NYSE$ARIS

Aris Water Solutions Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Aris Water Solutions, Inc. reported strong fourth quarter and full year 2024 results, with increased volumes and profitability, and announced a 33% increase in its quarterly dividend and the acquisition of McNeill Ranch.

Aris Water Solutions, Inc. delivered a remarkable fourth quarter and a great year in 2024, successfully growing both volumes and profitability. The company achieved Adjusted EBITDA at the top end of its increased guidance and is now focused on increasing shareholder returns by raising its dividend to $0.14 per share, representing a 33% increase. Strategic initiatives include the acquisition of McNeill Ranch for future growth and expansion into broader industrial water treatment markets.

  • Produced water volumes grew 7% year-over-year.
  • Set a new quarterly record for recycled water volumes, growing 18% sequentially in Q4 2024.
  • Achieved fourth quarter 2024 net income of $13.8 million and Adjusted EBITDA of $54.5 million.
  • Increased quarterly dividend by 33% to $0.14 per share for Q1 2025 and acquired the 45,000 acre McNeill Ranch.

Headline financials

Total Revenue

$119M

Previous: $104M+13.9%
EPS (adj)

$0.29

Previous: $0.26+11.5%
Total Volumes

1.6M

Previous: 1.6M+3.7%
Produced Water Handling Volumes

1.1M

Previous: 1.1M+1.6%
Recycled Produced Water Volumes Sold

463.0K

Previous: 401.0K+15.5%
Groundwater Volumes Sold

61.0K

Previous: 81.0K-24.7%
Total Water Solutions Volumes

524.0K

Previous: 482.0K+8.7%
Skim Oil Recoveries

1.8K

Previous: 1.4K+29.4%
Skim Oil Recoveries (% of PWH Volumes)

0.2%

Previous: 0.1%+33.3%
PWH Revenue/Barrel

$0.86

Previous: $0.79+8.9%
Water Solutions Revenue/Barrel

$0.54

Previous: $0.54+0.0%
Revenue/Barrel of Total Volumes

$0.75

Previous: $0.71+5.6%
Direct Operating Costs/Barrel

$0.35

Previous: $0.31+12.9%
Gross Margin/Barrel

$0.31

Previous: $0.27+14.8%
Adjusted Operating Margin/Barrel

$0.44

Previous: $0.41+7.3%
Capital Expenditures

-$58.9M

Previous: -$37.9M-55.5%
Net Income

$13.8M

Previous: $13M+6.2%
Operating Income

$26.7M

Previous: $25M+6.7%
Gross Profit

$46.5M

Previous: $39.6M+17.4%
R&D Expense

$433K

Previous: $1.25M-65.4%

Revenue & EPS history

Aris Water Solutions · Revenue · Quarterly

$119M

Q4 2024+13.9%vs Q4 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 full year 2025, Aris Water Solutions, Inc. expects continued strong performance from its core water infrastructure business, with increased produced water and water solutions volumes, sustained margins, and continued capital discipline driving Free Cash Flow growth.

Tailwinds

  • Produced Water Handling volumes are expected to be between 1,150 and 1,210 thousand barrels of water per day.
  • Water Solutions volumes are expected to be between 460 and 520 thousand barrels of water per day.
  • Adjusted Operating Margin per Barrel is expected to be between $0.43 and $0.45.
  • Adjusted EBITDA is expected to be between $215 million and $235 million.
  • Free Cash Flow is expected to be between $75 million and $95 million, an increase of approximately 17% over 2024.

Headwinds

  • The company expects a $1.5 million Adjusted EBITDA impact from customer shut-ins due to weather events in January 2025.
  • Capital Expenditures are projected to be between $85 million and $105 million.
  • Certain elements of forward-looking GAAP metrics are not predictable, making it impractical to forecast.
  • Non-recurring gains or losses, unusual items, income tax benefit or expense, or one-time transaction costs could significantly impact GAAP measures.
  • The variability of excluded items may have a significant and unpredictable impact on 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 Q4 2024

Historical avgQ4 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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