Aris Water Solutions Inc (NYSE:ARIS) stock plunges 17.67% (As on March 7, 11:31:43 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 23. otal water volumes of approximately 1.31 million barrels per day for the fourth quarter of 2022, growing 20% versus the fourth quarter of 2021. For the full year of 2022, total water volumes grew 36% versus the full year of 2021. Recycled Produced Water volumes of approximately 283 thousand barrels per day in the fourth quarter of 2022, up 53% versus the fourth quarter of 2021. For the full year of 2022, Recycled Produced Water volumes were up 144% versus the full year of 2021. Net income of $5.4 million for the fourth quarter of 2022, down 15% versus the fourth quarter of 2021. Adjusted Net Income of $9.0 million for the fourth quarter of 2022, down 25% versus the fourth quarter of 2021. Adjusted EBITDA of $36.1 million for the fourth quarter of 2022, up 1% versus the fourth quarter of 2021.

ARIS in the first quarter of FY 23 has reported the adjusted earnings per share of 15 cents, missing the analysts’ estimates for the adjusted earnings per share of 23 cents. The company had reported the adjusted revenue growth of 35.9 percent to $82.9 million in the first quarter of FY 23, missing the analysts’ estimates for revenue of $88.13 million.

Additionally, the company has declared a dividend on its Class A common stock for the first quarter of 2023 of $0.09 per share. In conjunction with the dividend payment, a distribution of $0.09 per unit will be paid to unit holders of Solaris Midstream Holdings, LLC. The dividend will be paid on March 29, 2023 to holders of record of the Company’s Class A common stock as of the close of business on March 17, 2023.

On the other hand, the company has announced that ExxonMobil joined Aris’s previously announced strategic agreement with Chevron U.S.A. Inc. and ConocoPhillips Company to develop and pilot cost effective technologies and processes to treat produced water for potential beneficial reuse opportunities. The company has successfully completed a long-term agricultural pilot conducted with Texas A&M which used treated produced water for irrigation of non-consumptive crops cotton and rye grass. The project also quantified and confirmed the significant potential for carbon sequestration in the rye grass, cotton, and their associated roots.