Delaware | | | 87-1022110 |
(State or other jurisdiction of incorporation or organization) | | | (I.R.S. Employer Identification Number) |
Large accelerated filer ☐ | | | Accelerated filer ☐ |
Non-accelerated filer ☒ | | | Smaller reporting company ☐ |
| | Emerging growth company ☒ |
• | shares of Class A common stock, shares of preferred stock and debt securities of Aris Water Solutions, Inc. to be issued in one or more primary offerings; and |
• | shares of Class A common stock of Aris Water Solutions, Inc. that may be sold or transferred by the selling stockholders. |
• | shares of Class A common stock, par value $0.01 per share (“Class A common stock”); |
• | shares of preferred stock, par value $0.01 per share (“preferred stock”); and |
• | debt securities, which may be senior or subordinated. |
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| |
• | our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022 (including the information specifically incorporated by reference into our Annual Report on Form 10-K from our Definitive Proxy Statement on Schedule 14A filed on April 26, 2022); |
• | our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, filed with the SEC on May 10, 2022, August 4, 2022 and November 10, 2022, respectively; |
• | our Current Reports on Form 8-K (excluding Items 2.02 and 7.01 and related exhibits), filed with the SEC on March 1, 2022, June 13, 2022 and September 7, 2022; and |
• | the description of our Class A common stock contained in our Registration Statement on Form 8-A, filed with the SEC on October 21, 2021, as updated by Exhibit 4.1 to our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022, and any other amendments and reports filed for the purpose of updating such description. |
• | the impact of the current conflict between Russia and Ukraine on the global economy, including its impacts on financial markets and the energy industry; |
• | impacts of cost inflation on our operating margins; |
• | the impact of current and future laws, rulings and federal and state governmental regulations, including those related to hydraulic fracturing, accessing water, handling of produced water, carbon pricing, taxation of emissions, seismic activity, drilling and right-of-way access on federal lands, income taxes and various other matters; |
• | our reliance on a limited number of customers and a particular region for substantially all of our revenues; |
• | our ability to renew or replace expiring contracts on acceptable terms; |
• | risks related to acquisitions and organic growth projects, including our ability to realize their expected benefits; |
• | capacity constraints on regional oil, natural gas and water gathering, processing and pipeline systems that result in a slowdown or delay in drilling and completion activity, and thus a slowdown or delay in the demand for our services; |
• | our ability to retain key management and employees and to hire and retain skilled labor; |
• | our health, safety and environmental performance; |
• | delays or restrictions in obtaining, utilizing or maintaining permits and/or rights-of-way by us or our customers; |
• | constraints in supply or availability of equipment used in our business; |
• | physical, electronic and cybersecurity breaches; and |
• | the other risks described in our 2021 Annual Report and other filings with the SEC. |
• | First, the trustee can enforce your rights against us if we default. There are some limitations on the extent to which the trustee acts on your behalf, which we describe later under “—Default, Remedies and Waiver of Default.” |
• | Second, the trustee performs administrative duties for us, such as sending you interest payments and notices. |
• | the title of the series of your debt security and whether it is a senior debt security or a subordinated debt security; |
• | any limit on the total principal amount of the debt securities of the same series; |
• | the stated maturity; |
• | the currency or currencies for principal and interest, if not U.S. dollars; |
• | the price at which we originally issue your debt security, expressed as a percentage of the principal amount, and the original issue date; |
• | whether your debt security is a fixed rate debt security, a floating rate debt security or an indexed debt security; |
• | if your debt security is a fixed rate debt security, the yearly rate at which your debt security will bear interest, if any, and the interest payment dates; |
• | if your debt security is a floating rate debt security, the interest rate basis; any applicable index currency or index maturity, spread or spread multiplier or initial base rate, maximum rate or minimum rate; the interest reset, determination, calculation and payment dates; the day count convention used to calculate interest payments for any period; the business day convention; and the calculation agent; |
• | if your debt security is an indexed debt security, the principal amount, if any, we will pay you at maturity, interest payment dates, the amount of interest, if any, we will pay you on an interest payment date or the formula we will use to calculate these amounts, if any, and the terms on which your debt security will be exchangeable for or payable in cash, securities or other property; |
• | if your debt security may be converted into or exercised or exchanged for common or preferred stock or other securities of the Company or debt or equity securities of one or more third parties, the terms on which conversion, exercise or exchange may occur, including whether conversion, exercise or exchange is mandatory, at the option of the holder or at our option, the period during which conversion, exercise or exchange may occur, the initial conversion, exercise or exchange price or rate and the circumstances or manner in which the amount of common or preferred stock or other securities issuable upon conversion, exercise or exchange may be adjusted; |
• | if your debt security is also an original issue discount debt security, the yield to maturity; |
• | if applicable, the circumstances under which your debt security may be redeemed at our option or repaid at the holder’s option before the stated maturity, including any redemption commencement date, repayment date(s), redemption price(s) and redemption period(s); |
• | the authorized denominations, if other than $2,000 and integral multiples of $1,000; |
• | the depositary for your debt security, if other than The Depository Trust Company (“DTC”), and any circumstances under which the holder may request securities in non-global form, if we choose not to issue your debt security in book-entry form only; |
• | if applicable, the circumstances under which we will pay additional amounts on any debt securities held by a person who is not a United States person for tax purposes and under which we can redeem the debt securities if we have to pay additional amounts; |
• | the names and duties of any co-trustees, depositaries, authenticating agents, paying agents, transfer agents or registrars for your debt security, as applicable; and |
• | any other terms of your debt security, which could be different from those described in this prospectus. |
• | DTC notifies us that it is unwilling or unable to continue as depositary for that global security or has ceased to be a registered clearing agency and we do not appoint another institution to act as depositary within 90 days; or |
• | we notify the trustee that we wish to terminate that global security. |
• | If the successor entity in the transaction is not the Company, the successor entity must be organized as a corporation, limited liability company, partnership or trust and must expressly assume our obligations under the debt securities of that series and the indenture with respect to that series. The successor entity may be organized under the laws of the United States, any state thereof or the District of Columbia. |
• | Immediately after the transaction, no default under the debt securities of that series has occurred and is continuing. For this purpose, “default under the debt securities of that series” means an event of default with respect to that series or any event that would be an event of default with respect to that series if the requirements for giving us default notice and for our default having to continue for a specific period of time were disregarded. We describe these matters below under “—Default, Remedies and Waiver of Default.” |
• | our indebtedness under or in respect of (i) our senior secured revolving credit facility and (ii) our 7.625% Senior Sustainability-Linked Notes due 2026, whether for principal, interest (including interest accruing after the filing of a petition initiating any proceeding pursuant to any bankruptcy law, whether or not the claim for such interest is allowed as a claim in such proceeding), reimbursement obligations, fees, commissions, expenses, indemnities or other amounts; and |
• | any other indebtedness permitted under the terms of that indenture, unless the instrument under which such indebtedness is incurred expressly provides that it is on a parity with or subordinated in right of payment to the subordinated debt securities. |
• | in the event of any insolvency or bankruptcy proceedings, or any receivership, liquidation, reorganization, assignment for creditors or other similar proceedings or events involving us or our assets; |
• | (i) in the event and during the continuation of any default in the payment of principal of, and any premium and interest on, any senior debt beyond any applicable grace period or (ii) in the event that any event of default with respect to any senior debt has occurred and is continuing, permitting the holders of that senior debt (or a trustee) to accelerate the maturity of that senior debt, whether or not the maturity is in fact accelerated (unless, in the case of (i) or (ii), the payment default or event of default has been cured or waived or ceased to exist and any related acceleration has been rescinded) or (iii) in the event that any judicial proceeding is pending with respect to a payment default or event of default described in (i) or (ii); or |
• | in the event that any subordinated debt securities have been declared due and payable before their stated maturity. |
• | we will be discharged from our obligations with respect to the debt securities of such series (“legal defeasance”); or |
• | we will be discharged from any covenants we make in the applicable indenture for the benefit of such series and the related events of default will no longer apply to us (“covenant defeasance”). |
• | deliver all outstanding debt securities of that series to the trustee for cancellation; or |
• | all such debt securities not so delivered for cancellation have either become due and payable or will become due and payable at their stated maturity within one year or are to be called for redemption within one year, and in the case of this bullet point, we have deposited with the trustee in trust an amount of cash sufficient to pay the entire indebtedness of such debt securities, including interest to the stated maturity or applicable redemption date. |
• | we do not pay the principal of and any premium on any debt security of that series on the due date; |
• | we do not pay interest on any debt security of that series within 30 days after the due date; |
• | we do not deposit a sinking fund payment with regard to any debt security of that series within 60 days after the due date, but only if the payment is required under provisions described in the applicable prospectus supplement; |
• | we remain in breach of our covenants regarding mergers or sales of substantially all of our assets or any other covenant we make in the indenture for the benefit of the relevant series, for 90 days after we receive a notice of default stating that we are in breach and requiring us to remedy the breach, which notice must be sent by the trustee or the holders of at least 25% in principal amount of the relevant series of debt securities; |
• | we file for bankruptcy or other events of bankruptcy, insolvency or reorganization relating to the Company occur; or |
• | if the applicable prospectus supplement states that any additional event of default applies to the series, that event of default occurs. |
• | the holder of your debt security must give the trustee written notice that an event of default has occurred with respect to the debt securities of your series, and the event of default must not have been cured or waived; |
• | the holders of not less than 25% in principal amount of all debt securities of your series must make a written request that the trustee take action because of the default, and they or other holders must offer to the trustee indemnity reasonably satisfactory to the trustee against the cost and other liabilities of taking that action; |
• | the trustee must not have taken action for 60 days after the above steps have been taken; and |
• | during those 60 days, the holders of a majority in principal amount of the debt securities of your series must not have given the trustee directions that are inconsistent with the written request of the holders of not less than 25% in principal amount of the debt securities of your series. |
• | changing the stated maturity for any principal or interest payment on such debt security; |
• | reducing the principal amount, the amount payable on acceleration of the maturity after a default, the interest rate or the redemption price for such debt security; |
• | permitting redemption of such debt security if not previously permitted; |
• | impairing any right such holder may have to require purchase of its debt security; |
• | if such debt security constitutes a convertible debt security, impairing any right that a holder may have to convert such debt security; |
• | changing the currency of any payment on such debt security; |
• | changing the place of payment on such debt security; |
• | impairing such holder’s right to sue for payment of any amount due on its debt security; |
• | reducing the percentage in principal amount of the debt securities of any one or more affected series, taken separately or together, as applicable, and whether comprising the same or different series or less than all of the debt securities of a series, the approval of whose holders is needed to change the indenture or those debt securities or waive our compliance with the applicable indenture or to waive defaults; and |
• | changing the provisions of the applicable indenture dealing with modification and waiver in any other respect, except to increase any required percentage referred to above or to add to the provisions that cannot be changed or waived without approval of the holder of each affected debt security. |
• | If the change affects only particular debt securities within a series issued under the applicable indenture, it must be approved by the holders of a majority in principal amount of such particular debt securities; or |
• | If the change affects debt securities of more than one series issued under the applicable indenture, it must be approved by the holders of a majority in principal amount of all debt securities of all such series affected by the change, with all such affected debt securities voting together as one class for this purpose and such affected debt securities of any series potentially comprising fewer than all debt securities of such series, |
• | only in fully registered form; |
• | without interest coupons; and |
• | unless we indicate otherwise in your prospectus supplement, in denominations of $2,000 and integral multiples of $1,000. |
• | prior to such time, the Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; or |
• | upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding certain shares; or |
• | at or subsequent to such time, the business combination is approved by the Board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66-2/3% in voting power of the outstanding shares of stock of the Corporation entitled to vote thereon which is not owned by the interested stockholder. |
• | establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year. Our amended and restated bylaws specify the requirements as to form and content of all stockholders’ notices. These requirements may preclude stockholders from bringing matters before the stockholders at an annual or special meeting; |
• | provide our Board the ability to authorize undesignated preferred stock. This ability makes it possible for our Board to issue, without stockholder approval, preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us. These and other provisions may have the effect of deferring hostile takeovers or delaying changes in control or management of our company; |
• | provide that the authorized number of directors may be changed only by resolution of the Board; |
• | provide that all vacancies, including newly created directorships, shall, except as otherwise required by law or, if applicable, the rights of holders of a series of preferred stock, only be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum; |
• | provide that any action required or permitted to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by any consent in writing in lieu of a meeting of such stockholders, subject to the rights of the holders of any series of preferred stock with respect to such series; |
• | provide that certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws may be amended by the affirmative vote of the holders of at least two-thirds of our then outstanding Class A common stock entitled to vote thereon, voting together as a single class; |
• | provide that special meetings of our stockholders may only be called by our Board pursuant to a resolution adopted by the affirmative vote of a majority of the total number of authorized directors whether or not there exist any vacancies in previously authorized directorships; |
• | provide for our Board to be divided into three classes of directors, with each class as nearly equal in number as possible, serving staggered three-year terms, other than directors which may be elected by holders of preferred stock, if any. This system of electing and removing directors may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders to replace a majority of the directors; |
• | provide that the affirmative vote of the holders of at least 66-2/3% of the voting power of all then outstanding Class A common stock entitled to vote generally in the election of directors, voting together as a single class, shall be required to remove any or all of the directors from office and such removal may only be for cause; and |
• | provide that our amended and restated bylaws can be amended by the Board. |
• | the Designated Parties have the right to, and have no duty to abstain from, exercising such right to, conduct business with any business that is competitive or in the same line of business as us, do business with any of our clients or customers, or invest or own any interest publicly or privately in, or develop a business relationship with, any business that is competitive or in the same line of business as us; |
• | if the Designated Parties acquire knowledge of a potential transaction that could be a corporate opportunity, they have no duty to offer such corporate opportunity to us; and |
• | we have renounced any interest or expectancy in, or in being offered an opportunity to participate in, such corporate opportunities. |
• | for any breach of their duty of loyalty to us or our stockholders; |
• | for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; |
• | for unlawful payment of dividend or unlawful stock repurchase or redemption, as provided under Section 174 of the DGCL; or |
• | for any transaction from which the director derived an improper personal benefit. |
• | market prices prevailing at the time of any sale under this registration statement; |
• | prices related to market prices; or |
• | negotiated prices. |
| | Page | |
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| | ||
| |
• | our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022 (including the information specifically incorporated by reference into our Annual Report on Form 10-K from our Definitive Proxy Statement on Schedule 14A filed on April 26, 2022); |
• | our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, filed with the SEC on May 10, 2022, August 4, 2022 and November 10, 2022, respectively; |
• | our Current Reports on Form 8-K (excluding Items 2.02 and 7.01 and related exhibits), filed with the SEC on March 1, 2022, June 13, 2022 and September 7, 2022; and |
• | the description of our Class A common stock contained in our Registration Statement on Form 8-A, filed with the SEC on October 21, 2021, as updated by Exhibit 4.1 to our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022, and any other amendments and reports filed for the purpose of updating such description. |
• | the impact of the current conflict between Russia and Ukraine on the global economy, including its impacts on financial markets and the energy industry; |
• | impacts of cost inflation on our operating margins; |
• | the impact of current and future laws, rulings and federal and state governmental regulations, including those related to hydraulic fracturing, accessing water, handling of produced water, carbon pricing, taxation of emissions, seismic activity, drilling and right-of-way access on federal lands, income taxes and various other matters; |
• | our reliance on a limited number of customers and a particular region for substantially all of our revenues; |
• | our ability to renew or replace expiring contracts on acceptable terms; |
• | risks related to acquisitions and organic growth projects, including our ability to realize their expected benefits; |
• | capacity constraints on regional oil, natural gas and water gathering, processing and pipeline systems that result in a slowdown or delay in drilling and completion activity, and thus a slowdown or delay in the demand for our services; |
• | our ability to retain key management and employees and to hire and retain skilled labor; |
• | our health, safety and environmental performance; |
• | delays or restrictions in obtaining, utilizing or maintaining permits and/or rights-of-way by us or our customers; |
• | constraints in supply or availability of equipment used in our business; |
• | physical, electronic and cybersecurity breaches; and |
• | the other risks described in our 2021 Annual Report and other filings with the SEC. |
• | prior to such time, the Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; or |
• | upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding certain shares; or |
• | at or subsequent to such time, the business combination is approved by the Board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66-2/3% in voting power of the outstanding shares of stock of the Corporation entitled to vote thereon which is not owned by the interested stockholder. |
• | establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year. Our amended and restated bylaws specify the requirements as to form and content of all stockholders’ notices. These requirements may preclude stockholders from bringing matters before the stockholders at an annual or special meeting; |
• | provide our Board the ability to authorize undesignated preferred stock. This ability makes it possible for our Board to issue, without stockholder approval, preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us. These and other provisions may have the effect of deferring hostile takeovers or delaying changes in control or management of our company; |
• | provide that the authorized number of directors may be changed only by resolution of the Board; |
• | provide that all vacancies, including newly created directorships, shall, except as otherwise required by law or, if applicable, the rights of holders of a series of preferred stock, only be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum; |
• | provide that any action required or permitted to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by any consent in writing in lieu of a meeting of such stockholders, subject to the rights of the holders of any series of preferred stock with respect to such series; |
• | provide that certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws may be amended by the affirmative vote of the holders of at least two-thirds of our then outstanding Class A common stock entitled to vote thereon, voting together as a single class; |
• | provide that special meetings of our stockholders may only be called by our Board pursuant to a resolution adopted by the affirmative vote of a majority of the total number of authorized directors whether or not there exist any vacancies in previously authorized directorships; |
• | provide for our Board to be divided into three classes of directors, with each class as nearly equal in number as possible, serving staggered three-year terms, other than directors which may be elected by holders of preferred stock, if any. This system of electing and removing directors may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders to replace a majority of the directors; |
• | provide that the affirmative vote of the holders of at least 66-2/3% of the voting power of all then outstanding Class A common stock entitled to vote generally in the election of directors, voting together as a single class, shall be required to remove any or all of the directors from office and such removal may only be for cause; and |
• | provide that our amended and restated bylaws can be amended by the Board. |
• | the Designated Parties have the right to, and have no duty to abstain from, exercising such right to, conduct business with any business that is competitive or in the same line of business as us, do business with any of our clients or customers, or invest or own any interest publicly or privately in, or develop a business relationship with, any business that is competitive or in the same line of business as us; |
• | if the Designated Parties acquire knowledge of a potential transaction that could be a corporate opportunity, they have no duty to offer such corporate opportunity to us; and |
• | we have renounced any interest or expectancy in, or in being offered an opportunity to participate in, such corporate opportunities. |
• | for any breach of their duty of loyalty to us or our stockholders; |
• | for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; |
• | for unlawful payment of dividend or unlawful stock repurchase or redemption, as provided under Section 174 of the DGCL; or |
• | for any transaction from which the director derived an improper personal benefit. |
| | Shares Beneficially Owned Before the Offering | | | | | Shares Beneficially Owned After the Offering | ||||||||||||||
Name of Selling Stockholder(1) | | | Class A Common Stock Owned (Number) | | | Class B Common Stock Owned (Number) | | | Total Voting Power(2) (%) | | | Shares of Class A Common Stock that May be Sold Hereby(3) (Number) | | | Class A Common Stock Owned(4) (Number) | | | Class B Common Stock Owned (Number) | | | Total Voting Power(2) (%) |
COG Operating LLC(5) | | | — | | | 12,873,151 | | | 22.5% | | | 12,873,151 | | | — | | | — | | | — |
Yorktown Energy Partners XI, L.P(6) | | | — | | | 10,304,608 | | | 18.0% | | | 10,304,608 | | | — | | | — | | | — |
Entities associated with HBC Investments(7) | | | — | | | 3,179,324 | | | 5.5% | | | 3,179,324 | | | — | | | — | | | — |
Vision Resources, Inc.(8) | | | — | | | 2,091,157 | | | 3.6% | | | 2,091,157 | | | — | | | — | | | — |
Solaris Midstream Investment, LLC(9) | | | — | | | 2,066,646 | | | 3.6% | | | 2,066,646 | | | — | | | — | | | — |
Grelsi Co, LLC(10) | | | — | | | 95,141 | | | * | | | 95,141 | | | — | | | — | | | — |
Freebird Partners LP(11) | | | 250,000 | | | 79,059 | | | * | | | 329,059 | | | — | | | — | | | — |
Murchison Capital Partners, L.P.(12) | | | 270,929 | | | — | | | * | | | 270,929 | | | — | | | — | | | — |
Privateer Energy Services, LLC(13) | | | 27,366 | | | — | | | * | | | 27,366 | | | — | | | — | | | — |
Sooner SR LLC(14) | | | 10,618 | | | — | | | * | | | 10,618 | | | — | | | — | | | — |
Volant Capital Management LLC(15) | | | — | | | 4,561 | | | * | | | 4,561 | | | — | | | — | | | — |
* | Less than 1% |
(1) | Each of the selling stockholders that currently holds shares of Class B common stock is a member of Solaris LLC and has received one share of Class B common stock for each Solaris LLC Unit that it holds. |
(2) | Represents percentage of voting power of our Class A common stock and Class B common stock voting together as a single class. Based on 26,514.063 shares of Class A common stock and 30,811,322 shares of Class B common stock outstanding as of November 8, 2022. Each share of Class B common stock has no economic rights, but entitles the holder thereof to one vote for each Solaris LLC Unit held by such holder. Accordingly, the holders of our Class B common stock collectively have a number of votes in Solaris LLC equal to the number of Solaris LLC Units that they hold. See “Description of Capital Stock —Class A Common Stock” and “—Class B Common Stock.” |
(3) | Includes shares of our Class B common stock owned by the selling stockholders that, subject to the terms of the Solaris LLC Agreement, are, together with an equivalent number of Solaris LLC Units, redeemable at any time and from time to time for shares of Class A common stock on a one-for-one basis, subject to equitable adjustments for stock splits, stock dividends and reclassifications. |
(4) | Assumes that the selling stockholders dispose of all the shares of Class A common stock covered by this prospectus and do not acquire beneficial ownership of any additional shares of Class A common stock. The registration of these shares of Class A common stock does not necessarily mean that the selling stockholders will sell all or any portion of the shares of Class A common stock covered by this prospectus. |
(5) | COG Operating LLC is a wholly owned subsidiary of Concho Resources Inc., which is a wholly owned subsidiary of ConocoPhillips. As a result, Concho Resources Inc. and ConocoPhillips may each be deemed to share the power to vote or to dispose of the shares owned by COG Operating LLC. The address of COG Operating LLC is One Concho Center, 600 W. Illinois Avenue, Midland, Texas 79701. |
(6) | Yorktown XI Company LP is the sole general partner of Yorktown Energy Partners XI, L.P. Yorktown XI Associates LLC is the sole general partner of Yorktown XI Company LP. As a result, Yorktown XI Company LP and Yorktown XI Associates LLC may each be deemed to beneficially own the shares held by Yorktown Energy Partners XI, L.P. Yorktown XI Company LP and Yorktown XI Associates LLC disclaim beneficial ownership of the shares held by Yorktown Energy Partners XI, L.P. in excess of their pecuniary interest therein. The managers of Yorktown XI Associates LLC, who act by majority approval, are W. Howard Keenan, Jr., one of the Company’s directors, Bryan H. Lawrence, Peter A. Leidel, Tomás R. LaCosta and Robert A. Signorino (the “Yorktown Managers”). As a result, the Yorktown Managers may each be deemed to beneficially own the shares held by Yorktown Energy Partners XI, L.P. The Yorktown Managers disclaim beneficial ownership of the shares held by Yorktown Energy Partners XI, L.P. in excess of their pecuniary interest therein. The address for Yorktown Energy Partners XI, L.P. is 410 Park Avenue, 20th Floor, New York, New York 10022. |
(7) | HBC Water Resources GP LP is the general partner of HBC Water Resources LP (“HBC Water”) and may be deemed to beneficially own the shares directly held by HBC Water. HBC Water Resources II GP LP is the general partner of Water Resources II LP (“HBC Water II”) and may be deemed to beneficially own the shares directly held by HBC Water II. J. Hale Hoak and Joseph Colonnetta are the managers of HBC Water Resources GP LP and HBC Water Resources II GP LP. As a result, J. Hale Hoak and Joseph Colonnetta may be deemed to beneficially own the shares held by each of HBC Water and HBC Water II. The address of each of HBC Water and HBC Water II is 3963 Maple Avenue, Suite 450, Dallas, Texas 75219. |
(8) | David Maley and LaVerne Maley are officers of Vision Resources, Inc. and have the power to vote and dispose of the securities held by Vision Resources, Inc. The address of Vision Resources, Inc. is P.O. Box 2459, Carlsbad, New Mexico 88221. |
(9) | Solaris Midstream Investment, LLC is managed by a board of directors and William A. Zartler is the sole director. As a result, Mr. Zartler may be deemed to beneficially own the shares held by Solaris Midstream Investment, LLC. Mr. Zartler disclaims beneficial ownership of the securities held by Solaris Midstream Investment, LLC in excess of his pecuniary interests therein. The address of Solaris Midstream Investment, LLC is 9811 Katy Freeway, Suite 700, Houston, Texas 77024. |
(10) | Grant J. Harvey, as the manager and sole member of Grelsi Company, LLC, has the power to vote and dispose of the securities held by Grelsi Company, LLC. The address of Grelsi Company, LLC is 6510 County Road 250, Durango, Colorado 81301. |
(11) | Freebird Investments LLC is the sole general partner of Freebird Partners LP and Curtis Huff directly controls Freebird Investments LLC. As a result, Mr. Huff may be deemed to have the power to vote or direct the vote or to dispose or direct the disposition of the shares owned by Freebird Partners LP. Mr. Huff disclaims beneficial ownership of the securities held by Freebird Partners LP in excess of his pecuniary interests therein. The address of Freebird Partners, LP is 2800 Post Oak Blvd., Ste. 2000, Houston, Texas 77056. |
(12) | Murchison Management Corp. is the sole general partner of Murchison Capital Partners, L.P. and Robert F. Murchison and Burk C. Murchison directly control Murchison Management Corp. As a result, Robert F. Murchison and Burk C. Murchison may each be deemed to share the power to vote or dispose of the shares owned by Murchison Capital Partners, L.P. Robert F. Murchison and Burk C. Murchison disclaim beneficial ownership of the securities held by Murchison Capital Partners, L.P. in excess of their respective pecuniary interests therein. The address of Murchison Capital Partners, L.P. is 5430 LBJ Freeway, Suite 1450, Dallas, Texas 75240. |
(13) | Gregory Garcia and Jeffrey Jordan are managing members of Privateer Energy Services, LLC and have the power to vote and dispose of the securities held by Privateer Energy Services, LLC. Each of Gregory Garcia and Jeff Jordan disclaims beneficial ownership of the shares held by Privateer Energy Services, LLC in excess of his pecuniary interest therein. The address of Privateer Energy Services, LLC is P.O. Box 101327, Fort Worth, Texas 76185. |
(14) | Gregory Lanham, as sole director of Sooner SR, LLC, has the power to vote and dispose of the securities held by Sooner SR LLC. The address of Sooner SR LLC is 1222 Milltown, Midland, Texas 79705. |
(15) | R. Scott Brown has the power to vote and dispose of the securities held by Volant Capital Management LLC. The address of Volant Capital Management LLC is 11 Wild Oak Circle, Houston, Texas 77005. |
• | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
• | a block trade (which may involve crosses in which the same broker-dealer acts as agent on both sides) in which the broker or dealer so engaged will attempt to sell the securities as agent or as riskless principal but may position and resell a portion of the block as principal to facilitate the transaction; |
• | purchases by a broker or dealer as principal and resales by such broker or dealer for its own account pursuant to this prospectus; |
• | exchange distributions and/or secondary distributions in accordance with the rules of the NYSE or any other applicable national securities exchange on which the securities are listed; |
• | sales on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of the sale, including the NYSE, in the over-the-counter markets or through a market maker or into an existing trading market (on an exchange or otherwise) for the securities; |
• | underwritten transactions; |
• | short sales, whether through a broker-dealer or otherwise; |
• | in transactions in which broker-dealers may agree with the selling stockholders to sell a specified number of such securities at a stipulated price per security; |
• | privately negotiated transactions; |
• | pledges of the securities described in this prospectus as security for any loan or obligation, including pledges to brokers or dealers who may from time to time effect sales or other distributions of the securities; |
• | a combination of any of the foregoing methods of sale; and |
• | any other method permitted pursuant to applicable law. |
Item 14. | Other Expenses of Issuance and Distribution. |
SEC Registration Fee | | | $84,032 |
FINRA Filing Fee | | | * |
NYSE Listing Fee | | | * |
Printing Costs | | | * |
Legal Fees and Expenses | | | * |
Accounting Fees and Expenses | | | * |
Transfer Agent Fees and Expenses | | | * |
Trustee Fees and Expenses | | | * |
Miscellaneous Expenses | | | * |
Total | | | $* |
* | These fees are calculated based on the number of issuances and amount of securities offered and accordingly cannot be estimated at this time. |
Item 15. | Indemnification of Directors and Officers. |
Item 16. | Exhibits. |
Exhibit Number | | | Exhibits |
1.1* | | | Form of Underwriting Agreement. |
| | Amended and Restated Certificate of Incorporation of Aris Water Solutions, Inc. (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-8 filed on October 26, 2021, File No. 333-260499). | |
| | Amended and Restated Bylaws of Aris Water Solutions, Inc. (incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-8 filed on October 26, 2021, File No. 333-260499). | |
| | Form of Indenture for Senior Debt Securities. | |
| | Form of Indenture for Subordinated Debt Securities. | |
| | Form of Senior Debt Securities (included in Exhibit 4.3). | |
| | Form of Subordinated Debt Securities (included in Exhibit 4.4). | |
| | Registration Rights Agreement, dated October 26, 2021, by and among Aris Water Solutions, Inc., Solaris Midstream Holdings, LLC and the other parties thereto (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on October 27, 2021, File No. 001-40955). | |
| | Amendment No. 1 to Registration Rights Agreement, dated March 18, 2022, by and among Aris Water Solutions, Inc., Solaris Midstream Holdings, LLC and the other parties thereto (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed on August 4, 2022, File No. 001-40955). | |
| | Opinion of Gibson, Dunn & Crutcher LLP as to the legality of the securities being registered. | |
| | Consent of BDO USA, LLP. | |
| | Consent of Gibson, Dunn & Crutcher LLP (included in Exhibit 5.1). | |
| | Powers of Attorney (included on signature pages of this registration statement). | |
25.1*** | | | Form T-1 Statement of Eligibility and Qualification respecting the Senior Indenture. |
25.2*** | | | Form T-1 Statement of Eligibility and Qualification respecting the Subordinated Indenture. |
| | Calculation of Filing Fee Tables. |
* | To be filed by amendment or as an exhibit to a current report on Form 8-K of Aris Water Solutions, Inc. |
** | Filed herewith. |
*** | To be filed in accordance with the requirements of Section 305(b)(2) of the Trust Indenture Act of 1939 and Rule 5b-3 thereunder. |
Item 17. | Undertakings. |
(a) | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
(i) | To include any prospectus required by Section 10(a)(3) of the Securities Act; |
(ii) | To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; |
(iii) | To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; |
(b) | That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(c) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(d) | That, for the purpose of determining liability under the Securities Act to any purchaser: |
(i) | Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and |
(ii) | Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which the prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date. |
(e) | That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
(i) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(ii) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by such undersigned registrant; |
(iii) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
(iv) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
(1) | For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of the registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of the registration statement as of the time it was declared effective. |
(2) | For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
| | ARIS WATER SOLUTIONS, INC. | ||||
| | |||||
| | By: | | | /s/ AMANDA M. BROCK | |
| | | | Amanda M. Brock | ||
| | | | Chief Executive Officer |
Name | | | Title |
| | ||
/s/ AMANDA M. BROCK | | | President, Chief Executive Officer, and Director (Principal Executive Officer) |
Amanda M. Brock | | ||
| | ||
/s/ STEPHAN E. TOMPSETT | | | Chief Financial Officer (Principal Financial Officer) |
Stephan E. Tompsett | | ||
| | ||
/s/ DUSTIN A. HATLEY | | | Chief Accounting Officer (Principal Accounting Officer) |
Dustin A. Hatley | | ||
| | ||
/s/ WILLIAM A. ZARTLER | | | Executive Chairman of the Board |
William A. Zartler | | ||
| | ||
/s/ JOSEPH COLONNETTA | | | Director |
Joseph Colonnetta | | ||
| | ||
/s/ DEBRA G. COY | | | Director |
Debra G. Coy | | ||
| | ||
/s/ W. HOWARD KEENAN, JR. | | | Director |
W. Howard Keenan, Jr. | | ||
| | ||
/s/ ANDREW O’BRIEN | | | Director |
Andrew O’Brien | | ||
| | ||
/s/ DONALD C. TEMPLIN | | | Director |
Donald C. Templin | | ||
| | ||
/s/ M. MAX YZAGUIRRE | | | Director |
M. Max Yzaguirre | |