NYSE$ARIS

Aris Water Solutions Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong second quarter results driven by resilient produced water volumes and operating margins.

Aris Water Solutions reported a strong second quarter with a 26% increase in net income and a 17% increase in Adjusted EBITDA compared to the same quarter last year. The company also increased its full year Adjusted EBITDA guidance.

  • Produced water volumes increased by 5% and recycled water volumes increased by 6% compared to Q2 2023.
  • Net income reached $13.1 million, up 26% from the second quarter of 2023.
  • Adjusted EBITDA was $50.0 million, a 17% increase compared to the second quarter of 2023.
  • The company is increasing 2024 Adjusted EBITDA guidance to $195 to $205 million.

Headline financials

Total Revenue

$101M

Previous: $96.6M+4.6%
EPS (adj)

$0.29

Previous: $0.22+31.8%
Total Volumes

1.5M

Previous: 1.5M-3.0%
Produced Water Handling Volumes

1.1M

No prior period
Recycled Produced Water Volumes Sold

314.0K

No prior period
Groundwater Volumes Sold

48.0K

No prior period
Total Water Solutions Volumes

362.0K

No prior period
Skim Oil Recoveries

1.5K

No prior period
Skim Oil Recoveries (% of PWH Volumes)

0.1%

No prior period
PWH Revenue/Barrel

$0.84

No prior period
Water Solutions Revenue/Barrel

$0.52

No prior period
Revenue/Barrel of Total Volumes

$0.76

No prior period
Direct Operating Costs/Barrel

$0.30

No prior period
Gross Margin/Barrel

$0.32

No prior period
Adjusted Operating Margin/Barrel

$0.46

No prior period
Capital Expenditures

-$37.3M

Previous: $42.7M-187.4%
Net Income

$13.1M

Previous: $10.4M+25.7%
Operating Income

$23.9M

Previous: $20M+19.8%
Gross Profit

$41.2M

Previous: $33.1M+24.5%
R&D Expense

$1.13M

No prior period
Stock-Based Comp

$4.69M

Previous: $3.12M+50.6%

Revenue & EPS history

Aris Water Solutions · Revenue · Quarterly

$101M

Q2 2024+4.6%vs Q2 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

For the third quarter of 2024, the Company expects Produced Water Handling volumes between 1,060 and 1,090 thousand barrels of water per day, Water Solutions volumes between 410 and 440 thousand barrels of water per day , Adjusted Operating Margin per Barrel between $0.43 and $0.45, Skim oil recoveries of approximately 1,300 barrels per day, Adjusted EBITDA between $48 and $52 million and no change to Aris’s full year Capital Expenditure outlook of $85 to $105 million.

Tailwinds

  • Produced Water Handling volumes between 1,060 and 1,090 thousand barrels of water per day
  • Water Solutions volumes between 410 and 440 thousand barrels of water per day
  • Adjusted Operating Margin per Barrel between $0.43 and $0.45
  • Skim oil recoveries of approximately 1,300 barrels per day
  • Adjusted EBITDA between $48 and $52 million

Headwinds

  • No change to Aris’s full year Capital Expenditure outlook of $85 to $105 million
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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 2024

Historical avgQ2 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
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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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