Aris Water Solutions — Q4 2024 Earnings Presentation
19 slides from Aris Water Solutions's earnings presentation, Feb 27, 2025
Slide 1: Aris Water Solutions, Inc. – Earnings Presentation
Aris Water Solutions, Inc. – Earnings Presentation Fourth Quarter and Full Year 2024
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation and the oral statements made in connection with this presentation contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193
Slide 3: Aris Provides Essential Water Sustainability Solutions
Aris Provides Essential Water Sustainability Solutions We are a leading, growth-oriented water infrastructure and solutions company focused on unlocking value in complex wastewater streams We provide full-cycle, sustainable water handling and recycling solutions that improve the environmental footpr
Slide 4: Acquisition of McNeill Ranch Provides Optionality & Long-Term Growth
Acquisition of McNeill Ranch Provides Optionality & Long-Term Growth Aris has purchased the McNeill Ranch for $45.0 million(1) − Approximately 45,000 surface acres spanning Texas and New Mexico McNeill Ranch affords Aris numerous strategic benefits: − Adjacent to the fastest growing areas of Nor
Slide 5: Overview of Aris's Water Infrastructure
Overview of Aris’s Water Infrastructure Asset Footprint Aris Infrastructure Asset Highlights as of December 31, 2024 Produced Water Pipeline Right of Way Miles of Pipeline ~790 Water Handling Facility Water Recycling Facility Produced Water Handling Capacity ~1,850 kbwpd Customer Aris Surface Water
Slide 6: Consistent Execution & Outperformance in 2024
Consistent Execution & Outperformance in 2024 Strong and consistent volume growth Full Year 2024 Initial 2024 Metric Actual Guidance (vs. Initial Midpoint) − Driven by major customers in New Mexico with low breakeven, multi-decade inventory Produced Water Volumes 1,020 – 1,070 1,120 Adjusted Op
Slide 7: Key Operating and Performance Metrics
Key Operating and Performance Metrics Volume Profile (kbwpd) Adjusted Operating Margin (1) ($/bbl) Produced Water Handling Water Solutions 1,577 1,523 1,577 1,636 1,497 1,516 1,455 1,416 1,376 $0.46 $0.46 $0.45 1,242 1,305 524 $0.44 1,167 482 364 459 $0.42 $0.41 452 460 362 511 405 $0.40 $0.41 365 $
Slide 8: 2025 First Quarter and Full Year Outlook
2025 First Quarter and Full Year Outlook Est. First Quarter 2025 Est. Full Year 2025 Metric Low End High End Low End High End Produced Water Handling Volumes 1,085 1,125 1,150 1,210 (kbwpd) Water Solutions Volumes 510 550 460 520 (kbwpd) Adjusted Operating Margin per Barrel (1) $0.43 $0.45 $0.43 $0.
Slide 9: 2025 Outlook: Steady Growth, Additional Free Cash Flow Generation
2025 Outlook: Steady Growth, Additional Free Cash Flow Generation Volume Profile (kbwpd) Adjusted Operating Margin (1) ($/bbl) Produced Water Water Solutions ~1,700 1,548 $ 0.45 1,492 520 $ 0.43 - 1,284 460 - 428 450 411 1,210 1,150 - $ 0.45 1,042 1,120 873 $ 0.39 $ 0.39 2022 2023 2024 2025e 2022 20
Slide 10: Aris Has a Premier, Long-Term Contracted Customer Base
Aris Has a Premier, Long-Term Contracted Customer Base 2024 Top Produced Water Customers by Revenue (1) 2024 Top Water Solutions Customers by Revenue Other Other 13% 25% Oxy ConocoPhillips 6% Chevron 39% 38% Mewbourne 12% Oxy 7% Mewbourne ConocoPhillips 10% 31% Chevron 19% ~80% of forecasted 2025 Wa
Slide 11: Balanced Capital Allocation Strategy and Increasing Shareholder Returns
Balanced Capital Allocation Strategy and Increasing Shareholder Returns Aris’s Capital Allocation Framework Continuing Commitment to Balance Sheet Strength and Flexibility Operating Cash Flow (-) Interest Expense − 4Q24 leverage at ~2.0X (1) vs. target leverage of ~2.5X-3.5X (-) Maintenance Capita
Slide 12: Beneficial Reuse, Mineral Extraction, & Industrial Water
Beneficial Reuse, Mineral Extraction, & Industrial Water Beneficial Reuse: Permitting at Scale − Applied with the Texas Commission on Environmental Quality for a permit to discharge up to 475 kbwpd of treated produced water for reservoir replenishment − Draft permit expected in 2025 with first wat
Slide 13: Appendix
ARIS 7 WATER Appendix
Slide 14: Aris's Contracted Acreage Features Low Breakevens and Multidecade Inventory Life
Aris’s Contracted Acreage Features Low Breakevens and Multidecade Inventory Life Aris has Premier Contracted Acreage With Low Breakevens… … and Multidecade Remaining Inventory (WTI/NYMEX) BE 20:1 ($/bbl) 6-month Cumulative Oil (bbl/1000 ft) Total Remaining Locations by DSU 14 Sources: Enverus.
Slide 15: Sustainability Highlights
Sustainability Highlights 2023 Sustainability Report Aris published its third annual Sustainability Report on key Environmental, Social, and Governance metrics in 3Q 2024 Sustainability Highlights & Recognition Selected as one of four finalists for the Water Reuse Project of the Year as recognized b
Slide 16: Aris Water is the Pioneer of Cost-Effective, Full-Cycle Water Management
Aris Water is the Pioneer of Cost-Effective, Full-Cycle Water Management Full-Cycle Water Management Full-Cycle Water Management Business Model Diverse revenue streams provide a reliable Collect Water Handling Fee base business with significant upside potential Water Production From Handling Exist
Slide 17: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures We have included certain financial measures that are not calculated in accordance with GAAP in this presentation including Adjusted EBITDA, Adjusted Operating Margin, Adjusted Operating Margin per Barrel, Capital Expenditures, net debt, free cash flow, and lever
Slide 18: Appendix: Non-GAAP Financial Measures (cont'd)
Appendix: Non-GAAP Financial Measures (cont’d) Capital Expenditures We define Capital Expenditures as cash capital expenditures for property, plant, and equipment additions less changes in accrued capital costs. The following table sets forth a reconciliation of cash paid for property, plant, and eq
Slide 19: Sustainable Water Management
Sustainable Water Management