NYSE$ARIS

Aris Water Solutions Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial and operating results for the first quarter ended March 31, 2023.

Aris Water Solutions reported a net income of $7.7 million for Q1 2023, a significant increase from the net loss of $6.6 million in Q1 2022. The company also saw an increase in total water volumes, produced water volumes, and water solutions volumes.

  • Total water volumes of approximately 1.4 million barrels per day, up 18% versus Q1 2022.
  • Produced Water volumes of approximately 971 thousand barrels per day, up 21% versus Q1 2022.
  • Water Solutions volumes of approximately 405 thousand barrels per day, up 11% versus Q1 2022.
  • Net income of $7.7 million, up from a net loss of $6.6 million in Q1 2022.

Headline financials

Total Revenue

$91.6M

Previous: $71M+29.0%
EPS (adj)

$0.17

Previous: $0.46-63.0%
Total Volumes

1.4M

Previous: 1.2M+16.7%
Recycled Produced Water Volumes Sold

258.0K

Previous: 273.0K-5.5%
Skim Oil Recoveries

1.3K

Previous: 834+61.6%
Gross Margin/Barrel

$0.24

Previous: $0.26-7.7%
Adjusted Operating Margin/Barrel

$0.39

Previous: $0.42-7.1%
Capital Expenditures

$35.3M

Previous: $9.81M+260.0%
Free Cash Flow

$24.4M

Previous: $16.6M+46.9%
Net Income

$7.71M

Previous: -$2.22M+446.9%
Operating Income

$16.7M

Previous: $328K+4990.2%
Gross Profit

$29.1M

Previous: $27.7M+5.1%
Cash & Equivalents

$25.5M

Previous: $67.8M-62.4%
Total Assets

$1.33B

Previous: $1.14B+16.2%
Stock-Based Comp

$2.47M

Previous: $2.34M+5.6%

Revenue & EPS history

Aris Water Solutions · Revenue · Quarterly

$91.6M

Q1 2023+29%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Aris Water Solutions · $60.4M total across 3 segments · Q1 2023

  • Produced Water Handling
    $46.1M
  • Water Solutions
    $13.9M
  • Other Revenue
    $465K

Forward guidance

In the second quarter of 2023, Aris Water Solutions anticipates continued growth in produced water volumes, a slight decrease in water solutions volumes, skim oil recovery levels to normalize, and increased well maintenance costs.

Tailwinds

  • Produced water volumes are expected to continue to grow sequentially versus the first quarter.
  • Changes in customer mix and CPI-linked contract escalators are expected to drive higher produced water revenue as compared to the first quarter.
  • Skim oil recovery levels are forecasted to normalize at approximately 0.1% of produced water inlet volumes, higher than a year ago.
  • Company remains very focused on enhancing profitability through continued execution of ongoing optimization efforts.
  • Expect to see the impact of these efforts in the second half of the year.

Headwinds

  • Water Solutions volumes are expected to be down slightly as some contracted volumes scheduled for the second quarter pulled forward into the first quarter.
  • Skim oil recovery levels are forecasted to normalize at approximately 0.1% of produced water inlet volumes, below the first quarter results.
  • Anticipate increased well maintenance costs in the second quarter relative to the first quarter.
  • Adjusted Operating Margins between $0.36 and $0.38 per barrel of Total Volumes
  • Adjusted EBITDA between $35.0 and $37.0 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+3.3%

Avg return

Earnings day

-1.3%

Avg return

5 days after

+15.1%

Avg return

30 days after

58%

14 / 24 earnings

Positive

+32.6%

Q1 2023

Best reaction

-22.8%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025-5.9%-3.4%+38.7%
Q2 2025+1.7%-3.9%+234.7%
Q1 2025-21.8%-5.9%+6.2%
Q4 2024+20.7%-1.8%+18.5%
Q3 2024+28.8%-3.5%-17.5%
Q2 2024-0.4%-0.8%+13.8%
Q1 2024+13.6%+3.6%+2.9%
Q4 2023+22.1%+5.4%+28.6%
Q3 2023+8.9%+4.8%+28.8%
Q2 2023+0.6%-4.1%-6.6%
Q1 2023+32.6%-16.8%-20.4%
Q4 2022-18.7%-7.2%+10.2%
Q3 2022-5.0%+12.5%+8.9%
Q2 2022-22.8%+0.5%-9.2%
Q1 2022-2.7%-11.8%-16.3%
Q4 2021+19.0%+1.3%+4.3%
Q4 2020+0.5%+3.5%-21.7%
Q3 2020+0.1%-1.1%-5.5%
Q2 2020+5.4%+5.0%+7.6%
Q3 2017-1.2%-1.2%-1.0%
Q2 2017+0.0%-4.3%+0.0%
Q1 2017-5.5%-13.7%+9.6%
Q4 2016+4.9%+11.1%-7.4%
Q3 2016+4.3%+0.0%+55.7%
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q3 2014
Q4 2014
Q1 2014
Q2 2014
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010
Q4 2009

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