Aris Water Solutions Reports Fourth Quarter & Full Year 2021 Results

HOUSTON--()--Aris Water Solutions, Inc. (NYSE: ARIS) (“Aris”, “Aris Water” or the “Company”), today announced financial and operating results for the fourth quarter and year ended December 31, 2021.

FOURTH QUARTER & YEAR OF 2021 HIGHLIGHTS

  • Record total water volumes of approximately 1.1 million barrels per day for the fourth quarter of 2021, up 14% versus the third quarter of 2021
  • Continued growth in recycled produced water with 185,000 barrels per day for the fourth quarter of 2021, up 42% versus the third quarter of 2021
  • Full year 2021 consolidated net loss of $7.0 million, down from a consolidated net income of $7 thousand for full year 2020. Net income for the full year of 2021 was $21.5 million excluding a non-cash charge of $28.5 million associated with the abandonment of an asset
  • Adjusted EBITDA1of $120.5 million for the full year of 2021, up 63% versus the full year of 2020
  • Property, Plant, and Equipment Expenditures of $74.7 million for the full year of 2021, down approximately 47% from $139.6 million for the full year of 2020

Aris’s fourth quarter capped an outstanding year for the Company,” stated Amanda Brock, Chief Executive Officer of Aris. “In the fourth quarter, we again moved record water volumes and our recycling activities continued to grow rapidly as our existing and new customers increased their demand for the use of recycled water. Throughout 2021, we executed new long-term acreage dedications for handling and supply and firmly established ourselves as a leading provider of sustainable water recycling solutions. During 2021, we expanded our operating margins and reduced our capital expenditures, efficiently utilizing and growing our existing system. We also expanded our focus on piloting and evaluating beneficial reuse technologies and opportunities to use treated produced water outside of the oil and gas industry. We remain highly optimistic and confident about Aris’s continued growth in 2022.”

2021 was a transformational year for Aris,” said Bill Zartler, Founder and Executive Chairman of Aris. “We issued the first sustainability linked bond in the produced water industry and successfully completed an initial public offering. We have firmly established ourselves as a proven, reliable, and long-term partner to premier operators in the Permian Basin and are growing rapidly alongside our customers as we help them solve their increasing water challenges. We are proud of how much the Aris team accomplished in 2021 and look forward to a positive outlook for the industry and Aris heading into 2022.”

OPERATIONS UPDATE

For the year of 2021, the company averaged approximately 947,000 barrels of water per day of total volumes handled, up approximately 38% from 686,000 barrels of water per day for the year of 2020. The Company’s volume growth was primarily driven by increased activity levels from its long-term contracted customers and additional adoption of our recycled produced water solutions.

In the fourth quarter of 2021, Aris signed three new long-term acreage dedication agreements in Eddy and Lea Counties, New Mexico adding approximately 34,000 dedicated acres. Over the course of 2021, the Company added over 68,000 newly dedicated acres, bringing total dedicated acres to approximately 583,000 acres.

FINANCIAL UPDATE

During the fourth quarter of 2021, the Company recorded consolidated net income of $6.4 million compared to consolidated net income of $0.3 million for the fourth quarter of 2020. The Company recorded a consolidated net loss of $7.0 million during full year 2021, compared to consolidated net income of $7 thousand for full year 2020. Excluding a non-cash charge of $28.5 million associated with the abandonment of an asset, consolidated net income for the full year of 2021 was $21.5 million.

The Company had Gross Margin per barrel of $0.27/bbl for the fourth quarter of 2021 compared to $0.13/bbl in the fourth quarter of 2020. The Company had Adjusted Operating Margin per barrel of $0.43/bbl for the fourth quarter of 2021, compared to $0.35/bbl in the fourth quarter of 2020. Over the course of 2021, Aris expanded its margins through increased recycling activities, enhanced automation, and spreading fixed costs over a larger volumetric base.

The Company had Adjusted EBITDA1 of $35.7 million for the fourth quarter of 2021 compared to $18.4 million in the fourth quarter of 2020, an increase of 94%. For the year of 2021, the Company had Adjusted EBITDA 1 of $120.5 million compared to $74.0 million for the year of 2020, an increase of 63%.

Fourth quarter 2021 property, plant, and equipment expenditures totaled $11.9 million compared to $17.8 million in the fourth quarter of 2020. Aris continues to invest in high-return capital projects that support its long-term contracted customers and leverage its existing infrastructure.

STRONG BALANCE SHEET AND LIQUIDITY

As of December 31, 2021, the Company had approximately $60.0 million in cash and an undrawn and available $200.0 million revolving credit facility. Aris is currently at the low end of its leverage target of 2.5-3.5X 2.

FIRST QUARTER 2022 DIVIDEND

On February 25, 2022, Aris announced that its Board of Directors declared a dividend on its Class A common stock for the first quarter of 2022 of $0.09 per share. In conjunction with the dividend payment, a distribution of $0.09 per unit will be paid to unit holders of Solaris Midstream Holdings, LLC. The dividend will be paid on March 29, 2022, to holders of record of the Company’s Class A common stock as of the close of business on March 17, 2022. The distribution to unit holders of Solaris Midstream Holdings, LLC will be subject to the same payment and record dates.

2022 OUTLOOK

Aris anticipates continued rapid growth in 2022 due to accelerating activity on the Company’s dedicated acreage and increasing adoption of recycling as customers recognize our reliability and sustainability benefits. For the year of 2022, the Company projects Adjusted EBITDA of $150.0-$160.0 million, growing approximately 30% versus 2021, and capital expenditures of $80.0-$90.0 million. The Company projects approximately $50.0-$60.0 million of capital expenditures for the first half of the 2022 to support anticipated production increases in the second half of 2022. For the first quarter of 2022, the Company expects Adjusted EBITDA of $32.0-$34.0 million.

CONFERENCE CALL

Aris will host a conference call and webcast for investors and analysts to discuss its results for the fourth quarter and full year 2021 on Tuesday, March 1, 2022 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Participants should call (877) 407-5792 and should refer to Aris Water Solutions, Inc. when dialing in. An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately 14 days. To access the replay, call (877) 660-6853 (United States/Canada) or (201) 612-7415 (International) and enter access code 13726761. A live broadcast of the earnings conference call and the related earnings presentation will also be available via the internet at www.ariswater.com under the “Investors” section of the website. A replay will also be available on the website following the call.

About Aris Water Solutions, Inc.

Aris Water Solutions, Inc. is a leading, growth-oriented environmental infrastructure and solutions company that directly helps its customers reduce their water and carbon footprints. Aris Water delivers full-cycle water handling and recycling solutions that increase the sustainability of energy company operations. Its integrated pipelines and related infrastructure create long-term value by delivering high-capacity, comprehensive produced water management, recycling and supply solutions to operators in the core areas of the Permian Basin.

Forward-Looking Statements

This press release 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 the Company’s business strategy, its industry, its future profitability, the various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the volatility in global oil markets and the COVID-19 pandemic, expected capital expenditures and the impact of such expenditures on performance, management changes, current and potential future long-term contracts and the Company’s future business and financial performance. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “guidance,” “preliminary,” “project,” “estimate,” “expect,” “continue,” “intend,” “plan,” “believe,” “forecast,” “future,” “potential,” “may,” “possible,” “could” and variations of such words or similar expressions. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its 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, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Factors that could cause the Company’s 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 its filings made from time to time with the SEC. 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 the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes 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.

________________________

1 Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate Adjusted EBITDA and a reconciliation thereof to net income, the most comparable GAAP measure.

2 Defined as net debt as of 12/31/2021 divided by annualized 4Q 2021 Adjusted EBITDA. Net debt is calculated as total debt less cash and cash equivalents.

 

Table 1

Aris Water Solutions, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 
(in thousands, except for share
and per share amounts)
Three Months Ended
December 31,
Year Ended
December 31,

2021

2020

 

2021

 

2020

 

Revenue
Produced Water Handling $

27,118

$

19,781

 

$

98,486

 

$

90,163

 

Produced Water Handling—Affiliates

24,382

16,212

 

86,598

 

51,496

 

Water Solutions

13,297

4,392

 

25,121

 

14,802

 

Water Solutions—Affiliates

2,182

4,539

 

19,046

 

15,011

 

Total Revenue

66,979

44,924

 

229,251

 

171,472

 

Cost of Revenue
Direct Operating Costs

24,211

23,791

 

90,914

 

95,431

 

Depreciation, Amortization and Accretion

15,217

12,498

 

60,767

 

44,027

 

Total Cost of Revenue

39,428

36,289

 

151,681

 

139,458

 

Operating Costs and Expenses
Abandoned Well Costs

1,103

 

28,505

 

 

General and Administrative

12,026

5,242

 

27,266

 

18,663

 

Other Operating Expenses (Income), Net

67

793

 

2,657

 

5,647

 

Total Operating Expenses

13,196

6,035

 

58,428

 

24,310

 

Operating Income

14,355

2,600

 

19,142

 

7,704

 

Other Expense
Interest Expense, Net

7,618

2,310

 

25,473

 

7,674

 

Other

 

380

 

 

Total Other Expense

7,618

2,310

 

25,853

 

7,674

 

(Loss) Income Before Taxes

6,737

290

 

(6,711

)

30

 

Income Tax Expense

379

8

 

298

 

23

 

Net (Loss) Income $

6,358

$

282

 

$

(7,009

)

$

7

 

Equity Accretion and Dividend—Redeemable Preferred

(2,407

)

21

 

(4,335

)

Net (Loss) Income—Stockholders'/Members' Equity $

6,358

$

(2,125

)

$

(6,988

)

$

(4,328

)

Net Income (Loss), Equity Accretion and Dividend Prior to IPO

3,037

(10,309

)

Net Income Attributable to Noncontrolling Interest

2,209

2,209

 

Net Income Attributable to Class A Common Stock $

1,112

$

1,112

 

 
Earnings Per Share of Class A Common Stock Basic and Diluted (1) $

0.05

$

0.05

 

Weighted Average Shares of Class A Common Stock Basic and Diluted (1)

20,888,675

20,888,675

 

(1) Represents earnings per share of Class A Common Stock and weighted-average shares of Class A common stock outstanding for the period from October 26, 2021 through December 31, 2021, the period following the reorganization transactions and IPO.
 

Table 2

Aris Water Solutions, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 
 
(in thousands, except for share and per share/unit amounts) December 31,

2021

 

2020

 

Assets
Cash and Cash Equivalents $

60,055

 

$

24,932

 

Accounts Receivable, Net

41,973

 

21,561

 

Accounts Receivable from Affiliate

20,191

 

11,538

 

Other Receivables

4,126

 

3,722

 

Prepaids and Deposits

6,043

 

4,315

 

Total Current Assets

132,388

 

66,068

 

Fixed Assets
Property, Plant and Equipment

700,756

 

661,446

 

Accumulated Depreciation

(67,749

)

(43,258

)

Total Property, Plant and Equipment, Net

633,007

 

618,188

 

Intangible Assets, Net

304,930

 

337,535

 

Goodwill

34,585

 

34,585

 

Net Deferred Income Tax Assets

19,933

 

 

Other Assets

1,850

 

1,429

 

Total Assets $

1,126,693

 

$

1,057,805

 

Liabilities, Mezzanine, Stockholders' and Members' Equity
Accounts Payable $

7,082

 

$

16,067

 

Payables to Affiliate

1,499

 

1,884

 

Accrued and Other Current Liabilities

40,464

 

27,838

 

Total Current Liabilities

49,045

 

45,789

 

Long-Term Debt, Net of Debt Issuance Costs

392,051

 

297,000

 

Asset Retirement Obligations

6,158

 

5,291

 

Tax Receivable Agreement Liability

75,564

 

 

Deferred Revenue and Other Long-Term Liabilities

1,336

 

1,432

 

Total Liabilities

524,154

 

349,512

 

Commitments and Contingencies
Mezzanine Equity:
Redeemable Preferred Units, $10,000 par value, none issued or outstanding as of December 31, 2021 and 7,307 outstanding as of December 31, 2020

 

74,378

 

Stockholders' and Members' Equity:
Members' Equity

 

633,915

 

Class A Common Stock $0.01 par value, 600,000,000 authorized, 21,858,022 issued and 21,847,831 outstanding as of December 31, 2021. None issued or outstanding at December 31, 2020

218

 

 

Class B Common Stock $0.01 par value, 180,000,000 authorized, 31,716,104 issued and outstanding as of December 31, 2021. None issued or outstanding at December 31, 2020

317

 

 

Treasury Stock (at Cost), 10,191 shares as of December 31, 2021 and none at 2020

(135

)

Additional Paid-in-Capital

212,926

 

 

Accumulated Deficit

(457

)

 

Total Stockholders'/Members' Equity Attributable to Aris Water Solutions, Inc.

212,869

 

 

Noncontrolling Interests

389,670

 

 

Total Stockholders'/Members' Equity

602,539

 

633,915

 

Total Liabilities, Mezzanine and Stockholders'/Members' Equity $

1,126,693

 

$

1,057,805

 

 
 

Table 3

Aris Water Solutions, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
 
Three Months Ended
December 31,
Year Ended
December 31,
(in thousands)

2021

 

2020

 

2021

 

2020

 

Cash Flow from Operating Activities
Net (Loss) Income $

6,358

 

$

282

 

$

(7,009

)

$

7

 

Adjustments to reconcile Net Income (Loss) to Net Cash provided by Operating Activities
Depreciation, Amortization and Accretion

15,217

 

12,498

 

60,767

 

44,027

 

Deferred Income Tax Benefit

379

 

 

379

 

 

Stock Based Compensation

1,586

 

 

1,586

 

 

Abandoned Well Costs

1,103

 

 

28,505

 

 

Loss (Gain) on Disposal of Asset, Net

50

 

51

 

275

 

133

 

Abandoned Projects

12

 

624

 

2,047

 

2,125

 

Amortization of Deferred Financing Costs

553

 

213

 

1,873

 

783

 

Loss on Debt Modification

 

 

380

 

 

Bad Debt Expense

 

363

 

216

 

446

 

Changes in operating assets and liabilities:
Accounts Receivable

(10,225

)

1,233

 

(21,456

)

10,620

 

Accounts Receivable from Affiliate

1,393

 

2,720

 

(8,653

)

5,195

 

Other Receivables

133

 

(3,715

)

364

 

(3,659

)

Prepaids and Deposits

(4,694

)

(1,580

)

(2,178

)

(58

)

Accounts Payable

(4,987

)

(1,600

)

(8,271

)

193

 

Payables to Affiliate

330

 

(390

)

(385

)

 

Adjustment in Deferred Revenue

(93

)

325

 

(139

)

1,300

 

Accrued Liabilities and Other

(5,489

)

6,197

 

10,511

 

6,659

 

Net Cash Provided by Operating Activities

1,626

 

17,221

 

58,812

 

67,771

 

 
Cash Flow from Investing Activities
Property, Plant and Equipment Expenditures

(11,936

)

(17,754

)

(74,664

)

(139,589

)

Net Cash Used in Investing Activities

(11,936

)

(17,754

)

(74,664

)

(139,589

)

 
Cash Flow from Financing Activities
Proceeds from issuance of Class A Common Stock sold in Initial Public Offering, net of underwriting discounts and commissions

249,355

 

 

249,355

 

 

Payment of Issuance Costs of Class A Common Stock

(2,058

)

 

(2,913

)

 

Distributions to Unit Holders

(213,186

)

 

(213,186

)

 

Repurchase of Shares

(135

)

 

(135

)

 

Proceeds from Senior Sustainability-Linked Notes

 

 

400,000

 

 

Payments of Financing Costs Related to Issuance of Senior Sustainability-Linked Notes

 

 

(9,352

)

 

Repayment of Credit Facility

 

 

(297,000

)

 

Proceeds from Credit Facility

 

4,000

 

 

77,000

 

Redemption of Redeemable Preferred Units

 

 

(74,357

)

 

Payments of Financing Costs

 

(45

)

(1,442

)

(536

)

Members' Contributions

 

13,203

 

5

 

13,203

 

Net Cash Provided by Financing Activities

33,976

 

17,158

 

50,975

 

89,667

 

Net Increase in Cash and Cash Equivalents

23,666

 

16,625

 

35,123

 

17,849

 

Cash and Cash Equivalents, Beginning of Period

36,389

 

8,307

 

24,932

 

7,083

 

Cash and Cash Equivalents, End of Period $

60,055

 

$

24,932

 

$

60,055

 

$

24,932

 

Use of Non-GAAP Financial Information

The Company uses financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, free cash flow, Adjusted Operating Margin, Adjusted Operating Margin per Barrel and Adjusted Net Income. Although these Non-GAAP financial measures are important factors in assessing the Company’s operating results and cash flows, they should not be considered in isolation or as a substitute for net income or gross margin or any other measures prepared under GAAP. Additionally, the Company uses a current leverage ratio to evaluate it’s financial position.

The Company calculates Adjusted EBITDA as net income (loss) plus: interest expense; income taxes; depreciation, amortization and accretion expense; asset impairment and abandoned project charges; losses on the sale of assets; loss on debt modification; and non-recurring or unusual expenses or charges (including temporary power costs), less any gains on sale of assets.

The Company calculates free cash flow as cash flow from operating activities adjusted to exclude cash spent on property, plant and equipment.

The Company calculates Adjusted Operating Margin as Gross Margin plus depreciation, amortization and accretion and temporary power costs. The Company defines Adjusted Operating Margin per Barrel as Adjusted Operating Margin divided by total volumes.

The Company calculates Adjusted Net Income as net income plus the after tax impacts of stock-based compensation and certain items affecting comparability (typically noncash and/or nonrecurring items).

For year-end 2021, the Company calculates its current leverage ratio as net debt as of December 31, 2001, divided by annualized 4Q 2021 Adjusted EBITDA. Net debt is calculated as the principal amount of total debt as of December 31, 2021 less cash and cash equivalents as of December 31, 2021.

The Company believes this presentation is used by investors and professional research analysts for the valuation, comparison, rating, and investment recommendations of companies within its industry. Additionally, the Company uses this information for comparative purposes within its industry. Adjusted EBITDA, Adjusted Operating Margin, Adjusted Operating Margin per Barrel and Adjusted Net Income are not measures of financial performance under GAAP and should not be considered as measures of liquidity or as alternatives to net income (loss) or gross margin. Adjusted EBITDA, Adjusted Operating Margin, Adjusted Operating Margin per Barrel and Adjusted Net Income as defined by the Company may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net income (loss) and other measures prepared in accordance with GAAP, such as gross margin, operating income, net income or cash flows from operating activities.

Although we provide forecasts for the non-GAAP measure Adjusted EBITDA, we are not able to forecast the most directly comparable measure net income calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP net income 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, which could have a significant impact on the GAAP measure. As a result, no reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income is provided.

 

Table 4

Aris Water Solutions, Inc.

Operating Metrics

(Unaudited)

 
Three Months Ended
December 31,
Year Ended December 31,

2021

2020

2021

2020

Thousands barrels water per day
Produced Water Handling Volumes

750

583

707

570

Water Solutions Volumes:
Recycled Produced Water Volumes Sold

185

75

123

44

Groundwater Volumes Sold

107

69

73

61

Groundwater Volumes Transferred

50

12

44

11

Total Water Solutions Volumes

342

156

240

116

Total Volumes

1,092

739

947

686

 
Per Barrel Operating Metrics
Produced Water Handling Revenue/Barrel $

0.75

$

0.67

$

0.72

$

0.68

Water Solutions Revenue/Barrel $

0.49

$

0.63

$

0.50

$

0.70

Revenue/Barrel of Total Volumes $

0.67

$

0.66

$

0.66

$

0.68

Direct Operating Costs/Barrel $

0.24

$

0.35

$

0.26

$

0.38

Adjusted Operating Margin/Barrel $

0.43

$

0.35

$

0.41

$

0.36

 

Table 5

Aris Water Solutions, Inc.

Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA

(Unaudited)

 
Three Months Ended Year Ended
(in thousands, except for per BBL amounts) September 30, December 31, December 31, December 31,

 

2021

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net Income (Loss)

$

(20,743

)

$

6,358

 

$

282

 

$

(7,009

)

$

7

 

Interest Expense, Net

 

7,880

 

 

7,618

 

 

2,310

 

 

25,473

 

 

7,674

 

Income Tax Expense

 

(83

)

 

379

 

 

8

 

 

298

 

 

23

 

Depreciation, Amortization and Accretion

 

15,378

 

 

15,217

 

 

12,498

 

 

60,767

 

 

44,027

 

Abandoned Well Costs

 

27,402

 

 

1,103

 

 

 

 

28,505

 

 

 

Abandoned Projects

 

679

 

 

12

 

 

624

 

 

2,047

 

 

2,125

 

Temporary Power Costs

 

 

 

 

 

2,310

 

 

4,253

 

 

14,979

 

Loss on Disposal of Asset, Net

 

8

 

 

50

 

 

51

 

 

275

 

 

133

 

Other Non-Operating Expense

 

 

 

 

 

 

 

380

 

 

 

Settled Litigation

 

 

 

 

 

171

 

 

 

 

1,482

 

IPO Transaction Bonus

 

 

 

3,367

 

 

 

 

3,367

 

 

 

Transaction Costs

 

253

 

 

5

 

 

118

 

 

335

 

 

3,389

 

Stock-Based Compensation

 

 

 

1,586

 

 

 

 

1,586

 

 

 

Severance and Other

 

 

 

 

 

 

 

221

 

 

190

 

Adjusted EBITDA

$

30,774

 

$

35,695

 

$

18,372

 

$

120,498

 

$

74,029

 

 
Total Revenue

 

59,499

 

 

66,979

 

 

44,924

 

 

229,251

 

 

171,472

 

Cost of Revenue

 

(38,875

)

 

(39,428

)

 

(36,289

)

 

(151,681

)

 

(139,458

)

Gross Margin

 

20,624

 

 

27,551

 

 

8,635

 

 

77,570

 

 

32,014

 

Depreciation, Amortization and Accretion

 

15,378

 

 

15,217

 

 

12,498

 

 

60,767

 

 

44,027

 

Temporary Power Costs

 

 

 

 

 

2,310

 

 

4,253

 

 

14,979

 

Adjusted Operating Margin

 

36,002

 

 

42,768

 

 

23,443

 

 

142,590

 

 

91,020

 

Total Volumes (Thousands of BBLs)

 

88,357

 

 

100,528

 

 

67,870

 

 

345,576

 

 

251,308

 

Adjusted Operating Margin/BBL

$

0.41

 

$

0.43

 

$

0.35

 

$

0.41

 

$

0.36

 

 

Table 6

Aris Water Solutions, Inc.

Reconciliation of Net Income to Non-GAAP Adjusted Net Income

(Unaudited)

 


(in thousands)
Three Months
Ended
December 31, 2021
Net Income $

6,358

Adjusting Items:
IPO Bonus (1)

3,367

Stock-based Compensation

1,586

Tax Effect of Adjusting Items (2)

(396)

Adjusted Net Income $

10,915

(1) One time cash bonus paid to employees upon completion of initial public offering
(2) Estimated tax effect of adjusted items allocated to Aris' based on statutory rates
 

Table 7

Aris Water Solutions, Inc.

Computation of Current Leverage Ratio

(Unaudited)

 

As of
December 31, 2021
 
Principal Amount of Debt at December 31, 2021

$

400,000

 

Less: Cash and Cash Equivalents at December 31, 2021

 

(60,055

)

Net Debt

$

339,945

 

 
Adjusted EBITDA for the Three Months Ended December 31, 2021

$

35,695

 

x 4 Quarters x 4
Annualized Adjusted EBITDA

$

142,780

 

 
Net Debt

$

339,945

 

÷ Annualized Adjusted EBITDA

$

142,780

 

Current Leverage Ratio as of December 31, 2021

 

2.4

 

 
 

 

Contacts

David Tuerff
IR@ariswater.com

Release Summary

Aris Water Solutions, Inc. Reports Fourth Quarter & Full Year 2021 Results

Contacts

David Tuerff
IR@ariswater.com