Aris Water Solutions, Inc. Reports Third Quarter 2022 Results
Aris Water Solutions (NYSE: ARIS) reported strong financial results for Q3 2022, with net income of $2.0 million, a significant improvement from a loss of $20.7 million YOY. The company handled over 1.4 million barrels of water per day, up 47% Y/Y, and recycled produced water volumes surged 165%. Adjusted EBITDA rose 28% to $39.3 million. Recent strategic agreements with Chevron and ConocoPhillips, alongside a tech acquisition, bolster growth prospects. A quarterly dividend of $0.09 per share has been declared, reflecting solid liquidity of approximately $225.1 million.
- Net income improved to $2.0 million from a $20.7 million loss, indicating strong growth.
- Total water volumes increased by 47% Y/Y, highlighting robust operational growth.
- Recycled produced water volumes surged 165% Y/Y, showcasing the success of sustainable practices.
- Adjusted EBITDA rose 28% to $39.3 million, reflecting efficient operations.
- Strategic agreements with Chevron and ConocoPhillips enhance future growth potential.
- Quarterly dividend of $0.09 demonstrates financial stability and commitment to shareholders.
- Total liquidity of approximately $225.1 million supports continued investment in growth opportunities.
- Adjusted operating margin decreased from $0.41 to $0.36 per barrel due to inflationary pressures.
- Property, plant, and equipment expenditures rose significantly to $48.7 million, indicating high capital outflows.
THIRD QUARTER 2022 HIGHLIGHTS
-
Total water volumes of more than 1.4 million barrels per day for the third quarter of 2022, up
47% versus the third quarter of 2021 and up14% sequentially from the second quarter of 2022. -
Recycled produced water volumes of approximately 345 thousand barrels per day for the third quarter of 2022, up
165% versus the third quarter of 2021 and up16% sequentially from the second quarter of 2022. -
Net income of
$2.0 million $13.2 million 98% versus the third quarter of 2021. Adjusted EBITDA 1 of$39.3 million 28% versus the third quarter of 2021.
RECENT EVENTS
-
Announced strategic agreement with
Chevron U.S.A Inc. (“Chevron”) andConocoPhillips Corporation (“ConocoPhillips”) to develop and pilot technologies and processes to treat produced water for potential beneficial reuse opportunities. -
Completed acquisition of intellectual property rights, treatment technologies and assets from
Water Standard Management (US), Inc. (“Water Standard”) which are expected to support and advance the Company’s efforts related to the beneficial reuse of produced water.
“In the third quarter, we continued to perform, growing our volumes and providing reliable, sustainable water solutions for our customers,” stated
OPERATIONS UPDATE
For the third quarter of 2022, the Company averaged approximately 1.4 million barrels of water per day of total volumes handled, up approximately
FINANCIAL UPDATE
Net income of
The Company had Adjusted EBITDA 1 of
The Company had gross margin per barrel of
Third quarter 2022 property, plant, and equipment expenditures totaled
STRONG BALANCE SHEET AND LIQUIDITY
As of
FOURTH QUARTER 2022 DIVIDEND
On
FINANCIAL OUTLOOK
For the fourth quarter of 2022, Aris projects Adjusted EBITDA1 between
CONFERENCE CALL
Aris will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2022 on
About
Forward-Looking Statements
This press release 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 the Company’s business strategy, its industry, its future profitability, the various risks and uncertainties associated with the extraordinary inflationary environment and impacts resulting from the volatility in global oil markets, expected capital expenditures and the impact of such expenditures on performance, management changes, current and potential future long-term contracts and the Company’s future business and financial performance and our ability to identify strategic acquisitions and realize benefits therefrom, such as the intellectual property recently acquired from Water Standard. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “guidance,” “preliminary,” “project,” “estimate,” “outlook,” “expect,” “continue,” “will,” “intend,” “plan,” “targets,” “believe,” “forecast,” “future,” “potential,” “may,” “possible,” “should,” “could” and variations of such words or similar expressions. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Factors that could cause the Company’s actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to the risk factors discussed or referenced in its filings made from time to time with the
________________________ |
1 Adjusted EBITDA and Adjusted Net Income are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate Adjusted EBITDA and Adjusted Net Income and a reconciliation thereof to net income, the most directly comparable GAAP measure. |
2 Adjusted Operating Margin per Barrel is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate Adjusted Operating Margin per Barrel and a reconciliation thereof to gross margin, the most directly comparable GAAP measure. |
Table 1
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(in thousands, except for share and per share amounts) |
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Produced Water Handling |
|
$ |
39,674 |
|
$ |
24,639 |
|
|
$ |
110,299 |
|
|
$ |
71,368 |
|
Produced Water Handling—Affiliates |
|
|
24,796 |
|
|
23,135 |
|
|
|
69,084 |
|
|
|
62,216 |
|
Water Solutions |
|
|
20,392 |
|
|
7,666 |
|
|
|
46,744 |
|
|
|
11,824 |
|
Water Solutions—Affiliates |
|
|
5,668 |
|
|
4,059 |
|
|
|
11,640 |
|
|
|
16,864 |
|
Other Revenue |
|
|
246 |
|
|
— |
|
|
|
364 |
|
|
|
— |
|
Total Revenue |
|
|
90,776 |
|
|
59,499 |
|
|
|
238,131 |
|
|
|
162,272 |
|
Cost of Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Direct Operating Costs |
|
|
43,885 |
|
|
23,497 |
|
|
|
101,337 |
|
|
|
66,703 |
|
Depreciation, Amortization and Accretion |
|
|
16,942 |
|
|
15,378 |
|
|
|
49,724 |
|
|
|
45,550 |
|
Total Cost of Revenue |
|
|
60,827 |
|
|
38,875 |
|
|
|
151,061 |
|
|
|
112,253 |
|
Operating Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Abandoned Well Costs |
|
|
9,222 |
|
|
27,402 |
|
|
|
14,637 |
|
|
|
27,402 |
|
General and Administrative |
|
|
11,482 |
|
|
5,228 |
|
|
|
33,860 |
|
|
|
15,240 |
|
Impairment of Long-Lived Assets |
|
|
— |
|
|
— |
|
|
|
15,597 |
|
|
|
— |
|
Loss on Asset Disposal and Other |
|
|
239 |
|
|
940 |
|
|
|
1,816 |
|
|
|
2,590 |
|
Total Operating Expenses |
|
|
20,943 |
|
|
33,570 |
|
|
|
65,910 |
|
|
|
45,232 |
|
Operating Income (Loss) |
|
|
9,006 |
|
|
(12,946 |
) |
|
|
21,160 |
|
|
|
4,787 |
|
Other Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest Expense, Net |
|
|
6,763 |
|
|
7,880 |
|
|
|
21,863 |
|
|
|
17,855 |
|
Other |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
380 |
|
Total Other Expense |
|
|
6,763 |
|
|
7,880 |
|
|
|
21,863 |
|
|
|
18,235 |
|
Income (Loss) Before Income Taxes |
|
|
2,243 |
|
|
(20,826 |
) |
|
|
(703 |
) |
|
|
(13,448 |
) |
Income Tax Expense (Benefit) |
|
|
287 |
|
|
(83 |
) |
|
|
(81 |
) |
|
|
(81 |
) |
Net Income (Loss) |
|
|
1,956 |
|
|
(20,743 |
) |
|
|
(622 |
) |
|
|
(13,367 |
) |
Equity Accretion and Dividend—Redeemable Preferred Units |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
21 |
|
Net Income (Loss) Attributable to Stockholders'/Members' Equity |
|
|
1,956 |
|
$ |
(20,743 |
) |
|
|
(622 |
) |
|
$ |
(13,346 |
) |
Net Income (Loss) Attributable to Noncontrolling Interest |
|
|
1,257 |
|
|
|
|
|
(493 |
) |
|
|
|
||
Net Income (Loss) Attributable to |
|
$ |
699 |
|
|
|
|
$ |
(129 |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net Income (Loss) Per Share of Class A Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.02 |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
||
Diluted |
|
$ |
0.02 |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
||
Weighted Average Shares of Class A Common Stock Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
24,499,953 |
|
|
|
|
|
22,779,077 |
|
|
|
|
||
Diluted |
|
|
24,546,632 |
|
|
|
|
|
22,779,077 |
|
|
|
|
||
Table 2
Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
(in thousands, except for share and per share amounts) |
|
|
|
|
||||
|
|
2022 |
|
2021 |
||||
Assets |
|
|
|
|
|
|
||
Cash |
|
$ |
25,180 |
|
|
$ |
60,055 |
|
Accounts Receivable, Net |
|
|
76,273 |
|
|
|
41,973 |
|
Accounts Receivable from Affiliate |
|
|
25,772 |
|
|
|
20,191 |
|
Other Receivables |
|
|
6,287 |
|
|
|
4,126 |
|
Prepaids and Deposits |
|
|
1,828 |
|
|
|
6,043 |
|
Total Current Assets |
|
|
135,340 |
|
|
|
132,388 |
|
Fixed Assets |
|
|
|
|
|
|
||
Property, Plant and Equipment |
|
|
881,003 |
|
|
|
700,756 |
|
Accumulated Depreciation |
|
|
(81,019 |
) |
|
|
(67,749 |
) |
Total Property, Plant and Equipment, Net |
|
|
799,984 |
|
|
|
633,007 |
|
Intangible Assets, Net |
|
|
277,379 |
|
|
|
304,930 |
|
|
|
|
34,585 |
|
|
|
34,585 |
|
Deferred Income Tax Assets, Net |
|
|
24,377 |
|
|
|
19,933 |
|
Right-of-Use Assets |
|
|
7,635 |
|
|
|
— |
|
Other Assets |
|
|
1,422 |
|
|
|
1,850 |
|
Total Assets |
|
$ |
1,280,722 |
|
|
$ |
1,126,693 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Accounts Payable |
|
$ |
35,823 |
|
|
$ |
7,082 |
|
Payables to Affiliate |
|
|
2,412 |
|
|
|
1,499 |
|
Accrued and Other Current Liabilities |
|
|
85,089 |
|
|
|
40,464 |
|
Total Current Liabilities |
|
|
123,324 |
|
|
|
49,045 |
|
Long-Term Debt, Net of Debt Issuance Costs |
|
|
393,453 |
|
|
|
392,051 |
|
Asset Retirement Obligation |
|
|
8,148 |
|
|
|
6,158 |
|
Tax Receivable Agreement Liability |
|
|
80,009 |
|
|
|
75,564 |
|
Other Long-Term Liabilities |
|
|
8,966 |
|
|
|
1,336 |
|
Total Liabilities |
|
|
613,900 |
|
|
|
524,154 |
|
Commitments and Contingencies |
|
|
|
|
|
|
||
Stockholders' Equity: |
|
|
|
|
|
|
||
Preferred Stock |
|
|
— |
|
|
|
— |
|
Class A Common Stock |
|
|
261 |
|
|
|
218 |
|
Class B Common Stock |
|
|
308 |
|
|
|
317 |
|
Treasury Stock (at Cost), 10,191 shares as of |
|
|
(135 |
) |
|
|
(135 |
) |
|
|
|
282,917 |
|
|
|
212,926 |
|
Accumulated Deficit |
|
|
(7,094 |
) |
|
|
(457 |
) |
Total Stockholders' Equity Attributable to |
|
|
276,257 |
|
|
|
212,869 |
|
Noncontrolling Interests |
|
|
390,565 |
|
|
|
389,670 |
|
Total Stockholders' Equity |
|
|
666,822 |
|
|
|
602,539 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
1,280,722 |
|
|
$ |
1,126,693 |
|
Table 3
Condensed Consolidated Statements of Cash Flows (Unaudited) |
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|
|
|
|
|
|
|
||
(in thousands) |
|
Nine Months Ended |
||||||
|
|
2022 |
|
2021 |
||||
Cash Flow from Operating Activities |
|
|
|
|
|
|
||
Net Loss |
|
$ |
(622 |
) |
|
$ |
(13,367 |
) |
Adjustments to reconcile Net Loss to |
|
|
|
|
|
|
||
Deferred Income Tax Benefit |
|
|
(96 |
) |
|
|
— |
|
Depreciation, Amortization and Accretion |
|
|
49,724 |
|
|
|
45,550 |
|
Stock-Based Compensation |
|
|
9,134 |
|
|
|
— |
|
Impairment of Long-Lived Assets |
|
|
15,597 |
|
|
|
— |
|
Abandoned Well Costs |
|
|
14,637 |
|
|
|
27,402 |
|
Loss on Disposal of Asset, Net |
|
|
481 |
|
|
|
225 |
|
Abandoned Projects |
|
|
66 |
|
|
|
2,035 |
|
Amortization of Debt Issuance Costs |
|
|
1,563 |
|
|
|
1,320 |
|
Loss on Debt Modification |
|
|
— |
|
|
|
380 |
|
Other |
|
|
311 |
|
|
|
216 |
|
Changes in Operating Assets and Liabilities: |
|
|
|
|
|
|
||
Accounts Receivable |
|
|
(33,683 |
) |
|
|
(11,231 |
) |
Accounts Receivable from Affiliate |
|
|
(5,581 |
) |
|
|
(10,046 |
) |
Other Receivables |
|
|
(2,139 |
) |
|
|
231 |
|
Prepaids, Deposits and Other Current Assets |
|
|
4,215 |
|
|
|
2,516 |
|
Accounts Payable |
|
|
3,233 |
|
|
|
(3,284 |
) |
Payables to Affiliate |
|
|
913 |
|
|
|
(715 |
) |
Adjustment in Deferred Revenue |
|
|
14 |
|
|
|
(46 |
) |
Accrued Liabilities and Other |
|
|
19,418 |
|
|
|
16,000 |
|
Net Cash Provided by Operating Activities |
|
|
77,185 |
|
|
|
57,186 |
|
|
|
|
|
|
|
|
||
Cash Flow from Investing Activities |
|
|
|
|
|
|
||
Property, Plant and Equipment Expenditures |
|
|
(96,991 |
) |
|
|
(62,728 |
) |
Cash Paid for Acquisitions |
|
|
(3,353 |
) |
|
|
— |
|
Proceeds from the Sale of Property, Plant and Equipment |
|
|
7,441 |
|
|
|
— |
|
|
|
|
(92,903 |
) |
|
|
(62,728 |
) |
|
|
|
|
|
|
|
||
Cash Flow from Financing Activities |
|
|
|
|
|
|
||
Dividends and Distributions Paid |
|
|
(19,157 |
) |
|
|
— |
|
Proceeds from Senior-Sustainability Linked Notes |
|
|
— |
|
|
|
400,000 |
|
Payments for Initial Public Offering Costs |
|
|
— |
|
|
|
(855 |
) |
Payments of Debt Issuance Costs Related to Issuance of Senior- Sustainability Linked Notes |
|
|
— |
|
|
|
(9,352 |
) |
Repayment of Credit Facility |
|
|
— |
|
|
|
(297,000 |
) |
Redemption of Redeemable Preferred Units |
|
|
— |
|
|
|
(74,357 |
) |
Payments of Debt Issuance Costs related to Credit Facility |
|
|
— |
|
|
|
(1,442 |
) |
Members' Contributions |
|
|
— |
|
|
|
5 |
|
|
|
|
(19,157 |
) |
|
|
16,999 |
|
|
|
|
|
|
|
|
||
Net (Decrease) Increase in Cash |
|
|
(34,875 |
) |
|
|
11,457 |
|
Cash, Beginning of Period |
|
|
60,055 |
|
|
|
24,932 |
|
Cash, End of Period |
|
$ |
25,180 |
|
|
$ |
36,389 |
|
Use of Non-GAAP Financial Information
The Company uses financial measures that are not calculated in accordance with
The Company calculates Adjusted EBITDA as net income (loss) plus: interest expense; income taxes; depreciation, amortization and accretion expense; abandoned well costs; asset impairments and abandoned project charges; losses on the sale and/or exchange of assets; loss on debt modification; and non-recurring or unusual expenses or charges (including temporary power costs), less any gains on sale and/or exchange of assets.
The Company calculates Adjusted Operating Margin as Gross Margin plus depreciation, amortization and accretion and temporary power costs. The Company defines Adjusted Operating Margin per Barrel as Adjusted Operating Margin divided by total volumes.
The Company calculates Adjusted Net Income as Net Income (Loss) Attributable to Stockholders’/Members’ Equity plus the after-tax impacts of stock-based compensation and plus or minus the after-tax impacts of certain items affecting comparability, which are typically noncash and/or nonrecurring items. The Company calculated Diluted Adjusted Net Income Per Share as (i) Adjusted Net Income (Loss) Attributable to Stockholder’s Equity plus the after-tax impacts of stock-based compensation and plus or minus the after-tax impacts of certain items affecting comparability, which are typically noncash and/or nonrecurring items, divided by (ii) the diluted weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC interests, adjusted for the dilutive effect of outstanding equity-based awards.
For the quarter ended
The Company believes these presentations are used by investors and professional research analysts for the valuation, comparison, rating, and investment recommendations of companies within its industry. Similarly, the Company’s management uses this information for comparative purposes as well. Adjusted EBITDA, Adjusted Operating Margin, Adjusted Operating Margin per Barrel, and Adjusted Net Income are not measures of financial performance under GAAP and should not be considered as measures of liquidity or as alternatives to net income (loss) or gross margin. Additionally, these presentations as defined by the Company may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net income (loss) and other measures prepared in accordance with GAAP, such as gross margin, operating income, net income or cash flows from operating activities.
Although we provide forecasts for the non-GAAP measure Adjusted EBITDA, we are not able to forecast the most directly comparable measure net income calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP net income are not predictable, making it impractical for us to forecast. Such elements include but are not limited to non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs, which could have a significant impact on the GAAP measure. As a result, no reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income is provided.
Table 4
Operating Metrics (Unaudited) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
Thousand barrels water per day |
|
|
|
|
|
|
|
|
|
|
|
|
Produced Water Handling Volumes |
|
|
905 |
|
|
708 |
|
|
850 |
|
|
692 |
Water Solutions Volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
Recycled Produced Water Volumes Sold |
|
|
345 |
|
|
130 |
|
|
306 |
|
|
102 |
Groundwater Volumes Sold |
|
|
166 |
|
|
82 |
|
|
112 |
|
|
61 |
Groundwater Volumes Transferred |
|
|
— |
|
|
41 |
|
|
8 |
|
|
42 |
Total Water Solutions Volumes |
|
|
511 |
|
|
253 |
|
|
426 |
|
|
205 |
Total Volumes |
|
|
1,416 |
|
|
961 |
|
|
1,276 |
|
|
897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Barrel Operating Metrics (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Produced Water Handling Revenue/Barrel |
|
$ |
0.77 |
|
$ |
0.73 |
|
$ |
0.77 |
|
$ |
0.71 |
Water Solutions Revenue/Barrel |
|
$ |
0.55 |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.51 |
Revenue/Barrel of Total Volumes |
|
$ |
0.69 |
|
$ |
0.67 |
|
$ |
0.68 |
|
$ |
0.66 |
Direct Operating Costs/Barrel |
|
$ |
0.34 |
|
$ |
0.27 |
|
$ |
0.29 |
|
$ |
0.27 |
Adjusted Operating Margin/Barrel |
|
$ |
0.36 |
|
$ |
0.41 |
|
$ |
0.39 |
|
$ |
0.41 |
(1) Per barrel operating metrics are calculated independently. Therefore, the sum of individual amounts may not equal the total presented. |
||||||||||||
Table 5
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
|
|
|
|
||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net Income (Loss) |
|
$ |
1,956 |
|
|
$ |
(20,743 |
) |
|
$ |
(622 |
) |
|
$ |
(13,367 |
) |
Interest Expense, Net |
|
|
6,763 |
|
|
|
7,880 |
|
|
|
21,863 |
|
|
|
17,855 |
|
Income Tax Expense (Benefit) |
|
|
287 |
|
|
|
(83 |
) |
|
|
(81 |
) |
|
|
(81 |
) |
Depreciation, Amortization and Accretion |
|
|
16,942 |
|
|
|
15,378 |
|
|
|
49,724 |
|
|
|
45,550 |
|
Abandoned Well Costs |
|
|
9,222 |
|
|
|
27,402 |
|
|
|
14,637 |
|
|
|
27,402 |
|
Impairment of Long-Lived Assets |
|
|
— |
|
|
|
— |
|
|
|
15,597 |
|
|
|
— |
|
Stock-Based Compensation |
|
|
3,595 |
|
|
|
— |
|
|
|
9,134 |
|
|
|
— |
|
Abandoned Projects |
|
|
— |
|
|
|
679 |
|
|
|
66 |
|
|
|
2,035 |
|
Temporary Power Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,253 |
|
(Gain) Loss on Disposal of Asset, Net |
|
|
(97 |
) |
|
|
8 |
|
|
|
481 |
|
|
|
225 |
|
Loss on Debt Modification |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
380 |
|
Transaction Costs |
|
|
336 |
|
|
|
253 |
|
|
|
1,269 |
|
|
|
330 |
|
Other |
|
|
325 |
|
|
|
— |
|
|
|
325 |
|
|
|
221 |
|
Adjusted EBITDA |
|
$ |
39,329 |
|
|
$ |
30,774 |
|
|
$ |
112,393 |
|
|
$ |
84,803 |
|
Table 6
Reconciliation of Gross Margin to Adjusted Operating Margin and Adjusted Operating Margin per Barrel (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
|
|
|
|
||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Total Revenue |
|
$ |
90,776 |
|
|
$ |
59,499 |
|
|
$ |
238,131 |
|
|
$ |
162,272 |
|
Cost of Revenue |
|
|
(60,827 |
) |
|
|
(38,875 |
) |
|
|
(151,061 |
) |
|
|
(112,253 |
) |
Gross Margin |
|
|
29,949 |
|
|
|
20,624 |
|
|
|
87,070 |
|
|
|
50,019 |
|
Depreciation, Amortization and Accretion |
|
|
16,942 |
|
|
|
15,378 |
|
|
|
49,724 |
|
|
|
45,550 |
|
Temporary Power Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,253 |
|
Adjusted Operating Margin |
|
$ |
46,891 |
|
|
$ |
36,002 |
|
|
$ |
136,794 |
|
|
$ |
99,822 |
|
Total Volumes (Thousands of BBLs) |
|
|
130,267 |
|
|
|
88,357 |
|
|
|
348,315 |
|
|
|
245,048 |
|
Adjusted Operating Margin/BBL |
|
$ |
0.36 |
|
|
$ |
0.41 |
|
|
$ |
0.39 |
|
|
$ |
0.41 |
|
Table 7
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted Net Income (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
|
|
|
|
||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net Income (Loss) |
|
$ |
1,956 |
|
|
$ |
(20,743 |
) |
|
$ |
(622 |
) |
|
$ |
(13,367 |
) |
Adjusted items: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impairment of Long-Lived Assets |
|
|
— |
|
|
|
— |
|
|
|
15,597 |
|
|
|
— |
|
Abandoned Well Costs |
|
|
9,222 |
|
|
|
27,402 |
|
|
|
14,637 |
|
|
|
27,402 |
|
(Gain) Loss on Disposal of Asset, Net |
|
|
(97 |
) |
|
|
8 |
|
|
|
481 |
|
|
|
225 |
|
Stock-Based Compensation |
|
|
3,595 |
|
|
|
— |
|
|
|
9,134 |
|
|
|
— |
|
Tax Effect of Adjusting Items (1) |
|
|
(1,460 |
) |
|
|
— |
|
|
|
(4,575 |
) |
|
|
— |
|
Adjusted Net Income |
|
$ |
13,216 |
|
|
$ |
6,667 |
|
|
$ |
34,652 |
|
|
$ |
14,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates |
||||||||||||||||
Table 8
Reconciliation of Diluted Net Income (Loss) Per Share to Non-GAAP Diluted Adjusted Net Income Per Share (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
||||
|
|
2022 |
|
2022 |
||||
Diluted Net Income (Loss) Per Share of Class A Common Stock |
|
$ |
0.02 |
|
|
$ |
(0.03 |
) |
Adjusted items: |
|
|
|
|
|
|
||
Reallocation of Net Income (Loss) Attributable to Noncontrolling Interests From the Assumed Exchange of LLC Interests |
|
|
0.01 |
|
|
|
(0.01 |
) |
Impairment of Long-Lived Assets |
|
|
- |
|
|
|
0.29 |
|
Abandoned Well Costs |
|
|
0.17 |
|
|
|
0.27 |
|
(Gain) Loss on Disposal of Asset, Net |
|
|
- |
|
|
|
0.01 |
|
Stock-Based Compensation |
|
|
0.06 |
|
|
|
0.17 |
|
Tax Effect of Adjusting Items (1) |
|
|
(0.03 |
) |
|
|
(0.08 |
) |
Diluted Adjusted Net Income Per Share |
|
$ |
0.23 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
||
(1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Diluted Weighted Average Shares of Class A Common Stock Outstanding |
|
|
24,546,632 |
|
|
|
22,779,077 |
|
Adjusted Items: |
|
|
|
|
|
|
||
Assumed Redemption of LLC Interests |
|
|
31,248,544 |
|
|
|
31,481,479 |
|
Dilutive Performance-Based Stock Units (2) |
|
|
- |
|
|
|
65,253 |
|
Diluted Adjusted Fully Weighted Average Shares of Class A Common Stock Outstanding |
|
|
55,795,176 |
|
|
|
54,325,809 |
|
|
|
|
|
|
|
|
||
(2) Dilutive impact of Performance-Based Stock Units already included for the three-months ended |
||||||||
Table 9
Computation of Leverage Ratio (Unaudited) |
||||
|
|
|
|
|
|
|
As of |
||
|
|
|
||
(in thousands) |
|
2022 |
||
|
|
|
|
|
Principal Amount of Debt at |
|
$ |
400,000 |
|
Less: Cash at |
|
|
(25,180 |
) |
Net Debt |
|
$ |
374,820 |
|
|
|
|
|
|
Adjusted EBITDA for the Three Months Ended |
|
$ |
39,329 |
|
x 4 Quarters |
|
|
x 4 |
|
Annualized Adjusted EBITDA |
|
$ |
157,316 |
|
|
|
|
|
|
Net Debt |
|
$ |
374,820 |
|
÷ Annualized Adjusted EBITDA |
|
$ |
157,316 |
|
Leverage Ratio |
|
|
2.38 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109006071/en/
Senior Vice President, Finance, and Investor Relations
(281) 501-3070
IR@ariswater.com
Source:
FAQ
What were Aris Water Solutions' Q3 2022 financial results?
How much water did Aris handle in Q3 2022?
What is the significance of the recent agreements with Chevron and ConocoPhillips?
What dividend did Aris declare for Q4 2022?
What is Aris Water's projected Adjusted EBITDA for Q4 2022?
