NYSE$ARIS

Aris Water Solutions Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Aris Water Solutions reported strong Q1 2024 results with increased produced water volumes, recycled water volumes, and net income.

Aris Water Solutions reported a strong start to 2024, with a 6% sequential increase in produced water volumes and a 19% increase compared to Q1 2023. The company's net income rose by 29% sequentially to $16.8 million, and Adjusted EBITDA reached $53.1 million, a 39% increase year-over-year. Aris also announced a 17% increase in its quarterly dividend, reflecting confidence in its long-term outlook.

  • Produced water volumes increased 6% quarter-over-quarter and 19% versus the first quarter of 2023.
  • Recycled produced water volumes grew 31% versus the first quarter of 2023.
  • Net income for the first quarter of 2024 was $16.8 million, a 29% increase sequentially.
  • Adjusted EBITDA was $53.1 million for the first quarter, up 8% sequentially and up 39% versus the first quarter of 2023.

Headline financials

Total Revenue

$103M

Previous: $91.6M+12.9%
EPS (adj)

$0.34

Previous: $0.17+100.0%
Total Volumes

1.5M

Previous: 1.4M+8.8%
Produced Water Handling Volumes

1.2M

No prior period
Recycled Produced Water Volumes Sold

337.0K

Previous: 258.0K+30.6%
Groundwater Volumes Sold

27.0K

No prior period
Total Water Solutions Volumes

364.0K

No prior period
Skim Oil Recoveries

1.7K

Previous: 1.3K+28.3%
Skim Oil Recoveries (% of PWH Volumes)

0.1%

No prior period
PWH Revenue/Barrel

$0.81

No prior period
Water Solutions Revenue/Barrel

$0.51

No prior period
Revenue/Barrel of Total Volumes

$0.74

No prior period
Direct Operating Costs/Barrel

$0.29

No prior period
Gross Margin/Barrel

$0.32

Previous: $0.24+33.3%
Adjusted Operating Margin/Barrel

$0.46

Previous: $0.39+17.9%
Capital Expenditures

-$19.6M

Previous: $35.3M-155.4%
Net Income

$16.8M

Previous: $7.71M+118.3%
Operating Income

$27.9M

Previous: $16.7M+66.9%
Gross Profit

$44.3M

Previous: $29.1M+52.3%
R&D Expense

$1.07M

No prior period
Stock-Based Comp

$3.52M

Previous: $2.47M+42.7%

Revenue & EPS history

Aris Water Solutions · Revenue · Quarterly

$103M

Q1 2024+12.9%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Aris Water Solutions · $65.3M total across 3 segments · Q2 2023

  • Produced Water Handling
    $49.7M
  • Water Solutions
    $14.9M
  • Other Revenue
    $645K

Forward guidance

Aris Water Solutions provided guidance for the second quarter of 2024, expecting produced water handling volumes between 1,015 and 1,045 thousand barrels per day, water solutions volumes between 400 and 430 thousand barrels per day, adjusted operating margin per barrel between $0.42 and $0.44, skim oil recoveries of approximately 1,200 barrels per day, adjusted EBITDA between $44 and $48 million, and capital expenditures between $38 and $43 million.

Tailwinds

  • Produced Water Handling volumes between 1,015 and 1,045 thousand barrels of water per day
  • Water Solutions volumes between 400 and 430 thousand barrels of water per day
  • Adjusted Operating Margin per Barrel between $0.42 and $0.44
  • Skim oil recoveries of approximately 1,200 barrels per day
  • Capital Expenditures between $38 and $43 million, consistent with Aris’s first-half weighted capital plan; no change to Aris’s full year capital expenditure outlook of $85 to $105 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 2024

Historical avgQ1 2024

+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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