Aris Water Solutions, Inc. (ARIS) Bundle
A Brief History of Aris Water Solutions, Inc.
Company Overview
Aris Water Solutions, Inc. is a key player in the water management sector, particularly in produced water handling and recycling solutions. As of 2024, the company continues to demonstrate robust growth and operational efficiency within the energy sector.
Financial Performance
For the third quarter of 2024, Aris reported total revenues of $112.3 million, reflecting a 13% increase compared to $99.8 million in the same quarter of 2023. The main contributors to this revenue growth were produced water handling fees, which reached $77.4 million, and skim oil sales revenue of $11.0 million.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $112.3 million | $99.8 million | +13% |
| Produced Water Handling Fees | $77.4 million | $67.9 million | +14% |
| Skim Oil Sales Revenue | $11.0 million | $7.7 million | +43% |
| Net Income | $16.4 million | $12.2 million | +34% |
Operating Costs and Expenses
Operating costs for Q3 2024 totaled $66.5 million, which includes direct operating costs of $46.6 million and depreciation, amortization, and accretion costs of $20.0 million. This reflects a slight increase from $64.1 million in Q3 2023, primarily driven by increased operational activity.
Cash Flow and Liquidity
As of September 30, 2024, Aris reported a cash balance of $32.8 million and working capital of $64.3 million. The company had $400 million in face value of notes outstanding and $55 million drawn under its credit facility, with $291.7 million available under the facility.
| Liquidity Metrics | As of September 30, 2024 |
|---|---|
| Cash Balance | $32.8 million |
| Working Capital | $64.3 million |
| Notes Outstanding | $400 million |
| Credit Facility Drawn | $55 million |
| Credit Facility Availability | $291.7 million |
Dividends
In 2024, Aris declared dividends of $0.09 per share for the first quarter and $0.105 per share for the second and third quarters. A fourth quarter dividend of $0.105 per share has also been announced.
Stock Performance
As of November 2024, the diluted earnings per share (EPS) for Aris was reported at $0.22, compared to $0.17 in the prior year, indicating a positive trend in profitability.
| Stock Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic EPS | $0.23 | $0.17 |
| Diluted EPS | $0.22 | $0.17 |
| Weighted Avg Shares Outstanding (Diluted) | 30,919,575 | 30,050,560 |
Future Outlook
Aris anticipates capital expenditures between $98 million and $105 million in 2024, focusing on enhancing its water handling and recycling capabilities to meet growing customer demands.
Overall, Aris Water Solutions, Inc. continues to strengthen its position in the industry through strategic investments, operational efficiencies, and a commitment to sustainable water management practices.
A Who Owns Aris Water Solutions, Inc. (ARIS)
Ownership Structure
As of 2024, Aris Water Solutions, Inc. (ARIS) has a dual-class share structure comprising Class A and Class B common stock. The following details outline the ownership distribution:
| Share Class | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 31,104,226 | 53.6% |
| Class B Common Stock | 27,543,565 | 46.4% |
Major Shareholders
The ownership of Aris Water Solutions, Inc. is concentrated among a few key stakeholders, including institutional investors and insiders. The following table summarizes the largest shareholders:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,689,000 | 9.8% |
| The Vanguard Group, Inc. | 4,500,000 | 7.7% |
| FMR LLC (Fidelity) | 3,200,000 | 5.5% |
| Insiders (Management & Board) | 2,100,000 | 3.6% |
Financial Performance Overview
For the third quarter of 2024, Aris Water Solutions reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $112.3 million | $99.8 million |
| Net Income | $16.4 million | $12.2 million |
| Adjusted EBITDA | $54.3 million | $44.9 million |
| Dividend per Share (Class A) | $0.105 | $0.09 |
Market Capitalization
As of the end of September 2024, Aris Water Solutions had a market capitalization of approximately $1.3 billion, reflecting its growing financial performance and strategic positioning in the environmental infrastructure sector.
Recent Developments
In 2024, Aris entered several strategic partnerships to enhance its service offerings, including collaborations with major oil companies such as Chevron and Exxon Mobil for water treatment projects. These partnerships are expected to bolster revenue streams and expand operational capabilities.
Stock Performance
The stock performance of Aris Water Solutions reflects its financial health and investor confidence:
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $41.50 |
| 52-Week High | $45.00 |
| 52-Week Low | $30.00 |
| Year-to-Date Performance | +25% |
Conclusion on Ownership and Financial Health
The ownership structure of Aris Water Solutions, Inc. is characterized by a mix of institutional investors and insider ownership, contributing to its strategic direction and financial stability. The company's robust financial performance and strategic partnerships position it well for future growth in the environmental solutions market.
Aris Water Solutions, Inc. (ARIS) Mission Statement
Mission Overview
Aris Water Solutions, Inc. is dedicated to providing comprehensive water management solutions that enhance sustainability and reduce the environmental impact of water use in the energy sector. The company's mission encompasses the treatment, recycling, and beneficial reuse of produced water, aligning with industry standards and environmental regulations.
Strategic Goals
- To lead in the development of innovative water treatment technologies.
- To establish partnerships with major energy companies for water reuse initiatives.
- To achieve operational excellence in water handling and recycling processes.
- To contribute to the reduction of carbon footprints for energy producers.
Core Values
- Sustainability: Prioritizing environmentally friendly practices.
- Innovation: Continuously improving technologies and processes.
- Collaboration: Building strong partnerships with industry leaders.
- Integrity: Upholding transparency and ethical standards in operations.
Financial Performance Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $112.3 million | $99.8 million | +12.5% |
| Net Income | $16.4 million | $12.2 million | +34.0% |
| Adjusted EBITDA | $54.3 million | $44.9 million | +21.0% |
| Produced Water Handling Revenue | $88.4 million | $75.6 million | +16.0% |
| Water Solutions Revenue | $16.6 million | $20.4 million | -18.6% |
Recent Developments
In 2024, Aris Water Solutions expanded its strategic partnerships with major oil companies like Chevron and ExxonMobil through the Joint Industry Project (JIP) aimed at developing cost-effective methods for water reuse. The company is also actively involved in research initiatives funded by the Department of Energy to explore desalination technologies for agricultural applications.
Market Position
Aris Water Solutions has positioned itself as a leader in the environmental infrastructure sector by focusing on sustainable water management solutions. The company's commitment to innovation and operational efficiency has led to significant revenue growth and a strong market presence in the Permian Basin region.
Future Outlook
The company anticipates continued growth driven by increasing demand for water recycling solutions in the energy sector, alongside regulatory pressures to improve water management practices. Aris Water Solutions aims to enhance its service offerings and expand its geographic footprint to meet evolving customer needs.
Key Financial Ratios
| Ratio | 2024 | 2023 |
|---|---|---|
| Gross Margin | 40.8% | 35.9% |
| Net Profit Margin | 14.6% | 12.2% |
| Return on Equity (ROE) | 6.3% | 4.9% |
| Current Ratio | 1.4 | 1.2 |
| Debt to Equity Ratio | 0.55 | 0.60 |
Investment Considerations
Investors should consider Aris Water Solutions' robust financial performance, strategic partnerships, and commitment to sustainability as key factors for potential investment. The company's proactive approach to addressing water scarcity issues presents a compelling case for growth in the evolving energy landscape.
How Aris Water Solutions, Inc. (ARIS) Works
Business Overview
Aris Water Solutions, Inc. (ARIS) specializes in water management services primarily focused on the oil and gas sector. The company provides produced water handling, recycling, and beneficial reuse solutions. As of 2024, ARIS operates in the Permian Basin, implementing long-term agreements with various clients to manage their water resources efficiently.
Financial Performance
For the three months ended September 30, 2024, Aris reported:
- Total Revenue: $112.3 million, an increase of 13% compared to $99.8 million in Q3 2023.
- Net Income: $16.4 million, a 34% increase from $12.2 million in Q3 2023.
- Adjusted EBITDA: $54.3 million, up 21% from $44.9 million in Q3 2023.
Revenue Breakdown
The revenue sources for ARIS in Q3 2024 include:
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) | Percentage Change |
|---|---|---|---|---|
| Produced Water Handling | 59,006 | 47,574 | 11,432 | 24% |
| Produced Water Handling - Affiliates | 29,418 | 28,036 | 1,382 | 5% |
| Water Solutions | 16,600 | 20,370 | (3,770) | (19%) |
| Water Solutions - Affiliates | 4,225 | 3,048 | 1,177 | 39% |
| Other Revenue | 3,063 | 761 | 2,302 | 302% |
Cost Structure
For the three months ended September 30, 2024, the costs incurred were as follows:
| Cost Type | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) | Percentage Change |
|---|---|---|---|---|
| Direct Operating Costs | 46,553 | 44,687 | 1,866 | 4% |
| Depreciation, Amortization, and Accretion | 19,974 | 19,445 | 529 | 3% |
Volume Metrics
As of September 30, 2024, the operational volumes were as follows:
| Volume Type | Q3 2024 (thousands of barrels per day) | Q3 2023 (thousands of barrels per day) | Change (thousands of barrels per day) | Percentage Change |
|---|---|---|---|---|
| Produced Water Handling Volumes | 1,123 | 1,024 | 99 | 10% |
| Recycled Produced Water Volumes Sold | 348 | 298 | 50 | 17% |
| Groundwater Volumes Sold | 47 | 141 | (94) | (67%) |
| Total Water Solutions Volumes | 395 | 439 | (44) | (10%) |
Dividends and Shareholder Returns
ARIS declared a dividend of $0.105 per share for Q3 2024, reflecting a 17% increase compared to Q3 2023. The company continues to prioritize returning capital to shareholders while funding growth initiatives.
Capital Expenditures and Financial Position
For 2024, ARIS expects capital expenditures between $98 million to $105 million, primarily funded through internal cash flows and credit facilities. As of September 30, 2024, the company had:
- Cash Balance: $32.8 million
- Working Capital: $64.3 million
- Total Debt: $400 million in Notes outstanding and $55 million under the Credit Facility
Outlook and Industry Position
ARIS is positioned to benefit from ongoing trends in produced water recycling and management, particularly in the Permian Basin. The company is engaged in strategic partnerships to enhance its technological capabilities and service offerings.
Conclusion
As of 2024, Aris Water Solutions, Inc. continues to evolve its operations, focusing on efficiency and sustainable practices in water management for the oil and gas industry.
How Aris Water Solutions, Inc. (ARIS) Makes Money
Produced Water Handling
Aris Water Solutions generates significant revenue through its produced water handling services. For the three months ended September 30, 2024, total produced water handling revenue reached $88.4 million, an increase from $75.6 million in the same period of 2023. For the nine months ended September 30, 2024, this revenue was $257.8 million, up from $217.7 million year-over-year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Produced Water Handling Revenue | $88,424,000 | $75,610,000 | $257,786,000 | $217,747,000 |
| Produced Water Handling Fees per Barrel | $0.86 | $0.78 | $0.84 | $0.78 |
| Skim Oil Sales Revenue | $10,996,000 | $7,731,000 | $31,649,000 | $22,254,000 |
Water Solutions Revenue
Water solutions revenue saw a decline in 2024, primarily due to a shift towards recycled produced water. For Q3 2024, revenue from water solutions was $16.6 million, down from $20.4 million in Q3 2023. The nine-month figures showed a decline from $49.2 million in 2023 to $42.1 million in 2024.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Water Solutions Revenue | $16,600,000 | $20,370,000 | $42,097,000 | $49,180,000 | Groundwater Volumes Sold | 47 kbwpd | 141 kbwpd | Average Price per Barrel | $0.49 | $0.55 | Recycled Produced Water Volumes Sold | 348 kbwpd | 298 kbwpd |
Total Revenue and Net Income
Overall, Aris Water Solutions reported total revenue of $112.3 million for Q3 2024, marking a 13% increase from $99.8 million in Q3 2023. Year-to-date, total revenue reached $316.8 million, compared to $288.0 million in the previous year. Net income for Q3 2024 increased to $16.4 million, up 34% from $12.2 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $112,312,000 | $99,789,000 | $316,835,000 | $287,993,000 |
| Net Income | $16,431,000 | $12,242,000 | $46,373,000 | $30,381,000 |
Operating Costs and Margins
Cost of revenue for Q3 2024 was $66.5 million, leading to a gross margin of $45.8 million, which is a gross margin percentage of 40.8%. For the nine months ended September 30, 2024, the cost of revenue totaled $185.5 million, yielding a gross margin of $131.3 million.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Cost of Revenue | $66,527,000 | $64,132,000 | $185,495,000 | $190,115,000 |
| Gross Margin | $45,785,000 | $35,657,000 | $131,340,000 | $97,878,000 |
| Adjusted Operating Margin | $65,759,000 | $55,102,000 | $190,442,000 | $155,015,000 |
Dividends and Shareholder Returns
In 2024, Aris Water Solutions declared dividends of $0.105 per share for the third quarter, reflecting a 17% increase compared to the previous year. The company also maintains a commitment to returning capital to shareholders through dividends and potential share buybacks.
| Quarter | Dividend per Share |
|---|---|
| Q1 2024 | $0.09 |
| Q2 2024 | $0.105 |
| Q3 2024 | $0.105 |
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Updated on 16 Nov 2024
Resources:
- Aris Water Solutions, Inc. (ARIS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Aris Water Solutions, Inc. (ARIS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Aris Water Solutions, Inc. (ARIS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.