Loading...
•
Mar 31, 2023
Aris Water Solutions Q1 2023 Earnings Report
Reported financial and operating results for the first quarter ended March 31, 2023.
Key Takeaways
Aris Water Solutions reported a net income of $7.7 million for Q1 2023, a significant increase from the net loss of $6.6 million in Q1 2022. The company also saw an increase in total water volumes, produced water volumes, and water solutions volumes.
Total water volumes of approximately 1.4 million barrels per day, up 18% versus Q1 2022.
Produced Water volumes of approximately 971 thousand barrels per day, up 21% versus Q1 2022.
Water Solutions volumes of approximately 405 thousand barrels per day, up 11% versus Q1 2022.
Net income of $7.7 million, up from a net loss of $6.6 million in Q1 2022.
Aris Water Solutions
Aris Water Solutions
Aris Water Solutions Revenue by Segment
Revenue by Segment
Produced Water Handling Revenue
CapyFin.comWater Solutions Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
In the second quarter of 2023, Aris Water Solutions anticipates continued growth in produced water volumes, a slight decrease in water solutions volumes, skim oil recovery levels to normalize, and increased well maintenance costs.
Positive Outlook
- Produced water volumes are expected to continue to grow sequentially versus the first quarter.
- Changes in customer mix and CPI-linked contract escalators are expected to drive higher produced water revenue as compared to the first quarter.
- Skim oil recovery levels are forecasted to normalize at approximately 0.1% of produced water inlet volumes, higher than a year ago.
- Company remains very focused on enhancing profitability through continued execution of ongoing optimization efforts.
- Expect to see the impact of these efforts in the second half of the year.
Challenges Ahead
- Water Solutions volumes are expected to be down slightly as some contracted volumes scheduled for the second quarter pulled forward into the first quarter.
- Skim oil recovery levels are forecasted to normalize at approximately 0.1% of produced water inlet volumes, below the first quarter results.
- Anticipate increased well maintenance costs in the second quarter relative to the first quarter.
- Adjusted Operating Margins between $0.36 and $0.38 per barrel of Total Volumes
- Adjusted EBITDA between $35.0 and $37.0 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income