Aris Water Solutions, Inc.

Greetings and welcome to the ARIS Water Solutions fourth quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, David Turiff, Senior Vice President, Finance and Investor Relations for ARIS Water Solutions. Thank you. You may begin.

Good morning and welcome to the ARIS Water Solutions fourth quarter 2022 earnings conference call. I am joined today by our president and CEO, Amanda Brock, our founder and executive chairman, Bill Zartler, and our CFO, Steven Thompson. Before we begin, I'd like to remind you that in this call and the related presentation, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from results and events contemplated by such forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements. Please refer to the risk factors and other cautionary statements included in our filings made from time to time with the Securities and Exchange Commission. I would also like to point out that our investor presentation and today's conference call will contain discussion of non-GAAP financial measures, which we believe are useful in evaluating our performance. These supplemental measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP. Reconciliations to the most directly comparable GAAP measures are included in our earnings release and the appendix of today's accompanying presentation. I'll now turn the call over to our founder and executive chairman, Bill Zarler.

Thank you, David, and thanks everyone for joining us this morning. 2022 marked another year of tremendous progress for the company. We grew both volumes and adjusted EBITDA for the year by more than 20% over 2021. We continue to expand our footprint backed by long-term contracts with premier operators in the core of the Permian Basin. Over the course of last year, the company further established itself as a leader in water infrastructure solutions as evidenced by our strategic comprehensive water management agreement with Chevron and our collaborative beneficial reuse efforts alongside ConocoPhillips, ExxonMobil, and Chevron. I'm excited to continue this momentum in 2023 and well beyond. Looking at the market for 2023, we see steady growth from our largest customers, though as several have communicated publicly, slower growth than forecasted six months ago. As our system expands and covers more ground, we also see additional contracting opportunities with our current and other operators. Capital discipline and shareholder returns remain the core priority for both us and our customers, and no one has been immune to inflationary pressure on operating and capital budgets. For us, that means steady volume growth alongside customers who have extended inventory runway in top-tier dedicated acreage, which we are connected to and is reflected in our CapEx for 2023. We also believe that we are at the forefront of solutions for the beneficial reuse of produced water. We began by recycling produced water for the oil and gas industry's own water intensive operations and believe we can continue to expand our services into other industrial uses. Amanda will elaborate further on our position and efforts in this sector. We also believe we are positioned to be a natural consolidator of the fragmented private and operator-owned oil-filled water infrastructure industry, and adjacent opportunities treating complex water for other verticals outside of the oil and gas industry. We have a proven track record, public equity currency, flexible balance sheet, and a platform that can be efficiently scaled through M&A. In 2022, we evaluated several transactions, but none other than our acquisition of Delaware Energy's assets met our key cash flow and earnings accretion targets. We see future opportunities for consolidation and remain focused on strategic fit, complementary capabilities, and financial discipline. While we're excited about our ample growth opportunities, this year we remain primarily focused on realizing further operational efficiencies, their asset footprint, blue-chip customers, and unparalleled team. I'm excited for ARIS's growth in 2023 and beyond. With that, I'll turn it over to Amanda. Thank you, Bill.