Aris Water Solution | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 124.09 M

LB filings
2025.08.11 20:47
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Revenue: As of FY2025 Q2, the actual value is USD 124.09 M, beating the estimate of USD 120.43 M.

EPS: As of FY2025 Q2, the actual value is USD 0.19, missing the estimate of USD 0.2525.

Water Gathering and Processing Segment

Revenue

  • Produced Water Handling Revenue: $98.2 million for Q2 2025, up from $83.4 million in Q2 2024, driven by a 141 kbwpd volume increase and higher skim oil sales revenue due to increased volumes and recoveries, despite lower prices.
  • Water Solutions Revenue: $25.2 million for Q2 2025, up from $17.2 million in Q2 2024, due to increased recycled produced water and groundwater volumes, partially offset by lower prices.

Operational Metrics

  • Produced Water Handling Volumes: 1,234 kbwpd for Q2 2025, a 13% increase from Q2 2024.
  • Water Solutions Volumes: 523 kbwpd for Q2 2025, a 44% increase from Q2 2024.
  • Direct Operating Costs: $58.2 million for Q2 2025, up from $40.2 million in Q2 2024, due to higher volumes and maintenance expenses.
  • Gross Margin per Barrel: $0.29 for Q2 2025, down from $0.32 in Q2 2024, due to maintenance expenses and lower skim oil prices.

Cash Flow

  • Net Cash Provided by Operating Activities: $66.2 million for the six months ended June 30, 2025, compared to $58.1 million for the same period in 2024, driven by increased revenues.

Corporate and Other Segment

Expenses

  • General and Administrative Expenses: $17.7 million for Q2 2025, up from $16.0 million in Q2 2024, primarily due to increased stock-based compensation.
  • Research and Development Expense: $0.9 million for Q2 2025, down from $1.1 million in Q2 2024, due to lower expenses related to the Joint Industry Project.

Future Outlook and Strategy

  • Merger with Western Midstream Partners, LP: Expected to close in Q4 2025, subject to conditions including shareholder and regulatory approvals. The merger aims to enhance strategic positioning and operational synergies.
  • Capital Expenditures: Expected to be between $85.0 million to $105.0 million for 2025, funded through cash flows and credit facility availability.
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