NYSE$ARIS
Aris Water Solutions Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Reported strong results driven by volume growth and improved profitability.
Aris Water Solutions reported a strong second quarter with a 21% increase in total water volumes and improved profitability. Net income increased by 158% compared to the second quarter of 2022, and adjusted EBITDA rose by 14%. The company is raising its full-year Adjusted EBITDA outlook due to solid execution and stronger than anticipated first half volumes.
- Total water volumes of approximately 1.5 million barrels per day, up 21% versus the second quarter of 2022.
- Produced Water volumes of approximately 1,045 thousand barrels per day, up 24% versus the second quarter of 2022.
- Water Solutions volumes of approximately 452 thousand barrels per day, up 13% versus the second quarter of 2022.
- Net income of $10.4 million, up 158% versus the second quarter of 2022.
Headline financials
Revenue & EPS history
Aris Water Solutions · Revenue · Quarterly
$96.6M
Revenue by segment
Aris Water Solutions · $65.3M total across 3 segments · Q2 2023
- Produced Water Handling$49.7M—76.1%
- Water Solutions$14.9M—22.9%
- Other Revenue$645K—1.0%
Forward guidance
Aris Water Solutions provided guidance for the third quarter of 2023, expecting produced water and water solutions volumes to be flat to slightly down sequentially. They anticipate a strong finish to the year with fourth quarter produced water volumes forecasted to exceed those realized in the second quarter. The company is updating its previously provided guidance for the full year of 2023 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.
Tailwinds
- Volumes have grown steadily, exceeding expectations in the first half of the year.
- Anticipate a strong finish to the year as fourth quarter produced water volumes are forecasted to exceed those realized in the second quarter.
- Forecast skim oil recovery at normalized levels of approximately 0.10% of produced water inlet volumes, consistent with the second quarter.
- Expect CPI linked inflation clauses and cost reduction initiatives to further benefit margins in the second half of the year.
- Updating 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.
Headwinds
- Expect produced water and water solutions volumes to be flat to slightly down sequentially in the third quarter, reflecting the timing of completions across acreage.
- Deferred well maintenance costs may partially offset margin benefits in the second half of the year.
- Non-recurrence of margin benefits from minimum volume commitment deficiencies recognized in the second quarter.
- Third quarter completions to be weighted toward the second half of the quarter.
- Third quarter Adjusted EBITDA between $39 and $42 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 Q2 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
| Quarter | Report date | Reaction (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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro