Aris Water Solutions, Inc. – Earnings Presentation Fourth Quarter and Full Year Ended 2022 Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to, those regarding our business strategy, our industry, our future profitability and projected guidanc ...

Aris Water Solutions, Inc. (NYSE:ARIS) Q2 2022 Earnings Conference Call August 4, 2022 10:30 AM ET Company Participants David Tuerff - SVP, Finance and IR Amanda Brock - President and CEO Bill Zartler - Founder and Executive Chairman Brenda Schroer - CFO Conference Call Participants Samantha Hoh - Evercore ISI Don Crist - Johnson Rice John Mackay - Goldman Sachs Operator Greetings, and welcome to the Aris Water Solutions Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a l ...

Aris Water Solutions, Inc. (NYSE:ARIS) Q1 2022 Results Conference Call May 10, 2022 9:00 AM ET Company Participants David Tuerff - SVP, Finance and IR Amanda Brock - President and CEO Bill Zartler - Founder and Executive Chairman Brenda Schroer - CFO Conference Call Participants John Mackay - Goldman Sachs Praneeth Satish - Wells Fargo Don Crist - Johnson Rice Operator Greetings, and welcome to the Aris Water Solutions First Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this ...

PART I. FINANCIAL INFORMATION [Cautionary Note Regarding Forward Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward%20Looking%20Statements) This section cautions that forward-looking statements are subject to risks and uncertainties, advising readers not to solely rely on them as future predictions - The forward-looking statements are subject to risks and uncertainties, including but not limited to[15](index=15&type=chunk) - The impact of the conflict between Russia and Ukraine on the global economy and energy industry[15](index=15&type=chunk) - Impacts of cost inflation on operating margins[15](index=15&type=chunk) - Reliance on a limited number of customers and a particular region for substantially all revenues[15](index=15&type=chunk) - Risks related to acquisitions, organic growth, and renewing expiring contracts[15](index=15&type=chunk) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2022, showing a 54% revenue increase but a net loss of $6.6 million due to asset impairment [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.143 billion** as of March 31, 2022, while total liabilities rose to **$549.7 million**, and equity slightly decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $153,526 | $132,388 | | **Total Assets** | **$1,143,121** | **$1,126,693** | | **Total Current Liabilities** | $67,195 | $49,045 | | **Total Liabilities** | **$549,736** | **$524,154** | | **Total Stockholders' Equity** | **$593,385** | **$602,539** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue for Q1 2022 increased 54% to **$71.0 million**, but a **$6.6 million** net loss was incurred due to a **$15.6 million** impairment charge Condensed Consolidated Statement of Operations (in thousands) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | **$70,969** | **$46,189** | | Direct Operating Costs | $26,671 | $20,754 | | Impairment of Long-Lived Assets | $15,597 | $— | | Operating Income | $328 | $5,466 | | **Net (Loss) Income** | **($6,617)** | **$2,815** | | Net Loss Per Share (Class A) | ($0.11) | N/A | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$26.4 million** in Q1 2022, leading to a **$7.7 million** net cash increase for the quarter Condensed Consolidated Statement of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | **$26,390** | **$16,574** | | Net Cash Used in Investing Activities | ($9,810) | ($20,326) | | Net Cash (Used In) Provided by Financing Activities | ($8,856) | $5 | | **Net Increase (Decrease) in Cash** | **$7,724** | **($3,747)** | [Condensed Consolidated Statements of Stockholders'/Members' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%2FMembers'%20Equity) Total stockholders' equity decreased to **$593.4 million** by Q1 2022, primarily due to a **$6.6 million** net loss and **$5.0 million** in dividends Changes in Stockholders' Equity (Q1 2022, in thousands) | Description | Amount (in thousands) | | :--- | :--- | | Balance at January 1, 2022 | $602,539 | | Stock-based Compensation | $2,337 | | Dividends and Distributions | ($5,009) | | Net Loss | ($6,617) | | **Balance at March 31, 2022** | **$593,385** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including new lease standards, and disclose a **$15.6 million** asset impairment, **$77.1 million** TRA liability, and **$400 million** long-term debt - The company adopted new lease accounting standards (ASC Topic 842) on Jan 1, 2022, recognizing right-of-use assets of **$7.9 million** and lease liabilities of **$7.3 million**[48](index=48&type=chunk) - Certain Midland Basin assets were classified as held for sale, resulting in a pre-tax impairment charge of **$15.6 million**[62](index=62&type=chunk) - The Tax Receivable Agreement (TRA) liability totaled **$77.1 million** at March 31, 2022[64](index=64&type=chunk) - Total long-term debt consists of **$400 million** in 7.625% Senior Sustainability-Linked Notes, with no borrowings under the **$200 million** revolving credit facility[67](index=67&type=chunk)[71](index=71&type=chunk) - The company declared a Q1 2022 dividend of **$0.09 per share** on Class A common stock, paid on March 29, 2022[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 performance, noting a 54% revenue increase to **$71.0 million** and a revised **$140-$150 million** capital expenditure forecast [First Quarter 2022 Results](index=28&type=section&id=First%20Quarter%202022%20Results) Q1 2022 highlights include a 45% increase in total water volumes to **1,167 kbwpd**, **$71.0 million** revenue, and a **$6.6 million** net loss Q1 2022 vs. Q1 2021 Highlights | Metric | Q1 2022 | Change vs. Q1 2021 | | :--- | :--- | :--- | | Total water volumes | 1,167 kbwpd | +45% | | Recycled water volumes | 273 kbwpd | +290% | | Total revenue | $71.0 million | +54% | | Net loss | ($6.6 million) | vs. $2.8M income | | Adjusted EBITDA | $35.9 million | +54% | - Expanded its alliance with Texas Pacific Land Corporation (TPL) in the Northern Delaware Basin for produced water services and recycling[111](index=111&type=chunk)[112](index=112&type=chunk) - Announced a new long-term full-cycle water management agreement with Chevron in the Permian Basin[113](index=113&type=chunk) [General Trends and Outlook](index=30&type=section&id=General%20Trends%20and%20Outlook) Higher WTI crude oil prices are boosting customer activity, but rising inflation may impact margins, while seismicity risks are being managed - Higher WTI crude oil prices are expected to continue driving increased customer investment and activity in the Permian Basin[115](index=115&type=chunk) - Rising wage and price inflation could negatively impact operating margins, as contractual fee adjustments may be capped and not fully offset cost increases[117](index=117&type=chunk)[118](index=118&type=chunk) - The company is managing induced seismicity risks in New Mexico and Texas by complying with regulatory protocols and has been able to continue customer service without significant disruption[119](index=119&type=chunk)[120](index=120&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2022 total revenue increased 54% to **$71.0 million** due to higher volumes, but operating income fell to **$0.3 million** due to a **$15.6 million** impairment and higher G&A Operating Metrics (Thousand barrels water per day) | Metric (Thousand barrels water per day) | Q1 2022 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Produced Water Handling Volumes | 803 | 648 | +24% | | Total Water Solutions Volumes | 364 | 158 | +130% | | **Total Volumes** | **1,167** | **806** | **+45%** | - Produced Water Handling revenues increased by **$13.4 million** (62%) due to higher volumes, increased skim oil sales from higher crude prices, and contractual price adjustments[127](index=127&type=chunk) - Water Solutions revenue increased by **$8.4 million**, driven by a **206 kbwpd** increase in volumes from higher recycling activities[127](index=127&type=chunk) - General and administrative (G&A) expenses increased by **$6.0 million** (129%) due to higher compensation, headcount, and costs associated with being a public company[130](index=130&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA increased to **$35.9 million** in Q1 2022, and Adjusted Operating Margin rose to **$44.3 million**, reflecting improved per-barrel profitability Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net (Loss) Income | ($6,617) | $2,815 | | Interest Expense, Net | $7,785 | $2,651 | | Income Tax Benefit | ($840) | $— | | Depreciation, Amortization and Accretion | $16,579 | $14,957 | | Impairment of Long-Lived Assets | $15,597 | $— | | Stock-Based Compensation | $2,337 | $— | | Other Adjustments | $1,064 | $2,967 | | **Adjusted EBITDA** | **$35,905** | **$23,390** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the company had **$67.8 million** cash and **$200.0 million** credit facility availability, with 2022 capital expenditures revised to **$140.0-$150.0 million** - As of March 31, 2022, the company had a cash balance of **$67.8 million**, **$400.0 million** in long-term debt, and **$200.0 million** of availability under its Credit Facility[140](index=140&type=chunk) - The capital expenditure estimate for 2022 has been revised to between **$140.0 million** and **$150.0 million** to support growth from new and existing customer agreements[146](index=146&type=chunk) - A dividend of **$0.09 per share** was paid for Q1 2022, and another was declared for Q2 2022[142](index=142&type=chunk)[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces commodity price risk impacting revenue and interest rate risk on its credit facility, but does not use derivatives for trading - The company is exposed to commodity price risk as fluctuations in crude oil and natural gas prices impact customer activity levels[149](index=149&type=chunk) - A portion of revenue is directly tied to WTI crude oil prices through a major customer contract, where the per-barrel fee increases when WTI exceeds a certain base price[149](index=149&type=chunk) - Interest rate risk exists on the variable-rate Credit Facility, but there were no borrowings outstanding as of March 31, 2022[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2022, the company's disclosure controls and procedures were effective at the reasonable assurance level[152](index=152&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[152](index=152&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company believes no pending legal matters will have a material adverse effect on its financial condition or results of operations - In management's opinion, there are no pending legal matters that would have a material adverse effect on the company's financial condition, cash flows, or results of operations[153](index=153&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes or updates to the risk factors previously disclosed in the 2021 Annual Report on Form 10-K have been reported - There have been no material changes to the risk factors disclosed in the 2021 Annual Report on Form 10-K[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - The company reports "None" for this item[154](index=154&type=chunk) [Item 3. Defaults upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities - The company reports "None" for this item[154](index=154&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is reported as "Not Applicable"[154](index=154&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - The company reports "None" for this item[154](index=154&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with or incorporated by reference into the Quarterly Report on Form 10-Q - A list of exhibits, including corporate governance documents, agreements, certifications, and XBRL data files, are filed with or incorporated by reference into the report[155](index=155&type=chunk)[158](index=158&type=chunk)

Aris Water Solutions, Inc. (NYSE:ARIS) Q4 2021 Earnings Conference Call March 1, 2022 9:00 AM ET Company Participants David Tuerff - SVP, Finance & Investor Relations Bill Zartler - Founder and Executive Chairman Amanda Brock - President and CEO Brenda Schroer - CFO Conference Call Participants John McKay - Goldman Sachs Dan Walk - J.P. Morgan Kyle May - Capital One Operator Greetings. Welcome to the Aris Water Solutions Fourth Quarter 2021 Conference Call. At this time, all participants are in a listen onl ...

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements about future results and strategy, subject to inherent risks and uncertainties - This quarterly report contains forward-looking statements regarding future results, business strategy, and plans. These statements are based on current expectations and are subject to risks and uncertainties[4](index=4&type=chunk) - Key risks that could cause actual results to differ materially include the impact of COVID-19, customer financial health, capital spending by oil and gas companies, regulatory changes, and reliance on a limited number of customers and a specific region (Permian Basin)[4](index=4&type=chunk)[6](index=6&type=chunk) PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited financial statements for Aris Water Solutions, Inc. and Solaris Midstream Holdings, LLC, highlighting revenue growth and a net loss due to an asset abandonment charge [Aris Water Solutions, Inc. Financial Statements](index=8&type=section&id=Aris%20Water%20Solutions%2C%20Inc.%20Financial%20Statements) This section presents the balance sheet for Aris Water Solutions, Inc., a holding company with minimal pre-IPO activity, which became the parent of Solaris Midstream Holdings, LLC post-IPO - Aris Water Solutions, Inc. was incorporated on May 26, 2021, to act as the issuer in the Initial Public Offering (IPO)[13](index=13&type=chunk) - The IPO was completed on October 26, 2021, raising net proceeds of approximately **$246.1 million**, which were contributed to its subsidiary, Solaris Midstream Holdings, LLC[14](index=14&type=chunk)[21](index=21&type=chunk) - As the managing member of Solaris LLC, Aris will consolidate Solaris's financial results starting in the fourth quarter of 2021[15](index=15&type=chunk) [Solaris Midstream Holdings, LLC and Subsidiaries Financial Statements](index=12&type=section&id=Solaris%20Midstream%20Holdings%2C%20LLC%20and%20Subsidiaries%20Financial%20Statements) This section provides condensed consolidated financial statements for Solaris Midstream Holdings, LLC, showing increased revenue, significant financing activities, and a net loss due to an abandoned well charge Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $59,499 | $42,456 | $162,272 | $126,548 | | **Operating (Loss) Income** | $(12,946) | $3,170 | $4,787 | $5,104 | | **Net (Loss) Income** | $(20,743) | $1,062 | $(13,367) | $(275) | Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $95,547 | $66,068 | | **Total Assets** | $1,077,535 | $1,057,805 | | **Long-Term Debt, Net** | $391,583 | $297,000 | | **Total Liabilities** | $456,961 | $349,512 | | **Total Members' Equity** | $620,574 | $633,915 | Condensed Consolidated Statements of Cash Flows Highlights (Nine Months Ended Sep 30, in thousands) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $57,186 | $50,550 | | **Net Cash Used in Investing Activities** | $(62,728) | $(121,835) | | **Net Cash Provided by Financing Activities** | $16,999 | $72,509 | [Notes to Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, significant customer concentration, a **$27.4 million** abandoned well charge, and a major debt restructuring, alongside other financial disclosures - In Q3 2021, the company recognized a **$27.4 million** charge for abandoning a saltwater disposal asset in Eddy County, New Mexico, which was reflected in 'Abandoned Well Costs'[83](index=83&type=chunk)[149](index=149&type=chunk) - In April 2021, the company issued **$400 million** of 7.625% Senior Sustainability-Linked Notes due 2026. Proceeds were used to repay **$297 million** under its credit facility and redeem **$74.4 million** of preferred units[92](index=92&type=chunk) Significant Customer Revenue Concentration | Customer | Q3 2021 | Nine Months 2021 | | :--- | :--- | :--- | | **ConocoPhillips** | 46% | 49% | | **Oxy USA** | <10% | 10% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2021 performance, highlighting record water volumes, strong revenue growth, a net loss due to a one-time charge, improved operating margins, and details of the recent IPO and capital plans Q3 2021 Key Metrics | Metric | Q3 2021 | Change vs Q3 2020 | | :--- | :--- | :--- | | **Total Water Volumes** | 960,000 bbl/day | +42% | | **Consolidated Revenue** | $59.5 million | +40% | | **Consolidated Net Loss** | $(20.7) million | N/A (vs $1.1M income) | | **Consolidated Adj. EBITDA** | $30.8 million | +56% | - The Q3 2021 net loss of **$20.7 million** includes a non-cash charge of **$27.4 million** associated with the abandonment of a saltwater disposal well[123](index=123&type=chunk)[149](index=149&type=chunk) - Direct operating costs per barrel improved to **$0.27** in Q3 2021 from **$0.36** in Q3 2020, primarily due to the elimination of temporary power generation expenses and increased recycled water volumes, which have lower operating costs[146](index=146&type=chunk) - For 2021, the company expects capital expenditures to range from **$78 million** to **$83 million**, funded primarily through cash flow from operations and borrowing capacity[163](index=163&type=chunk)[164](index=164&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks include indirect exposure to commodity price fluctuations affecting customer activity and interest rate risk from its Credit Facility, currently mitigated by no outstanding borrowings - The company is indirectly exposed to fluctuations in crude oil and natural gas prices, which impact the activity levels of its E&P customers[185](index=185&type=chunk) - Interest rate risk is present due to the variable-rate Credit Facility, but the company had no borrowings under this facility as of the report date[186](index=186&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2021, having remediated a previously identified material weakness related to intangible asset amortization - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of September 30, 2021[188](index=188&type=chunk) - A previously disclosed material weakness related to the misapplication of accounting principles for intangible asset amortization was remediated as of September 30, 2021[190](index=190&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending legal proceedings expected to have a material adverse effect on its financial condition or operations - Management states there are no pending litigation, disputes, or claims that would have a material adverse effect on the company's financial condition[191](index=191&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the company's Prospectus for a comprehensive discussion of potential risks that could materially affect the business - The report refers to the 'Risk Factors' section in the company's Prospectus for a detailed description of potential risks[192](index=192&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the use of proceeds from the October 2021 IPO, with **$246.1 million** net proceeds primarily distributed to existing owners and a portion retained for corporate purposes - The IPO, which closed on October 26, 2021, generated net proceeds of **$246.1 million**[192](index=192&type=chunk) - Approximately **$213.3 million** of the IPO proceeds were distributed to existing owners, while the company retained **$32.8 million** for general corporate purposes[192](index=192&type=chunk) [Other Items and Exhibits](index=68&type=section&id=Other%20Items%20and%20Exhibits) This section confirms no defaults, mine safety disclosures, or other material information, and lists all exhibits filed with the Form 10-Q, including corporate governance and IPO-related documents - The company reported 'None' for Item 3 (Defaults upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information)[192](index=192&type=chunk)[193](index=193&type=chunk) - Item 6 lists all exhibits filed with the report, including the Amended and Restated Certificate of Incorporation, Tax Receivable Agreement, and the 2021 Equity Incentive Plan[195](index=195&type=chunk)[196](index=196&type=chunk)[199](index=199&type=chunk) [Signatures](index=75&type=section&id=Signatures) This section confirms the report was duly signed on November 10, 2021, by the President & CEO, CFO, and Chief Accounting Officer - The report was duly signed on November 10, 2021, by the President & CEO (Amanda M. Brock), CFO (Brenda R. Schroer), and Chief Accounting Officer (Dustin A. Hatley)[202](index=202&type=chunk)