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, 2024

Earnings Per Share

Earnings Per Share

11.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. 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 per share attributable to our Class A common stock for the periods indicated:


(in thousands, except for share and per share amounts)	Three Months Ended March 31,
		2024		2023
Net Income Attributable to Stockholders' Equity	$	16,830	$	7,708
Less: Net Income Attributable to Noncontrolling Interest		9,207		4,330
Net Income Attributable to Aris Water Solutions, Inc.		7,623		3,378
Participating Basic Earnings ⁽¹⁾		(512)		(209)
Basic Net Income Attributable to Aris Water Solutions, Inc.	$	7,111	$	3,169
Reallocation of Participating Net Income		-		-
Diluted Net Income Attributable to Aris Water Solutions, Inc.	$	7,111	$	3,169

Basic Weighted Average Shares Outstanding		30,354,014		29,935,145
Dilutive Performance-Based Stock Units		-		-
Dilutive Weighted Average Shares Outstanding		30,354,014		29,935,145

Basic Net Income Per Share of Class A Common Stock	$	0.23	$	0.11
Diluted Net Income Per Share of Class A Common Stock	$	0.23	$	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 27,543,565 weighted average shares and 27,568,302 weighted average shares of Class B common stock outstanding for the three months ended March 31, 2024 and 2023, respectively, were determined to be antidilutive and were excluded from the computation of diluted earnings 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 per share for those periods.