Aris Water Solutions (ARIS) 10-Q10 Nov 222022 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Nov. 08, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40955
Entity Registrant Name	Aris Water Solutions, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1022110
Entity Address, Address Line One	9811 Katy Freeway
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Houston
Entity Address State Or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	281
Local Phone Number	501-3070
Title of 12(b) Security	Class A Common Stock, $0.01 par value per share
Trading Symbol	ARIS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001865187
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		26,514,063
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		30,811,322

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Cash	$ 25,180	$ 60,055
Accounts Receivable, Net	76,273	41,973
Accounts Receivable from Affiliate	25,772	20,191
Other Receivables	6,287	4,126
Prepaids and Deposits	1,828	6,043
Total Current Assets	135,340	132,388
Fixed Assets
Property, Plant and Equipment	881,003	700,756
Accumulated Depreciation	(81,019)	(67,749)
Total Property, Plant and Equipment, Net	799,984	633,007
Intangible Assets, Net	277,379	304,930
Goodwill	34,585	34,585
Deferred Income Tax Assets, Net	24,377	19,933
Right-of-Use Assets	7,635
Other Assets	1,422	1,850
Total Assets	1,280,722	1,126,693
Liabilities and Stockholders' Equity
Accounts Payable	35,823	7,082
Payables to Affiliate	2,412	1,499
Accrued and Other Current Liabilities	85,089	40,464
Total Current Liabilities	123,324	49,045
Long-Term Debt, Net of Debt Issuance Costs	393,453	392,051
Asset Retirement Obligation	8,148	6,158
Tax Receivable Agreement Liability	80,009	75,564
Other Long-Term Liabilities	8,966	1,336
Total Liabilities	613,900	524,154
Commitments and Contingencies (see Note 10)
Stockholders' Equity
Preferred Stock $0.01 par value, 50,000,000 authorized. None issued or outstanding as of September 30, 2022 and December 31, 2021
Treasury Stock (at Cost), 10,191 shares as of September 30, 2022 and December 31, 2021	(135)	(135)
Additional Paid-in-Capital	282,917	212,926
Accumulated Deficit	(7,094)	(457)
Total Stockholders' Equity Attributable to Aris Water Solutions, Inc.	276,257	212,869
Noncontrolling Interests	390,565	389,670
Total Stockholders' Equity	666,822	602,539
Total Liabilities and Stockholders' Equity	1,280,722	1,126,693
Class A Common Stock
Stockholders' Equity
Common stock value	261	218
Class B Common Stock
Stockholders' Equity
Common stock value	$ 308	$ 317

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Treasury Stock (in shares)	10,191	10,191
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	600,000,000	600,000,000
Common stock, issued (in shares)	26,166,400	21,858,022
Common stock, outstanding (in shares)	26,156,209	21,847,831
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	180,000,000	180,000,000
Common stock, issued (in shares)	30,811,322	31,716,104
Common stock, outstanding (in shares)	30,811,322	31,716,104

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue
Total Revenue	$ 90,776	$ 59,499	$ 238,131	$ 162,272
Cost of Revenue
Direct Operating Costs	43,885	23,497	101,337	66,703
Depreciation, Amortization and Accretion	16,942	15,378	49,724	45,550
Total Cost of Revenue	60,827	38,875	151,061	112,253
Operating Costs and Expenses
Abandoned Well Costs	9,222	27,402	14,637	27,402
General and Administrative	11,482	5,228	33,860	15,240
Impairment of Long-Lived Assets			15,597
Loss on Asset Disposal and Other	239	940	1,816	2,590
Total Operating Expenses	20,943	33,570	65,910	45,232
Operating Income (Loss)	9,006	(12,946)	21,160	4,787
Interest Expense, Net	6,763	7,880	21,863	17,855
Other				380
Total Other Expense	6,763	7,880	21,863	18,235
Income (Loss) Before Income Taxes	2,243	(20,826)	(703)	(13,448)
Income Tax Expense (Benefit)	287	(83)	(81)	(81)
Net Income (Loss)	1,956	(20,743)	(622)	(13,367)
Equity Accretion and Dividend-Redeemable Preferred Units				21
Net Income (Loss) Attributable to Stockholders'/Members' Equity	1,956	(20,743)	(622)	(13,346)
Net Income (Loss) Attributable to Noncontrolling Interest	1,257		(493)
Net Income (Loss) Attributable to Aris Water Solutions, Inc.	$ 699		$ (129)
Net Income (Loss) Per Share of Class A Common Stock - Basic	$ 0.02		$ (0.03)
Net Income (Loss) Per Share of Class A Common Stock - Diluted	$ 0.02		$ (0.03)
Weighted Average Shares of Class A Common Stock Outstanding - Basic	24,499,953		22,779,077
Weighted Average Shares of Class A Common Stock Outstanding - Diluted	24,546,632		22,779,077
Produced Water Handling
Revenue
Total Revenue	$ 39,674	24,639	$ 110,299	71,368
Produced Water Handling-Affiliates
Revenue
Total Revenue	24,796	23,135	69,084	62,216
Water Solutions
Revenue
Total Revenue	20,392	7,666	46,744	11,824
Water Solutions-Affiliates
Revenue
Total Revenue	5,668	$ 4,059	11,640	$ 16,864
Other Revenue
Revenue
Total Revenue	$ 246		$ 364

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flow from Operating Activities
Net Loss	$ (622)	$ (13,367)
Adjustments to reconcile Net Loss to Net Cash provided by Operating Activities:
Deferred Income Tax Benefit	(96)
Depreciation, Amortization and Accretion	49,724	45,550
Stock-Based Compensation	9,134
Impairment of Long-Lived Assets	15,597
Abandoned Well Costs	14,637	27,402
Loss on Disposal of Asset, Net	481	225
Abandoned Projects	66	2,035
Amortization of Debt Issuance Costs, Net	1,563	1,320
Loss on Debt Modification		380
Other	311	216
Changes in Operating Assets and Liabilities:
Accounts Receivable	(33,683)	(11,231)
Accounts Receivable from Affiliate	(5,581)	(10,046)
Other Receivables	(2,139)	231
Prepaids, Deposits and Other Current Assets	4,215	2,516
Accounts Payable	3,233	(3,284)
Payables to Affiliate	913	(715)
Deferred Revenue	14	(46)
Accrued Liabilities and Other	19,418	16,000
Net Cash Provided by Operating Activities	77,185	57,186
Cash Flow from Investing Activities
Property, Plant and Equipment Expenditures	(96,991)	(62,728)
Cash Paid for Acquisitions	(3,353)
Proceeds from the Sale of Property, Plant and Equipment	7,441
Net Cash Used in Investing Activities	(92,903)	(62,728)
Cash Flow from Financing Activities
Dividends and Distributions Paid	(19,157)
Proceeds from Senior-Sustainability Linked Notes		400,000
Payments for Initial Public Offering Costs		(855)
Repayment of Credit Facility		(297,000)
Redemption of Redeemable Preferred Units		(74,357)
Members' Contributions		5
Net Cash (Used In) Provided by Financing Activities	(19,157)	16,999
Net (Decrease) Increase in Cash	(34,875)	11,457
Cash, Beginning of Period	60,055	24,932
Cash, End of Period	$ 25,180	36,389
Senior Sustainability-Linked Notes \| Solaris LLC
Cash Flow from Financing Activities
Payments of Debt Issuance Costs		(9,352)
Credit Facility \| Solaris LLC
Cash Flow from Financing Activities
Payments of Debt Issuance Costs		$ (1,442)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders'/Members' Equity - USD ($) $ in Thousands	Members' Equity	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Noncontrolling Interest	Class A Common Stock	Class B Common Stock	Total
Beginning Balance at Dec. 31, 2020	$ 633,915
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contributions	5
Accretion and Dividend Related to Redeemable Preferred Units	7
Net (Loss) Income	2,815
Ending Balance at Mar. 31, 2021	636,742
Beginning Balance at Dec. 31, 2020	633,915
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income										$ (13,367)
Ending Balance at Sep. 30, 2021	620,574
Beginning Balance at Mar. 31, 2021	636,742
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion and Dividend Related to Redeemable Preferred Units	14
Net (Loss) Income	4,561
Ending Balance at Jun. 30, 2021	641,317
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income	(20,743)									(20,743)
Ending Balance at Sep. 30, 2021	$ 620,574
Beginning Balance at Dec. 31, 2021		$ 218	$ 317	$ 212,926		$ (457)	$ 389,670			602,539
Beginning Balance (in shares) at Dec. 31, 2021		21,858,022	31,716,104					21,847,831	31,716,104
Treasury Stock, Beginning Balance at Dec. 31, 2021					$ (135)					$ 135
Treasury Stock, Beginning Balance (in shares) at Dec. 31, 2021					10,191					10,191
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of Class B Shares for Class A Shares		$ 1	$ (1)	1,786			(1,786)
Redemption of Class B Shares for Class A Shares (in shares)		148,087	(148,087)
Stock-based Compensation Expense				958			1,379			$ 2,337
Stock-based Compensation Expense (in shares)		515
Increase in TRA Liability Related to Share Redemption				(1,531)						(1,531)
Deferred Tax Assets Acquired				1,666						1,666
Dividends and Distributions ($0.09 per share)						(2,062)	(2,947)			(5,009)
Net (Loss) Income						(2,222)	(4,395)			(6,617)
Ending Balance at Mar. 31, 2022		$ 219	$ 316	215,805		(4,741)	381,921			593,385
Ending Balance (in shares) at Mar. 31, 2022		22,006,624	31,568,017
Treasury Stock, Ending Balance at Mar. 31, 2022					$ (135)
Treasury Stock, Ending Balance (in shares) at Mar. 31, 2022					10,191
Beginning Balance at Dec. 31, 2021		$ 218	$ 317	212,926		(457)	389,670			602,539
Beginning Balance (in shares) at Dec. 31, 2021		21,858,022	31,716,104					21,847,831	31,716,104
Treasury Stock, Beginning Balance at Dec. 31, 2021					$ (135)					$ 135
Treasury Stock, Beginning Balance (in shares) at Dec. 31, 2021					10,191					10,191
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income										$ (622)
Ending Balance at Sep. 30, 2022		$ 261	$ 308	282,917		(7,094)	390,565			666,822
Ending Balance (in shares) at Sep. 30, 2022		26,166,400	30,811,322					26,156,209	30,811,322
Treasury Stock, Ending Balance at Sep. 30, 2022					$ (135)					$ 135
Treasury Stock, Ending Balance (in shares) at Sep. 30, 2022					10,191					10,191
Beginning Balance at Mar. 31, 2022		$ 219	$ 316	215,805		(4,741)	381,921			$ 593,385
Beginning Balance (in shares) at Mar. 31, 2022		22,006,624	31,568,017
Treasury Stock, Beginning Balance at Mar. 31, 2022					$ (135)
Treasury Stock, Beginning Balance (in shares) at Mar. 31, 2022					10,191
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of Class B Shares for Class A Shares		$ 1	$ (1)	1,315			(1,315)
Redemption of Class B Shares for Class A Shares (in shares)		107,914	(107,914)
Stock-based Compensation Expense				1,318			1,884			3,202
Increase in TRA Liability Related to Share Redemption				(1,021)						(1,021)
Deferred Tax Assets Acquired				422						422
Dividends and Distributions ($0.09 per share)						(2,068)	(2,966)			(5,034)
Net (Loss) Income						1,394	2,645			4,039
Ending Balance at Jun. 30, 2022		$ 220	$ 315	217,839		(5,415)	382,169			594,993
Ending Balance (in shares) at Jun. 30, 2022		22,114,538	31,460,103
Treasury Stock, Ending Balance at Jun. 30, 2022					$ (135)
Treasury Stock, Ending Balance (in shares) at Jun. 30, 2022					10,191
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Class A Shares issued for Acquisition		$ 34		54,588			16,601			71,223
Class A Shares issued for Acquisition (in shares)		3,365,907
Redemption of Class B Shares for Class A Shares		$ 7	$ (7)	8,275			(8,275)
Redemption of Class B Shares for Class A Shares (in shares)		648,781	(648,781)
Stock-based Compensation Expense				1,848			1,747			3,595
Stock-based Compensation Expense (in shares)		37,174
Increase in TRA Liability Related to Share Redemption				(3,446)						(3,446)
Deferred Tax Assets Acquired				3,813						3,813
Dividends and Distributions ($0.09 per share)						(2,378)	(2,934)			(5,312)
Net (Loss) Income						699	1,257			1,956
Ending Balance at Sep. 30, 2022		$ 261	$ 308	$ 282,917		$ (7,094)	$ 390,565			666,822
Ending Balance (in shares) at Sep. 30, 2022		26,166,400	30,811,322					26,156,209	30,811,322
Treasury Stock, Ending Balance at Sep. 30, 2022					$ (135)					$ 135
Treasury Stock, Ending Balance (in shares) at Sep. 30, 2022					10,191					10,191

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders'/Members' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Condensed Consolidated Statements of Stockholders'/Members' Equity
Dividends and Distributions Declared (in dollars per share)	$ 0.09	$ 0.09	$ 0.09

Organization and Background of

Organization and Background of Business	9 Months Ended
Organization and Background of Business	Sep. 30, 2022
Organization and Background of Business
Organization and Background of Business	1. Aris Water Solutions, Inc. (“Aris Inc.”, the “Company”, “we”, “our, or “us”) is an independent, environmentally-focused company headquartered in Houston, Texas, that, through its controlling interest in Solaris Midstream Holdings, LLC, a Delaware limited liability company (“Solaris LLC”), provides sustainability-enhancing services to oil and natural gas operators. We strive to build long-term value through the development, construction and operation of integrated produced water handling and recycling infrastructure that provides high-capacity, comprehensive produced water management, recycling and supply solutions for operators in the Permian Basin. We were incorporated on May 26, 2021 as a Delaware corporation and were formed to serve as the issuer in an initial public offering of equity (the “IPO” or “Offering”) that closed on October 26, 2021. Concurrent with the completion of the IPO, we became the new parent holding company of Solaris LLC. As the sole managing member of Solaris LLC, we operate and control the business and affairs of Solaris LLC, and through Solaris LLC and its subsidiaries, conduct our business. We consolidate the financial results of Solaris LLC and report noncontrolling interest related to the portion of Solaris LLC units not owned by us. In these condensed consolidated financial statements, periods prior to IPO closing reflect the financial statements of Solaris LLC and its subsidiaries. Periods subsequent to IPO closing on October 26, 2021 reflect the financial statements of the consolidated Company including Aris Inc., Solaris LLC and Solaris LLC’s subsidiaries.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
Basis of Presentation and Significant Accounting Policies	Sep. 30, 2022
Basis of Presentation and Significant Accounting Policies
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation All dollar amounts, except per share amounts, in the condensed consolidated financial statements and tables in the notes are stated in thousands of dollars unless otherwise indicated. Interim Financial Statements These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial statements have not been audited by our independent registered public accounting firm. These condensed consolidated financial statements include the adjustments and accruals, all of which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. Consolidation We have determined that the members with equity at risk in Solaris LLC lack the authority, through voting rights or similar rights, to direct the activities that most significantly impact Solaris LLC’s economic performance; therefore, Solaris LLC is considered a variable interest entity (“VIE”). As the managing member of Solaris LLC, we operate and control the business and affairs of Solaris LLC as well as have the obligation to absorb losses or the right to receive benefits that could be potentially significant to us. Therefore, we are considered the primary beneficiary and consolidate Solaris LLC. Noncontrolling Interests As of September 30, 2022, we own approximately 46% of Solaris LLC. Our consolidated financial statements include noncontrolling interests representing the percentage of Solaris LLC units not held by us. Use of Estimates Management has made certain estimates and assumptions that affect reported amounts in these condensed consolidated financial statements and disclosures of contingencies. These critical estimates include, among others, determining the fair values of assets acquired, liabilities assumed, and/or contingent consideration paid in acquisitions or nonmonetary exchanges or disposed through sale, determining the fair value and related impairment of assets held for sale, determining the fair value of performance-based restricted stock units (“PSUs”), useful lives of property, plant and equipment and amortizable intangible assets, the fair value of asset retirement obligations (“ARO”), accruals for environmental matters, the income tax provision, valuation allowances for deferred tax assets, and the liability associated with our Tax Receivable Agreement (the “TRA liability”). Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including current economic and industry conditions. Actual results could differ from management’s estimates as additional information or actual results become available in the future, and those differences could be material. Significant Accounting Policies See Note 2. Significant Accounting Policies to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021 for the discussion of our significant accounting policies. Other than the updates noted below in Recently Adopted Accounting Pronouncements Fair Value Information The fair value of our 7.625% Senior Sustainability-Linked Notes (the “Notes”), which are fixed-rate debt, is estimated based on the published market prices for the same or similar issues. Management has designated this measurement as a Level 2 fair value measurement. Fair value information regarding our debt is as follows: (in thousands) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value Senior Sustainability-Linked Notes $ 400,000 $ 377,076 $ 400,000 $ 424,000 The carrying values of our financial instruments, consisting of cash, accounts receivable, and accounts payable, approximate their fair values due to the short maturity of such instruments. Intangible Assets Intangible assets are net of accumulated amortization of $87.7 million and $60.1 million at September 30, 2022 and December 31, 2021, respectively. Related Parties We and ConocoPhillips, one of our principal owners, are parties to a long-term water gathering and handling agreement, pursuant to which ConocoPhillips dedicates all the produced water generated from its current and future acreage in a defined area of mutual interest in New Mexico and Texas. As of September 30, 2022 and December 31, 2021, we had accounts receivable from ConocoPhillips of $25.8 million and $20.2 million, respectively, that were recorded in accounts receivable from affiliate. As of September 30, 2022 and December 31, 2021, we had payables to ConocoPhillips of $2.4 million and $1.5 million, respectively, that were recorded in payables to affiliate. Revenues and expenses related to ConocoPhillips were as follows: (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues from ConocoPhillips $ 30,464 $ 27,194 $ 80,724 $ 79,080 Operating Expenses Reimbursed to ConocoPhillips 403 191 1,163 919 Operating expenses reimbursed to ConocoPhillips are related to ConocoPhillips’ costs for operating certain assets on our behalf between closing and the transfer of the acquired assets and other ongoing operating expenses. Recently Adopted Accounting Pronouncements Leases. Leases lease liabilities We made policy elections not to capitalize short-term leases for all asset classes and not to separate non-lease components from lease components for all asset classes, except for real estate leases. We also did not elect the package of practical expedients that allowed for certain considerations under the original “Leases (Topic 840)” accounting standard to be carried forward upon adoption of ASU 2016-02. ASU No. 2018-11, “Targeted Improvements,” provides a transition election not to restate comparative periods for the effects of applying the new lease standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. We elected this transition approach; however, the cumulative impact of adoption in the opening balance of retained earnings as of January 1, 2022 was zero. Our accounting policy for leases is as follows: We determine whether an arrangement contains a lease based on the conveyed rights and obligations at the inception date. If an agreement contains an operating or financing lease, at the commencement date, we record a right-of-use asset and a corresponding lease liability based on the present value of the minimum lease payments. As most of our leases do not provide an implicit borrowing rate, to determine the present value of lease payments, we use our hypothetical secured borrowing rate based on information available at lease commencement. Further, we make a number of estimates and judgments regarding the lease term and lease payments. Lease Term Lease Payments Additionally, we have lease agreements that include lease and non-lease components, such as equipment maintenance, which are generally accounted for as a single lease component. For these leases, lease payments include all fixed payments stated within the contract. For real estate lease agreements, we account for lease and non-lease components separately. Our lease agreements do not contain any material residual value guarantees that would impact our lease payments. See Note 7. Leases. Financial Instruments – Credit Losses. Financial Instruments – Credit Losses requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The adoption of ASC Topic 326 did not have a material impact on our financial statements.

Additional Financial Statement

Additional Financial Statement Information	9 Months Ended
Additional Financial Statement Information	Sep. 30, 2022
Additional Financial Statement Information
Additional Financial Statement Information	3. Balance Sheet Other balance sheet information is as follows: (in thousands) September 30, December 31, 2022 2021 Other Receivables Insurance and Third Party Receivables for Remediation Expenses $ 4,578 $ 3,099 Reimbursable Projects and Other 1,709 1,027 Total Other Receivables $ 6,287 $ 4,126 Prepaids and Deposits Prepaid Insurance and Other $ 1,787 $ 5,953 Deposits 41 90 Total Prepaids and Deposits $ 1,828 $ 6,043 Accrued and Other Current Liabilities Accrued Operating Expense $ 27,085 $ 17,774 Accrued Capital Costs 30,680 4,603 Accrued Interest 15,250 7,625 Accrued Compensation 4,878 4,551 Dividends and Distributions Payable 44 3,847 Lease Liabilities 1,025 — Other 6,127 2,064 Total Accrued and Other Current Liabilities $ 85,089 $ 40,464 Statement of Operations Other statement of operations information is as follows: (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Depreciation, Amortization and Accretion Expense Depreciation - Property, Plant and Equipment $ 7,658 $ 7,152 $ 21,755 $ 20,888 Amortization - Intangible Assets 9,183 8,151 27,551 24,454 Accretion of Asset Retirement Obligations 101 75 418 208 Total Depreciation, Amortization and Accretion Expense $ 16,942 $ 15,378 $ 49,724 $ 45,550 Loss on Asset Disposal and Other (Gain) Loss on Asset Disposal, Net $ (97) $ 8 $ 481 $ 225 Transaction Costs 336 253 1,269 330 Abandoned Projects (1) — 679 66 2,035 Total Loss on Asset Disposal and Other $ 239 $ 940 $ 1,816 $ 2,590 Interest Expense Interest on Debt Instruments $ 7,759 $ 8,034 $ 23,365 $ 18,402 Amortization of Debt Issuance Costs 610 611 1,830 1,434 Total Interest Expense 8,369 8,645 25,195 19,836 Less: Amounts Capitalized (1,606) (765) (3,332) (1,981) Interest Expense, Net $ 6,763 $ 7,880 $ 21,863 $ 17,855 (1) Abandoned Projects expense is primarily related to expirations of legacy permits and rights-of-way for projects that were not ultimately constructed.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
Property, Plant and Equipment	Sep. 30, 2022
Property, Plant and Equipment.
Property, Plant and Equipment	4. Property, plant and equipment (“PP&E”) is stated at cost, less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful service life of the asset. PP&E consists of the following: (in thousands) September 30, December 31, 2022 2021 Wells, Facilities, Water Ponds, and Related Equipment $ 407,608 $ 329,935 Pipelines 340,817 327,140 Land 2,063 2,063 Vehicles, Equipment, Computers and Office Furniture 18,196 17,359 Assets Subject to Depreciation 768,684 676,497 Projects and Construction in Progress 112,319 24,259 Total Property, Plant and Equipment 881,003 700,756 Accumulated Depreciation (81,019) (67,749) Total Property, Plant and Equipment, Net $ 799,984 $ 633,007 Asset Exchanges During the nine months ended September 30, 2022, we completed multiple nonmonetary transactions. The transactions included exchanges of wells, facilities, permits and other assets. The total net book value of the divested assets and liabilities was $3.8 million. The acquired assets were recorded at a total fair value of $3.2 million, which resulted in a total pre-tax loss of $0.6 million. Assets Sold During the first quarter of 2022, management committed to a plan to sell certain of our assets located in the Midland Basin and determined that these assets met all the criteria for classification as assets held for sale. These assets were re-measured at their fair values less costs to sell, which resulted in the recognition of pre-tax impairment expense of $15.6 million during the first quarter of 2022. We estimated the fair value of the assets using indicative bids, which were representative of a Level 2 fair value measurement, and we ceased recording depreciation on the assets. During the third quarter of 2022, we closed the sale of these assets for proceeds of $7.4 million and recorded a gain of $0.1 million. Abandoned Assets In June 2022, management determined that two previously acquired saltwater disposal wells (“SWD wells”) were no longer economically beneficial to the operations of the Company due to required workover costs and determined that the SWD wells should be shut-in and taken out of service. Accordingly, we removed the cost and the associated accumulated depreciation and recognized a charge of $4.2 million for the remaining book value of the SWD wells. The charge has been reflected in abandoned well costs in the condensed consolidated statements of operations for the nine months ended September 30, 2022. In late second quarter 2022, management removed the cost of a SWD well that was under construction in Texas. The well had encountered technical difficulties during the drilling phase and progress on the well was stopped. Management’s evaluation of the well determined that abandoning the asset was the most prudent course of action. Accordingly, we removed the cost of the asset and recognized a charge of $1.6 million, which is reflected in abandoned well costs in the condensed consolidated statements of operations for the nine months ended September 30, 2022. In the third quarter of 2022, we During the first nine months of 2021, we re-entered a SWD well bore to address anomalies. After technical testing, management concluded that it was probable that abandoning the asset was the most prudent course of action as the well was unable to remain in service in its current condition, and we recognized abandoned well cost of $27.4. Delaware Energy Asset Acquisition On August 1, 2022, we acquired from Delaware Energy, LLC certain saltwater gathering and disposal facilities, disposal wells and other related assets and rights in Lea County and Eddy County, New Mexico. In connection with the closing and as consideration for the assets, we issued to the seller 3,365,907 shares of our Class A common stock and included volumetric-based contingent consideration. We estimated the fair value of the contingent consideration using a discounted cash flow model based on estimated royalty payments to be made over a five-year contractual period. Allocation of the purchase price to the acquired assets was based on relative fair values. The following table sets forth our purchase price allocation. (in thousands, except share and per share amounts) Equity Consideration Number of Class A Shares Issued 3,365,907 Fair Value Per Share on Transaction Closing Date $ 21.16 Total Fair Value of Equity Consideration $ 71,223 Fair Value of Contingent Consideration (1) 3,899 Total Fair Value of Consideration $ 75,122 Purchase Price Allocation Saltwater Disposal Wells $ 72,620 Gathering Systems and Pipelines 2,716 Total Fair Value of Property Acquired 75,336 Less: ARO Liabilities Assumed (214) Total Purchase Price Allocation $ 75,122 (1) As of September 30, 2022, liabilities for contingent consideration of $1.1 million and $2.8 million are included in Accrued and Other Current Liabilities and Other Long-Term Liabilities, respectively. Contemporaneously with the issuance of such shares of Class A common stock, Solaris LLC issued 3,365,907 Solaris LLC units to Aris Inc. Other Asset Acquisition During the third quarter of 2022, we purchased five ponds from ConocoPhillips, a related party, for a cash purchase price of $3.4 million.

Tax Receivable Agreement Liabil

Tax Receivable Agreement Liability	9 Months Ended
Tax Receivable Agreement Liability	Sep. 30, 2022
Tax Receivable Agreement Liability
Tax Receivable Agreement Liability	5. Our tax receivable agreement (“TRA”) with the legacy owners of Solaris LLC units (each such person, a “TRA Holder,” and together, the “TRA Holders”) generally provides for the payment by us to each TRA Holder of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that we actually realize or, are deemed to realize in certain circumstances, in periods after the IPO as a result of certain increases in tax basis that occur as a result of our acquisition or Solaris LLC’s redemption, respectively, of all or a portion of such TRA Holder’s Solaris LLC units in connection with the IPO or pursuant to the exercise of a redemption right or call right. We retain the remaining 15% of these cash savings. The future benefit of these cash savings is included, alongside other tax attributes, in our total deferred income tax asset balance at September 30, 2022. The TRA liability totaled $80.0 million at September 30, 2022. The liability increased $6.0 million during the nine months ended September 30, 2022 due to the redemption of Class B shares to Class A shares. The increase was offset by a reduction of $1.6 million related to adjustments to the estimated tax basis of the tangible and intangible assets of Solaris LLC reflected in the 2021 federal income tax return. See Note 9. Stockholders’/Members’ Equity. As of September 30, 2022, we estimated that if all the remaining Solaris LLC units were redeemed for shares of our Class A common stock, the TRA liability would be approximately $257.5 million. If we experience a change of control (as defined under the TRA, which includes certain mergers, asset sales and other forms of business combinations and change of control events) or the TRA terminates early (at our election or as a result of our breach), we could be required to make an immediate lump-sum payment under the terms of the TRA. As of September 30, 2022, we estimated the liability associated with this lump-sum payment (or “early termination payment”) would be approximately $171.5 million, discounted. These amounts can be significantly impacted by the closing price of our Class A shares on the applicable redemption date. We currently do not anticipate experiencing a change of control or an early termination of the TRA.

Long-Term Debt

Long-Term Debt	9 Months Ended
Long-Term Debt	Sep. 30, 2022
Long-Term Debt
Long-Term Debt	6. Our long-term debt consists of the following: (in thousands) September 30, December 31, 2022 2021 7.625% Senior Sustainability-Linked Notes $ 400,000 $ 400,000 Revolving Credit Facility — — Total Long-Term Debt 400,000 400,000 Less: Unamortized Debt Issuance Costs (6,547) (7,949) Total Long-Term Debt, Net of Debt Issuance Costs $ 393,453 $ 392,051 Senior Sustainability-Linked Notes Our 7.625% Senior Sustainability-Linked Notes (the “Notes”) are due April 1, 2026. The Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility (see below). The Notes are guaranteed on a senior unsecured basis by our wholly-owned subsidiaries. Interest on the Notes is payable on April 1 and October 1 of each year. We may redeem all or part of the Notes at any time on or after April 1, 2023 at redemption prices ranging from 103.8125% on or after April 1, 2023 to 100% on or after April 1, 2025. In addition, on or before April 1, 2023, we may redeem up to 40% of the aggregate principal amount of the Notes with the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 107.625% of the principal amount of the Notes, plus accrued interest. At any time prior to April 1, 2023, we may also redeem the Notes, in whole or in part, at a price equal to 100% of the principal amount of the Notes plus a “make-whole” premium. If we undergo a change of control, we may be required to repurchase all or a portion of the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued interest. Certain of these redemption prices are subject to increase if we fail to satisfy the Sustainability Performance Target (as defined in the indenture governing the Notes and referred to herein as “SPT”) and provide notice of such satisfaction to the trustee. From and including the interest period ending on October 1, 2023, the interest rate will be increased by 25 basis points to 7.875% per annum unless we notify the trustee for the Notes at least 30 days prior to April 1, 2023 that, for the year ending December 31, 2022: (i) the SPT has been satisfied and (ii) the satisfaction of the SPT has been confirmed in accordance with customary procedures. Credit Facility Our amended and restated credit agreement provides for, among other things, (i) commitments of $200.0 million, (ii) a maturity date of April 1, 2025, (iii) loans made under our revolving credit facility (the “Credit Facility”) and unused commitment fees to be determined based on a leverage ratio ranging from 3.00:1.00 to 4.50:1.00, (iv) a $75.0 million incremental revolving facility, which will be on the same terms as under the Credit Facility, (v) a leverage ratio covenant which comprises a maximum total funded debt to EBITDA ratio, net of $40.0 million of unrestricted cash and cash equivalents if the facility is drawn, and net of all unrestricted cash and cash equivalents if the facility is undrawn, (vi) a leverage ratio covenant test level which is currently 4.50 to 1.00 and (vii) a secured leverage covenant of 2.50 to 1.00. As of September 30, 2022 and December 31, 2021, we had no outstanding borrowings under the Credit Facility, $0.15 million in letters of credit outstanding and $199.85 million in revolving commitments available. The Credit Facility is secured by all the real and material personal property owned by Solaris LLC or any of its subsidiaries, other than certain excluded assets. At September 30, 2022, we were in compliance with all covenants contained in the Credit Facility.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2022
Leases
Leases	7. In the normal course of business, we enter into operating lease agreements to support our operations. Our leased assets include right-of-way easements for our wells and facilities, office space and other assets. We currently have no finance leases. Balance Sheet Information The following table provides supplemental consolidated balance sheet information related to leases: (in thousands) Classification September 30, 2022 Assets Right-of-Use Assets Consolidated Balance Sheet $ 7,635 Liabilities Current Lease Liabilities Accrued and Other Current Liabilities $ 1,025 Noncurrent Lease Liabilities Other Long-Term Liabilities 6,202 Statement of Operations Information The following table provides the components of lease cost, excluding lease cost related to short-term leases: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2022 2022 Direct Operating Costs $ 244 $ 690 General and Administrative 166 498 Total Lease Cost $ 410 $ 1,188 Short-Term Leases Our short-term lease cost, which consisted primarily of field equipment rentals, totaled $3.9 million and $7.7 million for the three and nine months ended September 30, 2022. Cash Flow Information The following table summarizes supplemental cash flow information related to leases: Nine Months Ended September 30, (in thousands) 2022 Cash Paid for Amounts Included in Lease Liabilities $ 969 Right-of-Use Assets Obtained in Exchange for Operating Lease Liabilities, net 723 Lease Terms and Discount Rates The following table provides lease terms and discount rates related to leases: Weighted Average Remaining Lease Term (Years) 6.7 Weighted Average Discount Rate 2.85% Annual Lease Maturities The following table provides maturities of lease liabilities at September 30, 2022: (in thousands) 2022 remaining $ 277 2023 1,073 2024 984 2025 746 2026 671 Thereafter 4,347 Total Lease Payments 8,098 Less: Interest (871) Present Value of Lease Liabilities $ 7,227 Future Minimum Lease Commitments Future minimum lease commitments under non-cancellable leases at December 31, 2021 were as follows: (in thousands) 2022 $ 824 2023 638 2024 622 2025 514 2026 438 Thereafter 816 Total $ 3,852 Leases That Have Not Yet Commenced During the third quarter of 2022, we entered into an additional operating lease for office space. The lease will commence during the fourth quarter of 2022. Undiscounted future lease payments of $0.7 million will be included in the determination of the right-of-use asset and lease liability upon lease commencement.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
Income Taxes
Income Taxes	8. Our predecessor, Solaris LLC, is a Delaware limited liability company treated as a partnership for federal income tax purposes and, therefore, has not been subject to U.S. federal income tax at an entity level. As a result, the consolidated net (loss) income in our historical financial statements does not reflect the tax (benefit) expense we would have incurred if we were subject to U.S. federal income tax at an entity level during periods prior to the IPO. Solaris LLC continues to be treated as a partnership for U.S. federal income tax purposes and, as such, is not subject to U.S. federal income tax. Instead, taxable income is allocated to members, including Aris Inc., and except for Texas franchise tax, any taxable income of Solaris LLC is reported in the respective tax returns of its members. Income Tax Expense (Benefit) We recorded income tax expense (benefit) of $0.3 million and $(0.1) million for the three and nine months ended September 30, 2022, respectively, substantially all of which was deferred. Effective Tax Rate We record our income tax (benefit) expense using an estimated annual effective tax rate (“ETR”) and recognize specific events discretely as they occur. The ETR for the nine months ended September 30, 2022 was 11%. The difference between the federal statutory rate and our estimated annual ETR is due primarily to the impact of the noncontrolling interest. Deferred Tax Assets We regularly evaluate the realizable tax benefits of deferred tax assets and record a valuation allowance, if required, based on an estimate of the amount of deferred tax assets that we believe does not meet the more-likely-than-not criteria of being realized. The balance of our deferred income tax assets, net increased $4.4 million during the nine months ended September 30, 2022. Tax Examinations Solaris LLC files income tax returns in the U.S. federal jurisdiction and various states. There are currently no federal or state income tax examinations underway for these jurisdictions. We are no longer subject to tax examinations for tax years prior to 2018 for federal income taxes and prior to 2017 for state income taxes.

Stockholders' and Members' Equi

Stockholders' and Members' Equity	9 Months Ended
Stockholders' and Members' Equity	Sep. 30, 2022
Stockholders' and Members' Equity
Stockholders' and Members' Equity	9. Redemptions During the nine months ended September 30, 2022, Solaris LLC units, together with an equal number of shares of our Class B common stock, were redeemed for shares of our Class A common stock on a one-for-one basis as follows: ● 148,087 shares were redeemed on February 28, 2022; and ● 107,914 shares were redeemed on June 1, 2022; and ● 648,781 shares were redeemed on September 1, 2022. Dividends and Distributions On February 25, 2022, May 6, 2022, and August 3, 2022, our Board of Directors declared quarterly dividends of $0.09 per share for the first, second and third quarters of 2022, respectively, on our Class A common stock. In conjunction with the dividend payments, a distribution of $0.09 per unit was paid to unit holders of Solaris LLC for each of the first, second and third quarters of 2022. On November 4, 2022, our Board of Directors declared a quarterly dividend of $0.09 per share for the fourth quarter of 2022 on our Class A common stock. The dividend will be paid on November 30, 2022, to holders of record of our Class A common stock as of the close of business on November 17, 2022. In conjunction with the dividend payment, a distribution of $0.09 per unit will be paid to unit holders of Solaris LLC subject to the same payment and record dates.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2022
Commitments and Contingencies.
Commitments and Contingencies	10. In the normal course of business, we are subject to various claims, legal actions, contract negotiations and disputes. We provide for losses, if any, in the period in which they become probable and can be reasonably estimated. In management’s opinion, there are currently no such matters outstanding that would have a material effect on the accompanying financial statements. Other Commitments In the normal course of business, we enter into short-term purchase obligations for products and services, primarily related to purchases of pipe, pumps and other components. As of September 30, 2022, we have purchase obligations and commitments of approximately $39.7 million due in the next twelve months. We are a party to various surface use and compensation agreements by which we have committed to make minimum royalty payments in exchange for rights to access and use the land for purposes that are generally limited to conducting our water operations. These agreements do not meet the definition of a lease under ASC Topic 842. Minimum royalty payments associated with these contracts are as follows: $0.1 million for the remainder of 2022, $8.9 million for 2023, $9.8 million for 2024, $10.6 million for 2025, $11.3 million for 2026, and $4.5 million thereafter. We are party to a fixed price power purchase contract to manage the volatility of the price of power needed for ongoing operations. We have elected the normal purchase and normal sale accounting treatment for this contract and therefore record it at cost. The contract has a term that ends in May 2025 and the remaining minimum commitment under the contract is $7.1 million as of September 30, 2022. Environmental We are also subject to various federal, state and local laws and regulations relating to the protection of the environment. For the three and nine months ended September 30, 2022, we recognized $0.9 million and $1.9 million of expense, respectively, related to environmental matters that were recorded in Direct Operating Cost. For the three and nine months ended September 30, 2021, the expense related to environmental matters was $0.5 million for both periods. We also have insurance proceeds receivable of $4.6 million at September 30, 2022 that we believe are probable to collect and are reasonably estimable. Although we believe these estimates are reasonable, actual results could differ from these estimates.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2022
Earnings Per Share
Earnings Per Share	11. Earnings Per Share Net Income (Loss) Per Share Basic and diluted net income (loss) per share attributable to our Class A common stock is computed by dividing net income (loss) attributable to Aris Water Solutions, Inc. for periods subsequent to the IPO 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 (collectively “RSUs”), which receive nonforfeitable dividends. Shares issued during the period are weighted for the portion of the period in which the shares were outstanding. Prior to the IPO, Solaris LLC’s capital structure included Class A, Class B, Class C, and Class D units. We determined that the presentation of net income (loss) per unit for the period prior to the IPO would not be meaningful due to the significant nature of the corporate reorganization transactions on the capital structure at IPO date. Therefore, net income (loss) per unit information has not been presented for periods prior to the IPO. The following table sets forth the computation of basic and diluted net income (loss) per share attributable to our Class A common stock: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except for share and per share amounts) 2022 2022 Net Income (Loss) Attributable to Stockholders' Equity $ 1,956 $ (622) Less: Net Income (Loss) Attributable to Noncontrolling Interest 1,257 (493) Net Income (Loss) Attributable to Aris Water Solutions, Inc. 699 (129) Dividends for Participating Securities (1) (179) (539) Basic Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 520 $ (668) Reallocation of Participating Net Income (Loss) - - Diluted Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 520 $ (668) Basic Weighted Average Outstanding Shares 24,499,953 22,779,077 Dilutive Performance-Based Stock Units 46,679 - Dilutive Weighted Average Outstanding Shares 24,546,632 22,779,077 Basic Net Income (Loss) Per Share of Class A Common Stock $ 0.02 $ (0.03) Diluted Net Income (Loss) Per Share of Class A Common Stock $ 0.02 $ (0.03) (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 31,248,544 shares and 31,481,479 shares of Class B common stock outstanding for the three and nine months ended September 30, 2022, respectively, were determined to be antidilutive and were excluded from the computation of diluted earnings per share of Class A common stock. In addition, 19,086 and all PSUs were determined to be antidilutive for the three and nine months ended September 30, 2022, respectively, and have been excluded from the computation of diluted earnings per share for those periods.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2022
Stock-Based Compensation
Stock-Based Compensation	12. Our 2021 Equity Incentive Plan (the “2021 Plan”) allows for the grant of, among other types of awards, stock options; RSUs; and PSUs. Restricted Stock and Restricted Stock Units RSU activity during the period was as follows: RSUs Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 1,439,029 $ 12.68 Granted 678,241 14.98 Forfeited (115,535) 13.75 Vested (515) 14.61 Outstanding at September 30, 2022 2,001,220 $ 13.64 The RSUs granted during the nine months ended September 30, 2022 generally vest in the following installments: (i) one-third one-third one-third roximately $17.8 million of compensation cost related to unvested shares of restricted stock and RSUs remained to be recognized. The cost is expected to be recognized over a weighted-average period of 2.1 years. Performance-Based Restricted Stock Units During the nine months ended September 30, 2022, we granted 167,228 PSUs, with a weighted average grant date fair value of $25.36 , t ● Relative PSUs: 50% of the PSUs are based on total shareholder return relative to the total shareholder return of a predetermined group of peer companies. This relative total shareholder return is calculated at the end of the performance periods stipulated in the PSU agreement. ● Absolute PSUs: 50% of the PSUs have a performance criteria of absolute total shareholder return calculated at the end of the performance period stipulated in the PSU agreement. The vesting and payout of the PSUs occur when the related service condition is completed, which is approximately three years after the grant date regardless of the duration of the stipulated performance period. The PSUs can be paid out in either Class A common stock or cash, at our election. As of September 30, 2022, approximately $3.2 million of compensation cost related to unvested PSUs remained to be recognized. The cost is expected to be recognized over a weighted-average period of 2.3 years. The grant date fair value was determined using the Monte Carlo simulation method and is expensed ratably over the service period. Expected volatilities used in the fair value simulation were estimated using historical periods consistent with the remaining performance periods. The risk-free rate was based on the U.S. Treasury rate for a term commensurate with the expected life of the grant. We used the following assumptions to estimate the fair value of PSUs granted during the nine months ended September 30, 2022: Assumptions Risk-free Interest Rate 1.44% Volatility Range 35.95% - 154.23% PSU activity during the period was as follows: PSUs Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 - $ - Granted 167,228 25.36 Forfeited (6,274) 25.36 Outstanding at September 30, 2022 160,954 $ 25.36

Subsequent Event

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2022
Subsequent Event
Subsequent Event	13. Subsequent Event On October 31, 2022, we entered into an additional operating lease for office space. Undiscounted future lease payments of $10.1 million will be included in the determination of the right-of-use asset and lease liability upon lease commencement.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Basis of Presentation and Significant Accounting Policies
Basis of Presentation	Basis of Presentation All dollar amounts, except per share amounts, in the condensed consolidated financial statements and tables in the notes are stated in thousands of dollars unless otherwise indicated.
Interim Financial Statements	Interim Financial Statements These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial statements have not been audited by our independent registered public accounting firm. These condensed consolidated financial statements include the adjustments and accruals, all of which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021.
Consolidation	Consolidation We have determined that the members with equity at risk in Solaris LLC lack the authority, through voting rights or similar rights, to direct the activities that most significantly impact Solaris LLC’s economic performance; therefore, Solaris LLC is considered a variable interest entity (“VIE”). As the managing member of Solaris LLC, we operate and control the business and affairs of Solaris LLC as well as have the obligation to absorb losses or the right to receive benefits that could be potentially significant to us. Therefore, we are considered the primary beneficiary and consolidate Solaris LLC.
Noncontrolling Interests	Noncontrolling Interests As of September 30, 2022, we own approximately 46% of Solaris LLC. Our consolidated financial statements include noncontrolling interests representing the percentage of Solaris LLC units not held by us.
Use of Estimates	Use of Estimates Management has made certain estimates and assumptions that affect reported amounts in these condensed consolidated financial statements and disclosures of contingencies. These critical estimates include, among others, determining the fair values of assets acquired, liabilities assumed, and/or contingent consideration paid in acquisitions or nonmonetary exchanges or disposed through sale, determining the fair value and related impairment of assets held for sale, determining the fair value of performance-based restricted stock units (“PSUs”), useful lives of property, plant and equipment and amortizable intangible assets, the fair value of asset retirement obligations (“ARO”), accruals for environmental matters, the income tax provision, valuation allowances for deferred tax assets, and the liability associated with our Tax Receivable Agreement (the “TRA liability”). Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including current economic and industry conditions. Actual results could differ from management’s estimates as additional information or actual results become available in the future, and those differences could be material.
Significant Accounting Policies	Significant Accounting Policies See Note 2. Significant Accounting Policies to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021 for the discussion of our significant accounting policies. Other than the updates noted below in Recently Adopted Accounting Pronouncements
Fair Value Information	Fair Value Information The fair value of our 7.625% Senior Sustainability-Linked Notes (the “Notes”), which are fixed-rate debt, is estimated based on the published market prices for the same or similar issues. Management has designated this measurement as a Level 2 fair value measurement. Fair value information regarding our debt is as follows: (in thousands) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value Senior Sustainability-Linked Notes $ 400,000 $ 377,076 $ 400,000 $ 424,000 The carrying values of our financial instruments, consisting of cash, accounts receivable, and accounts payable, approximate their fair values due to the short maturity of such instruments.
Intangible Assets	Intangible Assets Intangible assets are net of accumulated amortization of $87.7 million and $60.1 million at September 30, 2022 and December 31, 2021, respectively.
Related Parties	Related Parties We and ConocoPhillips, one of our principal owners, are parties to a long-term water gathering and handling agreement, pursuant to which ConocoPhillips dedicates all the produced water generated from its current and future acreage in a defined area of mutual interest in New Mexico and Texas. As of September 30, 2022 and December 31, 2021, we had accounts receivable from ConocoPhillips of $25.8 million and $20.2 million, respectively, that were recorded in accounts receivable from affiliate. As of September 30, 2022 and December 31, 2021, we had payables to ConocoPhillips of $2.4 million and $1.5 million, respectively, that were recorded in payables to affiliate. Revenues and expenses related to ConocoPhillips were as follows: (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues from ConocoPhillips $ 30,464 $ 27,194 $ 80,724 $ 79,080 Operating Expenses Reimbursed to ConocoPhillips 403 191 1,163 919 Operating expenses reimbursed to ConocoPhillips are related to ConocoPhillips’ costs for operating certain assets on our behalf between closing and the transfer of the acquired assets and other ongoing operating expenses.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Leases. Leases lease liabilities We made policy elections not to capitalize short-term leases for all asset classes and not to separate non-lease components from lease components for all asset classes, except for real estate leases. We also did not elect the package of practical expedients that allowed for certain considerations under the original “Leases (Topic 840)” accounting standard to be carried forward upon adoption of ASU 2016-02. ASU No. 2018-11, “Targeted Improvements,” provides a transition election not to restate comparative periods for the effects of applying the new lease standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. We elected this transition approach; however, the cumulative impact of adoption in the opening balance of retained earnings as of January 1, 2022 was zero. Our accounting policy for leases is as follows: We determine whether an arrangement contains a lease based on the conveyed rights and obligations at the inception date. If an agreement contains an operating or financing lease, at the commencement date, we record a right-of-use asset and a corresponding lease liability based on the present value of the minimum lease payments. As most of our leases do not provide an implicit borrowing rate, to determine the present value of lease payments, we use our hypothetical secured borrowing rate based on information available at lease commencement. Further, we make a number of estimates and judgments regarding the lease term and lease payments. Lease Term Lease Payments Additionally, we have lease agreements that include lease and non-lease components, such as equipment maintenance, which are generally accounted for as a single lease component. For these leases, lease payments include all fixed payments stated within the contract. For real estate lease agreements, we account for lease and non-lease components separately. Our lease agreements do not contain any material residual value guarantees that would impact our lease payments. See Note 7. Leases. Financial Instruments – Credit Losses. Financial Instruments – Credit Losses requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The adoption of ASC Topic 326 did not have a material impact on our financial statements.

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Basis of Presentation and Significant Accounting Policies
Schedule of Fair value information of debt	(in thousands) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value Senior Sustainability-Linked Notes $ 400,000 $ 377,076 $ 400,000 $ 424,000
Schedule of revenue and expenses from ConocoPhillips	(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues from ConocoPhillips $ 30,464 $ 27,194 $ 80,724 $ 79,080 Operating Expenses Reimbursed to ConocoPhillips 403 191 1,163 919

Additional Financial Statemen_2

Additional Financial Statement Information (Tables)	9 Months Ended
Additional Financial Statement Information (Tables)	Sep. 30, 2022
Additional Financial Statement Information
Schedule of Other Balance Sheet information	(in thousands) September 30, December 31, 2022 2021 Other Receivables Insurance and Third Party Receivables for Remediation Expenses $ 4,578 $ 3,099 Reimbursable Projects and Other 1,709 1,027 Total Other Receivables $ 6,287 $ 4,126 Prepaids and Deposits Prepaid Insurance and Other $ 1,787 $ 5,953 Deposits 41 90 Total Prepaids and Deposits $ 1,828 $ 6,043 Accrued and Other Current Liabilities Accrued Operating Expense $ 27,085 $ 17,774 Accrued Capital Costs 30,680 4,603 Accrued Interest 15,250 7,625 Accrued Compensation 4,878 4,551 Dividends and Distributions Payable 44 3,847 Lease Liabilities 1,025 — Other 6,127 2,064 Total Accrued and Other Current Liabilities $ 85,089 $ 40,464
Schedule of Other Statement of Operations information	(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Depreciation, Amortization and Accretion Expense Depreciation - Property, Plant and Equipment $ 7,658 $ 7,152 $ 21,755 $ 20,888 Amortization - Intangible Assets 9,183 8,151 27,551 24,454 Accretion of Asset Retirement Obligations 101 75 418 208 Total Depreciation, Amortization and Accretion Expense $ 16,942 $ 15,378 $ 49,724 $ 45,550 Loss on Asset Disposal and Other (Gain) Loss on Asset Disposal, Net $ (97) $ 8 $ 481 $ 225 Transaction Costs 336 253 1,269 330 Abandoned Projects (1) — 679 66 2,035 Total Loss on Asset Disposal and Other $ 239 $ 940 $ 1,816 $ 2,590 Interest Expense Interest on Debt Instruments $ 7,759 $ 8,034 $ 23,365 $ 18,402 Amortization of Debt Issuance Costs 610 611 1,830 1,434 Total Interest Expense 8,369 8,645 25,195 19,836 Less: Amounts Capitalized (1,606) (765) (3,332) (1,981) Interest Expense, Net $ 6,763 $ 7,880 $ 21,863 $ 17,855 (1) Abandoned Projects expense is primarily related to expirations of legacy permits and rights-of-way for projects that were not ultimately constructed.

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
Property, Plant and Equipment (Tables)	Sep. 30, 2022
Property, Plant and Equipment.
Schedule of PP&E	(in thousands) September 30, December 31, 2022 2021 Wells, Facilities, Water Ponds, and Related Equipment $ 407,608 $ 329,935 Pipelines 340,817 327,140 Land 2,063 2,063 Vehicles, Equipment, Computers and Office Furniture 18,196 17,359 Assets Subject to Depreciation 768,684 676,497 Projects and Construction in Progress 112,319 24,259 Total Property, Plant and Equipment 881,003 700,756 Accumulated Depreciation (81,019) (67,749) Total Property, Plant and Equipment, Net $ 799,984 $ 633,007
Schedule of purchase price allocation	(in thousands, except share and per share amounts) Equity Consideration Number of Class A Shares Issued 3,365,907 Fair Value Per Share on Transaction Closing Date $ 21.16 Total Fair Value of Equity Consideration $ 71,223 Fair Value of Contingent Consideration (1) 3,899 Total Fair Value of Consideration $ 75,122 Purchase Price Allocation Saltwater Disposal Wells $ 72,620 Gathering Systems and Pipelines 2,716 Total Fair Value of Property Acquired 75,336 Less: ARO Liabilities Assumed (214) Total Purchase Price Allocation $ 75,122 (1) As of September 30, 2022, liabilities for contingent consideration of $1.1 million and $2.8 million are included in Accrued and Other Current Liabilities and Other Long-Term Liabilities, respectively.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
Long-Term Debt (Tables)	Sep. 30, 2022
Long-Term Debt
Schedule of long-term debt instruments	(in thousands) September 30, December 31, 2022 2021 7.625% Senior Sustainability-Linked Notes $ 400,000 $ 400,000 Revolving Credit Facility — — Total Long-Term Debt 400,000 400,000 Less: Unamortized Debt Issuance Costs (6,547) (7,949) Total Long-Term Debt, Net of Debt Issuance Costs $ 393,453 $ 392,051

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2022
Leases
Summary of supplemental consolidated balance sheet information	(in thousands) Classification September 30, 2022 Assets Right-of-Use Assets Consolidated Balance Sheet $ 7,635 Liabilities Current Lease Liabilities Accrued and Other Current Liabilities $ 1,025 Noncurrent Lease Liabilities Other Long-Term Liabilities 6,202
Summary of supplemental statement of operation information	Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2022 2022 Direct Operating Costs $ 244 $ 690 General and Administrative 166 498 Total Lease Cost $ 410 $ 1,188
Summary of supplemental statement of cash flow information	Nine Months Ended September 30, (in thousands) 2022 Cash Paid for Amounts Included in Lease Liabilities $ 969 Right-of-Use Assets Obtained in Exchange for Operating Lease Liabilities, net 723
Summary of lease terms and discount rates	Weighted Average Remaining Lease Term (Years) 6.7 Weighted Average Discount Rate 2.85%
Summary of annual operating lease maturities	Annual Lease Maturities The following table provides maturities of lease liabilities at September 30, 2022: (in thousands) 2022 remaining $ 277 2023 1,073 2024 984 2025 746 2026 671 Thereafter 4,347 Total Lease Payments 8,098 Less: Interest (871) Present Value of Lease Liabilities $ 7,227 Future Minimum Lease Commitments Future minimum lease commitments under non-cancellable leases at December 31, 2021 were as follows: (in thousands) 2022 $ 824 2023 638 2024 622 2025 514 2026 438 Thereafter 816 Total $ 3,852

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2022
Earnings Per Share
Schedule of computation of basic and diluted net loss per share	Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except for share and per share amounts) 2022 2022 Net Income (Loss) Attributable to Stockholders' Equity $ 1,956 $ (622) Less: Net Income (Loss) Attributable to Noncontrolling Interest 1,257 (493) Net Income (Loss) Attributable to Aris Water Solutions, Inc. 699 (129) Dividends for Participating Securities (1) (179) (539) Basic Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 520 $ (668) Reallocation of Participating Net Income (Loss) - - Diluted Net Income (Loss) Attributable to Aris Water Solutions, Inc. $ 520 $ (668) Basic Weighted Average Outstanding Shares 24,499,953 22,779,077 Dilutive Performance-Based Stock Units 46,679 - Dilutive Weighted Average Outstanding Shares 24,546,632 22,779,077 Basic Net Income (Loss) Per Share of Class A Common Stock $ 0.02 $ (0.03) Diluted Net Income (Loss) Per Share of Class A Common Stock $ 0.02 $ (0.03) (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.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2022
Stock-Based Compensation
Schedule of RSU activity	RSUs Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 1,439,029 $ 12.68 Granted 678,241 14.98 Forfeited (115,535) 13.75 Vested (515) 14.61 Outstanding at September 30, 2022 2,001,220 $ 13.64
Schedule of assumptions to estimate the fair value of PSUs	Assumptions Risk-free Interest Rate 1.44% Volatility Range 35.95% - 154.23%
Schedule of PSU activity	PSUs Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 - $ - Granted 167,228 25.36 Forfeited (6,274) 25.36 Outstanding at September 30, 2022 160,954 $ 25.36

Basis of Presentation and Sig_4

Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jan. 01, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Intangible assets are net of accumulated amortization	$ 87,700		$ 60,100
Right-of-Use Assets	7,635
Lease liabilities	$ 6,202
Noncurrent Lease Liabilities, Classification	Other Long-Term Liabilities
Retained earnings	$ (7,094)		$ (457)
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-02
Accounts, Notes, Loans and Financing Receivable [Line Items]
Right-of-Use Assets		$ 7,900
Lease liabilities		7,300
Noncurrent Lease Liabilities, Classification	Other Long-Term Liabilities
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2018-11
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retained earnings		$ 0
Solaris LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ownership percentage	46%

Basis of Presentation and Sig_5

Basis of Presentation and Significant Accounting Policies - Fair Value (Details) - Senior Sustainability-Linked Notes - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate	7.625%	7.625%
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	$ 400,000	$ 400,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	$ 377,076	$ 424,000

Basis of Presentation and Sig_6

Basis of Presentation and Significant Accounting Policies - Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Accounts Receivable from Affiliate	$ 25,772		$ 25,772		$ 20,191
Concophillips. \| Water gathering and handling agreement
Related Party Transaction [Line Items]
Accounts Receivable from Affiliate	25,800		25,800		20,200
Payable to affiliate	2,400		2,400		$ 1,500
Revenues from ConocoPhillips	30,464	$ 27,194	80,724	$ 79,080
Operating Expenses Reimbursed to ConocoPhillips	$ 403	$ 191	$ 1,163	$ 919

Additional Financial Statemen_3

Additional Financial Statement Information - Other Balance Sheet information (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other Receivables
Insurance and Third Party Receivables for Remediation Expenses	$ 4,578	$ 3,099
Reimbursable Projects and Other	1,709	1,027
Total Other Receivables	6,287	4,126
Prepaids and Deposits
Prepaid Insurance and Other	1,787	5,953
Deposits	41	90
Total Prepaids and Deposits	1,828	6,043
Accrued and Other Current Liabilities
Accrued Operating Expense	27,085	17,774
Accrued Capital Costs	30,680	4,603
Accrued Interest	15,250	7,625
Accrued Compensation	4,878	4,551
Dividends and Distributions Payable	44	$ 3,847
Lease Liabilities	$ 1,025
Current Lease Liabilities, Classification	Total Accrued and Other Current Liabilities	Total Accrued and Other Current Liabilities
Other	$ 6,127	$ 2,064
Total Accrued and Other Current Liabilities	$ 85,089	$ 40,464

Additional Financial Statemen_4

Additional Financial Statement Information - Other Statement of Operations information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Depreciation, Amortization and Accretion Expense
Depreciation - Property, Plant and Equipment	$ 7,658	$ 7,152	$ 21,755	$ 20,888
Amortization - Intangible Assets	9,183	8,151	27,551	24,454
Accretion of Asset Retirement Obligations	101	75	418	208
Total Depreciation, Amortization and Accretion Expense	16,942	15,378	49,724	45,550
Loss on Asset Disposal and Other
(Gain) Loss on Asset Disposal, Net	(97)	8	481	225
Transaction Costs	336	253	1,269	330
Abandoned Projects		679	66	2,035
Total Loss on Asset Disposal and Other	(239)	(940)	(1,816)	(2,590)
Interest Expense
Interest on Debt Instruments	7,759	8,034	23,365	18,402
Amortization of Debt Issuance Costs	610	611	1,830	1,434
Total Interest Expense	8,369	8,645	25,195	19,836
Less: Amounts Capitalized	(1,606)	(765)	(3,332)	(1,981)
Interest Expense, Net	$ 6,763	$ 7,880	$ 21,863	$ 17,855

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
Property, Plant and Equipment (Details) $ in Thousands	Jun. 30, 2022 USD ($) item	Sep. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Property, Plant and Equipment
Assets Subject to Depreciation		$ 768,684			$ 768,684		$ 676,497
Projects and Construction in Progress		112,319			112,319		24,259
Total Property, Plant and Equipment, Gross		881,003			881,003		700,756
Accumulated Depreciation		(81,019)			(81,019)		(67,749)
Total Property, Plant and Equipment, Net		799,984			799,984		633,007
Book value of divested assets and liabilities		3,800			3,800
Fair value of assets acquired		3,200			3,200
Pre-tax loss on exchange of assets at fair value					600
Impairment expense of assets held for sale			$ 15,600
Proceeds from sale of assets		7,400			7,441
Gain on sale of assets		100			(481)	$ (225)
Number of saltwater disposal wells \| item	2
Net book value of Abandoned well costs	$ 4,200	9,222		$ 27,402	14,637	$ 27,402
Asset cost at the time of disposal		1,600			1,600
Wells, Facilities, Water Ponds, and Related Equipment
Property, Plant and Equipment
Assets Subject to Depreciation		407,608			407,608		329,935
Pipelines
Property, Plant and Equipment
Assets Subject to Depreciation		340,817			340,817		327,140
Land
Property, Plant and Equipment
Assets Subject to Depreciation		2,063			2,063		2,063
Vehicles, Equipment, Computers and Office Furniture
Property, Plant and Equipment
Assets Subject to Depreciation		$ 18,196			$ 18,196		$ 17,359

Property, Plant and Equipment -

Property, Plant and Equipment - Delaware Energy Asset Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 01, 2022	Sep. 30, 2022	Dec. 31, 2021
Equity Consideration
Less: ARO Liabilities Assumed		$ (8,148)	$ (6,158)
Eddy And Lea County Asset Acquisition
Equity Consideration
Number of Class A Shares Issued	3,365,907
Fair Value Per Share on Transaction Closing Date	$ 21.16
Total Fair Value of Equity Consideration	$ 71,223
Fair Value of Contingent Consideration	3,899
Total Fair Value of Property Acquired	75,336
Less: ARO Liabilities Assumed	(214)
Total Purchase Price Allocation	$ 75,122
Contractual period	5 years
Contingent Consideration, current		1,100
Contingent Consideration, non-current		$ 2,800
Eddy And Lea County Asset Acquisition \| Solaris LLC \| Capital Unit, Class A
Equity Consideration
Issuance of units in shares	3,365,907
Eddy And Lea County Asset Acquisition \| Saltwater Disposal Wells
Equity Consideration
Total Fair Value of Property Acquired	$ 72,620
Eddy And Lea County Asset Acquisition \| Gathering Systems and Pipelines
Equity Consideration
Total Fair Value of Property Acquired	$ 2,716

Property, Plant and Equipment_3

Property, Plant and Equipment - Other Asset Acquisition (Details) - Other Assets Acquisition - Concophillips. $ in Millions	3 Months Ended
	Sep. 30, 2022 USD ($) Asset
Property, Plant and Equipment
Number of assets acquired \| Asset	5
Cash purchase price \| $	$ 3.4

Tax Receivable Agreement Liab_2

Tax Receivable Agreement Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
TRA Liability	$ 80,009	$ 75,564
Tax Receivable Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payment of net cash saving, percent	85%
Retention of net cash saving, percent	15%
TRA Liability	$ 80,000
TRA liability increased due to conversion of shares	6,000
Tax offset against increase of TRA liability	1,600
Liability upon conversion	257,500
Early termination payment liability	$ 171,500

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total Long Term Debt	$ 400,000	$ 400,000
Less: Unamortized Debt Issuance Costs	(6,547)	(7,949)
Total Long-Term Debt, Net of Debt Issuance Costs	393,453	392,051
Senior Sustainability-Linked Notes
Debt Instrument [Line Items]
Total Long Term Debt	$ 400,000	$ 400,000
Interest rate	7.625%	7.625%

Long-Term Debt - Senior Sustain

Long-Term Debt - Senior Sustainability-Linked Notes (Details) - Senior Sustainability-Linked Notes	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Interest rate	7.625%	7.625%
Increase in interest rate	0.25%
Threshold period for notice of satisfaction of performance target	30 days
Redemption when there is change in control
Debt Instrument [Line Items]
Percentage of principal redemption	101%
Maximum
Debt Instrument [Line Items]
Interest rate	7.875%
On or after April 1, 2023
Debt Instrument [Line Items]
Redemption price percentage	103.8125%
On or after April 1, 2025
Debt Instrument [Line Items]
Redemption price percentage	100%
On or before April 1, 2023
Debt Instrument [Line Items]
Percentage of principal redemption	40%
On or before April 1, 2023 \| Redemption through net cash proceeds
Debt Instrument [Line Items]
Redemption price percentage	107.625%
On or before April 1, 2023 \| Maximum
Debt Instrument [Line Items]
Redemption price percentage	100%

Long-Term Debt - Credit Facilit

Long-Term Debt - Credit Facility (Details) $ in Thousands	1 Months Ended
Long-Term Debt - Credit Facility (Details) $ in Thousands	Apr. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Line of Credit Facility [Line Items]
Letter of credits outstanding		$ 0	$ 0
Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 200,000
Leverage ratio	2.50
Incremental revolving facility	$ 75,000
Unrestricted cash and cash equivalents	$ 40,000
Commitments available			$ 199,850
Credit Facility \| Debt Instrument, Leverage Ratio Covenant Test Level For Current Fiscal Year [Member]
Line of Credit Facility [Line Items]
Leverage ratio	4.50
Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Leverage ratio	4.50
Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Leverage ratio	3
Letters of Credit
Line of Credit Facility [Line Items]
Letter of credits outstanding		$ 150

Leases - Balance Sheet Informat

Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases
Right-of-Use Assets	$ 7,635
Current Lease Liabilities	$ 1,025
Current Lease Liabilities, Classification	Accrued and Other Current Liabilities	Accrued and Other Current Liabilities
Noncurrent Lease Liabilities	$ 6,202
Noncurrent Lease Liabilities, Classification	Other Long-Term Liabilities

Leases - Statement of Operation

Leases - Statement of Operations Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Leases
Direct Operating Costs	$ 244	$ 690
General and Administrative	166	498
Total Lease Cost	410	1,188
Short term lease cost	$ 3,900	$ 7,700

Leases - Statement of Cash Flow

Leases - Statement of Cash Flow Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Leases
Cash Paid for Amounts Included in Lease Liabilities	$ 969
Right-of-Use Assets Obtained in Exchange for Operating Lease Liabilities, net	$ 723

Leases - Lease Terms and Discou

Leases - Lease Terms and Discount Rates (Details)	Sep. 30, 2022
Leases
Weighted Average Remaining Lease Term (Years)	6 years 8 months 12 days
Weighted Average Discount Rate	2.85%

Leases - Annual Lease Maturitie

Leases - Annual Lease Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases
2022	$ 277
2023/2022	1,073	$ 824
2024/2023	984	638
2025/2024	746	622
2026/2025	671	514
Thereafter	4,347
2026		438
Thereafter		816
Total Lease Payments	8,098	$ 3,852
Less: Interest	(871)
Presents Value of Lease Liabilities	$ 7,227
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent, Accrued And Other Liabilities, Current

Leases - Leases Not Yet Commenc

Leases - Leases Not Yet Commenced (Details) $ in Millions	Sep. 30, 2022 USD ($)
Leases
Undiscounted future lease payments	$ 0.7

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes
Income tax benefit	$ 287	$ (83)	$ (81)	$ (81)
Effective Tax Rate			11%
Increase in deferred income tax assets, net			$ 4,400

Stockholders' and Members' Eq_2

Stockholders' and Members' Equity (Details)

3 Months Ended

9 Months Ended

Nov. 04, 2022 $ / shares

Sep. 01, 2022 shares

Aug. 03, 2022 $ / shares

Jun. 01, 2022 shares

May 06, 2022 $ / shares

Feb. 28, 2022 shares

Feb. 25, 2022 $ / shares

Sep. 30, 2022 $ / shares

Jun. 30, 2022 $ / shares

Mar. 31, 2022 $ / shares

Sep. 30, 2022

Nov. 30, 2022 $ / shares

Stockholders' and Members' Equity

Exchange of Class B Shares for Class A Shares (in shares) | shares

648,781

107,914

148,087

Conversion ratio

Dividend declared (in dollars per share)

$ 0.09

Subsequent Event.

Stockholders' and Members' Equity

Dividend declared (in dollars per share)

$ 0.09

Dividend payment (in dollars per share)

$ 0.09

Class A Common Stock

Stockholders' and Members' Equity

Dividend declared (in dollars per share)

$ 0.09

Class B Common Stock

Stockholders' and Members' Equity

Dividend payment (in dollars per share)

$ 0.09

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Commitments and Contingencies
Environmental expenses	$ 0.9	$ 0.5	$ 1.9	$ 0.5
Environmental Remediation Expense, Statement of Income or Comprehensive Income [Extensible Enumeration]	General and Administrative Expense		General and Administrative Expense
Insurance proceeds receivable	$ 4.6		$ 4.6
Purchase Commitments
Commitments and Contingencies
Purchase obligations and commitments	39.7		39.7
Surface Use and Compensation
Timing of future payments
Remaining 2022	0.1		0.1
2023	8.9		8.9
2024	9.8		9.8
2025	10.6		10.6
2026	11.3		11.3
Thereafter	4.5		4.5
Fixed price power purchase contract
Commitments and Contingencies
Commitment obligations	$ 7.1		$ 7.1

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	Sep. 01, 2022	Jun. 01, 2022	Feb. 28, 2022	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net Income (Loss) Attributable to Stockholders' Equity				$ 1,956	$ (20,743)	$ (622)	$ (13,346)
Less: Net Income (Loss) Attributable to Noncontrolling Interest				1,257		(493)
Net Income (Loss) Attributable to Aris Water Solutions, Inc.				699		(129)
Dividends for Participating Securities				(179)		(539)
Basic Net Income (Loss) Attributable to Aris Water Solutions, Inc.				520		(668)
Diluted Net Income (Loss) Attributable to Aris Water Solutions, Inc.				$ 520		$ (668)
Basic Weighted Average Outstanding Shares \| shares				24,499,953		22,779,077
Dilutive Weighted Average Outstanding Shares \| shares				24,546,632		22,779,077
Net Income (Loss) Per Share of Class A Common Stock - Basic \| $ / shares				$ 0.02		$ (0.03)
Net Income (Loss) Per Share of Class A Common Stock - Diluted \| $ / shares				$ 0.02		$ (0.03)
Conversion ratio	1	1	1			1
PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from computation of diluted net earnings per share \| shares				19,086
PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive adjustment \| shares				46,679
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from computation of diluted net earnings per share \| shares				31,248,544		31,481,479

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
PSUs
RSUs
Granted (in share) \| shares	167,228
Forfeited (in share) \| shares	(6,274)
Outstanding at ending period (in share) \| shares	160,954
Weighted-Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares	$ 25.36
Forfeited (in dollars per share) \| $ / shares	25.36
Outstanding at ending period (in dollars per share) \| $ / shares	$ 25.36
2021 Plan \| RSUs
RSUs
Outstanding at beginning period (in share) \| shares	1,439,029
Granted (in share) \| shares	678,241
Forfeited (in share) \| shares	(115,535)
Vested (in share) \| shares	(515)
Outstanding at ending period (in share) \| shares	2,001,220
Weighted-Average Grant Date Fair Value
Outstanding at beginning period (in dollars per share) \| $ / shares	$ 12.68
Granted (in dollars per share) \| $ / shares	14.98
Forfeited (in dollars per share) \| $ / shares	13.75
Vested (in dollars per share) \| $ / shares	14.61
Outstanding at ending period (in dollars per share) \| $ / shares	$ 13.64
Compensation cost \| $	$ 17.8
Weighted-average period of recognition	2 years 1 month 6 days
2021 Plan \| RSUs \| First anniversary of the award date
Weighted-Average Grant Date Fair Value
Vesting percentage	33.33%
2021 Plan \| RSUs \| Second anniversary of the award date
Weighted-Average Grant Date Fair Value
Vesting percentage	33.33%
2021 Plan \| RSUs \| Third anniversary of the award date
Weighted-Average Grant Date Fair Value
Vesting percentage	33.33%
2021 Plan \| PSUs
RSUs
Granted (in share) \| shares	167,228
Weighted-Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares	$ 25.36
Compensation cost \| $	$ 3.2
Weighted-average period of recognition	2 years 3 months 18 days

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance-Based Restricted Stock (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted \| shares	167,228
Weighted average fair value of shares granted \| $ / shares	$ 25.36
2021 Plan \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted \| shares	167,228
Weighted average fair value of shares granted \| $ / shares	$ 25.36
Vesting period	3 years
Compensation cost \| $	$ 3.2
Weighted-average period of recognition	2 years 3 months 18 days
Risk-free Interest Rate (as percentage)	1.44%
Volatility Range, minimum (as percentage)	35.95%
Volatility Range, maximum (as percentage)	154.23%
2021 Plan \| Relative PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance criteria	50%
2021 Plan \| Absolute PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance criteria	50%

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Undiscounted future lease payments		$ 8,098	$ 3,852
Subsequent Event. \| Office Space
Subsequent Event [Line Items]
Undiscounted future lease payments	$ 10,100