Aris Water Solutions Sees Volumes Down in 2Q — Commodity Comment

By Adam L. Cataldo

Aris Water Solutions expects a slight decline in volumes in the second quarter after some of the environmental infrastructure and solutions company’s contracted volumes were pulled forward into the first quarter.
Outlook for second-quarter produced-water volumes:

The company sees produced-water volumes continuing to grow sequentially versus the first quarter.
Outlook for second-quarter skim oil recovery levels:
“We are forecasting skim oil recovery levels to normalize at approximately 0.1% of produced water inlet volumes, higher than a year ago but below the first quarter results, which we believe included volumes not collected in the fourth quarter of 2022,” the company said.
Outlook for the second half:
“We remain very focused on enhancing profitability through continued execution of our ongoing optimization efforts, and expect to see the impact of these efforts in the second half of the year,” the company said.
Write to Adam Cataldo at [email protected].