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Sep 30, 2023
Aris Water Solutions Q3 2023 Earnings Report
Reported third quarter 2023 results, demonstrating volume growth and margin expansion.
Key Takeaways
Aris Water Solutions reported an excellent third quarter with significant year-over-year and sequential volume growth, increased margins due to operating cost reduction efforts, and raised full year 2023 Adjusted EBITDA guidance.
Total water volumes reached approximately 1.5 million barrels per day, up 7% year-over-year.
Produced Water volumes were approximately 1.06 million barrels per day, up 17% year-over-year.
Net income increased to $12.2 million, a 526% increase compared to the third quarter of 2022.
Adjusted EBITDA increased to $44.9 million, up 14% year-over-year.
Aris Water Solutions
Aris Water Solutions
Aris Water Solutions Revenue by Segment
Revenue by Segment
Produced Water Handling Revenue
CapyFin.comWater Solutions Revenue
CapyFin.com Forward Guidance
For the fourth quarter of 2023, Aris Water Solutions anticipates produced water volumes to be up approximately 2–3%, adjusting for the impact of the Martin County asset sale, and water solutions volumes to be down moderately sequentially versus the third quarter due to the pull-forward of activity and potential seasonal year-end slowdowns.
Positive Outlook
- Produced Water Handling volumes between 1,045 and 1,055 thousand barrels of water per day, reflecting the impact of the Martin County asset divestiture.
- Adjusted Operating Margin per Barrel between $0.39 and $0.41.
- Skim oil recoveries of 0.10% of inlet produced water handling volumes at an average WTI price of $87 per barrel.
- Adjusted EBITDA between $41 and $45 million.
- Capital expenditures between $24 and $34 million, partially offset by $20.1 million cash proceeds from the sale of non-core assets.
Challenges Ahead
- Water Solutions volumes between 405 and 420 thousand barrels of water per day.
- Potential seasonal year-end slowdowns.
- Water solutions volumes to be down moderately sequentially versus the third quarter due to the pull-forward of activity.
- Impact of the Martin County asset sale.
- Variability of the excluded items may have a significant, and potentially unpredictable impact on our future GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income