Aris Water Solutions(US:ARIS) Businesswireยท2024-02-28 21:02Core Insights - Aris Water Solutions, Inc. reported strong financial and operational results for Q4 and the full year 2023, highlighting significant growth in water volumes and profitability [2][3][4]. Financial Performance - Total water volumes increased by 4% quarter-over-quarter and 16% year-over-year [2]. - Net income for Q4 2023 was $13.0 million, with a full-year net income of $43.4 million, compared to $4.8 million in 2022 [8][9]. - Adjusted EBITDA for Q4 2023 was $49.3 million, up 37% from Q4 2022, and $175.0 million for the full year, a 17% increase from 2022 [9][10]. - Diluted adjusted net income per share for 2023 was $0.88, reflecting a 14% increase from 2022 [2][8]. Operational Highlights - Recycled produced water volumes grew by 8% in 2023, with record volumes achieved in Q4 [2][4]. - The company facilitated over 118 million barrels of recycled produced water in 2023, significantly reducing groundwater withdrawals [4]. - Adjusted operating margin per barrel improved by 11% year-over-year in Q4 2023, driven by cost-saving initiatives [2][9]. Capital Expenditures and Liquidity - Full-year capital expenditures totaled $156.4 million, with a forecasted reduction to $85 - $105 million for 2024 [2][10]. - The company maintained a strong balance sheet with a leverage ratio of 2.4x and $329 million in available liquidity as of year-end 2023 [11][12]. 2024 Outlook - The company anticipates a positive free cash flow in 2024 due to improved asset efficiency and a lower capital reinvestment requirement [3][14]. - Full-year produced water volumes are expected to grow by approximately 2-5%, while water solutions volumes are projected to remain flat [3][14]. - Adjusted EBITDA for 2024 is forecasted to be between $180 - $200 million, representing a 9% increase at the midpoint compared to 2023 [3][14].