Exhibit 99.1

Graphic

Source: Aris Water Solutions, Inc.

May 6, 2025

Aris Water Solutions, Inc. Reports First Quarter 2025 Results

HOUSTON, Texas, May 6, 2025 – Aris Water Solutions, Inc. (NYSE: ARIS) (“Aris,” “Aris Water,” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2025.

FIRST QUARTER 2025 HIGHLIGHTS

Achieved record volumes for both Produced Water Handling and Water Solutions
Produced Water Handling volumes grew 7% sequentially and 3% year-over-year
Recycled water volumes grew 3% sequentially and 41% year-over-year
Achieved first quarter 2025 net income of $16.0 million
Generated Adjusted EBITDA1 of $56.5 million for the first quarter of 2025, up 4% sequentially and 6% year-over year
Strengthened financial profile through successful senior notes refinancing
Moody’s Ratings upgraded credit rating to “B1” from “B2”

“Aris continued its positive momentum with an excellent first quarter. We received record-breaking volumes from our long-term contracted customers in both Produced Water and Water Solutions and surpassed the top end of our Adjusted EBITDA guidance. We maintained strong margins, achieving an Adjusted Operating Margin of $0.44 per barrel in the quarter. Margin strength was driven by continued operational efficiency, as well as an approximately $2 million benefit from the timing of planned maintenance activity which will now be incurred in the second quarter,” said Amanda Brock, President and CEO of Aris.

“While we’ve had an exceptional start to 2025, we are carefully monitoring potential volatility from macroeconomic factors, tariff uncertainty, and lower oil prices. At this time, we continue to see steady activity levels on our dedicated acreage and remain in close contact with our industry leading customers, who are evaluating their development plans for the back half of the year. Thus far, we have not received any material changes in forecasts from our customers on our dedicated acreage, but should we see any slowdown in activity, we can adjust our level of capital investment accordingly. We remain well positioned to manage our business through potential market


turbulence due to our continuous improvements in cost structure, highly economic dedicated acreage, well capitalized customers, and strong balance sheet,” said Mrs. Brock.

OPERATIONS UPDATE

Three Months Ended

Three Months Ended

March 31, 

December 31,

% Change

March 31, 

% Change

    

2025

    

2024

    

    

2024

    

 

(thousands of barrels of water per day)

Total Volumes

1,750

1,636

7

%    

1,523

15

%

Produced Water Handling Volumes

1,191

1,112

7

%    

1,159

3

%

Water Solutions Volumes

Recycled Produced Water Volumes Sold

475

463

3

%    

337

41

%

Groundwater Volumes Sold

84

61

38

%    

27

211

%

Total Water Solutions Volumes

559

524

7

%    

364

54

%

Skim oil recoveries (barrels of oil per day)

1,962

1,762

11

%    

1,729

13

%

Skim oil recoveries (as a % of produced water volumes)

0.16%

0.16%

%    

0.15%

7

%

FINANCIAL UPDATE

Three Months Ended

Three Months Ended

(in thousands)

March 31, 

December 31,

% Change

March 31, 

% Change

    

2025

    

2024

    

    

2024

    

 

Net Income

$ 16,000

$ 13,805

16

%    

$ 16,830

(5)

%

Adjusted Net Income

21,415

18,102

18

%    

20,125

6

%

Adjusted EBITDA

56,539

54,475

4

%    

53,108

6

%

Gross Margin/Barrel (1)

$ 0.32

$ 0.31

3

%    

$ 0.32

%

Adjusted Operating Margin/Barrel (1)

$ 0.44

$ 0.44

%    

$ 0.46

(4)

%

Capital Expenditures

$ 21,162

$ 17,845

19

%    

$ 37,716

(44)

%

This table includes reference to non-GAAP measures. See definition and a reconciliation to the most directly comparable GAAP measure in the Appendix.

(1) Gross Margin/Barrel and Adjusted Operating Margin/Barrel relate to our Water Gathering and Processing segment.

STRONG BALANCE SHEET AND LIQUIDITY

As of March 31, 2025, the Company had net debt of approximately $480 million with $25 million in cash and $347 million available under its revolving credit facility. The Company’s leverage ratio3 at the end of the first quarter of 2025 was 2.2X, below the Company’s target leverage of 2.5X – 3.5X. During the first quarter, Aris successfully refinanced its senior notes that were previously due in 2026, achieving a lower coupon of 7.25% and upsizing the offering from $400 to $500 million due to strong investor demand. Recognizing the Company’s strengthening credit profile and strong financial metrics, Moody’s upgraded Aris Water Holdings, LLC's Corporate Family Rating to “B1” from “B2”.

SECOND QUARTER 2025 DIVIDEND

Aris’s Board of Directors declared a dividend on its Class A common stock for the second quarter of 2025 of $0.14 per share. In conjunction with the dividend payment, a distribution of $0.14 per unit will be paid to unit holders of Aris Water Holdings, LLC. The dividend will be paid on June 18, 2025, to holders of record of the Company’s Class A common stock as of the close of business on June 5, 2025. The distribution to unit holders of Aris Water Holdings, LLC will be subject to the same payment and record dates.


SECOND QUARTER 2025 FINANCIAL OUTLOOK

“As we begin the second quarter, we continue to see strong volumes and customer activity in-line with our prior forecasts. Quarter-over-quarter, we anticipate Adjusted EBITDA to be impacted by approximately $2 million of well maintenance expenses originally scheduled for the first quarter, which will now be completed in the second quarter. Additionally, at current commodity prices, we will realize lower revenues from skim oil recoveries in the second quarter. Aside from the timing of maintenance expenses and oil prices, we expect to maintain strong margins in the second quarter given the structural cost improvements we have achieved over the past twenty-four months.

“At this time, we have no update to our full year 2025 volume, Adjusted EBITDA, and capital expenditure outlook. Given the potential impact of continued lower oil prices, we remain in close contact with our customers as they evaluate their plans for the remainder of the year and can adjust our capital expenditure plans correspondingly. We believe our business will prove resilient throughout macroeconomic volatility due to the strength of our large customers and our long-term dedicated acreage with multiple decades of inventory and top tier upstream economics,” said Mrs. Brock.

For the second quarter of 2025 the Company expects:

Produced Water Handling volumes between 1,200 and 1,250 thousand barrels of water per day
Water Solutions volumes between 475 and 525 thousand barrels of water per day
Adjusted Operating Margin per Barrel2 between $0.41 and $0.43
Skim oil recoveries of approximately 1,800 - 2,000 barrels per day
Adjusted EBITDA1 between $50 and $55 million
Capital Expenditures4 of $20 to $25 million

CONFERENCE CALL

Aris will host a conference call to discuss its first quarter 2025 results on Wednesday, May 7, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time).

Participants should call (877) 407-5792 and refer to Aris Water Solutions, Inc. when dialing in. Participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investor Relations section of the Company’s website, www.ariswater.com.

An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately fourteen days. It can be accessed by dialing (877) 660-6853 within the United States or (201) 612-7415 outside of the United States. The conference call replay access code is 13753162.

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.

Graphic

1 Adjusted Net Income, Adjusted EBITDA, and Diluted Adjusted Net Income per Share are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate Adjusted Net Income, Adjusted EBITDA, and Diluted Adjusted Net Income per Share and a reconciliation thereof to net income, the most directly comparable GAAP measure.

2 The Adjusted Operating Margin and Adjusted Operating Margin per Barrel measures are related to our Water Gathering and Processing segment. Adjusted Operating Margin and Adjusted Operating Margin per Barrel are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate Adjusted Operating Margin per Barrel and a reconciliation thereof to gross margin, the most directly comparable GAAP measure.

3 Represents a non-GAAP financial measure. Defined as net debt as of March 31, 2025, divided by trailing twelve months Adjusted EBITDA. Net debt is calculated as total debt less cash and cash equivalents. See the supplementary schedules in this press release for a reconciliation to the most directly comparable GAAP measure.

4 Capital Expenditures is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate Capital Expenditures and a reconciliation thereof to cash paid for property, plant, and equipment, the most directly comparable GAAP measure.


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, statements, information, opinions or beliefs regarding our business strategy, our industry, our future profitability, business and financial performance, including our guidance for 2025, current and potential future long-term contracts, legal and regulatory developments, our ability to identify strategic acquisitions and realize expected benefits therefrom, the development of technologies for the beneficial reuse of produced water and related strategies, plans, objectives and strategic pursuits and other statements that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “guidance,” “preliminary,” “project,” “estimate,” “expect,” “anticipate,” “continue,” “sustain,” “will,” “intend,” “strive,” “plan,” “goal,” “target,” “believe,” “forecast,” “outlook,” “future,” “potential,” “opportunity,” “predict,” “may,” “visibility,” “possible,” “should,” “could” and variations of such words or similar expressions. 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 or implied by the forward-looking statements including our guidance for 2025. 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, energy prices, trade policy of domestic and foreign governments (including the imposition of tariffs), the Russia-Ukraine and Middle Eastern conflicts, macroeconomic conditions (such as inflation) and market uncertainty related thereto, legislative and regulatory developments, customer plans and preferences, adverse results from litigation and the use of financial resources for litigation defense, technological innovations and developments, and other events discussed or referenced in our filings made from time to time with the Securities and Exchange Commission (“SEC”), including such factors discussed under “Risk Factors” in our most recent Annual Report on Form 10-K, and if applicable, our subsequent SEC filings, which are available on our Investor Relations website at https://ir.ariswater.com/sec-filings or on the SEC’s website at www.sec.gov/edgar. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. All forward-looking statements, expressed or implied, included in this press release and any oral statements made in connection with this press release are expressly qualified in their entirety by the foregoing cautionary statements. 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.


Table 1

Aris Water Solutions, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except for share and

Three Months Ended

per share amounts)

March 31, 

    

2025

    

2024

    

Revenue

Produced Water Handling

$

57,306

$

59,106

Produced Water Handling — Affiliate

34,872

26,827

Water Solutions

20,656

11,702

Water Solutions — Affiliate

6,759

5,242

Other Revenue

898

529

Total Revenue

120,491

103,406

Cost of Revenue

Direct Operating Costs

50,188

39,646

Depreciation, Amortization and Accretion

19,756

19,421

Total Cost of Revenue

69,944

59,067

Operating Costs and Expenses

Abandoned Well Costs

462

335

General and Administrative

20,010

14,501

Research and Development Expense

1,128

1,065

Other Operating Expense, Net

1,112

580

Total Operating Expenses

22,712

16,481

Operating Income

27,835

27,858

Other Expense

Interest Expense, Net

9,230

8,438

Other

2,535

1

Total Other Expense

11,765

8,439

Income Before Income Taxes

16,070

19,419

Income Tax Expense

70

2,589

Net Income

16,000

16,830

Net Income Attributable to Noncontrolling Interest

7,389

9,207

Net Income Attributable to Aris Water Solutions, Inc.

$

8,611

$

7,623

Net Income Per Share of Class A Common Stock

Basic

$

0.26

$

0.23

Diluted

$

0.25

$

0.23

Weighted Average Shares of Class A Common Stock Outstanding

Basic

31,393,532

30,354,014

Diluted

32,265,653

30,354,014


Table 2

Aris Water Solutions, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except for share and per share amounts)

    

March 31, 

December 31, 

    

2025

2024

Assets

    

    

Cash

$

24,574

$

28,673

Accounts Receivable, Net

69,144

63,016

Accounts Receivable from Affiliate

32,134

12,016

Other Receivables

13,873

13,829

Other Current Assets

10,495

10,418

Total Current Assets

150,220

127,952

Fixed Assets

Property, Plant and Equipment

1,213,129

1,188,781

Accumulated Depreciation

(170,009)

(160,176)

Total Property, Plant and Equipment, Net

1,043,120

1,028,605

Intangible Assets, Net

189,185

195,223

Goodwill

34,585

34,585

Deferred Income Tax Assets, Net

10,133

1,735

Operating Lease Right-of-Use Assets, Net

14,573

15,016

Other Assets

4,064

5,284

Total Assets

$

1,445,880

$

1,408,400

Liabilities and Stockholders' Equity

Accounts Payable

$

16,731

$

20,182

Payables to Affiliate

3,775

941

Insurance Premium Financing Liability

4,522

6,725

Accrued and Other Current Liabilities

55,505

77,339

Total Current Liabilities

80,533

105,187

Long-Term Debt, Net of Debt Issuance Costs

490,113

441,662

Asset Retirement Obligations

22,148

21,865

Tax Receivable Agreement Liability

58,700

49,844

Other Long-Term Liabilities

17,182

17,335

Total Liabilities

668,676

635,893

Stockholders' Equity

Preferred Stock $0.01 par value, 50,000,000 authorized. None issued or outstanding as of March 31, 2025 and December 31, 2024

Class A Common Stock $0.01 par value, 600,000,000 authorized, 33,610,306 issued and 32,625,339 outstanding as of March 31, 2025; 31,516,468 issued and 30,857,526 outstanding as of December 31, 2024

335

314

Class B Common Stock $0.01 par value, 180,000,000 authorized, 26,493,565 issued and outstanding as of March 31, 2025; 27,493,565 issued and outstanding as of December 31, 2024

264

274

Treasury Stock (at Cost), 984,967 shares as of March 31, 2025; 658,492 shares as of December 31, 2024

(19,011)

(8,988)

Additional Paid-in-Capital

408,878

380,565

Retained Earnings

17,653

13,676

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

408,119

385,841

Noncontrolling Interest

369,085

386,666

Total Stockholders' Equity

777,204

772,507

Total Liabilities and Stockholders' Equity

$

1,445,880

$

1,408,400


Table 3

Aris Water Solutions, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

(in thousands)

March 31, 

    

2025

    

2024

Cash Flow from Operating Activities

Net Income

$

16,000

$

16,830

Adjustments to reconcile Net Income to Net Cash (used in) provided by Operating Activities:

Deferred Income Tax Expense

2,181

2,129

Depreciation, Amortization and Accretion

19,756

19,421

Stock-Based Compensation

5,690

3,521

Abandoned Well Costs

462

335

Loss (Gain) on Disposal of Assets, Net

91

(54)

Abandoned Projects

237

729

Amortization of Debt Issuance Costs, Net

619

716

Loss on Debt Extinguishment

2,535

Other

25

323

Changes in Operating Assets and Liabilities:

Accounts Receivable

(6,128)

3,371

Accounts Receivable from Affiliate

(20,118)

(2,706)

Other Receivables

831

1,683

Other Current Assets

153

2,014

Accounts Payable

306

3,382

Payables to Affiliate

(816)

(199)

Accrued Liabilities and Other

(28,659)

(7,686)

Net Cash (Used in) Provided by Operating Activities

(6,835)

43,809

Cash Flow from Investing Activities

Property, Plant and Equipment Expenditures

(20,390)

(19,582)

Cash Paid for Acquisitions

(2,000)

Proceeds from the Sale of Property, Plant and Equipment

120

1

Net Cash Used in Investing Activities

(22,270)

(19,581)

Cash Flow from Financing Activities

Dividends and Distributions Paid

(8,555)

(5,449)

Repurchase of Shares for the Payment of Withholding Taxes

(10,023)

(1,310)

Repayment of Credit Facility

(89,000)

(15,000)

Proceeds from Credit Facility

45,000

15,000

Proceeds from 2030 Notes

500,000

Satisfaction and Discharge of 2026 Notes

(400,000)

Payment of Debt Issuance Costs Related to 2030 Notes

(9,914)

Payment of Insurance Premium Financing

(2,307)

(1,878)

Payment of Finance Leases

(195)

Net Cash Provided by (Used in) Financing Activities

25,006

(8,637)

Net (Decrease) Increase in Cash

(4,099)

15,591

Cash, Beginning of Period

28,673

5,063

Cash, End of Period

$

24,574

$

20,654


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, Adjusted Operating Margin, Adjusted Operating Margin per Barrel, Adjusted Net Income, net debt and leverage ratio and Capital Expenditures. 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, gross margin, net cash flows provided from operating activities or any other measures prepared under GAAP.

The Company calculates Adjusted EBITDA as net income (loss) plus: interest expense; income taxes; depreciation, amortization and accretion expense; abandoned well costs, asset impairment and abandoned project charges; losses on the sale of assets; transaction costs; research and development expense; change in payables related to the Tax Receivable Agreement liability as a result of state tax rate changes; loss on debt extinguishment; stock-based compensation expense; and other non-recurring or unusual expenses or charges (such as litigation expenses, severance costs and amortization expense related to the implementation costs of our new enterprise resource planning system), less any gains on the sale of assets.

The Adjusted Operating Margin and Adjusted Operating Margin per Barrel measures are related to our Water Gathering and Processing segment, as they are dependent upon the volume of produced water we gather and handle, the volume of recycled water and groundwater we sell, the fees we charge for such services and the recurring operating expenses we incur to perform such services. The Company calculates Adjusted Operating Margin as Gross Margin (Total Revenue less Total Cost of Revenue) plus depreciation, amortization and accretion. The Company defines Adjusted Operating Margin per Barrel as Adjusted Operating Margin divided by total volumes handled or sold.

The Company calculates Adjusted Net Income as Net Income (Loss) plus the after-tax impacts of stock-based compensation and plus or minus the after-tax impacts of certain items affecting comparability, which are typically non-cash and/or non-recurring items. The Company calculates Diluted Adjusted Net Income Per Share as (i) Net Income (Loss) plus the after-tax impacts of stock-based compensation and plus or minus the after-tax impacts of certain items affecting comparability, which are typically non-cash and/or non-recurring items, divided by (ii) the diluted weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC interests, adjusted for the dilutive effect of outstanding equity-based awards.

The Company calculates its leverage ratio as net debt as of March 31, 2025, divided by Adjusted EBITDA for the trailing twelve months. Net debt is calculated as the principal amount of total debt outstanding as of March 31, 2025, less cash and cash equivalents as of March 31, 2025.

The Company calculates Capital Expenditures as cash capital expenditures for property, plant, and equipment additions less changes in accrued capital costs.

The Company believes these presentations are used by investors and professional research analysts to assess the ability of our assets to generate sufficient cash to meet our business needs and return capital to equity holders, as well as for the valuation, comparison, rating and investment recommendations of companies within its industry. Similarly, the Company’s management uses this information for comparative purposes as well. Adjusted EBITDA, Adjusted Operating Margin, Adjusted Operating Margin per Barrel, Adjusted Net Income and


Capital Expenditures are not measures of financial performance under GAAP and should not be considered as measures of liquidity or as alternatives to net income (loss), gross margin, cash paid for property, plant and equipment or net cash flows provided from operating activities. Additionally, these presentations 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, cash paid for property, plant, and equipment or net cash flows from operating activities.

Although we provide forecasts for the non-GAAP measures Adjusted EBITDA, Adjusted Operating Margin per Barrel and Capital Expenditures, we are not able to forecast their most directly comparable measures (net income, gross margin, cash paid for property, plant, and equipment and net cash flows from operating activities) calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of forward-looking GAAP metrics 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 and cost of revenue, which could have a significant impact on the GAAP measures. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. As a result, no reconciliation of forecasted non-GAAP measures is provided.


Table 4

Aris Water Solutions, Inc.

Operating Metrics

(Unaudited)

Three Months Ended

March 31, 

December 31,

    

2025

    

2024

    

2024

(thousands of barrels of water per day)

Produced Water Handling Volumes

1,191

1,159

1,112

Water Solutions Volumes

Recycled Produced Water Volumes Sold

475

337

463

Groundwater Volumes Sold

84

27

61

Total Water Solutions Volumes

559

364

524

Total Volumes

1,750

1,523

1,636

Per Barrel Operating Metrics (1)

Produced Water Handling Revenue/Barrel

$

0.86

$

0.81

$

0.86

Water Solutions Revenue/Barrel

$

0.55

$

0.51

$

0.54

Revenue/Barrel of Total Volumes (2)

$

0.76

$

0.74

$

0.75

Direct Operating Costs/Barrel

$

0.32

$

0.29

$

0.35

Gross Margin/Barrel

$

0.32

$

0.32

$

0.31

Adjusted Operating Margin/Barrel

$

0.44

$

0.46

$

0.44

This table includes information related to our Water Gathering and Processing segment.

(1) Per Barrel operating metrics are calculated independently. Therefore, the sum of individual amounts may not equal the total presented.

(2) Does not include Other Revenue.


Table 5

Aris Water Solutions, Inc.

Reconciliation of Net Income to Non-GAAP Adjusted EBITDA

(Unaudited)

Three Months Ended

(in thousands)

March 31, 

    

2025

    

2024

    

Net Income

$

16,000

$

16,830

Interest Expense, Net

9,230

8,438

Income Tax Expense

70

2,589

Depreciation, Amortization and Accretion

19,756

19,421

Abandoned Well Costs

462

335

Stock-Based Compensation

5,690

3,521

Abandoned Projects

237

729

Loss (Gain) on Disposal of Assets, Net

91

(54)

Loss on Debt Extinguishment

2,535

Transaction Costs

884

7

Research and Development Expense

1,128

1,065

Other

456

227

Adjusted EBITDA

$

56,539

$

53,108


Table 6

Aris Water Solutions, Inc.

Reconciliation of Gross Margin to Adjusted Operating Margin and
Adjusted Operating Margin per Barrel

(Unaudited)

Three Months Ended

(in thousands)

March 31, 

    

2025

    

2024

    

Total Revenue

$

120,251

$

103,406

Cost of Revenue

(69,316)

(58,444)

Gross Margin

50,935

44,962

Depreciation, Amortization and Accretion

19,128

18,798

Adjusted Operating Margin

$

70,063

$

63,760

Total Volumes (thousands of barrels)

157,492

138,603

Gross Margin/Barrel

$

0.32

$

0.32

Adjusted Operating Margin/Barrel

$

0.44

$

0.46

This table includes information related to our Water Gathering and Processing segment.


Table 7

Aris Water Solutions, Inc.

Reconciliation of Net Income to Non-GAAP Adjusted Net Income

(Unaudited)

Three Months Ended

(in thousands)

March 31, 

    

2025

    

2024

    

Net Income

$

16,000

$

16,830

Adjusted items:

Abandoned Well Costs

462

335

Loss (Gain) on Disposal of Assets, Net

91

(54)

Stock-Based Compensation

5,690

3,521

Tax Effect of Adjusting Items (1)

(828)

(507)

Adjusted Net Income

$

21,415

$

20,125

(1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates.


Table 8

Aris Water Solutions, Inc.

Reconciliation of Diluted Net Income Per Share to Non-GAAP Diluted Adjusted Net Income Per Share

(Unaudited)

Three Months Ended

March 31, 

    

2025

    

2024

    

Diluted Net Income Per Share of Class A Common Stock

$

0.25

$

0.23

Adjusted items:

Reallocation of Net Income Attributable to Noncontrolling Interests From the Assumed Exchange of LLC Interests

0.05

Abandoned Well Costs

0.01

0.01

Stock-Based Compensation

0.10

0.06

Tax Effect of Adjusting Items (1)

(0.01)

(0.01)

Diluted Adjusted Net Income Per Share

$

0.35

$

0.34

(1) Estimated tax effect of adjusted items allocated to Aris based on statutory rates.

Basic Weighted Average Shares of Class A Common Stock Outstanding

31,393,532

30,354,014

Adjusted Items:

Assumed Redemption of LLC Interests

27,349,121

27,543,565

Dilutive Performance-Based Stock Units (2)

872,121

Diluted Adjusted Fully Weighted Average Shares of Class A Common Stock Outstanding

59,614,774

57,897,579

(2) Dilutive impact of Performance-Based Stock Units already included for the three months ended March 31, 2025 and 2024.


Table 9

Aris Water Solutions, Inc.

Computation of Leverage Ratio

(Unaudited)

    

As of

(in thousands)

    

March 31, 2025

Principal Amount of Debt at March 31, 2025

$

504,522

Less: Cash at March 31, 2025

(24,574)

Net Debt

$

479,948

Net Debt

$

479,948

÷ Trailing Twelve Months Adjusted EBITDA

215,316

Leverage Ratio

2.23


Table 10

Aris Water Solutions, Inc.

Reconciliation of Capital Expenditures

(Unaudited)

Three Months Ended

    

March 31, 

(in thousands)

    

2025

    

2024

Cash Paid for Property, Plant and Equipment

$

20,390

$

19,582

Change in Capital Related Accruals

772

18,134

Capital Expenditures

$

21,162

$

37,716


Table 11

Aris Water Solutions, Inc.

Segment Information

(Unaudited)

(in thousands)

Three Months Ended March 31, 2025

    

Water Gathering and Processing

    

Corporate and Other

    

Consolidated

Revenue

 

$

120,251

 

$

240

 

$

120,491

Cost of Revenue

 

Direct Operating Costs

 

50,188

50,188

Depreciation, Amortization and Accretion

 

19,128

628

19,756

Total Cost of Revenue

 

69,316

628

69,944

Operating Costs and Expenses

 

Abandoned Well Costs

462

462

General and Administrative

 

20,010

20,010

Research and Development Expense

1,128

1,128

Other Operating Expense, Net

 

237

875

1,112

Total Operating Expenses

 

699

22,013

22,712

Operating Income

 

50,236

(22,401)

27,835

Other Expense

 

Interest Expense, Net

 

9,230

9,230

Other

2,535

2,535

Total Other Expense

 

11,765

11,765

Income (Loss) Before Income Taxes

 

50,236

(34,166)

16,070

Income Tax Expense

 

70

70

Net Income (Loss)

50,236

(34,236)

16,000

Net Income Attributable to Noncontrolling Interest

7,389

7,389

Net Income (Loss) Attributable to Aris Water Solutions, Inc.

$

50,236

$

(41,625)

$

8,611

(in thousands)

Three Months Ended March 31, 2024

    

Water Gathering and Processing

    

Corporate and Other

    

Consolidated

Revenue

 

$

103,406

 

$

 

$

103,406

Cost of Revenue

 

Direct Operating Costs

 

39,646

39,646

Depreciation, Amortization and Accretion

 

18,798

623

19,421

Total Cost of Revenue

 

58,444

623

59,067

Operating Costs and Expenses

 

Abandoned Well Costs

335

335

General and Administrative

 

14,501

14,501

Research and Development Expense

1,065

1,065

Other Operating Expense (Income), Net

 

729

(149)

580

Total Operating Expenses

 

1,064

15,417

16,481

Operating Income

 

43,898

(16,040)

27,858

Other Expense

 

Interest Expense, Net

 

8,438

8,438

Other

1

1

Total Other Expense

 

8,439

8,439

Income (Loss) Before Income Taxes

 

43,898

(24,479)

19,419

Income Tax Expense

 

2,589

2,589

Net Income (Loss)

43,898

(27,068)

16,830

Net Income Attributable to Noncontrolling Interest

9,207

9,207

Net Income (Loss) Attributable to Aris Water Solutions, Inc.

$

43,898

$

(36,275)

$

7,623