Aris Water Solutions issues $500 million in senior notes

HOUSTON, TX – Aris Water Solutions, Inc. (ARIS), a Delaware-incorporated company specializing in oil and gas field services with a market capitalization of $1.9 billion, has entered into a significant financial agreement. The company, which has seen its stock surge 36.47% year-to-date and currently trades near its 52-week high of $33.34, announced on March 25, 2025, that its subsidiary, Aris Water Holdings, LLC, along with subsidiary guarantors, issued $500 million in senior unsecured notes, according to a recent SEC filing. According to InvestingPro analysis, the company appears slightly overvalued at current levels.

The 7.250% senior notes, due April 1, 2030, are guaranteed by the subsidiary guarantors and will pay interest semi-annually. The first interest payment is scheduled for October 15, 2025, with a record date of October 1 for the holders of the notes. This new issuance adds to the company’s existing debt position of $466.31 million, maintaining what InvestingPro analysts characterize as a moderate debt level with a debt-to-equity ratio of 1.34.

Aris has the option to redeem up to 40% of the notes before April 15, 2027, at a redemption price of 107.250% of the principal amount, subject to certain conditions. The company can also choose to redeem all or part of the notes at any time prior to this date at a price equal to 100% of the principal amount plus an applicable make-whole premium. After April 15, 2027, the notes can be redeemed at decreasing prices, eventually reaching 100% of the principal amount in 2029.

The indenture agreement includes covenants that restrict Aris Water Holdings and its subsidiaries from engaging in certain activities such as paying distributions on equity interests, incurring additional indebtedness, creating liens, or entering into transactions with affiliates, among others, without meeting specific conditions.

In the event of a change of control, the company must offer to repurchase the notes at 101% of the aggregate principal amount plus accrued interest. The indenture also specifies events of default that could lead to the acceleration of payment obligations.

This strategic financial move by Aris Water Solutions, Inc. is detailed in the full text of the indenture and the form of the senior notes, which are included as exhibits in the SEC filing. This report is based on the press release statement filed with the SEC. For deeper insights into ARIS’s financial health and detailed analysis, including 14 additional ProTips and comprehensive metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Ares Mining reported a strong performance for the fourth quarter of 2024, with revenue reaching $118.61 million, surpassing the projected $108.95 million. Despite falling short of earnings per share (EPS) expectations at $0.29 compared to the forecasted $0.32, the company saw a significant revenue increase that likely contributed to investor confidence. Ares Mining also announced expansions at its Segovia and Marmato facilities, which are expected to boost future production capabilities. The company has a solid financial position, ending the year with a cash balance of $253 million. Analysts have noted that Ares Mining’s future guidance projects continued growth in both EPS and revenue. The company aims to more than double annual production to 500,000 ounces, with consolidated gold production for 2025 estimated between 230,000 and 275,000 ounces. Furthermore, Ares Mining’s strategic expansions are expected to enhance its position within the gold mining sector.

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