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, 2023.
- Total water volumes of approximately 1.5 million barrels per
day for the second quarter of 2023, up 21% versus the second
quarter of 2022 and up 9% sequentially versus the first quarter of
2023.
- Produced Water volumes of approximately 1,045 thousand barrels
per day for the second quarter of 2023, up 24% versus the second
quarter of 2022 and up 8% sequentially versus the first quarter of
2023.
- Water Solutions volumes of approximately 452 thousand barrels
per day for the second quarter of 2023, up 13% versus the second
quarter of 2022 and up 12% sequentially versus the first quarter of
2023.
- Net income of $10.4 million for the second quarter of 2023, up
158% versus the second quarter of 2022 and up 35% sequentially
versus the first quarter of 2023. Adjusted Net Income1 of $13.2
million for the second quarter of 2023, up 11% versus the second
quarter of 2022 and up 34% sequentially versus the first quarter of
2023.
- Adjusted EBITDA1 of $42.6 million for the second quarter of
2023, up 14% versus the second quarter of 2022 and up 12%
sequentially versus the first quarter of 2023.
- Aris is revising its 2023 outlook for Adjusted EBITDA upward
from $150 million - $170 million to $160 million - $170 million
given its solid execution and stronger than anticipated first half
volumes.
- Our contracted customers remain active drilling and completing
wells across our acreage dedications. To support additional
customer activity planned for late 2023 and 2024, we are raising
our guidance for 2023 capital expenditures from $140 million - $155
million to $160 million - $170 million.
“We delivered a strong second quarter, achieving both 21% volume
growth and improved profitability as we continue to execute ahead
of schedule on our business plan and realize previously identified
cost reductions,” said Amanda Brock, Chief Executive Officer of
Aris.
“The entire Aris team is performing extremely well in
identifying additional opportunities to expand our infrastructure
network, optimize our operating costs, and improve our cash
management activities. We are appreciative of our team’s continued
focus and effort.
The second quarter also benefited from a few one-time events,
including the receipt of deficiency payments under our minimum
volume commitments that drove higher margins, the delay of certain
maintenance expenses into the third quarter due to supply chain
constraints, and lower than anticipated general &
administrative expenses. As a result, we expect third quarter
Adjusted EBITDA1 to be relatively flat sequentially. However, we
expect to see our volumes increase and Adjusted EBITDA1 grow over
second quarter levels in the fourth quarter.
The quality of our customers, well economics, and undrilled
inventory on our contracted acreage continues to provide Aris with
compelling support for steady growth. Some of our large customers
have recently indicated they are increasing production more than
previously forecasted in our contracted acreage, particularly in
our core Northern Delaware Basin system. As we continue to expand
our infrastructure network to capture these opportunities, our
additional 2023 capital investments will, in turn, increase our
volumes, revenue, and EBITDA in coming years.
Aris is beginning to actively test promising beneficial re-use
treatment technologies in the field and looks forward to the
progress of its pilot programs over the next several quarters. We
continue working with regulators, our customers, and different
industries in identifying opportunities to use treated produced
water. Additionally, we earned Hart Energy’s 2023 ESG Award for
public midstream companies earlier this quarter, which recognizes
the impact we have made on water sustainability in the Permian
Basin.
We are also pleased to announce that Dr. Eric Hoek will be
joining us as an advisor to focus specifically on the recovery and
commercialization of high-value materials in our brine stream. Dr.
Hoek, an engineering professor at UCLA and a faculty scientist at
the Lawrence Berkeley National Laboratory, is a globally recognized
leader in developing and commercializing water technologies and
will be a valuable addition to our team.”
OPERATIONS UPDATE
For the second quarter of 2023, the Company handled
approximately 1.5 million barrels of total water volumes per day,
up approximately 21% from 1.2 million barrels of water per day for
the second quarter of 2022 and up approximately 9% sequentially
from 1.4 million barrels of water per day for the first quarter of
2023. Skim oil recoveries were 1,042 barrels per day, or
approximately 0.1% of produced water volumes, in-line with
expectations.
Recycled Produced Water volumes were approximately 296 thousand
barrels of water per day for the second quarter of 2023,
approximately flat from 297 thousand barrels of water per day for
the second quarter of 2022, and up approximately 15% sequentially
versus the first quarter of 2023.
Groundwater volumes were approximately 156 thousand barrels of
water per day for the second quarter of 2023, up approximately 50%
from 104 thousand barrels of water per day for the second quarter
of 2022, and up approximately 6% sequentially versus the first
quarter of 2023.
FINANCIAL UPDATE
Net income was $10.4 million for the second quarter of 2023
versus net income of $4.0 million in the second quarter of 2022 and
net income of $7.7 million in the first quarter of 2023. Adjusted
Net Income1 was $13.2 million for the second quarter of 2023 versus
$11.9 million for the second quarter of 2022 and $9.8 million in
the first quarter of 2023.
Adjusted EBITDA1 was $42.6 million for the second quarter of
2023, up approximately 14% from $37.2 million in the second quarter
of 2022, and up approximately 12% from $38.1 million in the first
quarter of 2023.
The Company had gross margin per barrel of $0.24 per barrel for
the second quarter of 2023 versus $0.26 per barrel in the second
quarter of 2022 and $0.24 per barrel for the first quarter of 2023.
The Company had Adjusted Operating Margin per Barrel2 of $0.38 per
Barrel for the second quarter of 2023, versus $0.41 in the second
quarter of 2022 and $0.39 for the first quarter of 2023.
Second quarter 2023 capital expenditures3 totaled approximately
$49 million versus $52 million in the second quarter of 2022.
STRONG BALANCE SHEET AND
LIQUIDITY
As of June 30, 2023, the Company had approximately $4 million in
cash and an available revolving credit facility of approximately
$171 million for a total available liquidity of approximately $175
million. As of June 30, 2023, the Company’s leverage ratio was
2.49X, which was slightly below the low end of our target leverage
range of 2.50X-3.50X.4 Accounts Receivable balance of approximately
$94 million was down approximately 7% from the first quarter while
revenue grew 6% quarter-over-quarter, reflecting continued
improvements in working capital management.
THIRD QUARTER 2023
DIVIDEND
On August 2, 2023, Aris’s Board of Directors declared a dividend
on its Class A common stock for the third quarter of 2023 of $0.09
per share. In conjunction with the dividend payment, a distribution
of $0.09 per unit will be paid to unit holders of Solaris Midstream
Holdings, LLC. The dividend will be paid on September 28, 2023, to
holders of record of the Company’s Class A common stock as of the
close of business on September 14, 2023. The distribution to unit
holders of Solaris Midstream Holdings, LLC will be subject to the
same payment and record dates.
THIRD QUARTER 2023 AND REVISED FULL
YEAR 2023 FINANCIAL OUTLOOK
“Our volumes have grown steadily, exceeding our expectations in
the first half of the year. In the third quarter, we expect
produced water and water solutions volumes to be flat to slightly
down sequentially, reflecting the timing of completions across our
acreage, as we expect third quarter completions to be weighted
toward the second half of the quarter. We anticipate a strong
finish to the year as fourth quarter produced water volumes are
forecasted to exceed those realized in the second quarter,” said
Amanda Brock. “We continue to forecast skim oil recovery at
normalized levels of approximately 0.10% of produced water inlet
volumes, consistent with the second quarter. We expect our CPI
linked inflation clauses and cost reduction initiatives to further
benefit margins in the second half of the year, partially offset by
deferred well maintenance costs and the non-recurrence of margin
benefits from minimum volume commitment deficiencies recognized in
the second quarter.”
- For the third quarter of 2023, the Company expects:
- Produced Water Handling volumes between 1,020 and 1,030
thousand barrels of water per day
- Water Solutions volumes between 375 and 390 thousand barrels of
water per day
- Adjusted Operating Margin per Barrel2 between $0.38 and
$0.41
- Skim oil recoveries of 0.10% of inlet produced water handling
volumes at an average WTI price of $74 per barrel
- Adjusted EBITDA1 between $39 and $42 million
- For the full year of 2023, Aris is updating its previously
provided guidance to reflect higher than anticipated volume growth
through the first half of 2023 as well as additional capital
investment to accommodate further growth anticipated in late 2023
and early 2024
- For the full year of 2023, the Company now expects:
- Produced Water Handling volumes between 1,020 and 1,030
thousand barrels of water per day
- Water Solutions volumes between 400 and 410 thousand barrels of
water per day
- Adjusted Operating Margin per Barrel2 between $0.39 and
$0.40
- Skim oil recoveries of 0.10% of inlet produced water handling
volumes at an average WTI price of $74 per barrel
- Adjusted EBITDA1 between $160 and $170 million, revised from
prior outlook of $150 to $170 million
- Capital Expenditures between $160 and $170 million3, revised
from prior outlook of $140 to $155 million
- Incremental capital expenditures to the prior outlook include:
- Approximately $10 million of growth capital to accommodate
increased forecasted volumes from contracted customers
- Approximately $5 million of increased maintenance capital due
to additional asset upgrades
______________________________
1 Adjusted EBITDA and Adjusted Net Income
are non-GAAP financial measures. See the supplementary schedules in
this press release for a discussion of how we define and calculate
Adjusted EBITDA and Adjusted Net Income 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 Calculated on capital costs incurred
during the period, excluding the impact of working capital.
4 Defined as net debt as of 6/30/2023
divided by annualized 2Q 2023 Adjusted EBITDA. Net debt is
calculated as total debt less cash and cash equivalents.
CONFERENCE CALL
Aris will host a conference call to discuss its second quarter
2023 results on Thursday, August 3, 2023, 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. The replay can be accessed by dialing
(877) 660-6853 within the United States or (201) 612-7415 outside
of the United States. The access code is 13739965.
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, those regarding the Company’s business strategy,
its industry, its future profitability and our projected guidance
for 2023, the various risks and uncertainties associated with the
extraordinary inflationary environment and impacts resulting from
the volatility in global oil markets, expected capital expenditures
and the impact of such expenditures on performance, management
changes, current and potential future long-term contracts and the
Company’s future business and financial performance and our ability
to identify strategic acquisitions and realize benefits therefrom.
In some cases, you can identify forward-looking statements by
terminology such as “anticipate,” “guidance,” “preliminary,”
“project,” “estimate,” “outlook,” “budget,” “expect,” “continue,”
“will,” “intend,” “plan,” “targets,” “believe,” “forecast,”
“future,” “potential,” “may,” “possible,” “should,” “could” and
variations of such words or similar expressions. Forward-looking
statements are based on the Company’s current expectations and
assumptions regarding its 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, the Company’s actual results may
differ materially from those contemplated by the forward-looking
statements, including our projected guidance for 2023. Factors that
could cause the Company’s actual results to differ materially from
the results contemplated by such forward-looking statements
include, but are not limited to the risk factors discussed or
referenced in its filings made from time to time with the U.S.
Securities and Exchange Commission. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak
only as of the date hereof. Factors or events that could cause the
Company’s actual results to differ may emerge from time to time,
and it is not possible for the Company to predict all of them. The
Company undertakes 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)
Three Months Ended
Six Months Ended
(in thousands, except for share and per
share amounts)
June 30,
June 30,
2023
2022
2023
2022
Revenue
Produced Water Handling
$
49,716
$
35,525
$
95,816
$
70,625
Produced Water Handling—Affiliate
23,181
23,207
46,321
44,288
Water Solutions
14,928
14,708
28,810
26,352
Water Solutions—Affiliate
8,163
2,828
16,147
5,972
Other Revenue
645
118
1,110
118
Total Revenue
96,633
76,386
188,204
147,355
Cost of Revenue
Direct Operating Costs
44,446
30,781
88,291
57,452
Depreciation, Amortization and
Accretion
19,086
16,203
37,692
32,782
Total Cost of Revenue
63,532
46,984
125,983
90,234
Operating Costs and Expenses
Abandoned Well Costs
—
5,415
—
5,415
General and Administrative
12,682
11,567
24,481
22,278
Impairment of Long-Lived Assets
—
—
—
15,597
Research and Development Expense
650
81
1,058
100
Other Operating (Income) Expense
(192
)
513
25
1,577
Total Operating Expenses
13,140
17,576
25,564
44,967
Operating Income
19,961
11,826
36,657
12,154
Other Expense
Interest Expense, Net
7,971
7,315
15,632
15,100
Income (Loss) Before Income
Taxes
11,990
4,511
21,025
(2,946
)
Income Tax Expense (Benefit)
1,559
472
2,886
(368
)
Net Income (Loss)
10,431
4,039
18,139
(2,578
)
Net Income (Loss) Attributable to
Noncontrolling Interest
5,733
2,645
10,063
(1,750
)
Net Income (Loss) Attributable to Aris
Water Solutions, Inc.
$
4,698
$
1,394
$
8,076
$
(828
)
Net Income (Loss) Per Share of Class A
Common Stock
Basic
$
0.15
$
0.06
$
0.25
$
(0.05
)
Diluted
$
0.15
$
0.05
$
0.25
$
(0.05
)
Weighted Average Shares of Class A Common
Stock Outstanding
Basic
30,036,593
21,984,313
29,985,869
21,918,639
Diluted
30,036,593
22,101,106
29,985,869
21,918,639
Table 2
Aris Water Solutions,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(in thousands, except for share and per
share amounts)
June 30,
December 31,
2023
2022
Assets
Cash
$
4,016
$
1,122
Accounts Receivable, Net
66,586
81,683
Accounts Receivable from Affiliate
27,721
46,029
Other Receivables
8,732
4,354
Prepaids and Deposits
4,222
5,805
Assets Held for Sale
17,777
—
Total Current Assets
129,054
138,993
Fixed Assets
Property, Plant and Equipment
982,857
907,784
Accumulated Depreciation
(102,578
)
(88,681
)
Total Property, Plant and Equipment,
Net
880,279
819,103
Intangible Assets, Net
250,942
269,845
Goodwill
34,585
34,585
Deferred Income Tax Assets, Net
27,670
30,424
Right-of-Use Assets
9,165
9,135
Other Assets
998
1,281
Total Assets
$
1,332,693
$
1,303,366
Liabilities and Stockholders'
Equity
Accounts Payable
$
36,718
$
22,982
Payables to Affiliate
2,443
3,021
Accrued and Other Current Liabilities
73,699
65,411
Total Current Liabilities
112,860
91,414
Long-Term Debt, Net of Debt Issuance
Costs
423,856
428,921
Asset Retirement Obligation
18,051
17,543
Tax Receivable Agreement Liability
98,093
97,980
Other Long-Term Liabilities
10,467
10,421
Total Liabilities
663,327
646,279
Commitments and Contingencies
Stockholders' Equity
Preferred Stock $0.01 par value,
50,000,000 authorized. None issued or outstanding as of June 30,
2023 and December 31, 2022
—
—
Class A Common Stock $0.01 par value,
600,000,000 authorized, 30,313,173 issued and 30,074,118
outstanding as of June 30, 2023; 30,115,979 issued and 29,919,217
outstanding as of December 31, 2022
302
300
Class B Common Stock $0.01 par value,
180,000,000 authorized, 27,554,042 issued and outstanding as of
June 30, 2023; 27,575,519 issued and outstanding as of December 31,
2022
276
276
Treasury Stock (at Cost), 239,055 shares
as of June 30, 2023; 196,762 shares as of December 31, 2022
(3,490
)
(2,891
)
Additional Paid-in-Capital
323,799
319,545
Accumulated Deficit
(5,291
)
(7,722
)
Total Stockholders' Equity Attributable to
Aris Water Solutions, Inc.
315,596
309,508
Noncontrolling Interest
353,770
347,579
Total Stockholders' Equity
669,366
657,087
Total Liabilities and Stockholders'
Equity
$
1,332,693
$
1,303,366
Table 3
Aris Water Solutions,
Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Six Months Ended
(in thousands)
June 30,
2023
2022
Cash Flow from Operating
Activities
Net Income (Loss)
$
18,139
$
(2,578
)
Adjustments to reconcile Net Income (Loss)
to Net Cash provided by Operating Activities:
Deferred Income Tax Expense (Benefit)
2,837
(384
)
Depreciation, Amortization and
Accretion
37,692
32,782
Stock-Based Compensation
5,585
5,539
Impairment of Long-Lived Assets
—
15,597
Abandoned Well Costs
—
5,415
Loss on Disposal of Asset, Net
57
578
Amortization of Debt Issuance Costs,
Net
1,041
1,099
Other
504
393
Changes in Operating Assets and
Liabilities:
Accounts Receivable
15,097
(20,922
)
Accounts Receivable from Affiliate
18,308
(1,492
)
Other Receivables
(4,005
)
1,021
Prepaids and Deposits
1,583
1,313
Accounts Payable
(1,001
)
(2,201
)
Payables to Affiliate
(578
)
620
Accrued Liabilities and Other
1,208
477
Net Cash Provided by Operating
Activities
96,467
37,257
Cash Flow from Investing
Activities
Property, Plant and Equipment
Expenditures
(77,981
)
(48,318
)
Deposit on Assets Held for Sale
1,750
—
Net Cash Used in Investing
Activities
(76,231
)
(48,318
)
Cash Flow from Financing
Activities
Dividends and Distributions Paid
(10,743
)
(13,859
)
Repurchase of Shares
(599
)
—
Repayment of Credit Facility
(36,000
)
—
Proceeds from Credit Facility
30,000
—
Net Cash Used in Financing
Activities
(17,342
)
(13,859
)
Net Increase (Decrease) in Cash
2,894
(24,920
)
Cash, Beginning of Period
1,122
60,055
Cash, End of Period
$
4,016
$
35,135
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, and Adjusted Net Income.
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; 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 sale of assets. For the fourth quarter of 2022, we began
including research and development expense in our calculation of
Adjusted EBITDA due to our new beneficial reuse pilot projects,
which are discreet, non-revenue initiatives.
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.
The Company calculates Adjusted Net Income as Net Income (Loss)
Attributable to Stockholders’ Equity 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) Adjusted Net Income (Loss) Attributable
to Stockholder’s Equity 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, 2023, the Company calculates its
leverage ratio as net debt as of June 30, 2023, divided by
annualized 2Q 2023 Adjusted EBITDA. Net debt is calculated as the
principal amount of total debt outstanding as of June 30, 2023,
less cash and cash equivalents as of June 30, 2023.
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, and
Adjusted Net Income are not measures of financial performance under
GAAP and should not be considered as measures of liquidity or as
alternatives to net income (loss) or gross margin. 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 or cash flows from operating activities.
Although we provide forecasts for the non-GAAP measures Adjusted
EBITDA and Adjusted Operating Margin per Barrel, we are not able to
forecast their most directly comparable measures (net income and
gross margin) 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
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
(thousands of barrels of water per
day)
Produced Water Handling Volumes
1,045
841
1,008
822
Water Solutions Volumes
Recycled Produced Water Volumes Sold
296
297
277
285
Groundwater Volumes Sold
156
104
151
85
Groundwater Volumes Transferred (1)
—
—
—
12
Total Water Solutions Volumes
452
401
428
382
Total Volumes
1,497
1,242
1,436
1,204
Per Barrel Operating Metrics (2)
Produced Water Handling Revenue/Barrel
$
0.77
$
0.77
$
0.78
$
0.77
Water Solutions Revenue/Barrel
$
0.56
$
0.48
$
0.58
$
0.47
Revenue/Barrel of Total Volumes
$
0.70
$
0.67
$
0.72
$
0.68
Direct Operating Costs/Barrel
$
0.33
$
0.27
$
0.34
$
0.26
Gross Margin/Barrel
$
0.24
$
0.26
$
0.24
$
0.26
Adjusted Operating Margin/Barrel
$
0.38
$
0.41
$
0.38
$
0.41
(1) The groundwater transfer assets were
sold in Q1 2022.
(2) Per barrel operating metrics are
calculated independently. Therefore, the sum of individual amounts
may not equal the total presented.
Table 5
Aris Water Solutions,
Inc.
Reconciliation of Net Income
(Loss) to Non-GAAP Adjusted EBITDA
(Unaudited)
Three Months Ended
Six Months Ended
(in thousands)
June 30,
June 30,
2023
2022
2023
2022
Net Income (Loss)
$
10,431
$
4,039
$
18,139
$
(2,578
)
Interest Expense, Net
7,971
7,315
15,632
15,100
Income Tax Expense (Benefit)
1,559
472
2,886
(368
)
Depreciation, Amortization and
Accretion
19,086
16,203
37,692
32,782
Abandoned Well Costs
—
5,415
—
5,415
Impairment of Long-Lived Assets
—
—
—
15,597
Stock-Based Compensation
3,117
3,202
5,585
5,539
Loss on Disposal of Asset, Net
70
24
57
578
Transaction Costs
100
425
145
933
Research and Development Expense
650
81
1,058
100
Other
(362
)
64
(466
)
66
Adjusted EBITDA
$
42,622
$
37,240
$
80,728
$
73,164
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,
2023
2022
2023
2022
Total Revenue
$
96,633
$
76,386
$
188,204
$
147,355
Cost of Revenue
(63,532
)
(46,984
)
(125,983
)
(90,234
)
Gross Margin
33,101
29,402
62,221
57,121
Depreciation, Amortization and
Accretion
19,086
16,203
37,692
32,782
Adjusted Operating Margin
$
52,187
$
45,605
$
99,913
$
89,903
Total Volumes (Thousands of BBLs)
136,282
113,042
260,097
218,048
Adjusted Operating Margin/BBL
$
0.38
$
0.41
$
0.38
$
0.41
Table 7
Aris Water Solutions,
Inc.
Reconciliation of Net Income
(Loss) to Non-GAAP Adjusted Net Income
(Unaudited)
Three Months Ended
Six Months Ended
(in thousands)
June 30,
June 30,
2023
2022
2023
2022
Net Income (Loss)
$
10,431
$
4,039
$
18,139
$
(2,578
)
Adjusted items:
Impairment of Long-Lived Assets
—
—
—
15,597
Abandoned Well Costs
—
5,415
—
5,415
Loss on Disposal of Asset, Net
70
24
57
578
Stock-Based Compensation
3,117
3,202
5,585
5,539
Tax Effect of Adjusting Items (1)
(419
)
(786
)
(741
)
(2,536
)
Adjusted Net Income
$
13,199
$
11,894
$
23,040
$
22,015
(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,
2023
2023
Diluted Net Income Per Share of Class A
Common Stock
$
0.15
$
0.25
Adjusted items:
Reallocation of Net Income (Loss)
Attributable to Noncontrolling Interests From the Assumed Exchange
of LLC Interests
0.03
0.05
Stock-Based Compensation
0.05
0.10
Tax Effect of Adjusting Items (1)
(0.01
)
(0.01
)
Diluted Adjusted Net Income Per Share
$
0.22
$
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
30,036,593
29,985,869
Adjusted Items:
Assumed Redemption of LLC Interests
27,554,393
27,561,348
Dilutive Performance-Based Stock Units
(2)
—
—
Diluted Adjusted Fully Weighted Average
Shares of Class A Common Stock Outstanding
57,590,986
57,547,217
(2) Dilutive impact of Performance-Based
Stock Units already included for the three and six months ended
June 30, 2023.
Table 9
Aris Water Solutions,
Inc.
Computation of Leverage
Ratio
(Unaudited)
As of
June 30,
(in thousands)
2023
Principal Amount of Debt at June 30,
2023
$
429,000
Less: Cash at June 30, 2023
(4,016
)
Net Debt
$
424,984
Adjusted EBITDA for the Three Months Ended
June 30, 2023
$
42,622
x 4 Quarters
x 4
Annualized Adjusted EBITDA
$
170,488
Net Debt
$
424,984
÷ Annualized Adjusted EBITDA
$
170,488
Leverage Ratio
2.49
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802903998/en/
David Tuerff Senior Vice President, Finance and Investor
Relations (281) 501-3070 IR@ariswater.com
Aris Water Solutions (NYSE:ARIS)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Aris Water Solutions (NYSE:ARIS)
Historical Stock Chart
Von Mai 2023 bis Mai 2024