ConocoPhillips water-sharing deal with Aris Water prolonged by seven years, along with a brief operational update from Aris Water.
Aris Water Solutions Extends Partnership with ConocoPhillips, Boosting Long-term Revenue Visibility
In a significant move, Aris Water Solutions has extended its Water Gathering and Disposal Agreement with ConocoPhillips, extending the primary term from May 31, 2033, to May 31, 2040 [1][3]. This seven-year extension significantly increases Aris’s acreage-weighted remaining term of produced water contracts from about 6 years to over 10 years.
The extension provides substantial long-term revenue visibility for Aris, backed by ConocoPhillips’ multi-decade inventory and continued operations in the Northern Delaware Basin [1]. It strengthens the operational partnership by maintaining the same terms but aligning long-term interests and enabling Aris to keep providing full-cycle water infrastructure services, including recycling, handling, and transportation of produced water [1][3].
The extended agreement supports Aris’s strategic growth and sustainability mission by ensuring a stable customer base and predictable cash flows over a longer horizon [1]. Financially, the extension enhances Aris’s outlook by increasing contract duration, which typically supports higher valuation multiples and investor confidence due to predictable future cash flows [3][4].
The partnership's extension is a core foundation for Aris’s long-term revenue visibility and financial stability, underpinning its valuation and attractiveness in strategic transactions like the WES acquisition [1][3][4]. It also expands operational scale through integration, enhancing water infrastructure capacity and sustainability services in a key energy basin [3][4].
Aris Water Solutions, a leading, growth-oriented environmental infrastructure and solutions company, delivers full-cycle water handling and recycling solutions that increase the sustainability of energy company operations. The company is reaffirming its full-year financial outlook for 2025 and expects to report Adjusted EBITDA at the high end of its guidance range for the second quarter of 2025.
Aris uses a non-GAAP financial measure called Adjusted EBITDA, which it calculates as net income (loss) plus several specific expenses and gains. However, it is important to note that Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity. Aris' definition of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
For more information about Aris Water Solutions, Inc., please contact David Tuerff, Senior Vice President, Finance and Investor Relations, at (281) 501-3070 or [email protected]. Aris is a company focused on reducing its customers' water and carbon footprints.
On August 11, 2025, Aris will issue its second quarter 2025 earnings release after market close. The company will host a conference call to discuss its second quarter 2025 results on Tuesday, August 12, 2025.
[1] Aris Water Solutions Press Release, dated June 27, 2023. [2] Aris Water Solutions Investor Presentation, dated June 27, 2023. [3] Western Midstream Partners Press Release, dated June 27, 2023. [4] Western Midstream Partners Investor Presentation, dated June 27, 2023.
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