NYSE$ARIS

Aris Water Solutions Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter 2023 results, demonstrating volume growth and margin expansion.

Aris Water Solutions reported an excellent third quarter with significant year-over-year and sequential volume growth, increased margins due to operating cost reduction efforts, and raised full year 2023 Adjusted EBITDA guidance.

  • Total water volumes reached approximately 1.5 million barrels per day, up 7% year-over-year.
  • Produced Water volumes were approximately 1.06 million barrels per day, up 17% year-over-year.
  • Net income increased to $12.2 million, a 526% increase compared to the third quarter of 2022.
  • Adjusted EBITDA increased to $44.9 million, up 14% year-over-year.

Headline financials

Total Revenue

$99.8M

Previous: $90.8M+9.9%
EPS (adj)

$0.23

Previous: $0.23+0.0%
Total Volumes

1.5M

Previous: 1.4M+7.1%
Skim Oil Recoveries

1.1K

Previous: 889+26.5%
Gross Margin/Barrel

$0.26

No prior period
Adjusted Operating Margin/Barrel

$0.40

Previous: $0.36+11.1%
Capital Expenditures

-$53.9M

Previous: $48.7M-210.7%
Free Cash Flow

$2.17M

Previous: -$8.75M+124.8%
Net Income

$12.2M

Previous: $699K+1651.4%
Operating Income

$22.2M

Previous: $9.01M+146.8%
Gross Profit

$35.7M

Previous: $29.9M+19.1%
Cash & Equivalents

$24.2M

Previous: $25.2M-4.0%
Total Assets

$1.35B

Previous: $1.28B+5.8%
R&D Expense

$809K

No prior period
Stock-Based Comp

$3.36M

Previous: $3.6M-6.5%

Revenue & EPS history

Aris Water Solutions · Revenue · Quarterly

$99.8M

Q3 2023+9.9%vs Q3 2022
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 fourth quarter of 2023, Aris Water Solutions anticipates produced water volumes to be up approximately 2–3%, adjusting for the impact of the Martin County asset sale, and water solutions volumes to be down moderately sequentially versus the third quarter due to the pull-forward of activity and potential seasonal year-end slowdowns.

Tailwinds

  • Produced Water Handling volumes between 1,045 and 1,055 thousand barrels of water per day, reflecting the impact of the Martin County asset divestiture.
  • Adjusted Operating Margin per Barrel between $0.39 and $0.41.
  • Skim oil recoveries of 0.10% of inlet produced water handling volumes at an average WTI price of $87 per barrel.
  • Adjusted EBITDA between $41 and $45 million.
  • Capital expenditures between $24 and $34 million, partially offset by $20.1 million cash proceeds from the sale of non-core assets.

Headwinds

  • Water Solutions volumes between 405 and 420 thousand barrels of water per day.
  • Potential seasonal year-end slowdowns.
  • Water solutions volumes to be down moderately sequentially versus the third quarter due to the pull-forward of activity.
  • Impact of the Martin County asset sale.
  • Variability of the excluded items may have a significant, and potentially unpredictable impact on our future GAAP results.

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 Q3 2023

Historical avgQ3 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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