) Three Months Ended March 31, 2025 Water Gathering and Processing Corporate and Other Consolidated Revenue $ 120,251 $ 240 $ 120,491 Cost of Revenue Direct Operating Costs 50,188 — 50,188 Depreciation, Amortization and Accretion 19,128 628 19,756 Total Cost of Revenue 69,316 628 69,944 Operating Costs and Expenses Abandoned Well Costs 462 — 462 General and Administrative — 20,010 20,010 Research and Development Expense — 1,128 1,128 Other Operating Expense, Net 237 875 1,112 Total Operating Expenses 699 22,013 22,712 Operating Income 50,236 (22,401 ) 27,835 Other Expense Interest Expense, Net — 9,230 9,230 Other — 2,535 2,535 Total Other Expense — 11,765 11,765 Income (Loss) Before Income Taxes 50,236 (34,166 ) 16,070 Income Tax Expense — 70 70 Net Income (Loss) 50,236 (34,236 ) 16,000 Net Income Attributable to Noncontrolling Interest — 7,389 7,389 Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 50,236 $ (41,625 ) $ 8,611 (in thousands) Three Months Ended March 31, 2024 Water Gathering and Processing Corporate and Other Consolidated Revenue $ 103,406 $ — $ 103,406 Cost of Revenue Direct Operating Costs 39,646 — 39,646 Depreciation, Amortization and Accretion 18,798 623 19,421 Total Cost of Revenue 58,444 623 59,067 Operating Costs and Expenses Abandoned Well Costs 335 — 335 General and Administrative — 14,501 14,501 Research and Development Expense — 1,065 1,065 Other Operating Expense (Income), Net 729 (149 ) 580 Total Operating Expenses 1,064 15,417 16,481 Operating Income 43,898 (16,040 ) 27,858 Other Expense Interest Expense, Net — 8,438 8,438 Other — 1 1 Total Other Expense — 8,439 8,439 Income (Loss) Before Income Taxes 43,898 (24,479 ) 19,419 Income Tax Expense — 2,589 2,589 Net Income (Loss) 43,898 (27,068 ) 16,830 Net Income Attributable to Noncontrolling Interest — 9,207 9,207 Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 43,898 $ (36,275 ) $ 7,623 View source version on Contacts David Tuerff Senior Vice President, Finance and Investor Relations (281) 501-3070 IR@
Yahoo
15-04-2025
- Business
- Yahoo
Q4 Environmental and Facilities Services Earnings: Aris Water (NYSE:ARIS) Earns Top Marks
Looking back on environmental and facilities services stocks' Q4 earnings, we examine this quarter's best and worst performers, including Aris Water (NYSE:ARIS) and its peers. Many environmental and facility services are non-discretionary (sports stadiums need to be cleaned after events), recurring, and performed through longer-term contracts. This makes for more predictable and stickier revenue streams. Additionally, there has been an increasing focus on emissions and water conservation over the last decade, driving innovation in the sector and demand for new services. Despite these tailwinds, environmental and facility services companies are still at the whim of economic cycles. Interest rates, for example, can greatly impact commercial construction projects that drive incremental demand for these services. The 13 environmental and facilities services stocks we track reported a slower Q4. As a group, revenues were in line with analysts' consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.8% since the latest earnings results. Primarily serving the oil and gas industry, Aris Water (NYSE:ARIS) is a provider of water handling and recycling solutions. Aris Water reported revenues of $118.6 million, up 13.9% year on year. This print exceeded analysts' expectations by 8.2%. Overall, it was a strong quarter for the company with a solid beat of analysts' sales volume estimates and a decent beat of analysts' EBITDA estimates. 'Aris had a remarkable fourth quarter and a great year in which we successfully grew both volumes and profitability. We achieved Adjusted EBITDA at the top end of our increased guidance and are now delivering on our goal of increasing shareholder returns by raising our dividend to $0.14 per share, representing a 33% increase. We are extremely proud of what our team accomplished in 2024 and believe we will continue our strong performance in our core business. We are also making progress in mineral extraction, beneficial reuse, and the development of technologies for the treatment of wastewater outside the oil and gas industry,' said Amanda Brock, President and CEO of Aris. Aris Water scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3% since reporting and currently trades at $26.43. Read why we think that Aris Water is one of the best environmental and facilities services stocks, our full report is free. Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government. Casella Waste Systems reported revenues of $427.5 million, up 18.9% year on year, outperforming analysts' expectations by 2.3%. The business had a satisfactory quarter with a solid beat of analysts' EPS estimates but a significant miss of analysts' adjusted operating income estimates. Casella Waste Systems delivered the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $117. Is now the time to buy Casella Waste Systems? Access our full analysis of the earnings results here, it's free. Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ:QRHC) is a provider of waste and recycling services. Quest Resource reported revenues of $69.97 million, flat year on year, falling short of analysts' expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. As expected, the stock is down 35.9% since the results and currently trades at $2.48. Read our full analysis of Quest Resource's results here. Spun off from Danaher in 2023, Veralto (NYSE:VLTO) provides water analytics and treatment solutions. Veralto reported revenues of $1.35 billion, up 4.4% year on year. This print was in line with analysts' expectations. More broadly, it was a slower quarter as it produced full-year EPS guidance missing analysts' expectations. The stock is down 9.9% since reporting and currently trades at $91. Read our full, actionable report on Veralto here, it's free. Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers. Rollins reported revenues of $832.2 million, up 10.4% year on year. This number surpassed analysts' expectations by 1.5%. Zooming out, it was a slower quarter as it recorded a miss of analysts' adjusted operating income estimates. The stock is up 10.9% since reporting and currently trades at $55.43. Read our full, actionable report on Rollins here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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