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Aris Water Solutions(ARIS) - 2024 Q1 - Quarterly Results
ARISAris Water Solutions(ARIS)2024-05-07 20:20

Financial Performance - Net income for Q1 2024 was 16.8million,a2916.8 million, a 29% increase sequentially and significantly higher than 7.7 million in Q1 2023[8] - Adjusted EBITDA for Q1 2024 was 53.1million,up3953.1 million, up 39% year-over-year and 8% sequentially[8] - Total revenue for the three months ended March 31, 2024, was 103,406,000, a 12.5% increase from 91,571,000inthesameperiodof2023[19]−Operatingincomeincreasedto91,571,000 in the same period of 2023[19] - Operating income increased to 27,858,000, up from 16,696,000,markinga67.016,696,000, marking a 67.0% growth year-over-year[19] - For the quarter ended March 31, 2024, the Company reported a net income of 16,830,000, an increase of 118% compared to 7,708,000forthesameperiodin2023[30]−AdjustedEBITDAforthesamequarterwas7,708,000 for the same period in 2023[30] - Adjusted EBITDA for the same quarter was 53,108,000, up from 38,106,000year−over−year,reflectingagrowthof39.438,106,000 year-over-year, reflecting a growth of 39.4%[30] - Total revenue for the quarter was 103,406,000, compared to 91,571,000intheprioryear,representingayear−over−yearincreaseof12.991,571,000 in the prior year, representing a year-over-year increase of 12.9%[32] Production and Operations - Produced water volumes increased by 6% quarter-over-quarter and 19% year-over-year, reaching 1,159 thousand barrels per day[2] - Recycled produced water volumes grew by 31% compared to the first quarter of 2023, totaling 337 thousand barrels per day[2] - The Company handled produced water volumes of 1,159,000 barrels per day in March 2024, a 19.3% increase from 971,000 barrels per day in March 2023[27] - The Company sold 337,000 barrels of recycled produced water in March 2024, compared to 258,000 barrels in March 2023, reflecting a growth of 30.6%[27] Margins and Profitability - Gross Margin per Barrel improved by 19% sequentially to 0.32 per barrel, while Adjusted Operating Margin per Barrel increased by 12% to 0.46perbarrel[9]−AdjustedOperatingMarginperBarrelincreasedto0.46 per barrel[9] - Adjusted Operating Margin per Barrel increased to 0.46 in March 2024 from 0.39inMarch2023,markingan180.39 in March 2023, marking an 18% improvement[28] - Gross margin for the quarter was 44,339,000, compared to 29,120,000intheprioryear,representingasignificantincreaseof52.229,120,000 in the prior year, representing a significant increase of 52.2%[32] - Diluted Adjusted Net Income Per Share increased to 0.34 for the quarter ended March 31, 2024, compared to 0.17inthesamequarterof2023,agrowthof1000.17 in the same quarter of 2023, a growth of 100%[36] Cash Flow and Capital Expenditures - Cash flow from operating activities was 43,809,000, down from 59,673,000inthepreviousyear,reflectingchangesinworkingcapital[23]−CapitalexpendituresforQ12024totaledapproximately59,673,000 in the previous year, reflecting changes in working capital[23] - Capital expenditures for Q1 2024 totaled approximately 38 million, down from 48millioninQ12023[9]−Capitalexpendituresforthequarterwere48 million in Q1 2023[9] - Capital expenditures for the quarter were 37,716,000, down from 47,974,000inthesamequarterof2023,indicatingadecreaseof21.547,974,000 in the same quarter of 2023, indicating a decrease of 21.5%[41] Balance Sheet and Financial Ratios - The leverage ratio at the end of Q1 2024 was 2.15x, below the target range of 2.5x-3.5x, indicating a strong balance sheet[10] - The leverage ratio as of March 31, 2024, was 2.15, calculated using net debt of 409,022,000 and trailing twelve months Adjusted EBITDA of 189,974,000[39]−TotalassetsasofMarch31,2024,were189,974,000[39] - Total assets as of March 31, 2024, were 1,367,595,000, an increase from 1,340,481,000attheendof2023[21]−Totalliabilitiesincreasedto1,340,481,000 at the end of 2023[21] - Total liabilities increased to 666,193,000 from 652,588,000,indicatingariseinfinancialobligations[21]−Cashattheendoftheperiodwas652,588,000, indicating a rise in financial obligations[21] - Cash at the end of the period was 20,654,000, significantly up from 5,063,000attheendof2023[21]−Accountsreceivabledecreasedto5,063,000 at the end of 2023[21] - Accounts receivable decreased to 55,426,000 from 59,393,000,suggestingimprovedcollectionefforts[21]FutureOutlook−ForQ22024,thecompanyexpectsproducedwaterhandlingvolumesbetween1,015and1,045thousandbarrelsperdayandAdjustedEBITDAbetween59,393,000, suggesting improved collection efforts[21] Future Outlook - For Q2 2024, the company expects produced water handling volumes between 1,015 and 1,045 thousand barrels per day and Adjusted EBITDA between 44 and 48million[13]−Thecompanyisexploringbeneficialreuseandmineralextractionopportunitiestoexpandmarketsandrevenuestreams[5]ResearchandDevelopment−Researchanddevelopmentexpensesroseto48 million[13] - The company is exploring beneficial reuse and mineral extraction opportunities to expand markets and revenue streams[5] Research and Development - Research and development expenses rose to 1,065,000, a significant increase from $408,000, indicating a focus on innovation[19]