Aris Water Solutions Sees FY24 CapEx $85M-$105M
Portfolio Pulse from Benzinga Newsdesk
Aris Water Solutions projects significant positive free cash flow for FY24, with a focus on cash generation through greater asset efficiency and improved cost structure. The company expects full-year produced water volumes to grow 2-5%, excluding the impact of a 2023 asset divestiture. Water solutions volumes are forecasted to be flat with 2023, between 430 to 470 thousand barrels per day. Adjusted EBITDA is anticipated to be between $180-$200 million, up approximately 9% from 2023, with an adjusted operating margin per barrel increasing 8%-13% year-over-year. Capital expenditures are projected to be $85-$105 million, down about 40% from 2023, including investments for system maintenance and new business development.
February 28, 2024 | 9:33 pm
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Aris Water Solutions anticipates a strong FY24 with significant positive free cash flow, a 2-5% increase in produced water volumes, and a 9% rise in Adjusted EBITDA. Capital expenditures are expected to decrease by 40%.
The positive outlook for FY24, including significant cash flow generation, growth in water volumes, and a substantial decrease in capital expenditures, suggests a strong financial performance for Aris Water Solutions. This is likely to be viewed positively by investors, potentially leading to an increase in the stock price in the short term.
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