Aris Water Solutions, Inc. (ARIS): History, Ownership, Mission, How It Works & Makes Money

Aris Water Solutions, Inc. (ARIS) isn't just another water midstream company; but with a definitive $1.5 billion acquisition deal on the table as of August 2025, do you really understand how its unique Permian Basin model creates that kind of value? You're looking at a critical infrastructure player that reported $124.1 million in revenue for the second quarter of 2025, driven by a distinctive focus on sustainable water handling and recycling, not just disposal. That success isn't a fluke; it's the result of a defintely smart strategy to integrate water solutions-a model that grew recycled water volumes by 41% year-over-year in Q1 2025, and understanding this story is key to assessing the future of energy-sector infrastructure investing.

Aris Water Solutions, Inc. (ARIS) History

You need to understand Aris Water Solutions, Inc.'s history to grasp its current valuation and future trajectory, especially following its recent acquisition by Western Midstream Partners, LP (WES). The company's story is one of rapid infrastructure build-out and a strategic pivot to public markets and then a major merger, all centered on the Permian Basin's water needs.

The core business, initially named Solaris Water Midstream, was created to address the massive volumes of produced water (water brought to the surface during oil and gas extraction) in the Permian Basin. This focus on full-cycle water management-handling, disposal, and recycling-is what made the company a key infrastructure asset in the region.

Given Company's Founding Timeline

Year established

The operating entity, Solaris Water Midstream, was established in 2015, focusing on developing sustainable produced-water infrastructure in the Permian Basin.

Original location

The company was founded and headquartered in Houston, Texas, a strategic hub for the U.S. energy industry.

Founding team members

The initial leadership was built around experienced energy and finance professionals. William A. Zartler is credited as the Founder and Executive Chairman. Cindy, who was Vice President of Business Operations before becoming Chief Administrative Officer, was one of the founding leaders of Solaris. Amanda Brock, who served as President and CEO through the IPO and acquisition, joined the predecessor company in 2017.

Initial capital/funding

The company was initially backed by private equity (PE) firms, including Trilantic Capital Partners North America and Yorktown Partners, with management also contributing. While the initial seed capital is not public, the PE backing provided the necessary capital to build out its extensive pipeline and disposal infrastructure. In 2021, the company completed a landmark issuance of $400 million in senior unsecured sustainability-linked bonds, which helped simplify its capital structure and redeem outstanding preferred equity.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The business has seen three major transformations, moving from a private equity-backed startup to a public infrastructure play, and finally to a key acquisition target. Honestly, the biggest decision was the 2025 merger.

• The 2021 IPO: Transitioning from the private entity, Solaris Midstream Holdings, LLC, to the publicly traded Aris Water Solutions, Inc. in October 2021 injected capital and established the company as a pure-play water midstream provider. This move gave them the financial leverage to expand rapidly.
• The Sustainability Pivot: The company defintely committed to recycling early on, a move validated by the 2021 issuance of a $400 million sustainability-linked bond, a first for the produced water infrastructure industry. This focus positioned Aris as an environmental solutions provider, not just a disposal company. You can read more about this strategic direction here: Mission Statement, Vision, & Core Values of Aris Water Solutions, Inc. (ARIS).
• The 2025 Acquisition: The definitive agreement in August 2025 for Western Midstream Partners, LP to acquire Aris for approximately $1.5 billion was the ultimate transformative event. This transaction, which led to the company's delisting in October 2025, immediately integrated Aris's Delaware Basin assets and recycling expertise into a significantly larger platform. Here's the quick math: Aris's six-month 2025 revenue was already strong at $244.6 million, with net income at $30.1 million, but the WES deal provided shareholders with a substantial premium and immediate liquidity.

The full-year 2025 guidance before the merger anticipated a strong performance, with Adjusted EBITDA expected to be between $215 million and $235 million and capital expenditures between $85 million and $105 million. The acquisition by WES solidified the value created by Aris's decade-long build-out of its water infrastructure. The next step is watching how the integrated assets perform under WES's ownership.

Aris Water Solutions, Inc. (ARIS) Ownership Structure

Aris Water Solutions, Inc. was a publicly traded company on the NYSE until its recent acquisition by Western Midstream Partners, LP (WES) in October 2025, fundamentally changing its ownership structure.

The company was previously characterized by a high concentration of ownership among insiders and institutional investors, a common trait for midstream companies. This structure meant that key decisions were heavily influenced by a few large, long-term stakeholders, including major energy players.

Given Company's Current Status

As of November 2025, Aris Water Solutions is no longer an independent publicly traded entity. The company was acquired by Western Midstream Partners, LP in an equity-and-cash transaction valued at approximately $1.5 billion, with the deal closing in October 2025.

This acquisition means Aris Water Solutions now operates as a subsidiary within the Western Midstream Partners, LP structure, shifting its governance and financial reporting entirely. Aris shareholders received a mix of cash and WES stock, and are expected to own approximately 7% of Western Midstream Partners, LP after the transaction.

• The merger was a major strategic pivot, targeting an estimated $40 million in cost synergies.
• The company's full-year 2025 Capital Expenditures were projected to be between $85 million and $105 million before the merger, reflecting its growth-oriented strategy.

You can see the full financial picture that led to this acquisition in Breaking Down Aris Water Solutions, Inc. (ARIS) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

Prior to the acquisition, the ownership was highly concentrated, with insiders holding a significant stake, aligning management's interests defintely with long-term performance. The table below reflects the approximate ownership breakdown before the October 2025 merger, based on the Class A and B common stock structure.

Given Company's Leadership

The leadership team that steered Aris Water Solutions through its growth phase and the subsequent acquisition by Western Midstream Partners, LP was composed of seasoned energy and water infrastructure executives. This team was responsible for achieving a Q2 2025 Adjusted EBITDA of $54.6 million, a 9% year-over-year increase.

The key executive and senior leadership as of late 2025 included:

• Amanda Brock: Chief Executive Officer (CEO) and President.
• Bill Zartler: Executive Chairman.
• Stephan Tompsett: Chief Financial Officer (CFO).
• Dylan Van Brunt: Chief Operating Officer (COO).
• Nick Patterson: Chief Commercial Officer (CCO).
• Lisa Henthorne: Chief Scientist, underscoring the company's focus on water recycling technology.

This team successfully navigated the complexities of the Permian Basin's produced water market, securing long-term contracts, including a seven-year extension with ConocoPhillips through May 31, 2040. That's a huge vote of confidence from a major customer.

Aris Water Solutions, Inc. (ARIS) Mission and Values

Aris Water Solutions, Inc. (ARIS) is driven by a dual-mandate: creating long-term shareholder value while fundamentally improving environmental sustainability in the Permian Basin. This means they are not just a water company; they are an environmental infrastructure partner for the energy industry.

You're looking at a midstream company that puts its environmental, social, and governance (ESG) commitments right alongside its financial targets, which is defintely a modern necessity. For instance, the company's full-year 2025 Adjusted EBITDA guidance is strong at approximately $225 million, but that growth is explicitly tied to its water management and recycling success.

Aris Water Solutions' Core Purpose

The core purpose of Aris Water Solutions goes beyond simply handling produced water (the wastewater byproduct of oil and gas extraction); it's about transforming a liability into a sustainable resource. They aim to be the essential environmental link for the largest operators in the Permian Basin, helping them meet their own sustainability goals.

Official mission statement

The formal mission statement centers on building integrated, high-capacity infrastructure to support the energy sector's long-term operations while maximizing value.

• Build sustainable, long-term growth and value.
• Construct and operate integrated produced water infrastructure systems.
• Provide high-capacity gathering, transportation, disposal, recycling/reuse, and brackish water supply solutions to oil and gas producers across the Permian Basin.

Honest to goodness, this is a capital-intensive business; you need huge scale to make the economics work.

Vision statement

While a single-sentence vision statement isn't always public, Aris Water Solutions' actions define its forward-looking ambition: to be the undisputed leader in sustainable water management, reducing the industry's water and carbon footprints through technology. This vision is backed by their operational focus on recycling.

• Be a leading, growth-oriented environmental infrastructure and solutions company.
• Directly help customers reduce their water and carbon footprints.
• Deploy technology to advance sustainability and reduce the oil and gas industry's water footprint.
• Expand beneficial reuse of treated produced water beyond the oil and gas industry, for example, into agriculture.

Here's the quick math on their commitment: in the first quarter of 2025, the company achieved a Net Income of $16.0 million and an Adjusted EBITDA of $56.5 million, demonstrating that their sustainability-focused model is profitable.

For a deeper dive into how these commitments translate into financial performance, check out Breaking Down Aris Water Solutions, Inc. (ARIS) Financial Health: Key Insights for Investors.

Aris Water Solutions slogan/tagline

Aris Water Solutions often uses descriptive phrases to articulate its market position, which serve as its functional tagline, emphasizing its role as a necessary solution for modern energy production.

• A leading, growth-oriented environmental infrastructure and solutions company.
• Delivering full-cycle water handling and recycling solutions.

The company is essentially selling flow assurance (guaranteed water service) and regulatory compliance, not just a service. That's a powerful value proposition.

Aris Water Solutions, Inc. (ARIS) How It Works

Aris Water Solutions, Inc. operates as a critical environmental infrastructure company, providing full-cycle water management for energy producers in the Permian Basin. The company makes money by charging for the gathering, transportation, recycling, and disposal of produced water (wastewater from oil and gas extraction) through its extensive, integrated pipeline system.

This is a pure midstream play, but with a focus on sustainability. The core business is built on long-term contracts with major operators, ensuring stable revenue streams regardless of short-term drilling fluctuations. For the first six months of 2025, the company generated revenue of $244.6 million, highlighting the scale of their operations.

Aris Water Solutions, Inc.'s Product/Service Portfolio

The company's offerings are segmented into two primary categories: Produced Water Handling and Water Solutions, plus a new, high-growth industrial vertical. They are the essential utility for managing the massive water volumes that come with oil and gas production in the Permian. You can read more about the stakeholders in Exploring Aris Water Solutions, Inc. (ARIS) Investor Profile: Who's Buying and Why?

Aris Water Solutions, Inc.'s Operational Framework

The operational framework is centered on a hub-and-spoke model, using a vast, integrated pipeline network to minimize costly and environmentally risky truck transportation. This is key to driving down customer operating expenses. The entire system is built for high-capacity throughput, which is defintely necessary given the volumes.

• Dedicated Acreage and Infrastructure: The company operates primarily in the Northern Delaware Basin, serving over 625,000 dedicated acres under long-term contracts.
• Value Creation via Recycling: They capture produced water, treat it, and sell it back to operators for new fracking operations, reducing the need for costly freshwater sourcing and disposal. This recycling volume growth is a major driver, up 35% year-over-year in Q2 2025.
• Skim Oil Recovery: An important secondary revenue stream involves recovering skim oil from the produced water before disposal or recycling. Q2 2025 saw a 45% increase in skim oil recoveries compared to the previous quarter.
• Financial Discipline: Capital expenditures for full-year 2025 are managed tightly, expected to be between $85 million and $105 million, demonstrating a focus on efficient growth aligned with customer activity.

Aris Water Solutions, Inc.'s Strategic Advantages

The company's market success comes down to three things: integrated infrastructure, contract stability, and a clear environmental advantage. Honestly, in the energy sector today, sustainability is a competitive moat.

• Pipeline Dominance: The integrated system of pipelines and facilities offers a lower-cost, more reliable, and more environmentally sound solution than trucking, which is a significant competitive edge in the Permian.
• Long-Term Revenue Visibility: Aris Water Solutions has long-term contracts with investment-grade customers like ConocoPhillips, whose agreement was extended in 2025 to May 2040. This provides substantial, multi-decade revenue visibility.
• Strong Financial Profile: As of June 30, 2025, the company maintained a strong balance sheet with a leverage ratio of 2.0X, well below their target range of 2.5X - 3.5X, giving them financial flexibility for growth projects.
• Scale and Integration: The definitive merger agreement with Western Midstream Partners, LP (WES), valued at approximately $1.5 billion, is set to close in Q4 2025, which will create a fully integrated produced-water value chain and significantly expand their New Mexico footprint.

Aris Water Solutions, Inc. (ARIS) How It Makes Money

Aris Water Solutions, Inc. primarily generates revenue by providing full-cycle water management services-gathering, transporting, and disposing of produced water from oil and gas operations, plus selling recycled and sourced water for drilling and completion activities in the Permian Basin. This is a fee-for-service model largely secured by long-term, production-based contracts with major energy producers.

Given Company's Revenue Breakdown

The company's financial stability comes from two core, high-growth revenue streams, with the majority of revenue tied to the continuous, non-discretionary process of moving and disposing of wastewater from producing wells.

Here's the quick math: Aris Water Solutions, Inc. states that over 80% of its revenue comes from production-based dedication agreements, which is the core of its Produced Water Handling business. The remaining revenue comes from its Water Solutions segment, which includes the sale of recycled and sourced water for well completions. Both streams are growing fast; Produced Water Handling volumes were up 13% year-over-year in Q2 2025, and Recycled Water volumes surged by 35% year-over-year in the same quarter. [cite: 4 from previous search, 5 from previous search]

Business Economics

The business model is essentially a water midstream operation, focused on infrastructure that acts as a significant barrier to entry for competitors. You're not investing in a volatile exploration and production (E&P) company; you're investing in the essential service provider to those companies.

• Contractual Stability: The bulk of the revenue is secured by long-term contracts with premier operators like Chevron and Conoco, providing volumetric visibility and revenue stability regardless of short-term oil price swings.
• Fee-Based Pricing: Revenue is primarily volumetric, meaning Aris Water Solutions gets paid a fee per barrel of water handled or supplied, which insulates it from commodity price volatility, unlike oil and gas producers.
• Margin Resilience: The company maintained a strong Adjusted Operating Margin per barrel of $0.44 in Q1 2025, which demonstrates disciplined cost management. Direct operating costs per barrel were $0.36 in Q2 2025. [cite: 3 from previous search]
• Recycling Upside: The Water Solutions segment, particularly recycling, is a key growth lever. Recycling produced water for use in hydraulic fracturing (fracking) is more cost-effective for customers than sourcing new groundwater, plus it aligns with increasing environmental, social, and governance (ESG) mandates.

The Permian Basin's sheer volume of produced water-over four barrels of water for every barrel of oil-makes this a massive, defintely non-discretionary market.

Given Company's Financial Performance

As of November 2025, the company's financial health is strong, reflecting operational efficiency and a disciplined approach to capital allocation, especially ahead of the anticipated acquisition by Western Midstream Partners, LP (WES) in Q4 2025. [cite: 4 from previous search]

• Total Revenue: Trailing Twelve Months (TTM) revenue as of June 30, 2025, reached $475.5 million, a significant increase driven by record volumes across both segments. [cite: 6 from previous search, 8 from previous search]
• Profitability: For the first half of 2025, the company reported a total revenue of $244.6 million, with Q1 2025 Net Income at $16.0 million and Q2 2025 Net Income at $14.1 million. [cite: 2, 4 from previous search, 5 from previous search]
• Cash Flow Indicator: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was an all-time high of $56.5 million in Q1 2025, followed by $54.6 million in Q2 2025. [cite: 2, 4 from previous search, 5 from previous search] This metric is crucial for midstream companies as it indicates cash generation capacity.
• Balance Sheet Strength: The leverage ratio (Net Debt to TTM Adjusted EBITDA) was a low 2.2X at the end of Q1 2025, well below the company's target range of 2.5X-3.5X, with Net Debt at approximately $480 million. [cite: 2, 3 from previous search] This financial flexibility is key.
• Capital Spending: Full-year 2025 Capital Expenditures (CapEx) are guided to be between $85 million and $105 million, focused on high-return organic growth projects and maintaining existing infrastructure. [cite: 7 from previous search]

If you want to dive deeper into the metrics that drive this performance, you should read Breaking Down Aris Water Solutions, Inc. (ARIS) Financial Health: Key Insights for Investors.

Aris Water Solutions, Inc. (ARIS) Market Position & Future Outlook

Aris Water Solutions is in a pivotal, transformative phase, shifting from an independent, growth-oriented midstream water specialist to a key component of a larger, diversified energy infrastructure entity following its pending acquisition by Western Midstream Partners, LP (WES).

This $1.5 billion equity-and-cash transaction, expected to close in the fourth quarter of 2025, positions the combined entity as a more financially robust and geographically integrated leader in the Permian Basin's produced water management sector, defintely enhancing its competitive moat.

Competitive Landscape

The Permian Basin's produced water market is highly concentrated, with a few specialized midstream companies dominating the pipeline-connected infrastructure. Aris Water Solutions competes primarily on its integrated pipeline network and long-term, minimum-volume contracts with premier operators like Chevron and ConocoPhillips.

Opportunities & Challenges

The near-term trajectory is dominated by the integration with Western Midstream Partners, LP, which is expected to unlock significant capital and operational synergies. The company's 2025 full-year Adjusted EBITDA guidance of $225 million reflects strong underlying customer activity.

Here's the quick math: Produced water volumes in the Permian are forecast to grow by approximately 1 million barrels per day (MMb/d) annually through 2030, so demand for Aris's core service is structurally sound.

Industry Position

Aris Water Solutions holds a strong position as a pure-play, infrastructure-focused water midstream company, primarily operating in the Delaware Basin, a high-growth area of the Permian. The company's long-term contracts account for 80% of its 2025 revenue forecasts, providing exceptional revenue stability.

The core of its competitive advantage is its extensive pipeline network-over 790 miles of produced water pipelines and 68 water handling facilities-which drastically lowers customer operating costs by replacing expensive truck transport.

• Maintain a high Adjusted Operating Margin, reported at $0.44 per barrel in Q1 2025.
• Focus on beneficial reuse technologies, including a Joint Industry Project (JIP) with Chevron, ConocoPhillips, and ExxonMobil.
• Capital Investment Flexibility: Management can moderate 2025 CapEx, with a potential to reduce it by 25% to 30% if customer activity slows.

This infrastructure-heavy model, backed by long-term acreage dedications, is a high-barrier-to-entry business. You can read more about the company's core principles here: Mission Statement, Vision, & Core Values of Aris Water Solutions, Inc. (ARIS).