Part I [Business and Properties](index=8&type=section&id=Items%201.%20and%202.%20Business%20and%20Properties) Aris Water Solutions provides full-cycle water handling and recycling for Permian Basin energy operators, emphasizing ESG and supported by extensive infrastructure - The company operates as a leading environmental infrastructure and solutions firm, focusing on full-cycle water handling and recycling for energy companies in the Permian Basin[22](index=22&type=chunk)[23](index=23&type=chunk) - Aris's business operates as a single segment with two main revenue streams: Produced Water Handling and Water Solutions[35](index=35&type=chunk)[36](index=36&type=chunk) Key Operating Metrics (in kbwpd) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Produced Water Handling Volumes** | 1,042 | 873 | 707 | | **Water Solutions Volumes** | 450 | 411 | 240 | | **Total Water Volumes** | 1,492 | 1,284 | 947 | Asset Overview as of December 31, 2023 | Asset Type | Installed | Permitted, Not Installed | | :--- | :--- | :--- | | **Pipelines (Miles)** | 745 | 220 | | **Water Handling Facilities (Number)** | 66 | 35 | | **Water Handling Capacity (kbwpd)** | 1,750 | 1,180 | | **Water Recycling Facilities (Number)** | 23 | 21 | | **Water Recycling Capacity (kbwpd)** | 1,500 | 1,300 | - For FY2023, affiliates of ConocoPhillips, Chevron, and Mewbourne Oil represented approximately **62% of total revenue**[49](index=49&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from oil and gas industry volatility, customer concentration, regulatory changes, and financial obligations - Business operations are heavily dependent on volatile oil and gas capital spending in the Permian Basin, influenced by commodity prices[120](index=120&type=chunk) - For FY2023, the three largest customers accounted for approximately **62% of revenues**, with ConocoPhillips alone representing about **33%**[144](index=144&type=chunk)[145](index=145&type=chunk) - Regulatory initiatives on seismic activity from TRC and NMOCD could restrict produced water handling, impacting operations and financials[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - As a holding company, Aris Inc. relies on distributions from Solaris LLC to cover taxes, expenses, and Tax Receivable Agreement payments[209](index=209&type=chunk) - The Tax Receivable Agreement requires Aris Inc. to pay **85% of net cash tax savings** to TRA Holders, with substantial and potentially accelerated payments upon change of control[236](index=236&type=chunk)[237](index=237&type=chunk)[240](index=240&type=chunk) [Unresolved Staff Comments](index=82&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[263](index=263&type=chunk) [Cybersecurity](index=83&type=section&id=Item%201C.%20Cybersecurity) The company maintains a NIST-aligned cybersecurity program with Board oversight, management committee, and no material incidents reported - The Board of Directors, via its Audit Committee, oversees enterprise risk management, including cybersecurity and data privacy[266](index=266&type=chunk) - A management-level Cybersecurity Committee, led by the VP of Information Technology, implements and monitors cybersecurity practices[267](index=267&type=chunk) - The company has not experienced any material cybersecurity incidents and is unaware of material cybersecurity threats impacting its business or financials[270](index=270&type=chunk) [Legal Proceedings](index=84&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any pending legal proceedings with a material adverse effect on its financials - Management confirms no pending legal proceedings are expected to have a material adverse effect on the company[271](index=271&type=chunk) [Mine Safety Disclosures](index=84&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[271](index=271&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=84&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Aris Class A common stock trades on NYSE, with quarterly dividends subject to Board discretion and debt covenant restrictions - The company's Class A common stock is listed on the NYSE under the ticker symbol **ARIS**[272](index=272&type=chunk) - For each quarter of 2023, the Board declared a dividend of **$0.09 per share** on Class A common stock, with a similar dividend for Q1 2024[275](index=275&type=chunk)[343](index=343&type=chunk) - Dividend payments are restricted by Credit Agreement and Notes indenture covenants based on leverage and fixed charge coverage ratios[277](index=277&type=chunk)[278](index=278&type=chunk)[280](index=280&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=88&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Aris reported significant FY2023 growth with total water volumes up **16%** and revenue up **22%**, driven by higher volumes and strong liquidity Financial and Operating Highlights (FY 2023 vs. FY 2022) | Metric | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Water Volumes (kbwpd) | 1,492 | 1,284 | 16% | | Total Revenue | $392.1M | $321.0M | 22% | | Net Income | $43.4M | $4.8M | 805% | | Adjusted EBITDA (Non-GAAP) | $175.0M | $149.0M | 17% | - Total revenue increased primarily due to a **19% rise in Produced Water Handling volumes** and a **9% rise in Water Solutions volumes**, alongside higher recycled water prices[319](index=319&type=chunk)[325](index=325&type=chunk)[326](index=326&type=chunk) - Direct operating costs increased **28% to $178.0 million** in 2023, driven by higher volumes, labor, maintenance, electricity, and workover expenses[316](index=316&type=chunk)[324](index=324&type=chunk) - As of December 31, 2023, the company held **$5.1 million in cash**, **$426.0 million in total long-term debt**, and **$323.9 million** available under its Credit Facility[342](index=342&type=chunk) - Capital expenditures for 2024 are forecasted between **$85.0 million and $105.0 million**, based on contracted customer development outlooks[351](index=351&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=119&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from commodity price fluctuations, impacting customer activity and direct contract rates, and interest rate changes on its variable-rate Credit Facility - Revenue is indirectly exposed to crude oil and natural gas price volatility impacting customer activity, with direct exposure from a WTI-tied contract and skim oil sales[391](index=391&type=chunk)[392](index=392&type=chunk) - The company faces interest rate risk on its variable-rate Credit Facility; a hypothetical **1% increase** would raise annual interest expense by approximately **$0.3 million** on the **$26.0 million** outstanding balance[392](index=392&type=chunk) [Financial Statements and Supplementary Data](index=120&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) FY2023 consolidated financial statements show total assets of **$1.34 billion**, total revenues of **$392.1 million**, and net income of **$43.4 million**, with strong operating cash flow Consolidated Balance Sheet Data (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $108,550 | $138,993 | | Total Assets | $1,340,481 | $1,303,366 | | Total Current Liabilities | $96,698 | $91,414 | | Total Liabilities | $652,588 | $646,279 | | Total Stockholders' Equity | $687,893 | $657,087 | Consolidated Statement of Operations Data (in thousands) | Account | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Total Revenue | $392,118 | $321,001 | | Gross Margin (Revenue - Cost of Revenue) | $137,513 | $113,997 | | Operating Income | $83,866 | $34,506 | | Net Income | $43,412 | $4,797 | | Net Income Attributable to Aris Inc. | $18,888 | $1,700 | Consolidated Statement of Cash Flows Data (in thousands) | Account | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $183,873 | $70,213 | | Net Cash Used in Investing Activities | ($149,582) | ($136,925) | | Net Cash (Used in) Provided by Financing Activities | ($30,350) | $7,779 | | Net Increase (Decrease) in Cash | $3,941 | ($58,933) | [Controls and Procedures](index=168&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes - The principal executive and financial officers concluded disclosure controls and procedures were effective as of December 31, 2023[579](index=579&type=chunk) - Management assessed and concluded internal control over financial reporting was effective as of December 31, 2023, based on the COSO framework[580](index=580&type=chunk) - No material changes to internal control over financial reporting occurred during the last fiscal quarter[582](index=582&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=170&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[585](index=585&type=chunk) [Executive Compensation](index=170&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[586](index=586&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=170&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[586](index=586&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=170&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[586](index=586&type=chunk) [Principal Accountant Fees and Services](index=170&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement - Required information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Shareholders[587](index=587&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=170&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the Form 10-K, with most schedules omitted as not applicable - This section lists financial statements and exhibits filed with the Form 10-K; all required schedules were omitted as not applicable[588](index=588&type=chunk) [Form 10-K Summary](index=172&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[589](index=589&type=chunk)

Exhibit 99.1 Source: Aris Water Solutions, Inc. February 28, 2024 Aris Water Solutions, Inc. Reports Fourth Quarter and Full Year 2023 Results and Provides 2024 Outlook HOUSTON, Texas, February 28, 2024 – Aris Water Solutions, Inc. (NYSE: ARIS) ("Aris," "Aris Water" or the "Company") today announced financial and operating results for the fourth quarter and year ended December 31, 2023. FOURTH QUARTER AND FULL YEAR 2023 HIGHLIGHTS ● Increased total water volumes 4% quarter-over-quarter and 16% annually ● Gr ...

RICHMOND, Va.--(BUSINESS WIRE)--Jacinto J. Hernandez, a director of Altria Group, Inc. (“Altria”), retired from service on our Board of Directors effective February 23, 2024. Mr. Hernandez will continue to serve Altria as a strategic advisor under a 5-year advisory services agreement. "We thank Jacinto for his service on our Board," said Kathryn McQuade, Altria’s independent Board Chair. “Our Board benefited from his industry experience and financial expertise.” “I joined Altria’s Board because I am ins ...

With 2024 now underway, many investors are looking ahead to opportunities for market-beating returns in the coming year. I’m especially excited about the prospects of finding hidden gems primed for explosive growth at reasonable valuations. Buying early into the right growth stories can lead to doubling your money or more within a relatively short timeframe.After weathering a turbulent couple of post-COVID years in the broader market, I believe we could see another standout year for growth stocks in 2024 as ...

The market expects Aris Water Solutions, Inc. (ARIS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 28, 2024, might help the stock move higher if th ...

Bim Investment Thesis Aris Water Solutions, Inc. (NYSE:ARIS) is a water handling and recycling solutions provider headquartered in Houston, Texas. In this thesis, I will analyze its third-quarter results along with its future growth prospects. I will also be analyzing its valuation at the current price level and the upside potential in its stock price. It experienced a significant increase in revenues and an improvement in operating and net profit margins. The organic growth in the revenues and a favo ...

Q3 2023 Performance Highlights - Total water volumes reached approximately 1.5 million barrels per day, a 7% increase compared to Q3 2022[18] - Produced water volumes averaged around 1.06 million barrels per day, up 17% from Q3 2022[18] - Water Solutions volumes were approximately 460 thousand barrels per day, a 10% decrease compared to Q3 2022[18] - Revenue totaled $99.8 million, a 10% increase compared to Q3 2022[18] - Adjusted EBITDA was $44.9 million, a 14% increase[18] - Adjusted Operating Margin per Barrel was $0.40, an 11% increase compared to Q3 2022[18] - Capital expenditures amounted to $39.6 million, a 43% decrease compared to Q3 2022[18] Updated Q4 2023 Outlook - Adjusted EBITDA is forecasted at the high end of the original guidance range of $166.0 - $170.0 million for the year[22] - Produced water handling volumes are expected to increase by approximately 2-3%, excluding the impact of non-core asset divestiture (~50 kbwpd of volumes divested)[21] - Adjusted Operating Margin improvements from Q3 2023 are expected to be sustained going forward[21] - Capital expenditures are on track to meet the forecast of $160.0 - $170.0 million for the year[21,22] Financial Position - Q3 2023 leverage was approximately 2.53X, compared to a leverage target range of 2.50X - 3.50X[24]

Start Time: 09:00 January 1, 0000 9:32 AM ET Aris Water Solutions, Inc. (NYSE:ARIS) Q3 2023 Earnings Conference Call November 02, 2023, 09:00 AM ET Company Participants Bill Zartler - Founder and Executive Chairman Amanda Brock - President and CEO Stephan Tompsett - CFO David Tuerff - SVP of Finance and IR Conference Call Participants John Mackay - Goldman Sachs Wade Suki - Capital One Jeffrey Campbell - Seaport Research Partners Selman Akyol - Stifel Praneeth Satish - Wells Fargo Operator Good day, ladies ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Aris Water Solutions, Inc. – Earnings Presentation Second Quarter, 2023 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 guidance for 2023, the var ...