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ARIS NYSE· Aris Water Solutions Inc.
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ARIS NYSE· Aris Water Solutions Inc.
Earnings report Q3 2023

ARIS Water Solutions Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

ARIS Water Solutions, Inc. reported total revenue of $99.79 million for the latest quarter, representing a significant increase of 10.3% compared to the same quarter last year. The company's revenue is segmented into four categories: Produced Water Handling, Produced Water Handling — Affiliate, Water Solutions, and Water Solutions — Affiliate.

  • Produced Water Handling revenue amounted to $47.57 million, showing a growth of 19.6% compared to the previous year's quarter.
  • Produced Water Handling — Affiliate revenue reached $28.04 million, indicating a growth of 13.1% year-over-year.
  • Water Solutions revenue remained relatively stable at $20.37 million, with a marginal increase of 0.1% compared to the same quarter last year.
  • Water Solutions — Affiliate revenue decreased by 46.3% to $3.05 million, reflecting a decline in performance.
  • Other revenue contributed $0.76 million to the company's total revenue.

Strengths

ARIS Water Solutions demonstrated strong revenue growth in the latest quarter, driven primarily by the significant increase in Produced Water Handling revenue. This growth can be attributed to the company's continued focus on expanding its customer base and increasing market share in the Produced Water Handling segment. Management comments highlighted the successful implementation of strategic initiatives aimed at improving operational efficiency and enhancing customer satisfaction, which contributed to the revenue growth.

Challenges

Despite the overall positive performance, ARIS Water Solutions faced challenges in the Water Solutions — Affiliate segment, which experienced a significant decline in revenue. This decline may be attributed to various factors, such as changes in market dynamics or increased competition. The company should closely monitor this segment and take appropriate measures to address the challenges and improve performance.

Noteworthy

It is worth mentioning that ARIS Water Solutions achieved a total revenue of $287.99 million for the nine months ended September 30, 2023, representing a substantial increase of 20.9% compared to the same period last year. This notable growth in revenue reflects the company's ability to capitalize on market opportunities and effectively execute its business strategies.

Summary

ARIS Water Solutions reported strong revenue growth in the latest quarter, primarily driven by the significant increase in Produced Water Handling revenue. The company's strategic initiatives aimed at improving operational efficiency and enhancing customer satisfaction have contributed to this positive performance. However, the decline in revenue in the Water Solutions — Affiliate segment poses a challenge that should be addressed. Overall, ARIS Water Solutions has demonstrated its ability to capitalize on market opportunities and achieve substantial revenue growth.

Source documents

Form 10-Q  filed on Nov 02, 2023
87 pages scanned

Reference data

Company financials Q3 revenue 104M
Analyst estimates Q3 EPS beat by 35.49%
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