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Aris Water Solutions Q1 2025 Earnings Report
Aris Water Solutions, Inc. reported strong financial and operational results for the first quarter of 2025, achieving record volumes and exceeding Adjusted EBITDA guidance.
Key Takeaways
Aris Water Solutions, Inc. announced robust first-quarter 2025 results, driven by record volumes in both Produced Water Handling and Water Solutions. The company surpassed its Adjusted EBITDA guidance, maintained strong margins, and successfully refinanced its senior notes, leading to a credit rating upgrade.
Achieved record volumes for both Produced Water Handling and Water Solutions.
Generated Adjusted EBITDA of $56.5 million, exceeding guidance and up 6% year-over-year.
Successfully refinanced senior notes, lowering coupon to 7.25% and upsizing to $500 million.
Moody's Ratings upgraded credit rating to 'B1' from 'B2' due to strengthening credit profile.
Aris Water Solutions
Aris Water Solutions
Aris Water Solutions Revenue by Segment
Revenue by Segment
Produced Water Handling Revenue
CapyFin.comProduced Water Handling – Affiliate Revenue
CapyFin.comWater Solutions Revenue
CapyFin.comWater Solutions – Affiliate Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, Aris Water Solutions expects Produced Water Handling volumes between 1,200 and 1,250 thousand barrels of water per day, Water Solutions volumes between 475 and 525 thousand barrels of water per day, Adjusted Operating Margin per Barrel between $0.41 and $0.43, Skim oil recoveries of approximately 1,800 - 2,000 barrels per day, Adjusted EBITDA between $50 and $55 million, and Capital Expenditures of $20 to $25 million.
Positive Outlook
- Continued strong volumes and customer activity in-line with prior forecasts.
- Expect to maintain strong margins due to structural cost improvements.
- Steady activity levels on dedicated acreage.
- Close contact with industry-leading customers evaluating development plans.
- No material changes in forecasts from customers on dedicated acreage thus far.
Challenges Ahead
- Anticipate approximately $2 million impact on Adjusted EBITDA from well maintenance expenses shifted to Q2.
- Expect lower revenues from skim oil recoveries due to current commodity prices.
- Carefully monitoring potential volatility from macroeconomic factors.
- Monitoring tariff uncertainty.
- Monitoring lower oil prices.
Revenue & Expenses
Visualization of income flow from segment revenue to net income