Aris Water Solutions reports Q3 adjusted EPS 34c, consensus 30c

Reports Q3 revenue $112.31M, consensus $103.39M. “Aris had an exceptional third quarter as we continued to grow our produced water volumes, increased our recycled water sales, and maintained our strong margins. As we anticipated, our capital investment to support these increased activity levels was primarily deployed in the first half of the year and our capital spending in the third quarter declined significantly. We continue to experience steady volume growth and increasing cash generation. We anticipate a strong finish to the year and are extremely proud of our team’s efforts and results,” said Amanda Brock, President and CEO of Aris. The company added: “In addition to the great results in our core business, we continue to collaborate with major operators to accelerate the beneficial reuse of treated produced water outside of the oil and gas industry. By year end, Aris and its partners will finish testing the third of three desalination technologies for the treatment of high salinity produced water. The pilot projects thus far have successfully demonstrated the ability over time to lower energy consumption costs and potential capital and operating costs for the treatment of produced water. In 2025, we will be focused on increasing the scale of these promising technologies and confirming costs as we progress to commercialization. We also continue to evaluate commercial opportunities for mineral extraction from our produced water stream and are currently selecting a site for an iodine extraction facility with a strategic partner. We have also been approached by mineral extraction companies who specialize in magnesium, ammonia, and lithium. In 2025, we expect to have further updates relating to future potential revenues. We are also progressing other strategic initiatives to further lower our cost structure, deepen our relationships with our existing customers and further diversify our customer base. We are extremely excited about our progress and look forward to sharing more details in the coming quarters.”