Financial Data and Key Metrics Changes - In 2022, the company achieved over 20% growth in both volume and adjusted EBITDA compared to 2021 [7] - Adjusted EBITDA for Q4 2022 was $36.1 million, up 1% year-over-year but down 9% sequentially from Q3 2022 [17] - The company invested approximately $147 million in capital during the year, aligning with expectations [17] Business Line Data and Key Metrics Changes - Full year volumes increased by 36% and adjusted EBITDA rose by 24% year-over-year [10] - Recycled produced water volumes grew nearly 2.5 times compared to 2021, with a significant increase in active facilities [11] - Operating costs for downhole disposal stabilized in Q4, but lower skim oil revenue impacted operating margins [10] Market Data and Key Metrics Changes - The company anticipates produced water volumes to grow by 15% to 20% overall in 2023, despite a slight decline in early 2023 [12] - The forecast for produced water rates is expected to increase by approximately $0.02 to $0.04 per barrel on average in 2023 [18] - The company expects lower completion activity from customers in 2023, impacting overall volumes [19] Company Strategy and Development Direction - The company aims to be a natural consolidator in the fragmented oil field water infrastructure industry and is focused on strategic fit and financial discipline in M&A [9] - There is a strong emphasis on operational efficiencies and capital discipline, with a focus on realizing further operational efficiencies [9][16] - The company is exploring beneficial reuse of produced water and has initiated collaborative efforts with major industry players [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from inflation, severe weather, and changes in customer activity impacting Q4 performance [10] - The outlook for 2023 includes expectations for improved operating margins in the second half of the year due to cost optimization efforts and CPI-linked revenue increases [22] - Management remains optimistic about growth opportunities and plans to become free cash flow positive by early 2024 [33] Other Important Information - The company exceeded its sustainability performance target for 2022, with recycled produced water exceeding 70% of total water volume sold [15] - The company has no debt maturities until 2025 and ended the year with a debt to adjusted EBITDA ratio of 3.0 [21] - A dividend of $0.09 per share was announced, to be paid on March 29, 2023 [21] Q&A Session Summary Question: Can you discuss milestones for margin improvements and comfort with guidance? - Management indicated that improvements in operating margins are expected in the second half of the year, with specific focus on addressing rental equipment and electrical costs [27][28] Question: What is the outlook for completion activity and its impact on volumes? - Management noted that completion activity is expected to be lower, influenced by one large customer reducing their forecast, but acknowledged that this is a short cycle business [30] Question: Can you elaborate on the selective growth strategy and free cash flow outlook? - Management confirmed a more discerning approach to growth projects, emphasizing the importance of achieving certain return thresholds and indicated that early 2024 could be an inflection point for free cash flow [32][33] Question: What is the profitability difference between interruptible volumes and guidance assumptions? - Management stated that interruptible volumes are about $0.10 per barrel more profitable and highlighted the potential for growth in this area [55] Question: Can you provide an update on the integration of Delaware Energy Services? - Management expressed confidence in completing the integration by the second quarter, primarily dependent on supply chain issues [54] Question: How is the company approaching M&A opportunities? - Management indicated a disciplined approach to M&A, focusing on strategic fit and valuation alignment in the current market [34][36]

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 ...