Aris Water Solutions, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share

Earnings Per Share

15.Earnings Per Share

Net Income Per Share

Basic and diluted net income per share attributable to our Class A common stock is computed by dividing net income attributable to Aris Water Solutions, Inc. for periods subsequent to the IPO by the weighted average number of shares of Class A common stock outstanding for the same period, including RSUs, which receive nonforfeitable dividends. Shares issued during the period are weighted for the portion of the period in which the shares were outstanding.

Prior to the IPO, Solaris LLC’s capital structure included Class A, Class B, Class C, and Class D units. We determined that the presentation of net income (loss) per unit for the period prior to the IPO would not be meaningful due to the significant impact of the Corporate Reorganization on the capital structure at IPO date. Therefore, net income (loss) per unit information has not been presented for periods prior to the IPO.

The following table sets forth the computation of basic and diluted net income per share attributable to our Class A common stock for the periods indicated:


(in thousands, except for share and per share amounts)	Year Ended December 31, 2022		Period of October 26 ̶ December 31, 2021
Net Income Attributable to Stockholders' Equity	$	4,797	$	3,321
Less: Net Income Attributable to Noncontrolling Interests		(3,097)		(2,209)
Net Income Attributable to Aris Water Solutions, Inc.		1,700		1,112
Dividends for Participating Securities ⁽¹⁾		(686)		-
Basic Net Income Attributable to Aris Water Solutions, Inc.	$	1,014	$	1,112
Reallocation of Participating Net Income (Loss)		-		-
Diluted Net Income Attributable to Aris Water Solutions, Inc.	$	1,014	$	1,112

Basic Weighted Average Shares Outstanding		24,070,934		20,888,675
Dilutive Performance-Based Stock Units		75,281		-
Dilutive Weighted Average Shares Outstanding		24,146,215		20,888,675

Basic Net Income Per Share of Class A Common Stock	$	0.04	$	0.05
Diluted Net Income Per Share of Class A Common Stock	$	0.04	$	0.05

(1)

Unvested shares of restricted stock and RSUs represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to participating securities. Unvested RSUs do not participate in undistributed net losses as they are not contractually obligated to do so.

Shares of Class B common stock are considered potentially dilutive shares of Class A common stock because they may be redeemed for shares of Class A common stock on a one-for-one basis. A total of 30,929,045 shares of Class B common stock and 4,771 PSUs outstanding were determined to be antidilutive and were excluded from the computation of diluted earnings per share of Class A common stock for the year ended December 31, 2022.

A total of 31,716,104 shares of Class B common stock were determined to be anti-dilutive and were excluded from the computation of diluted earnings per share of Class A common stock for the period October 26 through December 31, 2021.