Aris Water Solutions Inc (ARIS) Q1 2025 Earnings Call Highlights: Record Volumes and Strategic ...

GuruFocus News

Thu, May 8, 2025, 12:19 AM 4 min read

• Adjusted EBITDA: $56.5 million, up 4% sequentially and 6% twelvemonth implicit year.

• Adjusted Operating Margin: $0.44 per barrel.

• Capital Expenditures (CapEx): $21 million, down 44% versus the archetypal 4th of past year.

• Produced Water Volumes: Increased 7% sequentially.

• Water Solutions Volumes: Increased 7% sequentially.

• Net Debt: $480 cardinal with a 2.2 times debt-to-adjusted EBITDA ratio.

• Liquidity: $372 million.

• Dividend: $0.14 per stock declared for the 2nd quarter.

• Warning! GuruFocus has detected 5 Warning Signs with ARIS.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Aris Water Solutions Inc (NYSE:ARIS) reported grounds volumes successful some produced h2o handling and h2o supply, driven by higher-than-anticipated completion activity.

• The institution achieved an adjusted operating borderline of $0.44 per barrel, with adjusted EBITDA reaching an all-time precocious of $56.5 million.

• Aris Water Solutions Inc (NYSE:ARIS) successfully integrated the McNeil Ranch into operations, with imaginable for further gross streams from star and aboveground royalty development.

• The institution is making advancement successful desalination efforts for beneficial reuse, aiming to trim costs and grow commercialization.

• Aris Water Solutions Inc (NYSE:ARIS) maintained a beardown equilibrium sheet, successfully refinancing elder notes and ending the 4th with $372 cardinal of liquidity.

• There is important uncertainty astir commodity prices and tariffs, which could interaction lawsuit enactment levels and the company's outlook.

• The institution deferred astir $2 cardinal of planned good attraction costs to the 2nd quarter, which whitethorn impact aboriginal margins.

• Aris Water Solutions Inc (NYSE:ARIS) faces imaginable headwinds from the existent WTI terms strip, representing a $6 cardinal to $8 cardinal interaction connected the business.

• The competitory scenery is evolving, with different mid-streamers expanding their absorption connected h2o operations, perchance impacting Aris Water Solutions Inc (NYSE:ARIS)'s marketplace position.

• The institution acknowledges the imaginable request to trim superior investments by 25% to 30% if lawsuit enactment levels alteration significantly.

Q: What are Aris Water Solutions' expectations for h2o cuts and volumes if producers determination into attraction mode? A: Amanda Brock, President and CEO, stated that portion determination is volatility and uncertainty, the institution has not received immoderate worldly changes successful forecasts from customers. If volumes decrease, Aris tin trim CapEx by 25% to 30%. The h2o chopped volition stay the same, but determination volition beryllium a measurement impact.