Aris Water Solutions(US:ARIS)2024-08-07 14:28Financial Performance - Total revenue for June 2024 reached $101,117,000, a 4.9% increase from $96,633,000 in June 2023[22]. - Operating income increased to $23,919,000 in June 2024, compared to $19,961,000 in June 2023, reflecting a 19.6% growth[22]. - Net income for the six months ended June 2024 was $29,942,000, up 64.7% from $18,139,000 in the same period last year[25]. - Basic net income per share rose to $0.18 in June 2024, compared to $0.15 in June 2023, marking a 20% increase[22]. - Total revenue for the second quarter of 2024 reached $101.1 million, reflecting a 5% increase year-over-year[106]. - Net income for the second quarter of 2024 was $13.1 million, a 26% increase compared to the second quarter of 2023[106]. - Total revenue for the six months ended June 30, 2024, reached $204.52 million, a 9% increase from $188.20 million in 2023[147]. - Adjusted EBITDA for the second quarter of 2024 was $50.0 million, an increase of 17% compared to the same period last year[108]. - Adjusted EBITDA for the six months ended June 30, 2024, was $103,103 million, up from $80,728 million in the prior year, reflecting a 27.6% increase[149]. Assets and Liabilities - Total assets increased to $1,387,063 thousand as of June 30, 2024, up from $1,340,481 thousand at December 31, 2023, representing a growth of approximately 3.5%[19]. - Total liabilities increased to $674,883 thousand from $652,588 thousand, marking a rise of 3.4%[20]. - Long-term debt increased to $444,727 thousand, up from $421,792 thousand, which is an increase of 5.4%[20]. - Total current assets increased to $123,788 thousand from $108,550 thousand, representing a growth of 14.0%[19]. - Total stockholders' equity as of June 30, 2024, was $712,180,000, an increase from $687,893,000 at the beginning of the year[29]. - Total Debt as of June 30, 2024, was $446,582,000, compared to $427,255,000 as of December 31, 2023, reflecting an increase of 4.3%[61]. Cash Flow and Investments - Cash balance rose to $11,526 thousand, a significant increase from $5,063 thousand at the end of 2023, reflecting a growth of 128.7%[19]. - Cash flow from operating activities for the six months ended June 30, 2024, was $58,147,000, down from $96,467,000 in June 2023[25]. - Net cash provided by operating activities for the six months ended June 30, 2024, totaled $58.1 million, down from $96.5 million in the same period of 2023[155]. - Net cash used in investing activities for the six months ended June 30, 2024, was $56.8 million, a decrease from $76.2 million in the prior year[156]. Expenses - Research and development expenses increased to $1,128,000 in June 2024 from $650,000 in June 2023, representing a 73.5% increase[22]. - Total cost of revenue decreased to $59,901,000 in June 2024 from $63,532,000 in June 2023, a reduction of 5.2%[22]. - Interest expense increased to $8,813,000 in June 2024 from $7,971,000 in June 2023, reflecting a 10.5% rise[22]. - General and administrative expenses increased by $3.4 million for the three months ended June 30, 2024, driven by higher stock-based compensation and increased headcount[137]. Shareholder Information - The company has a total of 31,104,226 Class A common shares issued as of June 30, 2024, compared to 30,669,932 shares issued at the end of 2023[20]. - The company declared a dividend of $0.09 per share for Q1 2024 and $0.105 per share for Q2 2024 on its Class A common stock[83]. - The company declared a dividend of $0.105 per share for the third quarter of 2024, consistent with previous distributions[154]. Strategic Developments - The company has a strategic agreement with Chevron, ConocoPhillips, and ExxonMobil to develop technologies for treating produced water for beneficial reuse[109]. - A research grant from the Department of Energy is being negotiated to expand studies on produced water treatment for non-consumptive agriculture[111]. - The company signed a letter of intent to construct an iodine extraction facility in the Permian Basin, expected to be operational by the end of 2025[113]. Compliance and Governance - Aris Water Solutions, Inc. reported significant developments in their corporate governance with the filing of the Second Amended and Restated Certificate of Incorporation[175]. - The company has made amendments to its 2021 Equity Incentive Plan, indicating a focus on employee incentives and retention strategies[175]. - Certifications by key executives Amanda M. Brock and Stephan E. Tompsett were filed, ensuring compliance with the Sarbanes-Oxley Act[176]. - The company is actively utilizing Inline XBRL for its financial reporting, enhancing transparency and accessibility of financial data[176].