ARIS - Aris Water Solutions: An ESG Play For The Oil Industry

2024-07-03 08:42:08 ET

Summary

• Aris Water Solutions is a fast-growing, dividend-paying company significantly undervalued in the Oil and Gas industry.
• Aris is expanding revenue, margins, and infrastructure in the Permian basin, with long-term contracts and a focus on environmental impact reduction.
• The company's financials show positive growth, strong cash flow, and potential for doubling revenue, with a focus on shareholder returns and sustainability.

Aris Water Solutions ( ARIS ) is a fast-growing, dividend paying company. I think it is significantly undervalued and its environmental credentials are being ignored because it operates in the Oil and Gas industry.

Aris is growing its revenue and margins while investing in expanding its footprint and performing research and development activities to improve the yield it gets from the produced water it recycles on behalf of the oil industry.

Aris has developed a pipeline infrastructure in the Permian basin that provides its business with a competitive moat and sells its products on long-term contracts with minimum values and CPI adjustment clauses to some of the largest oil companies in the world. Many of its contracts are with investment grade companies, including 6 month termination clauses and ten year terms....

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