HOUSTON--(BUSINESS WIRE)--Aris Water Solutions, Inc. (NYSE: ARIS) (“Aris” or the “Company”) today announced that its Board of Directors declared a dividend on its Class A common stock for the fourth quarter of 2021 of $0.07 per share. In conjunction with the dividend payment, a distribution of $0.07 per unit will be paid to unit holders of Solaris Midstream Holdings, LLC. The dividend will be paid on January 27, 2022 to holders of record of the Company’s Class A common stock as of the close of business on January 6, 2022. The dividend equates to $0.09 per share for the fourth quarter of 2021 pro-rated for the period following completion of the Company’s initial public offering. The distribution to unit holders of Solaris Midstream Holdings, LLC will be subject to the same payment and record dates.
“Instituting our initial quarterly dividend is an important milestone for Aris,” said Amanda Brock, President and CEO of Aris. “The dividend initiation reflects the Board and Management’s confidence that we can return cash to our shareholders while also continuing to invest in high-return growth projects and manage our balance sheet. Our existing infrastructure, scale, and customer base underpins our free cash flow generation and provides us the flexibility for a balanced capital allocation framework.”
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 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. For more information about the Company, visit www.ariswater.com.
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 payments of dividends, and our implied cash flow or liquidity. In some cases, you can identify forward-looking statements by terminology such as “estimate,” “expect,” “intend,” “plan,” “believe,” “forecast,” “may,” “could” and variations of such words or similar expressions. The payment of any future dividends will be at the discretion of our board of directors. Our board of directors may elect to declare cash dividends depending on, among other things, our financial condition, results of operations, projections, liquidity, earnings, legal requirements, and restrictions in our debt. We have not adopted a written dividend policy. The estimated total amount of the dividend and distribution with respect to the fourth quarter of 2021 is estimated to be $3.8 million, but future dividend amounts, if any, may be more or less than this amount. 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. 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 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 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.