Aris Water Solutions Inc (ARIS) Reports Q3 2023 Earnings: Net Income Rises to $12.2 Million
Net income for Q3 2023 was $12.2 million, a significant increase from $2.0 million in Q3 2022.
Total volumes increased by 7% year-over-year, reaching 1,516 thousand barrels of water per day.
Adjusted EBITDA for Q3 2023 was $44.9 million, up approximately 14% from Q3 2022.
Aris Water Solutions Inc declared a dividend of $0.09 per share for Q4 2023.
On November 1, 2023, Aris Water Solutions Inc (NYSE:ARIS) released its financial and operating results for the third quarter ended September 30, 2023. The company reported a substantial increase in net income, significant volume growth, and promising operational updates.
Financial Performance
Aris Water Solutions Inc reported a net income of $12.2 million for Q3 2023, a significant increase from the net income of $2.0 million in Q3 2022. The company's Adjusted Net Income was $13.9 million for Q3 2023, slightly higher than the $13.2 million reported for the same period in 2022. The company's Adjusted EBITDA for Q3 2023 was $44.9 million, up approximately 14% from $39.3 million in Q3 2022.
Operational Highlights
During Q3 2023, the company achieved year-over-year and sequential volume growth. Total volumes increased by 7% year-over-year, reaching 1,516 thousand barrels of water per day. The company's produced water handling volumes also saw a 17% year-over-year increase, reaching 1,056 thousand barrels of water per day. However, groundwater volumes sold saw a decrease of 27% year-over-year.
Financial Position
As of September 30, 2023, Aris Water Solutions Inc had approximately $24 million in cash and approximately $166 million available under its revolving credit facility. The company's leverage ratio was 2.53X, at the low end of its target leverage range of 2.50X-3.50X. The company also declared a dividend of $0.09 per share for Q4 2023.
Looking Ahead
CEO Amanda Brock expressed optimism about the company's future, stating,
We are very pleased with the progress the team has made year-to-date and we are on track to achieve the high-end of the Adjusted EBITDA guidance we provided at the beginning of the year and affirmed last quarter."
She also mentioned that the company is engaging in preliminary conversations with several third parties to explore commercialization of the minerals found in their produced water.
For more detailed information, please refer to the full earnings report on the company's website.
Explore the complete 8-K earnings release (here) from Aris Water Solutions Inc for further details.
This article first appeared on GuruFocus.
