Aris Water Solutions Extends Agreement with ConocoPhillips, Boosts Long-Term Revenue Visibility

Aris Water Solutions extends its water gathering and disposal agreement with ConocoPhillips to 2040, increasing its long-term revenue visibility. Q2 2025 Adjusted EBITDA expected at the high end of guidance, with full-year financial outlook reaffirmed due to strong customer activity. The extension strengthens the partnership and enhances Aris's position in the Northern Delaware Basin.

HOUSTON — Aris Water Solutions, Inc. (NYSE: ARIS), a leading water management company, has announced the extension of its Water Gathering and Disposal Agreement with ConocoPhillips. The agreement, initially set to expire on May 31, 2033, has been extended by seven years, pushing the expiration date to May 31, 2040. This extension maintains the original terms of the agreement, under which Aris provides full-cycle water infrastructure services to ConocoPhillips in the Northern Delaware Basin, including recycled water supply, produced water transportation, and handling operations.

The extension significantly enhances Aris's long-term revenue visibility, with the acreage-weighted remaining term of its produced water contracts increasing from approximately six years to over ten years. This extension follows a period of strong performance, with the company reporting 12% revenue growth over the last twelve months and offering a 2.65% dividend yield.

Amanda Brock, President and CEO of Aris Water Solutions, emphasized the importance of this extension, stating, "This extension lengthens the acreage-weighted remaining term of our produced water contracts from approximately six years to over ten years, providing substantial long-term revenue visibility." The company has also reaffirmed its full-year financial outlook, supported by the strong activity of its long-term customers in premier acreage.

Aris expects to report its second-quarter 2025 Adjusted EBITDA at the high end of its previously provided guidance range. The company will release its second quarter 2025 earnings on August 11, 2025, after market close, followed by a conference call on August 12, 2025.

The extension of this agreement complements a recently executed long-term water supply contract between the two companies, further strengthening their partnership. This move aligns with Aris's strategic focus on delivering reliable, full-cycle water infrastructure solutions.

In recent news, Aris Water Solutions has been the focus of analysts. JPMorgan has assumed coverage of the company with a Neutral rating and a price target of $25.00 for December 2026, while Goldman Sachs has reiterated its Buy rating, adjusting the price target to $28.00. The firm projects second-quarter 2025 EBITDA to be $54 million, slightly below its prior estimate but still within the company’s guidance range and above the consensus estimate.

Additionally, Aris Water Solutions has announced the results of its 2025 Annual Meeting of Stockholders, where Amanda M. Brock, Jacinto J. Hernandez, and W. Howard Keenan, Jr. were elected as Class I Directors. Aris Mining Corporation, a separate entity, has also agreed to sell its Juby Gold Project to McFarlane Lake Mining Limited for $22 million, and reported a 13% increase in gold production for the first half of 2025, totaling 113,415 ounces.

This extension underscores Aris Water Solutions' commitment to its long-term partnerships and its strategic position in the Northern Delaware Basin.

References:

[1] https://za.investing.com/news/company-news/aris-extends-water-agreement-with-conocophillips-to-2040-93CH-3812354
[2] https://ng.investing.com/news/company-news/aris-extends-water-agreement-with-conocophillips-to-2040-93CH-2035197
[3] https://www.businesswire.com/news/home/20250730679711/en/Aris-Water-Announces-Seven-Year-Extension-of-Water-Gathering-and-Disposal-Agreement-with-ConocoPhillips-and-Provides-Operational-Update