Aris Water Solutions, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Earnings Per Share

Earnings Per Share

12 Months Ended

Dec. 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

14.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 Inc. 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.

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:



		Year Ended		Year Ended		Year Ended
(in thousands, except for share and per share amounts)		December 31, 2024		December 31, 2023		December 31, 2022
Net Income Attributable to Stockholders' Equity	$	60,178	$	43,412	$	4,797
Less: Net Income Attributable to Noncontrolling Interest		(33,321)		(24,524)		(3,097)
Net Income Attributable to Aris Water Solutions, Inc.		26,857		18,888		1,700
Participating Basic Earnings ⁽¹⁾		(1,982)		(1,144)		(686)
Basic Net Income Attributable to Aris Water Solutions, Inc.	$	24,875	$	17,744	$	1,014
Reallocation of Participating Net Income		9		-		-
Diluted Net Income Attributable to Aris Water Solutions, Inc.	$	24,884	$	17,744	$	1,014

Basic Weighted Average Shares Outstanding		30,575,739		30,037,681		24,070,934
Dilutive Performance-Based Stock Units		301,898		-		75,281
Dilutive Weighted Average Shares Outstanding		30,877,637		30,037,681		24,146,215

Basic Net Income Per Share of Class A Common Stock	$	0.81	$	0.59	$	0.04
Diluted Net Income Per Share of Class A Common Stock	$	0.81	$	0.59	$	0.04

(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 basic earnings represent the distributed and undistributed earnings of the Company attributable to participating securities. Unvested RSUs and vested but not issued 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 27,539,489 shares of Class B common stock and 5,763 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, 2024.

A total of 27,554,221 shares of Class B common stock and 27,308 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, 2023.

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.