Greetings, and welcome to the Aris Water Solutions second quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, David Tuerff, Senior Vice President, Finance and Investor Relations. Good morning, and welcome to the Aris Water Solutions second quarter 2022 earnings conference call. I am joined today by our President and CEO, Amanda Brock, our founder and executive chairman, Bill Zartler, and our CFO, Brenda Schroer. Before we begin, I'd like to remind you that in this call and the related presentation, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are subject to a number of known and unknown risks, and uncertainties and other factors that could cause actual results to differ materially from results and events contemplated by such forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements. Please refer to the risk factors and the other cautionary statements included in our most recent quarterly report on Form 10-Q and annual report on Form 10-K filed with the Securities and Exchange Commission. I would also like to point out that our investor presentation and today's conference call will contain discussion of non-GAAP financial measures, which we believe are useful in evaluating our performance. These supplemental measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP. Reconciliations to the most directly comparable GAAP measures are included in our earnings release in the appendix of today's accompanying presentation. I'll now turn the call over to our founder and executive chairman, Bill Zartler. Thank you, David, and thanks to everyone for joining us this morning. In the second quarter, we continued our momentum and growth in a supportive commodity price environment, but were impacted by headwinds and supply chain constraints leading to higher than anticipated cost inflation and unexpected delays from our contracted customers late in the quarter. With the newer completions design of multi-well, long lateral pads and large water supply needs, delays can have a significant impact on us across the end of a quarter. As a result, our Adjusted EBITDA for the second quarter fell slightly below our expected range of $38 million-$40 million. Our long-term contracts demonstrated reliability and leading recycling capabilities, however, continue to drive our growth alongside our premier customer base. As delayed wells are completed, we expect to both deliver recycled water for those wells and receive the associated produced water volumes back. Similarly, our CPI-linked revenue inflation clauses in our contracts are triggered at discrete, generally annual times, thus resulting in short-term mismatches. Fundamentally, we continue to grow substantially year-over-year and are confident in this continued growth. Yesterday, we also announced the acquisition of the Delaware Energy Services assets in exchange for equity consideration and a small volumetric-based earn-out. I'll let Amanda expand on the strategic benefits of the transaction, but we are pleased to add Delaware Energy's complementary assets and customers to our core system in Eddy and Lea counties. With that, I'll turn it over to Amanda. Thank you, Bill. In the second quarter, we increased our total water volume to approximately 1.2 million barrels per day, up 34% versus the second quarter of last year and up 6% sequentially over the first quarter of this year. As Bill referenced, late in the second quarter, a few of our large contracted customers experienced delays in their provided schedules and completions on our dedicated acreage, which in turn delayed anticipated water solution volumes and related revenue. Our adjusted operating margin per barrel was $0.41 a barrel in the second quarter of 2022, down $0.01 a barrel compared to the second quarter of last year. We have seen cost pressures continue to increase, particularly related to labor and commodity-linked costs, such as chemical treatment expenses. We continue to be focused on identifying and implementing operating efficiencies, such as enhancing automation to better manage costs and margins during this inflationary environment. Our contractual revenue increases with CPI-linked escalators at annual reset dates, which will help offset pressure on our margins over time. We continue to look for attractive opportunities to add capabilities and scale to our infrastructure network, and today, we are very pleased to announce the closing of the acquisition of Delaware Energy Services assets. The Delaware Energy assets add seven water handling facilities and associated gathering lines in our core areas of Eddy and Lea counties in New Mexico. This is a great opportunity to add assets to our network for several reasons. First, the Delaware Energy assets are located adjacent to our core infrastructure and can be efficiently integrated into our network with minimal construction risk. Second, by adding additional handling capacity in New Mexico, we can recycle in more locations for a greater number of customers. Third, we're supplementing our operational capabilities close to existing and new customers, which we expect to generate additional commercial opportunities. We expect the Delaware Energy assets to add an incremental $11 million-$13 million in Adjusted EBITDA in 2023 once fully integrated, and to also defray some additional future capital expenditures in our core operating areas. On beneficial reuse, we continue to make progress piloting and identifying relevant technologies for the treatment of produced water for non-consumptive agriculture, industrial uses, and potential supplemental water. We are completing several beneficial reuse pilot projects and working alongside regulators, development partners and other industry participants to evaluate and scale promising technologies. We will have additional progress to share on these initiatives and partnerships shortly as we focus on driving innovation in sustainable water management and maximizing opportunities for the use of produced water. With that, I'll turn it over to Brenda to discuss the financial results for the quarter. Thanks, Amanda. We reported Adjusted EBITDA for the second quarter of $37.2 million, up 21% from the second quarter of 2021 and up 3% sequentially from the first quarter of 2022. As Bill and Amanda referenced, due to volume delays and inflationary pressure, our Adjusted EBITDA was slightly below our previously provided guidance range of $38-$40 million for the quarter. Based on customer-provided updated schedules, we have reforecast our third and fourth quarter 2022 volume expectations. Given these updated volumes, along with inflationary pressures that will impact operating margins in the short term, we anticipate third quarter Adjusted EBITDA will be between $38-$41 million. At this time, we believe the fourth quarter 2022 Adjusted EBITDA will grow 5%-10% sequentially from our third quarter estimated EBITDA. Our capital expenditures were approximately $39 million for the second quarter of 2022 and approximately $48 million year to date. We're investing in the second half of 2022 to support further growth in 2023 and beyond for Chevron and other contracted customers. We expect capital expenditures to be back half weighted in 2022 as we construct additional infrastructure consistent with our previously provided full year outlook of $140 million-$150 million. We continue to see attractive returns in growing our infrastructure and our capabilities while maintaining a conservative balance sheet at the low end of our long-term leverage target with ample liquidity. We ended the second quarter with approximately $35 million in cash and an undrawn and available $200 million revolving credit facility for a total available liquidity of approximately $235 million. As Bill and Amanda have mentioned, we closed on the acquisition of Delaware Energy's assets on Monday, August first, with an issuance of approximately 3.37 million shares that will be reflected in our third quarter financial statements. We will continue to evaluate acquisitions for strategic infrastructure to support incremental growth. Additionally, yesterday, we announced our third quarter 2022 dividend of $0.09 per share, continuing our commitment to returning cash to shareholders while maintaining flexibility to fund additional growth opportunities. With that, I'll turn it back to Amanda to wrap up. Thanks, Brenda. As we think about the company's performance more broadly, we are delivering sequential volume growth of over 6% in the second quarter and anticipate growing Adjusted EBITDA by approximately 30% this year versus 2021. Our customers are clearly committed to developing their deep inventory of assets on our long-term contracted acreage, which is dedicated to us on average for the next nine years in the core of the Northern Delaware Basin. Executing on opportunities such as Delaware Energy this quarter and a significantly expanded long-term Chevron agreement last quarter is indicative of our focus on delivering efficient growth. Our core operations and business development opportunities remain strong, and we believe we will continue our rapid growth well into the future. With that, we will take questions. Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad and a confirmation tone will indicate your line is in the queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. Our first question comes from Samantha Hoh with Evercore ISI. Please proceed. Hey, guys, thanks for taking my question. I have a question, I guess, just on the margin front. Do you think that you'll be able to recoup some of the decline that you saw in 1Q for just the higher, you know, costs that you incurred? Just kind of curious if some of those cost escalators kick in so that we could see, you know, a flat margin, or is it gonna be down potentially? Samantha, thanks for that question. Yeah, we do see us recouping some of that margin. As you know, we've got CPI in our contracts, and those usually reset in January, March, and also in June. June particularly with one of our large contracts. You know, with inflation being where it is, we have sort of outstripped the ability of our, you know, CPI sort of recovery in our contract to really keep up. As we focus on efficiencies and as time moves forward and as sort of we see inflation lowering, we do see those margins being recouped. Okay, excellent. I was just kind of wondering, you know, as we sit here at start of August, are you guys anticipating any sort of slowdown, you know, for the end of the summer or maybe at the end of the year for the holidays? We've spent a lot of time, Sam, talking to our large contracted customers about their plans, working with them on their forecasts. At this time, we do not anticipate slowdown sort of at year-end. Everybody is still moving forward. Clearly because of the slowdown and delays we saw here at the end of June in these frac schedules, which has had the impact on us here in Q2. It is difficult with tightness in the market for them to sort of catch up. We will sort of see the delay we experience now through the year. We expect to sort of fully catch up next year. We've got capacity to utilize, so we see ourselves with BD finding opportunities to utilize the capacity we've got. As a consequence, you know, asking that question about slowdown, you know, we think there's an opportunity as a result of BD, as a result of catching up to get to sort of the low end of our guidance range. As a consequence of lack of visibility at this time, what we are really doing is lowering our forecast to a range of $150-$160 for 2022, with opportunity to actually improve if we're able to bring additional BD opportunities to bear. We do not see additional new delays at this time that we have been told about. Okay, great. Then just one last one, if I can squeeze one in, is just you know the beneficial reuse of produced water. I'm curious which projects you're most excited about. You know, I mean, there's a lot of really interesting opportunities, and it definitely makes a lot of sense from the environmental angle. I was just kind of curious you know which projects you know do you think is most likely to move forward the fastest, and then which one gets you the most excited? We're pretty excited, Sam, about a number of the projects that we've got going on. We have completed our first project with Texas A&M as it relates to growing cotton and switchgrass, which was very successful. We are sort of looking at phase two on that. I guess the project that we're most excited about is working on a full-scale pilot with two of our large operators, which we'll sort of talk about later, where we will be piloting so we're able to identify technologies to really treat water for not only consumptive agriculture, but also for industrial uses and for environmental uses for discharge to the environment as they do potentially in other states. A lot of projects that we're working on right now, but I think we're further along on the non-consumptive agriculture. We look forward to hearing all about all these projects. Thank you. Thank you. Our next question comes from the line of Don Crist with Johnson Rice. Please proceed. Morning, everybody. How are y'all this morning? Great, Don. You? Good, thank you. I wanted to talk about the Delaware Energy acquisition. You know, in looking at their website and the slide 7 of the new presentation, it looks like, number one, they were trucking a lot of water, and number two, that you have a lot of rights-of-way close to their disposal wells. I wanted to ask kind of a two-part question. Number one, what would the CapEx be to kind of fully integrate the seven disposal wells to your system? And then number two, how much of an impact will that be on next year's CapEx? Is it significant impact to next year's CapEx, like a reduction in CapEx for next year versus what your original plans were? Don, we do see definitely CapEx reduction next year as a consequence of this acquisition. We have right of way and are connected already to some of these wells, and so we do not see significant additional cost that's needed to connect our system to the wells that we are going to integrate to. There are certain wells we acquired that we do not anticipate bringing into the larger system at this time that are connected to existing and potential of new customers. From a CapEx perspective, this is a positive story. We're very excited about this acquisition. It gives us great optionality, and it gives us an opportunity this year to sort of accelerate some of the initiatives that we're looking at with our customers. As we indicate in our deck, once integrated, we expect this acquisition to generate incremental annual Adjusted EBITDA of $11 million-$13 million. There is greater capacity to utilize these assets, and so depending on our business development opportunities, that could be higher. I think you gotta look at the next year in two different ways. One is there's the EBITDA we're forecasting doesn't utilize all the capacity. We're using that capacity to defray additional capital that we have planned on spending next year. If you were to fill up those assets, you're talking EBITDA is between, you know, $19 million-$20 million range, all in. You can look at it in a couple different buckets, but we're just focused on the EBITDA that's incrementally added by what we know is on that system today and what brings in, and then the capital defrayment of approximately, you know, $20 million-$25 million next year. Yeah, it looks like a very, very attractive acquisition to me. I wanted to pivot to the delays from your customers. Have those delays been alleviated now? Basically, you just got pushed one quarter to the right from those volumes coming in. Is that kinda done? Was it kind of a one-off thing? Like, you know, a frac crew had an issue and kinda missed a month or something like that? Any color you can provide there would be helpful. The specific delays that we saw in late June have already. Those jobs are working today. It is a pushback. Now that you don't really catch up for a while because you're still very tight frac capacity. In order to catch up, you either need to go a lot faster than you planned or you need to add a frac crew. We're not seeing incremental additions today, out there, but we are seeing that volume catch up. It's a bit of push to the right more than it is anything else into next year, where we hope at that point, you've freed up a little additional frac capacity to catch up. Okay. It, you know, the issues are alleviated, so it's just a push to the right. They're alleviated over time. Yeah. Yeah. They're alleviated over time, John. Okay. They're big numbers. Just to put it in perspective, a four-well pad today with 10,000-foot laterals is gonna take 2 million barrels of water. 2 million barrels of water at a, you know, a 40-cent margin, it ends up being $800,000 of pure gross profit pushed across a quarter. The numbers add up very quickly, and you get a couple of those happen late in the quarter, it's a significant impact. We see them all catching up today, and we see, you know, the sand challenges going away. We see the basic frac challenges slowly whittling their way out as the market gets caught up and more efficient. These delays that occurred that impacted this quarter, you know, occurred in the last weeks of June. As Bill just explained, if you have one four-well pad, and basically with two get pushed out, it has a real impact. You catch up, but it's very, very lumpy quarter-over-quarter. We didn't have a lot of advance notice on this, as it happened in the field. As a consequence, as you appropriately said, of crew performance and just managing, supply chain, sand, et cetera. I appreciate that color. Just one more, if I could squeeze it in. On the cost side, I don't know if it was labor that necessarily hit you or other supply chain, but has that kind of stabilized now? Or do you think that you're gonna see more impacts going forward into the back half of the year? I think we better understand the impacts we're dealing with. We certainly saw some impact in labor, which we've taken steps to try and alleviate. We also saw a big impact in chemicals and the cost of chemicals. Focusing on both supply chain with chemicals, but also chemical utilization and increasing automation, we are reacting to costs, and we are looking at ways to increase efficiency, bring in additional automation to manage those costs better. Thanks, John. Our next question comes from John Mackay with Goldman Sachs. Please proceed. Hey, everyone. Good morning. Thanks for the time. I wanted to follow up again on the OpEx side. Could you? You know, we talked a little bit about this last year, but maybe you can just go into a little more detail now that we're focused on costs. Just the difference in margin between being able to recycle a barrel versus needing to send a barrel downhole. We used to talk about, you know, again, recycling being a lot higher margin. Does that still hold given the changes with chemical prices, et cetera? Maybe you can just talk a little about the interplay there. Thanks. There is a little more chemical use than we have going downhole in recycle, so there's some of that. You avoid the downhole royalty, which offsets a little bit of that. The chemical cost really was on a per barrel basis. It went up, the actual cost of the chemical, which we see offsetting. There are some H2S challenges in Lea County, and that additionally drives some of our chemical costs up, and we're working with our customers to alleviate that ahead of our systems. Also, John, when we recycle, you know, obviously, if we don't go downhole and you know the power component with going downhole, and we have seen, particularly in New Mexico, which, you know, accounts for about 50% of our power load, we have seen rate case go up. There are some increased power costs. Generally, what we've explained before about the savings when we recycle and don't go downhole, are still correct. Okay, that's great. Thanks for that. Maybe I'll take another one just higher level. If we bake in everything about the acquisition you guys announced today, we think about the big Chevron contract from a couple months ago. Could you just talk a little bit high level on how you're thinking about overall kind of EBITDA-wide growth, kind of next year over this year and maybe even looking to 2024? Not necessarily talking specifics, but just how we can think about, again, you guys versus a, you know, overall basis basin perspective, let's say. If we, you know, look at, you know, 2023, obviously, we're not ready to give guidance on that, but, you know, we remain very optimistic about growth into 2023. We see that ramp in growth with rig counts and with the new Chevron contract you referenced and also with BD and the activity levels of our customers. You know, we see the sequential year-over-year growth. If we, you know, look at 2022, we still got EBITDA growth in 2022, as we explained, of, you know, almost 30% with opportunity to do better. We do continue to see that sequential growth. I mean, we are feeling very optimistic about the core business, and remain very focused, you know, on executing and continue to achieve that growth. Bill, you want to add anything to that? I think that's it. Yeah. I think that's it. All right. That's great. Appreciate the time today. Thank you. Thanks, John. Thank you. Ladies and gentlemen, this concludes our question and answer session, and I'd like to turn the call back to Amanda Brock for any closing remarks. Thank you, and thank you, everybody, for your questions. Despite the headwinds and the delays that we've talked about, we remain very confident in our core business and this continued growth. We're optimistic about the opportunities. We remain very focused on executing and managing costs. You know, we look forward to coming back with improvements. Thank you to our customers, to our employees, to all of our stakeholders, and have a great day, everybody. Thank you. This concludes today's conference. Thank you for your participation, and you may now disconnect.