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, 2024.
SECOND QUARTER 2024
HIGHLIGHTS
- Increased produced water volumes 5% and recycled water volumes
6% versus the second quarter of 2023
- Achieved net income of $13.1 million, a 26% increase versus the
second quarter of 2023
- Generated Adjusted EBITDA1 of $50.0 million, up 17% versus the
second quarter of 2023
- Achieved Gross Margin per barrel of $0.31 and Adjusted
Operating Margin2 per barrel of $0.46, a 21% increase in Adjusted
Operating Margin per barrel2 versus the second quarter of 2023
- Maintained a strong balance sheet with quarter-end leverage of
2.2x3 and $299 million of available liquidity under our revolving
credit facility
- Increasing 2024 Adjusted EBITDA guidance to $195 to $205
million, reflecting strong first half performance and further
confidence in the outlook for the second half of the year
“Aris had a strong second quarter as resilient produced water
volumes and operating margins combined to deliver outstanding
results. Our customers are steadily growing their production and
associated water volumes in our dedicated acreage, and we are
pleased with how well Aris has performed to date this year. In the
second half of the year, we will remain focused on operating and
capital efficiencies, driving free cash flow and working with new
and existing customers as we evaluate opportunities for further
growth,” said Amanda Brock, President and CEO of Aris.
“While we remain focused on our core business, we continue to
gauge how we can create additional value from our produced water
stream and are increasingly optimistic regarding mineral
extraction. In the second quarter, Aris signed a letter of intent
with an established iodine production and marketing company to
construct an iodine extraction facility at one of Aris’s Permian
Basin produced water management facilities. Aris anticipates that
this first iodine extraction facility in the Permian Basin will be
operational by year-end 2025.
As it relates to our beneficial reuse efforts, we continue to
work with regulators to accelerate the approval process for
applications outside of oil and gas. The Aris-led Joint Industry
Project (“JIP”) with ConocoPhilllips, Chevron, and ExxonMobil has
successfully completed its second of three desalination pilots and
is scheduled to complete Phase 1 testing by year-end to confirm
that produced water can be cost effectively and safely treated for
multiple uses.
Overall, we remain committed to continuous improvement in our
operations, increasing automation and reducing costs while
maintaining system safety and integrity. Margins are at record
levels, capital expenditures are in line with expectations, and,
when combined with our consistent, contracted produced water
revenue stream, we have reached free cash flow generation that
supports additional shareholder returns. We remain optimistic about
our future opportunities as a leader in delivering sustainable
comprehensive water management and infrastructure solutions to the
industry.”
OPERATIONS UPDATE
Three Months Ended
Three Months Ended
June 30,
March 31,
% Change
June 30,
% Change
2024
2024
2023
(thousands of barrels of water per
day)
Total Volumes
1,455
1,523
(4
)%
1,497
(3
)%
Produced Water Handling Volumes
1,093
1,159
(6
)%
1,045
5
%
Water Solutions Volumes
Recycled Produced Water Volumes Sold
314
337
(7
)%
296
6
%
Groundwater Volumes Sold
48
27
78
%
156
(69
)%
Total Water Solutions Volumes
362
364
(1
)%
452
(20
)%
Skim oil recoveries (barrels of oil per
day)
1,490
1,729
(14
)%
1,042
43
%
Skim oil recoveries (as a % of produced
water volumes)
0.14
%
0.15
%
(7
)%
0.10
%
40
%
FINANCIAL UPDATE
Net income was $13.1 million for the second quarter of 2024
versus net income of $10.4 million in the second quarter of 2023
and net income of $16.8 million in the first quarter of 2024.
Adjusted Net Income1 was $17.3 million for the second quarter of
2024 versus $13.2 million for the second quarter of 2023 and $20.1
million in the first quarter of 2024.
Adjusted EBITDA1 was $50.0 million for the second quarter of
2024, up approximately 17% from $42.6 million in the second quarter
of 2023, and down approximately 6% from $53.1 million in the first
quarter of 2024.
Gross Margin per Barrel for the second quarter of 2024 was $0.31
per barrel versus $0.24 per barrel in the second quarter of
2023.
Adjusted Operating Margin per Barrel2 for the second quarter of
2024 was $0.46 per barrel versus $0.38 per barrel in the second
quarter of 2023.
Second quarter 2024 Capital Expenditures4 totaled approximately
$37 million versus $49 million in the second quarter of 2023.
STRONG BALANCE SHEET AND
LIQUIDITY
As of June 30, 2024, the Company had net debt of approximately
$438 million with $12 million in cash and $299 million available
under its revolving credit facility. The Company’s leverage ratio
at the end of the second quarter of 2024 was 2.2X3, below the
Company’s target leverage of 2.5X – 3.5X.
THIRD QUARTER 2024
DIVIDEND
Aris’s Board of Directors declared a dividend on its Class A
common stock for the third quarter of 2024 of $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 September 19, 2024, to holders of
record of the Company’s Class A common stock as of the close of
business on September 5, 2024. The distribution to unit holders of
Solaris Midstream Holdings, LLC will be subject to the same payment
and record dates.
UPDATED 2024 FINANCIAL
OUTLOOK
“Given our strong first half of 2024 and increased confidence in
the outlook for the second half of the year, we are increasing our
full year 2024 Adjusted EBITDA guidance, establishing a new range
between $195 and $205 million,” said Amanda Brock. “I’m extremely
grateful to our team for their hard work and successful execution
so far this year and look forward to continuing our positive
momentum throughout the rest of 2024 and beyond.”
For the third quarter of 2024, the Company expects:
- Produced Water Handling volumes between 1,060 and 1,090
thousand barrels of water per day
- Water Solutions volumes between 410 and 440 thousand barrels of
water per day
- Adjusted Operating Margin per Barrel2 between $0.43 and
$0.45
- Skim oil recoveries of approximately 1,300 barrels per day
- Adjusted EBITDA1 between $48 and $52 million
- No change to Aris’s full year Capital Expenditure4 outlook of
$85 to $105 million
CONFERENCE CALL
Aris will host a conference call to discuss its second quarter
2024 results on Wednesday, August 7, 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
13747323.
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 June 30, 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
Six Months Ended
per share amounts)
June 30,
June 30,
2024
2023
2024
2023
Revenue
Produced Water Handling
$
54,815
$
49,716
$
113,921
$
95,816
Produced Water Handling — Affiliate
28,614
23,181
55,441
46,321
Water Solutions
13,795
14,928
25,497
28,810
Water Solutions — Affiliate
3,453
8,163
8,695
16,147
Other Revenue
440
645
969
1,110
Total Revenue
101,117
96,633
204,523
188,204
Cost of Revenue
Direct Operating Costs
40,194
44,446
79,840
88,291
Depreciation, Amortization and
Accretion
19,707
19,086
39,128
37,692
Total Cost of Revenue
59,901
63,532
118,968
125,983
Operating Costs and Expenses
General and Administrative
16,037
12,682
30,538
24,481
Research and Development Expense
1,128
650
2,193
1,058
Other Operating Expense (Income), Net
132
(192
)
1,047
25
Total Operating Expenses
17,297
13,140
33,778
25,564
Operating Income
23,919
19,961
51,777
36,657
Other Expense
Interest Expense, Net
8,813
7,971
17,251
15,632
Other
—
—
1
—
Total Other Expense
8,813
7,971
17,252
15,632
Income Before Income Taxes
15,106
11,990
34,525
21,025
Income Tax Expense
1,994
1,559
4,583
2,886
Net Income
13,112
10,431
29,942
18,139
Net Income Attributable to Noncontrolling
Interest
7,147
5,733
16,354
10,063
Net Income Attributable to Aris Water
Solutions, Inc.
$
5,965
$
4,698
$
13,588
$
8,076
Net Income Per Share of Class A Common
Stock
Basic
$
0.18
$
0.15
$
0.41
$
0.25
Diluted
$
0.18
$
0.15
$
0.41
$
0.25
Weighted Average Shares of Class A Common
Stock Outstanding
Basic
30,549,092
30,036,593
30,451,553
29,985,869
Diluted
30,589,997
30,036,593
30,472,005
29,985,869
Table 2
Aris Water Solutions,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(in thousands, except for share
and per share amounts)
June 30,
December 31,
2024
2023
Assets
Cash
$
11,526
$
5,063
Accounts Receivable, Net
64,309
59,393
Accounts Receivable from Affiliate
29,132
22,963
Other Receivables
13,432
12,767
Prepaids and Deposits
5,389
8,364
Total Current Assets
123,788
108,550
Fixed Assets
Property, Plant and Equipment
1,116,165
1,041,703
Accumulated Depreciation
(141,019
)
(121,989
)
Total Property, Plant and Equipment,
Net
975,146
919,714
Intangible Assets, Net
213,750
232,277
Goodwill
34,585
34,585
Deferred Income Tax Assets, Net
18,510
22,634
Right-of-Use Assets
15,839
16,726
Other Assets
5,445
5,995
Total Assets
$
1,387,063
$
1,340,481
Liabilities and Stockholders'
Equity
Accounts Payable
$
42,112
$
25,925
Payables to Affiliate
679
894
Insurance Premium Financing Liability
1,855
5,463
Accrued and Other Current Liabilities
50,261
64,416
Total Current Liabilities
94,907
96,698
Long-Term Debt, Net of Debt Issuance
Costs
444,727
421,792
Asset Retirement Obligations
20,904
19,030
Tax Receivable Agreement Liability
98,274
98,274
Other Long-Term Liabilities
16,071
16,794
Total Liabilities
674,883
652,588
Stockholders' Equity
Preferred Stock $0.01 par value,
50,000,000 authorized. None issued or outstanding as of June 30,
2024 and December 31, 2023
—
—
Class A Common Stock $0.01 par value,
600,000,000 authorized, 31,104,226 issued and 30,552,938
outstanding as of June 30, 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
June 30, 2024 and December 31, 2023
275
275
Treasury Stock (at Cost), 551,288 shares
as of June 30, 2024; 418,319 shares as of December 31, 2023
(6,730
)
(5,133
)
Additional Paid-in-Capital
335,183
328,543
Retained Earnings (Accumulated
Deficit)
7,235
(87
)
Total Stockholders' Equity Attributable to
Aris Water Solutions, Inc.
336,273
323,904
Noncontrolling Interest
375,907
363,989
Total Stockholders' Equity
712,180
687,893
Total Liabilities and Stockholders'
Equity
$
1,387,063
$
1,340,481
Table 3
Aris Water Solutions,
Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Six Months Ended
(in thousands)
June 30,
2024
2023
Cash Flow from Operating
Activities
Net Income
$
29,942
$
18,139
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities
Deferred Income Tax Expense
3,770
2,837
Depreciation, Amortization and
Accretion
39,128
37,692
Stock-Based Compensation
8,214
5,585
Abandoned Well Costs
310
—
Loss on Disposal of Assets, Net
114
57
Abandoned Projects
745
128
Amortization of Debt Issuance Costs,
Net
1,436
1,041
Other
735
376
Changes in Operating Assets and
Liabilities:
Accounts Receivable
(5,524
)
15,097
Accounts Receivable from Affiliate
(6,169
)
18,308
Other Receivables
(665
)
(4,005
)
Prepaids and Deposits
2,975
1,583
Accounts Payable
1,818
(1,001
)
Payables to Affiliate
(215
)
(578
)
Accrued Liabilities and Other
(18,467
)
1,208
Net Cash Provided by Operating
Activities
58,147
96,467
Cash Flow from Investing
Activities
Property, Plant and Equipment
Expenditures
(56,879
)
(77,981
)
Deposit on Assets Held for Sale
—
1,750
Proceeds from the Sale of Property, Plant
and Equipment
94
—
Net Cash Used in Investing
Activities
(56,785
)
(76,231
)
Cash Flow from Financing
Activities
Dividends and Distributions Paid
(11,817
)
(10,743
)
Repurchase of Shares
(1,326
)
(599
)
Repayment of Credit Facility
(15,000
)
(36,000
)
Proceeds from Credit Facility
37,000
30,000
Payment of Insurance Premium Financing
(3,756
)
—
Net Cash Provided by (Used in)
Financing Activities
5,101
(17,342
)
Net Increase in Cash
6,463
2,894
Cash, Beginning of Period
5,063
1,122
Cash, End of Period
$
11,526
$
4,016
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 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. 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 June 30, 2024, the Company calculates its
leverage ratio as net debt as of June 30, 2024, 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, 2024,
less cash and cash equivalents as of June 30, 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 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
Six Months Ended
June 30,
March 31,
June 30,
2024
2023
2024
2024
2023
(thousands of barrels of water per
day)
Produced Water Handling Volumes
1,093
1,045
1,159
1,126
1,008
Water Solutions Volumes
Recycled Produced Water Volumes Sold
314
296
337
325
277
Groundwater Volumes Sold
48
156
27
38
151
Total Water Solutions Volumes
362
452
364
363
428
Total Volumes
1,455
1,497
1,523
1,489
1,436
Per Barrel Operating Metrics (1)
Produced Water Handling Revenue/Barrel
$
0.84
$
0.77
$
0.81
$
0.83
$
0.78
Water Solutions Revenue/Barrel
$
0.52
$
0.56
$
0.51
$
0.52
$
0.58
Revenue/Barrel of Total Volumes (2)
$
0.76
$
0.70
$
0.74
$
0.75
$
0.72
Direct Operating Costs/Barrel
$
0.30
$
0.33
$
0.29
$
0.29
$
0.34
Gross Margin/Barrel
$
0.31
$
0.24
$
0.32
$
0.32
$
0.24
Adjusted Operating Margin/Barrel
$
0.46
$
0.38
$
0.46
$
0.46
$
0.38
(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
Six Months Ended
(in thousands)
June 30,
June 30,
2024
2023
2024
2023
Net Income
$
13,112
$
10,431
$
29,942
$
18,139
Interest Expense, Net
8,813
7,971
17,251
15,632
Income Tax Expense
1,994
1,559
4,583
2,886
Depreciation, Amortization and
Accretion
19,707
19,086
39,128
37,692
Abandoned Well Costs
(25
)
—
310
—
Stock-Based Compensation
4,693
3,117
8,214
5,585
Abandoned Projects
16
128
745
128
Loss on Disposal of Assets, Net
168
70
114
57
Transaction Costs
89
100
96
145
Research and Development Expense
1,128
650
2,193
1,058
Other
300
(490
)
527
(594
)
Adjusted EBITDA
$
49,995
$
42,622
$
103,103
$
80,728
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,
2024
2023
2024
2023
Total Revenue
$
101,117
$
96,633
$
204,523
$
188,204
Cost of Revenue
(59,901
)
(63,532
)
(118,968
)
(125,983
)
Gross Margin
41,216
33,101
85,555
62,221
Depreciation, Amortization and
Accretion
19,707
19,086
39,128
37,692
Adjusted Operating Margin
$
60,923
$
52,187
$
124,683
$
99,913
Total Volumes (thousands of barrels)
132,372
136,282
270,974
260,097
Adjusted Operating Margin/BBL
$
0.46
$
0.38
$
0.46
$
0.38
Table 7
Aris Water Solutions,
Inc.
Reconciliation of Net Income
to Non-GAAP Adjusted Net Income
(Unaudited)
Three Months Ended
Six Months Ended
(in thousands)
June 30,
June 30,
2024
2023
2024
2023
Net Income
$
13,112
$
10,431
$
29,942
$
18,139
Adjusted items:
Abandoned Well Costs
(25
)
—
310
—
Loss on Disposal of Assets, Net
168
70
114
57
Stock-Based Compensation
4,693
3,117
8,214
5,585
Tax Effect of Adjusting Items (1)
(638
)
(419
)
(1,147
)
(741
)
Adjusted Net Income
$
17,310
$
13,199
$
37,433
$
23,040
(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
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Diluted Net Income Per Share of Class A
Common Stock
$
0.18
$
0.15
$
0.41
$
0.25
Adjusted items:
Reallocation of Net Income Attributable to
Noncontrolling Interests From the Assumed Exchange of LLC
Interests
0.04
0.03
0.08
0.05
Abandoned Well Costs
—
—
0.01
—
Stock-Based Compensation
0.08
0.05
0.14
0.10
Tax Effect of Adjusting Items (1)
(0.01
)
(0.01
)
(0.02
)
(0.01
)
Diluted Adjusted Net Income Per Share
$
0.29
$
0.22
$
0.62
$
0.39
(1) Estimated tax effect of adjusted items
allocated to Aris based on statutory rates.
Diluted Weighted Average Shares of Class A
Common Stock Outstanding
30,549,092
30,036,593
30,451,553
29,985,869
Adjusted Items:
Assumed Redemption of LLC Interests
27,543,565
27,554,393
27,543,565
27,561,348
Dilutive Performance-Based Stock Units
(2)
40,905
—
20,452
—
Diluted Adjusted Fully Weighted Average
Shares of Class A Common Stock Outstanding
58,133,562
57,590,986
58,015,570
57,547,217
(2) Dilutive impact of Performance-Based
Stock Units already included for the three and six months ended
June 30, 2024 and 2023.
Table 9
Aris Water Solutions,
Inc.
Computation of Leverage
Ratio
(Unaudited)
As of
(in thousands)
June 30, 2024
Principal Amount of Debt at June 30,
2024
$
449,855
Less: Cash at June 30, 2024
(11,526
)
Net Debt
$
438,329
Net Debt
$
438,329
÷ Trailing Twelve Months Adjusted
EBITDA
197,347
Leverage Ratio
2.22
Table 10
Aris Water Solutions,
Inc.
Reconciliation of Capital
Expenditures
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in thousands)
2024
2023
2024
2023
Cash Paid for Property, Plant and
Equipment
$
37,297
$
42,666
$
56,879
$
77,981
Change in Capital Related Accruals
49
6,422
18,183
19,081
Capital Expenditures
$
37,346
$
49,088
$
75,062
$
97,062
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806050836/en/
David Tuerff Senior Vice President, Finance and Investor
Relations (281) 501-3070 IR@ariswater.com
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