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, 2024.
FIRST QUARTER 2024
HIGHLIGHTS
- Increased produced water volumes 6% quarter-over-quarter and
19% versus the first quarter of 2023
- Grew recycled produced water volumes 31% versus the first
quarter of 2023
- Achieved first quarter 2024 net income of $16.8 million, a 29%
increase sequentially
- Generated Adjusted EBITDA1 of $53.1 million for the first
quarter, up 8% sequentially and up 39% versus the first quarter of
2023
- Improved Gross Margin per Barrel by 19% and Adjusted Operating
Margin2 per Barrel by 12% sequentially, new all-time highs
reflecting the continued success of electrification and cost
reduction initiatives
- Maintained a strong balance sheet with quarter-end leverage of
2.15x3 and $324 million of available liquidity under our revolving
credit facility
- Announcing a 17% increase to the quarterly dividend from $0.09
per share to $0.105 per share, reflecting consistent business
performance and confidence in the Company’s long-term outlook
“Aris had an exceptional start to 2024, continuing to build on
our momentum and strong results from last year. We grew produced
water volumes 6% sequentially and expanded our operating margins to
new highs. Our consistent performance is reflective of the hard
work of our dedicated team leveraging our critical expansive
infrastructure to support the delivery of our differentiated water
solutions,” said Amanda Brock, President and CEO of Aris.
“Aris’s long-term infrastructure contracts continue to provide
significant volume and revenue visibility. Over 80% of our revenue
is from these production-based dedication agreements in the core of
the Permian Basin from top-tier customers. We’ve steadily increased
our volumes and achieved record margins while finding ways to
better leverage our asset footprint to lower our capital spending.
Our persistent focus on efficiency is evident in our results, as
our Adjusted EBITDA grew 8% sequentially, exceeding our
expectations and guidance.
“Given our balance sheet strength, expectations for continued
growth, and confidence in our ability to increase our free cash
flow, we are pleased to announce a 17% increase to our quarterly
dividend. We expect to further reduce our capital expenditures in
the second half of 2024 and intend to evaluate additional
opportunities to increase returns to shareholders.
“While we remain focused on execution in our core environmental
infrastructure business, we are evaluating adjacent growth
opportunities and have made progress in our beneficial reuse and
mineral extraction efforts. We are successfully piloting and
developing processes to desalinate and treat produced water to
standards acceptable for aquifer replenishment, agriculture, and
industrial uses and are actively pursuing how to cost effectively
scale these technologies.
“After extensive long-term testing, Aris has identified
high-value minerals that could potentially be economically
recovered from our produced water. Aris is now assessing potential
partnership opportunities to commercialize the extraction of
certain minerals.
“Beneficial reuse and mineral extraction could expand our
markets and revenue streams, and we are excited to be taking a
leadership role in the future of the industry while executing
exceptionally well and returning cash to shareholders.”
OPERATIONS UPDATE
Three Months Ended
Three Months Ended
March 31,
December 31,
% Change
March 31,
% Change
2024
2023
2023
(thousands of barrels of water per
day)
Total Volumes
1,523
1,577
(3)
%
1,376
11
%
Produced Water Handling Volumes
1,159
1,095
6
%
971
19
%
Water Solutions Volumes
Recycled Produced Water Volumes Sold
337
401
(16)
%
258
31
%
Groundwater Volumes Sold
27
81
(67)
%
147
(82)
%
Total Water Solutions Volumes
364
482
(24)
%
405
(10)
%
Skim oil recoveries (barrels of oil per
day)
1,729
1,362
27
%
1,348
28
%
Skim oil recoveries (as a % of produced
water volumes)
0.15%
0.12%
25
%
0.14%
7
%
FINANCIAL UPDATE
Net income was $16.8 million for the first quarter of 2024
versus net income of $7.7 million in the first quarter of 2023 and
net income of $13.0 million in the fourth quarter of 2023. Adjusted
Net Income1 was $20.1 million for the first quarter of 2024 versus
$9.8 million for the first quarter of 2023 and $15.4 million in the
fourth quarter of 2023.
Adjusted EBITDA1 was $53.1 million for the first quarter of
2024, up approximately 39% from $38.1 million in the first quarter
of 2023, and up approximately 8% from $49.3 million in the fourth
quarter of 2023.
Gross Margin per Barrel for the first quarter of 2024 was $0.32
per barrel versus $0.24 per barrel in the first quarter of
2023.
Adjusted Operating Margin per Barrel2 for the first quarter of
2024 was $0.46 per barrel versus $0.39 per barrel in the first
quarter of 2023.
First quarter 2024 Capital Expenditures4 totaled approximately
$38 million versus $48 million in the first quarter of 2023.
STRONG BALANCE SHEET AND
LIQUIDITY
As of March 31, 2024, the Company had approximately $21 million
in cash and $324 million available under its revolving credit
facility for total available liquidity of $345 million. The
Company’s leverage ratio at the end of the first quarter of 2024
was 2.15X3, below the low end of its target leverage range of
2.5X-3.5X.
SECOND QUARTER 2024 DIVIDEND
INCREASE
On April 30, 2024, Aris’s Board of Directors approved a 17%
increase to Aris’s quarterly dividend to $0.105 per share. In
conjunction with the dividend payment, a distribution of $0.105 per
unit will be paid to unit holders of Solaris Midstream Holdings,
LLC. The dividend will be paid on June 20, 2024, to holders of
record of the Company’s Class A common stock as of the close of
business on June 6, 2024. The distribution to unit holders of
Solaris Midstream Holdings, LLC will be subject to the same payment
and record dates.
SECOND QUARTER 2024 FINANCIAL
OUTLOOK
“2024 is off to a strong start and we are encouraged by our
outlook for the rest of the year. The first quarter of 2024
benefited from new well connections being delivered earlier than
expected, which pulled forward produced water volumes from the
second quarter into the first. Additionally, certain flowback
volumes resulted in higher skim oil recoveries than we normally see
and certain well maintenance costs were delayed until later this
year. We estimate the EBITDA benefit to the quarter from these
items was approximately $4.0 million.
As we update our outlook for the balance of the year and
consider first quarter results, we are increasing the low-end of
our 2024 Adjusted EBITDA guidance, establishing a new range of
between $185 and $200 million,” said Amanda Brock.
For the second quarter of 2024, the Company expects:
- Produced Water Handling volumes between 1,015 and 1,045
thousand barrels of water per day
- Water Solutions volumes between 400 and 430 thousand barrels of
water per day
- Adjusted Operating Margin per Barrel2 between $0.42 and
$0.44
- Skim oil recoveries of approximately 1,200 barrels per day
- Adjusted EBITDA1 between $44 and $48 million
- Capital Expenditures4 between $38 and $43 million, consistent
with Aris’s first-half weighted capital plan; no change to Aris’s
full year capital expenditure outlook of $85 to $105 million
CONFERENCE CALL
Aris will host a conference call to discuss its first quarter
2024 results on Wednesday, May 8, 2024, 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, www.ariswater.com.
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
13745332.
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 Adjusted Operating Margin per Barrel is
a non-GAAP financial measure. 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, 2024, 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 2024, 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 2024. 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, 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 https://ir.ariswater.com/sec-filings or on the
SEC’s website at www.sec.gov/edgar. 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 presentation and any oral
statements made in connection with this presentation 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,
2024
2023
Revenue
Produced Water Handling
$
59,106
$
46,100
Produced Water Handling — Affiliate
26,827
23,140
Water Solutions
11,702
13,882
Water Solutions — Affiliate
5,242
7,984
Other Revenue
529
465
Total Revenue
103,406
91,571
Cost of Revenue
Direct Operating Costs
39,646
43,845
Depreciation, Amortization and
Accretion
19,421
18,606
Total Cost of Revenue
59,067
62,451
Operating Costs and Expenses
Abandoned Well Costs
335
—
General and Administrative
14,501
11,799
Research and Development Expense
1,065
408
Other Operating Expense, Net
580
217
Total Operating Expenses
16,481
12,424
Operating Income
27,858
16,696
Other Expense
Interest Expense, Net
8,438
7,661
Other
1
—
Total Other Expense
8,439
7,661
Income Before Income Taxes
19,419
9,035
Income Tax Expense
2,589
1,327
Net Income
16,830
7,708
Net Income Attributable to Noncontrolling
Interest
9,207
4,330
Net Income Attributable to Aris Water
Solutions, Inc.
$
7,623
$
3,378
Net Income Per Share of Class A Common
Stock
Basic
$
0.23
$
0.11
Diluted
$
0.23
$
0.11
Weighted Average Shares of Class A Common
Stock Outstanding
Basic
30,354,014
29,935,145
Diluted
30,354,014
29,935,145
Table 2
Aris Water Solutions,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(in thousands, except for share and per
share amounts)
March 31,
December 31,
2024
2023
Assets
Cash
$
20,654
$
5,063
Accounts Receivable, Net
55,426
59,393
Accounts Receivable from Affiliate
25,669
22,963
Other Receivables
11,084
12,767
Prepaids and Deposits
6,350
8,364
Total Current Assets
119,183
108,550
Fixed Assets
Property, Plant and Equipment
1,079,012
1,041,703
Accumulated Depreciation
(131,121
)
(121,989
)
Total Property, Plant and Equipment,
Net
947,891
919,714
Intangible Assets, Net
223,013
232,277
Goodwill
34,585
34,585
Deferred Income Tax Assets, Net
20,729
22,634
Right-of-Use Assets
16,454
16,726
Other Assets
5,740
5,995
Total Assets
$
1,367,595
$
1,340,481
Liabilities and Stockholders'
Equity
Accounts Payable
$
37,814
$
25,925
Payables to Affiliate
695
894
Insurance Premium Financing Liability
3,676
5,463
Accrued and Other Current Liabilities
66,903
64,416
Total Current Liabilities
109,088
96,698
Long-Term Debt, Net of Debt Issuance
Costs
422,259
421,792
Asset Retirement Obligations
20,149
19,030
Tax Receivable Agreement Liability
98,274
98,274
Other Long-Term Liabilities
16,423
16,794
Total Liabilities
666,193
652,588
Stockholders' Equity
Preferred Stock $0.01 par value,
50,000,000 authorized. None issued or outstanding as of March 31,
2024 and December 31, 2023
—
—
Class A Common Stock $0.01 par value,
600,000,000 authorized, 31,097,976 issued and 30,547,736
outstanding as of March 31, 2024; 30,669,932 issued and 30,251,613
outstanding as of December 31, 2023
310
306
Class B Common Stock $0.01 par value,
180,000,000 authorized, 27,543,565 issued and outstanding as of
March 31, 2024 and December 31, 2023
275
275
Treasury Stock (at Cost), 550,240 shares
as of March 31, 2024; 418,319 shares as of December 31, 2023
(6,714
)
(5,133
)
Additional Paid-in-Capital
333,252
328,543
Retained Earnings (Accumulated
Deficit)
4,652
(87
)
Total Stockholders' Equity Attributable to
Aris Water Solutions, Inc.
331,775
323,904
Noncontrolling Interest
369,627
363,989
Total Stockholders' Equity
701,402
687,893
Total Liabilities and Stockholders'
Equity
$
1,367,595
$
1,340,481
Table 3
Aris Water Solutions,
Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Three Months Ended
(in thousands)
March 31,
2024
2023
Cash Flow from Operating
Activities
Net Income
$
16,830
$
7,708
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities
Deferred Income Tax Expense
2,129
1,300
Depreciation, Amortization and
Accretion
19,421
18,606
Stock-Based Compensation
3,521
2,468
Abandoned Well Costs
335
—
Gain on Disposal of Assets, Net
(54
)
(13
)
Abandoned Projects
729
—
Amortization of Debt Issuance Costs,
Net
716
508
Other
323
180
Changes in Operating Assets and
Liabilities:
Accounts Receivable
3,371
7,951
Accounts Receivable from Affiliate
(2,706
)
18,790
Other Receivables
1,683
(332
)
Prepaids and Deposits
2,014
1,262
Accounts Payable
3,382
1,298
Payables to Affiliate
(199
)
(410
)
Accrued Liabilities and Other
(7,686
)
357
Net Cash Provided by Operating
Activities
43,809
59,673
Cash Flow from Investing
Activities
Property, Plant and Equipment
Expenditures
(19,582
)
(35,315
)
Proceeds from the Sale of Property, Plant
and Equipment
1
—
Net Cash Used in Investing
Activities
(19,581
)
(35,315
)
Cash Flow from Financing
Activities
Dividends and Distributions Paid
(5,449
)
(5,373
)
Repurchase of Shares
(1,310
)
(599
)
Repayment of Credit Facility
(15,000
)
(9,000
)
Proceeds from Credit Facility
15,000
15,000
Payment of Insurance Premium Financing
(1,878
)
—
Net Cash (Used in) Provided by
Financing Activities
(8,637
)
28
Net Increase in Cash
15,591
24,386
Cash, Beginning of Period
5,063
1,122
Cash, End of Period
$
20,654
$
25,508
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 or gross
margin 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 modification;
stock-based compensation expense; and other non-recurring or
unusual expenses or charges (such as temporary power costs,
litigation expenses and severance costs), less any gains on the
sale of assets.
The Company calculates Adjusted Operating Margin as Gross Margin
plus depreciation, amortization and accretion and temporary power
costs. The Company defines Adjusted Operating Margin per Barrel as
Adjusted Operating Margin divided by total volumes handled, sold or
transferred.
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 noncash and/or nonrecurring
items. The Company calculated 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 noncash and/or
nonrecurring 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.
For the quarter ended March 31, 2024, the Company calculates its
leverage ratio as net debt as of March 31, 2024, 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, 2024, less cash and cash equivalents as of March 31,
2024.
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 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, or
cash paid for property, plant and equipment. 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
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, and cash paid for
property, plant, and equipment) calculated and presented in
accordance with GAAP without unreasonable effort. Certain elements
of the composition of forward-looking non-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,
2024
2023
2023
(thousands of barrels of water per
day)
Produced Water Handling Volumes
1,159
971
1,095
Water Solutions Volumes
Recycled Produced Water Volumes Sold
337
258
401
Groundwater Volumes Sold
27
147
81
Total Water Solutions Volumes
364
405
482
Total Volumes
1,523
1,376
1,577
Per Barrel Operating Metrics (1)
Produced Water Handling Revenue/Barrel
$
0.81
$
0.79
$
0.79
Water Solutions Revenue/Barrel
$
0.51
$
0.60
$
0.54
Revenue/Barrel of Total Volumes (2)
$
0.74
$
0.74
$
0.71
Direct Operating Costs/Barrel
$
0.29
$
0.35
$
0.31
Gross Margin/Barrel
$
0.32
$
0.24
$
0.27
Adjusted Operating Margin/Barrel
$
0.46
$
0.39
$
0.41
(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,
2024
2023
Net Income
$
16,830
$
7,708
Interest Expense, Net
8,438
7,661
Income Tax Expense
2,589
1,327
Depreciation, Amortization and
Accretion
19,421
18,606
Abandoned Well Costs
335
—
Stock-Based Compensation
3,521
2,468
Abandoned Projects
729
—
Gain on Disposal of Assets, Net
(54
)
(13
)
Transaction Costs
7
45
Research and Development Expense
1,065
408
Other
227
(104
)
Adjusted EBITDA
$
53,108
$
38,106
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,
2024
2023
Total Revenue
$
103,406
$
91,571
Cost of Revenue
(59,067
)
(62,451
)
Gross Margin
44,339
29,120
Depreciation, Amortization and
Accretion
19,421
18,606
Adjusted Operating Margin
$
63,760
$
47,726
Total Volumes (thousands of barrels)
138,603
123,815
Adjusted Operating Margin/BBL
$
0.46
$
0.39
Table 7
Aris Water Solutions,
Inc.
Reconciliation of Net Income
to Non-GAAP Adjusted Net Income
(Unaudited)
Three Months Ended
(in thousands)
March 31,
2024
2023
Net Income
$
16,830
$
7,708
Adjusted items:
Abandoned Well Costs
335
—
Gain on Disposal of Assets, Net
(54
)
(13
)
Stock-Based Compensation
3,521
2,468
Tax Effect of Adjusting Items (1)
(507
)
(326
)
Adjusted Net Income
$
20,125
$
9,837
(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,
2024
2023
Diluted Net Income Per Share of Class A
Common Stock
$
0.23
$
0.11
Adjusted items:
Reallocation of Net Income Attributable to
Noncontrolling Interests From the Assumed Exchange of LLC
Interests
0.05
0.03
Abandoned Well Costs
0.01
—
Gain on Disposal of Assets, Net
—
—
Stock-Based Compensation
0.06
0.04
Tax Effect of Adjusting Items (1)
(0.01
)
(0.01
)
Diluted Adjusted Net Income Per Share
$
0.34
$
0.17
(1) Estimated tax effect of adjusted items
allocated to Aris based on statutory rates.
Diluted Weighted Average Shares of Class A
Common Stock Outstanding
30,354,014
29,935,145
Adjusted Items:
Assumed Redemption of LLC Interests
27,543,565
27,568,302
Dilutive Performance-Based Stock Units
(2)
—
—
Diluted Adjusted Fully Weighted Average
Shares of Class A Common Stock Outstanding
57,897,579
57,503,447
(2) Dilutive impact of Performance-Based
Stock Units already included for the three months ended March 31,
2024 and 2023.
Table 9
Aris Water Solutions,
Inc.
Computation of Leverage
Ratio
(Unaudited)
As of
(in thousands)
March 31, 2024
Principal Amount of Debt at March 31,
2024
$
429,676
Less: Cash at March 31, 2024
(20,654
)
Net Debt
$
409,022
Net Debt
$
409,022
÷ Trailing Twelve Months Adjusted
EBITDA
189,974
Leverage Ratio
2.15
Table 10
Aris Water Solutions,
Inc.
Reconciliation of Capital
Expenditures
(Unaudited)
Three Months Ended
March 31,
(in thousands)
2024
2023
Cash Paid for Property, Plant and
Equipment
$
19,582
$
35,315
Change in Capital Related Accruals
18,134
12,659
Capital Expenditures
$
37,716
$
47,974
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507674748/en/
David Tuerff Senior Vice President, Finance and Investor
Relations (281) 501-3070 IR@ariswater.com
Aris Water Solutions (NYSE:ARIS)
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