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Dec 31, 2024
Aris Water Solutions Q4 2024 Earnings Report
Aris Water Solutions, Inc. reported strong fourth quarter and full year 2024 results, with increased volumes and profitability, and announced a 33% increase in its quarterly dividend and the acquisition of McNeill Ranch.
Key Takeaways
Aris Water Solutions, Inc. delivered a remarkable fourth quarter and a great year in 2024, successfully growing both volumes and profitability. The company achieved Adjusted EBITDA at the top end of its increased guidance and is now focused on increasing shareholder returns by raising its dividend to $0.14 per share, representing a 33% increase. Strategic initiatives include the acquisition of McNeill Ranch for future growth and expansion into broader industrial water treatment markets.
Produced water volumes grew 7% year-over-year.
Set a new quarterly record for recycled water volumes, growing 18% sequentially in Q4 2024.
Achieved fourth quarter 2024 net income of $13.8 million and Adjusted EBITDA of $54.5 million.
Increased quarterly dividend by 33% to $0.14 per share for Q1 2025 and acquired the 45,000 acre McNeill Ranch.
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 full year 2025, Aris Water Solutions, Inc. expects continued strong performance from its core water infrastructure business, with increased produced water and water solutions volumes, sustained margins, and continued capital discipline driving Free Cash Flow growth.
Positive Outlook
- Produced Water Handling volumes are expected to be between 1,150 and 1,210 thousand barrels of water per day.
- Water Solutions volumes are expected to be between 460 and 520 thousand barrels of water per day.
- Adjusted Operating Margin per Barrel is expected to be between $0.43 and $0.45.
- Adjusted EBITDA is expected to be between $215 million and $235 million.
- Free Cash Flow is expected to be between $75 million and $95 million, an increase of approximately 17% over 2024.
Challenges Ahead
- The company expects a $1.5 million Adjusted EBITDA impact from customer shut-ins due to weather events in January 2025.
- Capital Expenditures are projected to be between $85 million and $105 million.
- Certain elements of forward-looking GAAP metrics are not predictable, making it impractical to forecast.
- Non-recurring gains or losses, unusual items, income tax benefit or expense, or one-time transaction costs could significantly impact GAAP measures.
- The variability of excluded items may have a significant and unpredictable impact on future GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income