Aris Water Solutions, Inc. (ARIS) plummeted 5.71% in Friday's pre-market trading session, following the release of its fourth-quarter 2024 and full-year 2024 earnings results. The stock's decline can be attributed to the company's earnings miss and relatively flat 2025 outlook, which overshadowed its solid volume growth prospects and strategic initiatives.

For the fourth quarter of 2024, Aris Water Solutions reported better-than-expected revenue but missed earnings per share (EPS) estimates. The company's full-year 2024 revenue increased by 11% year-over-year, driven by higher produced water volumes and completion activity in its Water Solutions business. However, the earnings miss and relatively flat EBITDA guidance for 2025 appear to have dampened investor sentiment.

While Aris Water Solutions expects mid-single-digit production growth in the Permian Basin and an increase in Water Solutions activity in 2025, the company's adjusted EBITDA guidance for the year is largely unchanged from 2024 levels. This outlook, combined with the delayed financial impact from strategic initiatives like the McNeil Ranch acquisition and beneficial reuse projects, may have contributed to the stock's decline.