Latest news with #WES
STV News
2 days ago
- Business
- STV News
Female entrepreneurs 'face glass ceilings and locked doors' in Scotland
A 'perfect storm' is stalling the growth of women-led businesses in Scotland as new research shows most fail to grow beyond the start-up stage – sparking urgent calls for targeted support. Women's Enterprise Scotland (WES) estimates that improving survival rates for women-led enterprises could unlock up to £17bn per year for the Scottish economy – more than half the annual contribution of the entire energy sector. Yet despite this economic potential, new research reveals that the majority of women-led start-ups struggle to progress beyond their early years. According to its survey, women now make up 54% of all start-ups in Scotland, but only 20% of employer businesses are led by women. The drop-out rate for new businesses after they start is currently 61%, showing that many don't last long past their early stages. Dr Antoinette Douglas, co-founder of fashion label Beira in Edinburgh, said women face multiple challenges on a daily basis. She launched her design business ten years ago and says she's fought to keep it alive – having been forced to close her Stockbridge shop and moving fully online after the rent doubled and footfall dropped sharply. 'I spend 80-90% of my time on business admin, accounts and logistics, which is not what I want to do,' she said. 'I want to create beautiful products, but I'm dealing with administration, bureaucracy and fighting to get my fair share of the pie. 'It would have been so easy for me to give up – but I'm quite tenacious. I don't give up easily. 'I'm really proud we've managed to keep going despite the obstacles.' The survey illustrated the state-of-play for women in business across Scotland against a challenging economic backdrop. The study found experiences of discrimination have doubled since 2016, with 68% of survey respondents reporting that they had experienced discrimination as a woman business owner. STV News Dr Antoinette Douglas co-owns fashion label Beira Key structural challenges identified include funding inequalities, with women-led businesses receiving just 2.8% of equity investment; caring commitments, with 29% starting up to work around care responsibilities; support mis-match, with 58% saying mainstream support does not meet their needs, and a digital divide with just 15% being able to access relevant funding, despite 78% wanting digital investment. Dr Douglas said more 'female-centric' business support is needed. 'Many of the female entrepreneurs I know are hardworking and unbelievably resilient. We've not only got glass ceilings – we've got locked doors. 'Women have so many challenges. We have a higher emotional load, dealing with things beyond work – money, family, running the household – all this layered on top of running our business.' She also claims she has faced 'mansplaining' while trying to secure funding and support. 'I don't think many men in my position are asked if they understand the difference between turnover and profit -it's unbelievable,' she said. 'Fashion is viewed as a lifestyle cottage industry – people don't believe in what you're doing. 'That quite often comes from men, who are often in a position of power when you're going to get capital. It becomes really difficult. That's unfortunate.' STV News CEO Carolyn Currie warns female business owners face 'perfect storm' of challenges in Scotland Chiefs say the decline in Scotland is at odds with the increase in established women-led businesses in countries around the world. Despite challenges, 62% of women business owners surveyed said they expect some level of turnover growth in the next 12 months. Carolyn Currie, CEO of Women's Enterprise Scotland is calling for urgent action to stop women-led businesses falling through the cracks. 'A perfect storm of economic conditions and structural inequalities is halting the progress of women-led businesses, despite their start-up successes. 'What we are seeing is an alarming number of new women-led businesses failing to thrive. They are simply falling into an abyss, leaving their economic potential and the ambitions of their founders unfulfilled. 'Many of the issues – and suggested actions that need to be taken – have been highlighted in research numerous times over the past 30 years. 'We can continue to watch talented women entrepreneurs leave the market, taking billions in economic potential with them, or we can implement the evidence-based solutions this study provides. The choice is clear – the community has spoken, and we need to listen. The time for action is now.' The Scottish Government has been contacted for comment. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Alarm as women-led businesses 'fail to thrive' in Scotland
WES has found that while women-led start-ups have increased to 54% of the total, the post-start-up pipeline has an attrition rate of 61%. Women-led employer businesses have dropped to just 20% of all employer businesses, its research shows. According to the organisation, the declining trend in Scotland stands in contrast to the global increase in established women-led businesses. This 'exposes a key disconnect' between Scotland's 'thriving' start-up culture and the inability of many such businesses to make it to the growth phase. WES declared that improving the current outcomes for female-led start-ups has the potential to unlock an estimated £17 billion boost to the Scottish economy every year. Read more: Carolyn Currie, chief executive of Women's Enterprise Scotland, said: 'A perfect storm of economic conditions and structural inequalities is halting the progress of women-led businesses, despite their start-up successes. What we are seeing is an alarming number of new women-led businesses failing to thrive. They are simply falling into an abyss, leaving their economic potential and the ambitions of their founders unfulfilled. The WES survey reveals a clear demand for needs-based business support, with the majority of respondents advocating for a Women's Business Centre model. 'Many of the issues - and suggested actions that need to be taken - have been highlighted in research numerous times over the past 30 years. We can continue to watch talented women entrepreneurs leave the market, taking billions in economic potential with them, or we can implement the evidence-based solutions this study provides. The choice is clear - the community has spoken, and we need to listen. The time for action is now.' WES noted that successive governments in Scotland have committed to inclusive growth and women's entrepreneurship, most recently in response to the Pathways Report, with up to £2.6m released for support in 2024 to 2025 and at least £4m in 2025 to 2026. However, it said women's entrepreneurship has not benefited from long-term investment in support provision that is comparable to other areas of business, despite the economic opportunity represented by women as 51% of the population. The WES survey found that economic conditions are threatening business sustainability and reveals a 'devastating' cost for women-led businesses; 78% cannot recover all their increased costs, 41% cannot recover any cost increases, 55% are using personal savings to capitalise their businesses, and 52% are making no pension provision, threatening retirement security.
Scotsman
4 days ago
- Business
- Scotsman
Call for urgent action as Scottish female-led start-ups fail at ‘alarming' rate
'The choice is clear - the community has spoken, and we need to listen. The time for action is now' – Carolyn Currie, WES Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland is missing out on a £17 billion economic opportunity amid an 'alarming' failure rate among female-led businesses, it has been claimed. Releasing new research, Women's Enterprise Scotland (WES) said it was calling for urgent action to tackle the high levels of women-led ventures failing to progress beyond the start-up phase. Advertisement Hide Ad Advertisement Hide Ad The authors of the study highlight that while more women are starting up in business than men in Scotland, fewer of the former are making it through the post-start-up phase to establish and grow. Women's Enterprise Scotland (WES) CEO Carolyn Currie. Picture by Malcolm Cochrane Photography While female-led business start-ups have increased to 54 per cent of all new ventures in Scotland, according to a Business Gateway Impact Report, the post-start-up pipeline has a high attrition rate of 61 per cent, and women-led employer businesses have dropped to just 20 per cent of all employer businesses. This declining trend in Scotland is said to be at odds with the global increase in established women-led businesses. Tackling the issue north of the Border and improving current outcomes for women-led start-up businesses has the potential to unlock an estimated £17bn 'reward' for the Scottish economy every year, WES said. This would eliminate almost two-thirds of the current public sector spending deficit, which now stands at £26.2bn, according to the latest Government Expenditure and Revenue Scotland (Gers) report. Achieving parity would eliminate over 80 per cent of the deficit. Carolyn Currie, chief executive of Women's Enterprise Scotland, said: 'A perfect storm of economic conditions and structural inequalities is halting the progress of women-led businesses, despite their start-up successes. What we are seeing is an alarming number of new women-led businesses failing to thrive. Advertisement Hide Ad Advertisement Hide Ad 'They are simply falling into an abyss, leaving their economic potential and the ambitions of their founders unfulfilled. The WES survey reveals a clear demand for needs-based business support. 'Many of the issues - and suggested actions that need to be taken - have been highlighted in research numerous times over the past 30 years,' she added. 'We can continue to watch talented women entrepreneurs leave the market, taking billions in economic potential with them, or we can implement the evidence-based solutions this study provides. 'The choice is clear - the community has spoken, and we need to listen. The time for action is now.' The survey found that economic conditions are threatening business sustainability and reveals a devastating cost for women-led businesses. Some 78 per cent cannot recover all their increased costs, 55 per cent are using personal savings to capitalise their businesses and 52 per cent are making no pension provision, threatening retirement security. Advertisement Hide Ad Advertisement Hide Ad The report also highlighted inequities in Covid pandemic business relief distribution, with female-led businesses receiving just 10.6 per cent of grant funds, despite comprising 15.4 per cent of all businesses.
Business Wire
11-08-2025
- Business
- Business Wire
Aris Water Solutions, Inc. Reports Second Quarter 2025 Results
HOUSTON--(BUSINESS WIRE)--Aris Water Solutions, Inc. (NYSE: ARIS) ('Aris,' 'Aris Water,' or the 'Company') today announced financial and operating results for the second quarter ended June 30, 2025. SECOND QUARTER 2025 HIGHLIGHTS Achieved record volumes for Produced Water Handling for a second consecutive quarter Produced Water Handling volumes grew 4% sequentially and 13% year-over-year Recycled water volumes grew 35% year-over-year Achieved second quarter 2025 net income of $14.1 million Generated Adjusted EBITDA 1 of $54.6 million for the second quarter of 2025, up 9% year-over year As announced August 6, 2025, Western Midstream Partners, LP ('WES') and Aris have entered into a definitive agreement pursuant to which WES will acquire all of the outstanding shares of Aris in an equity-and-cash transaction valued at approximately $1.5 billion OPERATIONS UPDATE Three Months Ended Three Months Ended 2025 2025 2024 (thousands of barrels of water per day) Total Volumes 1,757 1,750 — % 1,455 21 % Produced Water Handling Volumes 1,234 1,191 4 % 1,093 13 % Water Solutions Volumes Recycled Produced Water Volumes Sold 425 475 (11 ) % 314 35 % Groundwater Volumes Sold 98 84 17 % 48 104 % Total Water Solutions Volumes 523 559 (6 ) % 362 44 % Skim oil recoveries (barrels of oil per day) 2,845 1,962 45 % 1,490 91 % Skim oil recoveries (as a % of produced water volumes) 0.23 % 0.16 % 44 % 0.14 % 64 % Expand Six Months Ended June 30, % Change 2025 2024 (thousands of barrels of water per day) Total Volumes 1,754 1,489 18 % Produced Water Handling Volumes 1,213 1,126 8 % Water Solutions Volumes Recycled Produced Water Volumes Sold 450 325 38 % Groundwater Volumes Sold 91 38 139 % Total Water Solutions Volumes 541 363 49 % Skim oil recoveries (barrels of oil per day) 2,406 1,610 49 % Skim oil recoveries (as a % of produced water volumes) 0.20 % 0.14 % 43 % Expand FINANCIAL UPDATE Three Months Ended Three Months Ended (in thousands) June 30, March 31 % Change June 30, % Change 2025 2025 2024 Net Income $ 14,084 $ 16,000 (12) % $ 13,112 7 % Adjusted Net Income 20,479 21,415 (4) % 17,310 18 % Adjusted EBITDA 54,564 56,539 (3) % 49,995 9 % Gross Margin/Barrel (1) $ 0.29 $ 0.32 (9) % $ 0.32 (9) % Adjusted Operating Margin/Barrel (1) $ 0.41 $ 0.44 (7) % $ 0.46 (11) % Capital Expenditures $ 22,078 $ 21,162 4 % $ 37,346 (41) % This table includes reference to non-GAAP measures. See definition and a reconciliation to the most directly comparable GAAP measure in the Appendix. (1) Gross Margin/Barrel and Adjusted Operating Margin/Barrel relate to our Water Gathering and Processing segment. Expand (in thousands) Six Months Ended June 30, % Change 2025 2024 Net Income $ 30,084 $ 29,942 — % Adjusted Net Income 41,893 37,433 12 % Adjusted EBITDA 111,103 103,103 8 % Gross Margin/Barrel (1) $ 0.31 $ 0.32 (3 ) % Adjusted Operating Margin/Barrel (1) $ 0.43 $ 0.46 (7 ) % Capital Expenditures $ 43,240 $ 75,062 (42 ) % This table includes reference to non-GAAP measures. See definition and a reconciliation to the most directly comparable GAAP measure in the Appendix. (1) Gross Margin/Barrel and Adjusted Operating Margin/Barrel relate to our Water Gathering and Processing segment Expand STRONG BALANCE SHEET AND LIQUIDITY As of June 30, 2025, the Company had net debt of approximately $445 million with $57 million in cash and $347 million available under its revolving credit facility. The Company's leverage ratio 3 at the end of the second quarter of 2025 was 2.0X, below the Company's target leverage of 2.5X – 3.5X. THIRD QUARTER 2025 DIVIDEND Aris's Board of Directors declared a dividend on its Class A common stock for the third 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 September 18, 2025, to holders of record of the Company's Class A common stock as of the close of business on September 4, 2025. The distribution to unit holders of Aris Water Holdings, LLC will be subject to the same payment and record dates. CONFERENCE CALL Given the previously announced transaction with WES, Aris will not host an earnings conference call for the Second Quarter of 2025. 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. 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 2 Aris Water Solutions, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except for share and per share amounts) June 30, 2025 2024 Assets Cash $ 57,359 $ 28,673 Accounts Receivable, Net 66,878 63,016 Accounts Receivable from Affiliate 24,418 12,016 Other Receivables 13,222 13,829 Other Current Assets 8,728 10,418 Total Current Assets 170,605 127,952 Fixed Assets Property, Plant and Equipment 1,245,013 1,188,781 Accumulated Depreciation (180,435 ) (160,176 ) Total Property, Plant and Equipment, Net 1,064,578 1,028,605 Intangible Assets, Net 180,709 195,223 Goodwill 34,585 34,585 Deferred Income Tax Assets, Net 7,199 1,735 Operating Lease Right-of-Use Assets, Net 15,714 15,016 Other Assets 3,485 5,284 Total Assets $ 1,476,875 $ 1,408,400 Liabilities and Stockholders' Equity Accounts Payable $ 22,627 $ 20,182 Payables to Affiliate 3,567 941 Insurance Premium Financing Liability 2,281 6,725 Accrued and Other Current Liabilities 70,386 77,339 Total Current Liabilities 98,861 105,187 Long-Term Debt, Net of Debt Issuance Costs 490,522 441,662 Asset Retirement Obligations 22,930 21,865 Tax Receivable Agreement Liability 58,700 49,844 Other Long-Term Liabilities 18,200 17,335 Total Liabilities 689,213 635,893 Preferred Stock $0.01 par value, 50,000,000 authorized. None issued or outstanding as of June 30, 2025 and December 31, 2024 — — Class A Common Stock $0.01 par value, 600,000,000 authorized, 33,636,716 issued and 32,650,610 outstanding as of June 30, 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 June 30, 2025; 27,493,565 issued and outstanding as of December 31, 2024 264 274 Treasury Stock (at Cost), 986,106 shares as of June 30, 2025; 658,492 shares as of December 31, 2024 (19,037 ) (8,988 ) Additional Paid-in-Capital 411,779 380,565 Retained Earnings 19,522 13,676 Total Stockholders' Equity Attributable to Aris Water Solutions, Inc. 412,863 385,841 Noncontrolling Interest 374,799 386,666 Total Stockholders' Equity 787,662 772,507 Total Liabilities and Stockholders' Equity $ 1,476,875 $ 1,408,400 Expand Table 3 Aris Water Solutions, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended (in thousands) June 30, 2025 2024 Cash Flow from Operating Activities Net Income $ 30,084 $ 29,942 Adjustments to reconcile Net Income to Net Cash Provided by Operating Activities: Deferred Income Tax Expense 4,397 3,770 Depreciation, Amortization and Accretion 39,728 39,128 Stock-Based Compensation 11,937 8,214 Abandoned Well Costs 1,460 310 Loss on Disposal of Assets, Net 219 114 Abandoned Projects 237 745 Amortization of Debt Issuance Costs, Net 1,306 1,436 Loss on Debt Extinguishment 2,535 — Other 177 735 Changes in Operating Assets and Liabilities: Accounts Receivable (3,862 ) (5,524 ) Accounts Receivable from Affiliate (12,402 ) (6,169 ) Other Receivables 1,482 (665 ) Other Current Assets 2,355 2,975 Accounts Payable 2,686 1,818 Payables to Affiliate (1,024 ) (215 ) Accrued Liabilities and Other (15,158 ) (18,467 ) Net Cash Provided by Operating Activities 66,157 58,147 Cash Flow from Investing Activities Property, Plant and Equipment Expenditures (40,814 ) (56,879 ) Cash Paid for Acquisitions (15,231 ) — Proceeds from the Sale of Property, Plant and Equipment 4,629 94 Net Cash Used in Investing Activities (51,416 ) (56,785 ) Cash Flow from Financing Activities Dividends and Distributions Paid (17,108 ) (11,817 ) Repurchase of Shares for the Payment of Withholding Taxes (10,049 ) (1,326 ) Repayment of Credit Facility (89,000 ) (15,000 ) Proceeds from Credit Facility 45,000 37,000 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 (4,615 ) (3,756 ) Payment of Finance Leases (369 ) — Net Cash Provided by Financing Activities 13,945 5,101 Net Increase in Cash 28,686 6,463 Cash, Beginning of Period 28,673 5,063 Cash, End of Period $ 57,359 $ 11,526 Expand 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 June 30, 2025, divided by Adjusted EBITDA for the trailing twelve months. Net debt is calculated as the principal amount of total debt outstanding as of June 30, 2025, less cash and cash equivalents as of June 30, 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 5 Aris Water Solutions, Inc. Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Unaudited) Three Months Ended Six Months Ended (in thousands) June 30, June 30, 2025 2024 2025 2024 Net Income $ 14,084 $ 13,112 $ 30,084 $ 29,942 Interest Expense, Net 9,567 8,813 18,797 17,251 Income Tax Expense 2,680 1,994 2,750 4,583 Depreciation, Amortization and Accretion 19,972 19,707 39,728 39,128 Abandoned Well Costs 998 (25 ) 1,460 310 Stock-Based Compensation 6,247 4,693 11,937 8,214 Abandoned Projects — 16 237 745 Loss on Disposal of Assets, Net 128 168 219 114 Loss on Debt Extinguishment — — 2,535 — Transaction Costs 42 89 926 96 Research and Development Expense 946 1,128 2,074 2,193 Other (100 ) 300 356 527 Adjusted EBITDA $ 54,564 $ 49,995 $ 111,103 $ 103,103 Expand Table 6 Aris Water Solutions, Inc. Reconciliation of Gross Margin to Adjusted Operating Margin and Adjusted Operating Margin per Barrel (Unaudited) Three Months Ended Six Months Ended (in thousands) June 30, June 30, 2025 2024 2025 2024 Total Revenue $ 123,748 $ 101,117 $ 243,999 $ 204,523 Cost of Revenue (77,634 ) (59,285 ) (146,947 ) (117,729 ) Gross Margin 46,114 41,832 97,052 86,794 Depreciation, Amortization and Accretion 19,410 19,091 38,538 37,889 Adjusted Operating Margin $ 65,524 $ 60,923 $ 135,590 $ 124,683 Total Volumes (thousands of barrels) 159,890 132,372 317,382 270,974 Gross Margin/Barrel $ 0.29 $ 0.32 $ 0.31 $ 0.32 Adjusted Operating Margin/Barrel $ 0.41 $ 0.46 $ 0.43 $ 0.46 This table includes information related to our Water Gathering and Processing segment. Expand Table 7 Aris Water Solutions, Inc. (Unaudited) Three Months Ended Six Months Ended (in thousands) June 30, June 30, 2025 2024 2025 2024 Net Income $ 14,084 $ 13,112 $ 30,084 $ 29,942 Adjusted items: Abandoned Well Costs 998 (25 ) 1,460 310 Loss on Disposal of Assets, Net 128 168 219 114 Stock-Based Compensation 6,247 4,693 11,937 8,214 Tax Effect of Adjusting Items (1) (978 ) (638 ) (1,807 ) (1,147 ) Adjusted Net Income $ 20,479 $ 17,310 $ 41,893 $ 37,433 (1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates. Expand 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 Six Months Ended June 30, June 30, 2025 2024 2025 2024 Diluted Net Income Per Share of Class A Common Stock $ 0.19 $ 0.18 $ 0.44 $ 0.41 Adjusted items: Reallocation of Net Income Attributable to Noncontrolling Interests From the Assumed Exchange of LLC Interests 0.04 0.04 0.05 0.08 Abandoned Well Costs 0.02 — 0.02 0.01 Stock-Based Compensation 0.10 0.08 0.20 0.14 Tax Effect of Adjusting Items (1) (0.02 ) (0.01 ) (0.03 ) (0.02 ) Diluted Adjusted Net Income Per Share $ 0.33 $ 0.29 $ 0.68 $ 0.62 (1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates. Basic Weighted Average Shares of Class A Common Stock Outstanding 32,702,834 30,549,092 32,048,183 30,451,553 Adjusted Items: Assumed Redemption of LLC Interests 26,493,565 27,543,565 26,921,343 27,543,565 Dilutive Performance-Based Stock Units (2) 791,891 40,905 832,006 20,452 Diluted Adjusted Fully Weighted Average Shares of Class A Common Stock Outstanding 59,988,290 58,133,562 59,801,532 58,015,570 (2) Dilutive impact of Performance-Based Stock Units already included for the three and six months ended June 30, 2025 and 2024. Expand Table 9 Aris Water Solutions, Inc. Computation of Leverage Ratio (Unaudited) As of (in thousands) June 30, 2025 Principal Amount of Debt at June 30, 2025 $ 502,281 Less: Cash at June 30, 2025 (57,359 ) Net Debt $ 444,922 Net Debt $ 444,922 ÷ Trailing Twelve Months Adjusted EBITDA 219,885 Leverage Ratio 2.02 Expand Table 10 Aris Water Solutions, Inc. Reconciliation of Capital Expenditures (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2025 2024 2025 2024 Cash Paid for Property, Plant and Equipment $ 20,424 $ 37,297 $ 40,814 $ 56,879 Change in Capital Related Accruals 1,654 49 2,426 18,183 Capital Expenditures $ 22,078 $ 37,346 $ 43,240 $ 75,062 Expand Table 11 Aris Water Solutions, Inc. Segment Information (Unaudited) (in thousands) Three Months Ended June 30, 2025 Water Gathering and Processing Corporate and Other Consolidated Revenue $ 123,748 $ 344 $ 124,092 Cost of Revenue Direct Operating Costs 58,224 3 58,227 Cost of Goods Sold — 127 127 Depreciation, Amortization and Accretion 19,410 562 19,972 Total Cost of Revenue 77,634 692 78,326 Operating Costs and Expenses Abandoned Well Costs 998 — 998 General and Administrative — 17,699 17,699 Research and Development Expense — 946 946 Other Operating Income, Net — (208 ) (208 ) Total Operating Expenses 998 18,437 19,435 Operating Income (Expense) 45,116 (18,785 ) 26,331 Other Expense Interest Expense, Net — 9,567 9,567 Income (Loss) Before Income Taxes 45,116 (28,352 ) 16,764 Income Tax Expense — 2,680 2,680 Net Income (Loss) 45,116 (31,032 ) 14,084 Net Income Attributable to Noncontrolling Interest — 7,433 7,433 Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 45,116 $ (38,465 ) $ 6,651 Expand (in thousands) Three Months Ended June 30, 2024 Water Gathering and Processing Corporate and Other Consolidated Revenue $ 101,117 $ — $ 101,117 Cost of Revenue Direct Operating Costs 40,194 — 40,194 Depreciation, Amortization and Accretion 19,091 616 19,707 Total Cost of Revenue 59,285 616 59,901 Operating Costs and Expenses Abandoned Well Costs (25 ) — (25 ) General and Administrative — 16,037 16,037 Research and Development Expense — 1,128 1,128 Other Operating Expense, Net 16 141 157 Total Operating (Income) Expenses (9 ) 17,306 17,297 Operating Income (Expense) 41,841 (17,922 ) 23,919 Other Expense Interest Expense, Net — 8,813 8,813 Income (Loss) Before Income Taxes 41,841 (26,735 ) 15,106 Income Tax Expense — 1,994 1,994 Net Income (Loss) 41,841 (28,729 ) 13,112 Net Income Attributable to Noncontrolling Interest — 7,147 7,147 Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 41,841 $ (35,876 ) $ 5,965 Expand (in thousands) Six Months Ended June 30, 2025 Water Gathering and Processing Corporate and Other Total Revenue $ 243,999 $ 584 $ 244,583 Cost of Revenue Direct Operating Costs 108,409 6 108,415 Cost of Goods Sold — 127 127 Depreciation, Amortization and Accretion 38,538 1,190 39,728 Total Cost of Revenue 146,947 1,323 148,270 Operating Costs and Expenses Abandoned Well Costs 1,460 — 1,460 General and Administrative — 37,709 37,709 Research and Development Expense — 2,074 2,074 Other Operating Expense, Net 237 667 904 Total Operating Expenses 1,697 40,450 42,147 Operating Income (Expense) 95,355 (41,189 ) 54,166 Other Expense Interest Expense, Net — 18,797 18,797 Other — 2,535 2,535 Total Other Expense — 21,332 21,332 Income (Loss) Before Income Taxes 95,355 (62,521 ) 32,834 Income Tax Expense — 2,750 2,750 Net Income (Loss) 95,355 (65,271 ) 30,084 Net Income Attributable to Noncontrolling Interest — 14,822 14,822 Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 95,355 $ (80,093 ) $ 15,262 Expand (in thousands) Six Months Ended June 30, 2024 Water Gathering and Processing Corporate and Other Total Revenue $ 204,523 $ — $ 204,523 Cost of Revenue Direct Operating Costs 79,840 — 79,840 Depreciation, Amortization and Accretion 37,889 1,239 39,128 Total Cost of Revenue 117,729 1,239 118,968 Operating Costs and Expenses Abandoned Well Costs 310 — 310 General and Administrative — 30,538 30,538 Research and Development Expense — 2,193 2,193 Other Operating Expense (Income), Net 745 (8 ) 737 Total Operating Expenses 1,055 32,723 33,778 Operating Income (Expense) 85,739 (33,962 ) 51,777 Other Expense Interest Expense, Net — 17,251 17,251 Other — 1 1 Total Other Expense — 17,252 17,252 Income (Loss) Before Income Taxes 85,739 (51,214 ) 34,525 Income Tax Expense — 4,583 4,583 Net Income (Loss) 85,739 (55,797 ) 29,942 Net Income Attributable to Noncontrolling Interest — 16,354 16,354 Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 85,739 $ (72,151 ) $ 13,588 Expand
Business Wire
11-08-2025
- Business
- Business Wire
ARIS WATER INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Aris Water Solutions, Inc.
NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ('KSF') are investigating the proposed sale of Aris Water Solutions, Inc. (NYSE: ARIS) to Western Midstream Partners, LP (NYSE: WES). Under the terms of the proposed transaction, Aris shareholders may elect to receive 0.625 WES common units, $25.00 in cash (without interest), or a combination of both, for each share of Aris common stock held, with the cash consideration being subject to proration to ensure that the total cash consideration paid by WES will not exceed $415 million of the aggregate merger consideration. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company. If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ( toll free at any time at 855-768-1857, or visit to learn more. To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit Kahn Swick & Foti, LLC 1100 Poydras St., Suite 960 New Orleans, LA 70163
