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Dec 31, 2023
Aris Water Solutions Q4 2023 Earnings Report
Aris Water Solutions reported increased profitability and strong momentum carrying into 2024.
Key Takeaways
Aris Water Solutions, Inc. reported Q4 2023 results, featuring a 4% increase in total water volumes quarter-over-quarter and a net income of $13.0 million. The company's focus on cost management and operational efficiencies contributed to improved profitability. They also provided 2024 outlook, forecasting produced water volumes to grow approximately 2-5%.
Total water volumes increased 4% quarter-over-quarter and 16% annually.
Recycled produced water volumes grew 8% for the year, including record volumes in the fourth quarter.
Net income reached $13.0 million for the fourth quarter.
Adjusted EBITDA was $49.3 million for the fourth quarter, up 17% from 2022.
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
Aris Water Solutions anticipates continued growth and profitability in 2024, driven by operational efficiencies and strategic capital allocation. Full year produced water volumes are forecasted to grow approximately 2-5%, excluding the impact of a 2023 asset divestiture.
Positive Outlook
- Full year produced water volumes are forecasted to grow approximately 2 – 5%, excluding the impact of a 2023 asset divestiture
- Full year water solutions volumes are expected to be between 430 to 470 thousand barrels per day, approximately flat with 2023
- Full-year Adjusted EBITDA forecasted between $180 - $200 million, up approximately 9% at the midpoint versus 2023
- Adjusted Operating Margin per Barrel is anticipated to increase 8% - 13% year-over-year to $0.42 - $0.44/bbl
- Capital Expenditures of $85 - $105 million, down approximately 40% versus 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income