Aris Water Solutions — Q1 2025 Earnings Presentation
17 slides from Aris Water Solutions's earnings presentation, May 7, 2025
Slide 1: Aris Water Solutions, Inc. – Earnings Presentation First Quarter 2025
Aris Water Solutions, Inc. – Earnings Presentation First Quarter 2025
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: Overview of Aris’s Water Infrastructure
Overview of Aris’s Water Infrastructure Asset Footprint Aris Infrastructure Asset Highlights as of March 31, 2025 Produced Water Pipeline Right of Way Miles of Pipeline ~790 Water Handling Facility Produced Water Handling Capacity ~1,800 kbwpd Water Recycling Facility Water Recycling Capacity ~1,400
Slide 5: First Quarter 2025 Highlights
First Quarter 2025 Highlights Highlights 1Q25 1,750 Total 4Q24 1,636 Volumes(1) ✓ Increased produced water volumes 7% 1Q24 1,523 sequentially and 3% year-over-year Operational 1Q25 1,191 Produced Water 4Q24 1,112 Volumes(1) ✓ Increased Water Solutions volumes 7% 1Q24 1,159 sequentially and 54% year-
Slide 6: Key Operating and Performance Metrics
Key Operating and Performance Metrics Volume Profile (kbwpd) Adjusted Operating Margin (1) ($/bbl) Produced Water Handling Water Solutions 1,750 1,636 1,577 1,523 1,577 1,497 1,516 1,455 1,416 1,376 $0.46 $0.46 $0.45 1,305 559 $0.44 $0.44 1,242 482 364 459 524 460 362 $0.41 511 405 452 $0.39 $0.40 $
Slide 7: Second Quarter 2025 Outlook
Second Quarter 2025 Outlook ▪ Anticipate continued strong volumes in both Produced Water Handling and Water Solutions in the second quarter ▪ Adjusted Operating Margin per Barrel (1) impacted by approximately $2 million of deferred well maintenance expenses from the first quarter and lower realized
Slide 8: 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 − 1Q25 leverage at ~2.2X (1) vs. target leverage of ~2.5X-3.5X (-) Maintenance Capita
Slide 9: Beneficial Reuse, Mineral Extraction, & Industrial Water
Beneficial Reuse, Mineral Extraction, & Industrial Water ▪ Beneficial Reuse: Permitting at Scale − Applied to the Texas Commission on Environmental Quality for a permit to discharge up to 475 kbwpd of treated produced water for reservoir replenishment − Actively engaged with the TECQ and a draft per
Slide 10: Appendix
ARIS 7 WATER Appendix
Slide 11: 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 $45.0 million (1) − Approximately 45,000 surface acres spanning Texas and New Mexico ▪ McNeill Ranch affords Aris numerous strategic benefits: − Adjacent to the fastest growing areas of No
Slide 12: Aris’s Contracted Acreage Features Low Breakevens and Multidecade Inventory Life
Aris’s Contracted Acreage Features Low Breakevens and Multidecade Inventory Life Aris has Premier Contracted Acreage With Low Breakevens… … and Multidecade Remaining Inventory (WTI/NYMEX) BE 20:1 ($/bbl) 6-month Cumulative Oil (bbl/1000 ft) Total Remaining Locations by DSU 12 Source: Enverus.
Slide 13: 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 14: Aris Has a Premier, Long-Term Contracted Customer Base
Aris Has a Premier, Long-Term Contracted Customer Base 1Q25 Top Produced Water Customers by Revenue (1) 1Q25 Top Water Solutions Customers by Revenue Other Other 9% 25% Tap Rock 9% ConocoPhillips 38% Chevron 45% Mewbourne 16% Oxy 7% ConocoPhillips Mewbourne 21% 11% Chevron 19% ~80% of forecasted 202
Slide 15: 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, and leverage ratio. We be
Slide 16: 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 17: Sustainable Water Management
Sustainable Water Management