Aris Water Solutions Inc-A 2024年度报告

Advancing thefuture of watermanagement. Our Core FocusIs SustainableProduced WaterManagement Aris Water Solutions is an independent, growth-orientedcompany headquartered in Houston, Texas, that is a leaderin developing and operating produced water infrastructureand recycling for the largest operators in the PermianBasin. We are committed to responsibly developing andoperating our infrastructure and deploying technology toadvance sustainability, reduce the oil and gas industry’swater footprint, and help our customers achieve theirenvironmental commitments. Fellow Shareholders, 2024 was a breakout year for Aris, and we are incredibly proud of ouraccomplishments. We operated safely, grew alongside our long-termcontracted customers, further improved our margins, and optimizedour capital investment. As a result, we generated substantial free cashflow, which allowed us to further increase shareholder returns andposition us for continued growth well into the future. In 2025, we’rebuilding on the tremendous progress of last year, applying our expertise,infrastructure, land footprint, and technology to new opportunitieswhich leave us excited for our future. 2024: Operational Excellence and Strategic Investment “In 2025, we’re building on thetremendous progress of lastyear, applying our expertise,infrastructure, land footprint,and technology to newopportunities which leave usexcited for our future.” Our Company goal in 2024 was “Continuous Improvement” and the team delivered withexceptional operational performance. Most importantly, we ended the year without a singleemployee or contractor recordable safety incident, reflecting our safety-first culture and thefocused diligence that our team demonstrates every day. Our greatest priority is the safetyof our team and those on our sites, and while we are pleased to have achieved this record,we remain committed to continued vigilance, training, and improvement. Volumetrically, we have the advantage of our long-term contracts for both produced watertakeaway and recycled water supply with large operators on acreage with compelling upstreameconomics and multiple decades of remaining inventory. Our produced water volumes grew 7%last year, underpinned by our customers’ production growth in the Northern Delaware Basin.We achieved 16% growth in our recycled water volumes as customers continue to recognizethe differentiated capability of our large-scale infrastructure to provide reliable, high throughputvolumes of treated produced water. Our recycling efforts continue to help the industry minimizetheir water footprint and demonstrably improve their environmental impact. Alongside strong volumetric growth, our Adjusted Operating Margin1grew 15% versus 2023,reflecting further improvements in operating cost efficiency and skim oil recovery. Growingvolumes and continued margin improvements generated Adjusted EBITDA1AA of $212 million,up 21% versus last year and up 12% over initial 2024 guidance. We produced strong earningsgrowth while reducing Capital Expenditures1by 35%, generating $73 million in Free Cash Flow1and facilitating a 33% increase to our dividend for the first quarter of 2025. As part of our ongoing efforts to drive long-term growth with greater optionality, late lastyear we acquired the McNeill Ranch, which spans approximately 45,000 surface acres inTexas and New Mexico. This strategic acquisition, which we secured at an attractive valuationrelative to recent transactions on neighboring properties, provides Aris with significantoperational advantages. The ranch’s location, adjacent to the fastest growing areas of the Northern Delaware Basin and the City of Hobbs, positions us to meet the industry’s increasingdemand for long-term water handling solutions. After detailed sub-surface analysis alongsideseveral of our largest customers, we believe the ranch has promising geology supporting thedevelopment of long-term water infrastructure. Additionally, the ranch will allow us to eliminateone of our largest operating expenses, landowner royalties, for volumes disposed on the ranch.We are also encouraged by interest related to the surface of the ranch, actively evaluatingopportunities to generate additional income through rights-of-way, power and renewableenergy development, and other industrial and beneficial reuse applications. +7%VERSUS 2023Produced Water Volumes Looking Ahead: Leveraging our Strengths and Accelerating Growth We’re carrying significant momentum into 2025 and are off to a strong start. Our Companyfocus for 2025 is “Disciplined Innovative Growth.” We remain confident in the durable growthtrajectory of our core water infrastructure business with our long-term contracts, tier onededicated acreage, large customers, and critical infrastructure network driving sustainedgrowth and cash generation. ~1.1 MILLIONBARRELS PER DAY We continue to accelerate efforts on beneficial reuse in collaboration with our partnersExxonMobil, Chevron, ConocoPhillips, a