Aris Water Solutions(ARIS) - 2024 Q4 - Annual Results

Financial Performance - Aris Water Solutions achieved a net income of $13.8 million for Q4 2024 and $60.2 million for the full year, representing a 39% increase year-over-year[11]. - Adjusted EBITDA for Q4 2024 was $54.5 million, up 10% year-over-year, and $211.9 million for the full year, up 21% from 2023[5]. - Total revenue for Q4 2024 reached $118.6 million, a 14% increase from $104.1 million in Q4 2023[30]. - Net income attributable to Aris Water Solutions, Inc. was $5.8 million in Q4 2024, compared to $5.4 million in Q4 2023, reflecting a 7% increase[30]. - Operating income for the year ended December 31, 2024, was $106.8 million, up from $83.9 million in 2023, representing a 27% increase[30]. - Net income for the year ended December 31, 2024, was $60.2 million, compared to $43.4 million in 2023, representing a 38.5% increase[49]. - Adjusted net income for Q4 2024 was $18.1 million, a 17.5% increase from $15.4 million in Q4 2023[49]. - Diluted adjusted net income per share for the year ended December 31, 2024, was $1.26, compared to $0.88 in 2023, marking a 43.2% increase[50]. Cash Flow and Dividends - Free cash flow for the year ended December 31, 2024, was $72.6 million, a significant recovery from a negative $29.1 million in 2023[57]. - Cash flow from operating activities for the year was $178,876,000, slightly down from $183,873,000 in 2023, reflecting a decrease of 2.2%[34]. - The company paid dividends totaling $24,559,000 for the year, compared to $21,429,000 in 2023, representing an increase of 10.0%[34]. - Aris announced a 33% increase in its quarterly dividend to $0.14 per share for Q1 2025[13]. Growth and Projections - Produced water volumes grew by 7% year-over-year, with a total of 1,548 thousand barrels per day for the full year 2024[5]. - The company set a new quarterly record for recycled water volumes, growing 16% for the year and 18% sequentially in Q4 2024[5]. - For 2025, Aris expects Adjusted EBITDA between $215 million and $235 million, with capital expenditures between $85 million and $105 million[16]. - Free cash flow is projected to be between $75 million and $95 million, an increase of approximately 17% over 2024[16]. - The company anticipates produced water handling volumes to be between 1,150 and 1,210 thousand barrels per day in 2025[21]. - The company anticipates continued growth in revenue and profitability, with guidance for 2025 reflecting positive market conditions[28]. Capital Expenditures and Assets - Capital expenditures for the full year 2024 were $101 million, down 35% from 2023[5]. - Capital expenditures for the year totaled $99,985,000, down from $169,736,000 in 2023, showing a reduction of 41.0%[34]. - Total assets grew to $1.42 billion in 2024, compared to $1.34 billion in 2023, indicating a 6% increase[32]. - Total liabilities increased to $684.8 million in 2024, compared to $652.6 million in 2023, a rise of 5%[32]. - Total stockholders' equity attributable to Aris Water Solutions, Inc. increased to $348.6 million in 2024, up from $323.9 million in 2023, a growth of 8%[32]. Operational Metrics - Produced water handling volumes for the quarter were 1,112,000 barrels per day, slightly up from 1,095,000 barrels per day in Q4 2023[46]. - Total water solutions volumes sold reached 524,000 barrels per day, an increase from 482,000 barrels per day in the same quarter last year, marking an 8.7% growth[46]. - The company reported a gross margin per barrel of $0.31 for Q4 2024, compared to $0.27 in Q4 2023, indicating a year-over-year improvement of 14.8%[46]. - The company reported a gross margin of $46.5 million for Q4 2024, up from $39.6 million in Q4 2023, indicating a 17.5% increase[48]. - Adjusted operating margin for Q4 2024 was $66.6 million, up from $59.1 million in Q4 2023, reflecting a 12.5% growth[48]. Research and Development - Research and development expenses decreased to $3.0 million for the year ended December 31, 2024, from $3.1 million in 2023[30]. Debt Management - The leverage ratio as of December 31, 2024, was calculated based on net debt divided by Adjusted EBITDA for the trailing twelve months, indicating a focus on managing debt levels[40]. - The leverage ratio as of December 31, 2024, was 1.99, calculated using net debt of $422.1 million and trailing twelve months adjusted EBITDA of $211.9 million[53].