Aris Water Solutions, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share

Earnings Per Share

11.Earnings Per Share

Net Income (Loss) Per Share

Basic and diluted net income (loss) per share attributable to our Class A common stock is computed by dividing net income (loss) attributable to Aris Water Solutions, Inc. by the weighted average number of shares of Class A common stock outstanding for the same period, including shares of restricted stock and restricted stock units (“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 (loss) per share attributable to our Class A common stock:


(in thousands, except for share and per share amounts)	Three Months Ended March 31,
		2023		2022
Net Income (Loss) Attributable to Stockholders' Equity	$	7,708	$	(6,617)
Less: Net Income (Loss) Attributable to Noncontrolling Interest		4,330		(4,395)
Net Income (Loss) Attributable to Aris Water Solutions, Inc.		3,378		(2,222)
Participating Basic Earnings ⁽¹⁾		(209)		(181)
Basic Net Income (Loss) Attributable to Aris Water Solutions, Inc.	$	3,169	$	(2,403)
Reallocation of Participating Net Income (Loss)		-		-
Diluted Net Income (Loss) Attributable to Aris Water Solutions, Inc.	$	3,169	$	(2,403)

Basic Weighted Average Shares Outstanding		29,935,145		21,852,966
Dilutive Performance-Based Stock Units		-		-
Dilutive Weighted Average Shares Outstanding		29,935,145		21,852,966

Basic Net Income (Loss) Per Share of Class A Common Stock	$	0.11	$	(0.11)
Diluted Net Income (Loss) Per Share of Class A Common Stock	$	0.11	$	(0.11)

(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

27,568,302 weighted average shares and 31,568,017 weighted average shares of Class B common stock outstanding for the three months ended March 31, 2023 and 2022, respectively, were determined to be antidilutive and were excluded from the computation of diluted earnings (loss) per share of Class A common stock. In addition, all PSUs were determined to be antidilutive for each period and were excluded from the computation of diluted earnings (loss) per share for those periods.