Aris Water Solutions, Inc. - Earnings Presentation
First Quarter, 2023
Cautionary Statements
Forward-Looking Statements
This presentation contains "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 1934, as amended. Examples of forward-looking statements include, but are not limited to, those regarding our business strategy, our industry, our future profitability and projected guidance for 2023, the various risks and uncertainties associated with the extraordinary inflationary environment and impacts resulting from the volatility in global oil markets, current and potential future long-term contracts, our future business and financial performance and our ability to identify strategic acquisitions and realize expected benefits therefrom. In some cases, you can identify forward- looking statements by terminology such as "anticipate," "guidance," "preliminary," "project," "estimate," "expect," "continue," "will," "intend," "plan," "goal," "targets," "believe," "forecast," "outlook," "future," "potential," "may," "visibility," "possible," "should," "could" and variations of such words or similar expressions. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements including our guidance for 2023. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to the risk factors discussed or referenced in our filings made from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Industry and Market Data
Market and industry data and forecasts used in this presentation have been obtained from independent industry sources as well as from research reports prepared for other purposes. We also cite certain information from media and other third-party sources. Although we believe these third-party sources to be reliable, we have not independently verified the data obtained from these sources and we cannot assure you of the accuracy or completeness of the data. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and uncertainties as the other forward- looking statements in this presentation. Statements as to our market position are based on market data currently available to us, as well as management's estimates and assumptions regarding the size of our markets within our industry. While we are not aware of any misstatements regarding our industry data presented herein, our estimates involve risks and uncertainties and are subject to change based on various factors. As a result, we cannot guarantee the accuracy or completeness of such information contained in this presentation.
Non-GAAP Financial Measures
In this presentation, we use certain non-GAAP performance measures to evaluate current and past performance and prospects for the future to supplement our GAAP financial information presented in accordance with GAAP. These non-GAAP financial measures are important factors in assessing our operating results and profitability. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures is contained in the appendix to this presentation.
Although we provide guidance for the non-GAAP measures Adjusted EBITDA and Adjusted Operating Margin per Barrel, we are not able to forecast their most the most directly comparable measures (net income and gross margin) calculated and presented in accordance with GAAP, without unreasonable effort. Certain elements of the composition of forward-lookingnon-GAAP metrics are not predictable, making it impractical for us to forecast. Such elements include but are not limited to non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs and cost of revenue, which could have a significant impact on net income. As a result, no reconciliation of forecasted non-GAAP measures are provided.
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Aris Provides Essential Environmental Solutions
- We are a leading, growth-oriented environmental infrastructure and solutions company
- We deliver full-cycle water handling and recycling solutions that increase the sustainability of energy companies
- Our infrastructure serves premier operators in core areas of the Permian Basin under long-term contracts
Mission Statement:
We are dedicated to supporting responsible domestic energy production by providing produced water management with a heightened level of environmental standards. We work to maintain the trust of our employees, customers and neighbors through sustainable operations and a commitment to maintaining the highest integrity and safety standards.
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Overview of Aris Water System
Asset Footprint
Aris Infrastructure
Produced Water Pipeline
Right of Way
Water Handling Facility
Water Recycling Facility
Customer Acreage
Contracted
Asset Highlights as of March 31, 2023 | ||
Miles of Pipeline | ~715 | |
Produced Water Handling Capacity | ~1,700 kbwpd | |
Water Recycling Capacity | ~1,250 kbwpd | |
Contracted Acres | >650,000 | |
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First Quarter 2023 Highlights
1Q 2023 Operational Highlights
1Q 2023 Financial Highlights
- Total water volumes of ~1.4 million barrels per day
- Water Solutions volumes of ~405 thousand barrels per day
Up 18%
versus 1Q 2022
Up 11%
versus 1Q 2022
✓ | Revenue of $91.6 |
million | |
✓ | Adjusted EBITDA (1) |
of $38.1 million |
Up 29%
versus 1Q 2022
Up 6% versus 1Q 2022
Operational Update
- Modified our approach to skim oil recovery, increasing levels above historical rates
- Line power connection and equipment rental reduction projects on track to reduce operating expense in the second half of 2023
✓ | Adjusted Operating |
Margin per Barrel (1) | |
of $0.39/bbl | |
✓ | Capital Expenditures |
of $48.0 million (2) |
Down 9% versus 1Q 2022,
Up 5%
versus 4Q 2022
Up 84%
versus 1Q 2022
- Represents a non-GAAP measure. See definition and a reconciliation to the most directly comparable GAAP measure in the Appendix.
- Calculated on capital costs incurred during the period, excluding the impact of working capital.
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Disclaimer
Aris Water Solutions Inc. published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 20:51:58 UTC.