Aris Water Solutions, Inc. SEC 10-Q Report

Aris Water Solutions, Inc., a leading provider of water solutions and produced water handling services, has released its Form 10-Q report for the first quarter of 2024. The report highlights the company's financial and operational performance, showcasing significant growth in revenue and operational efficiency despite facing cost pressures. The company continues to expand its footprint in the water solutions market, driven by strategic acquisitions and innovative product launches.

Financial Highlights

Total Revenue: $120.5 million, an increase of 17% compared to the first quarter of 2024, driven by higher water solutions volumes and increased produced water handling revenues.

Operating Income: $27.8 million, remained relatively flat compared to the first quarter of 2024, reflecting stable operational performance despite increased costs.

Net Income: $16.0 million, a decrease of 5% compared to the first quarter of 2024, impacted by higher interest expenses and other costs.

Basic Net Income Per Share of Class A Common Stock: $0.26, reflecting a slight increase in earnings per share due to share repurchases and operational efficiencies.

Diluted Net Income Per Share of Class A Common Stock: $0.25, consistent with the previous year, indicating stable earnings performance.

Business Highlights

Revenue Segments: The Water Gathering and Processing segment includes Produced Water Handling and Water Solutions. Produced Water Handling revenue increased due to higher prices and a 32 kbwpd volume increase, while Water Solutions revenue saw significant growth with a 138 kbwpd increase in recycled produced water volumes and a 57 kbwpd increase in groundwater volumes.

Sales Units: Total produced water handling volumes reached 1,191 kbwpd, marking a 3% increase from the previous year. Water solutions volumes sold increased by 54% to 559 kbwpd, driven by higher recycled produced water and groundwater sales.

New Product Launches: The company completed the Crosstek Acquisition, which is expected to accelerate entry into broader industrial markets, including industrial water and wastewater treatment.

Future Outlook: The company anticipates continued growth in the Permian Basin, driven by key customer capital allocation and industry trends such as simultaneous multi-well operations and reuse applications of produced water. The company is also exploring opportunities in mineral extraction and beneficial reuse of produced water through strategic agreements and pilot projects.

Operational Efficiency: Despite cost inflation pressures, the company has managed to maintain a consistent gross margin per barrel of $0.32, with direct operating costs per barrel increasing by 10% due to higher contractor, groundwater, and electricity expenses.

Seismicity Management: The company has adapted to regulatory responses to seismic activity without material disruption in operations, leveraging its integrated pipeline network and system-wide redundancy.

SEC Filing: Aris Water Solutions, Inc. [ ARIS ] - 10-Q - May. 07, 2025