Jim Cramer Thinks These 13 Stocks Will Benefit From the New Administration

9. Aris Water Solutions, Inc. (NYSE:ARIS) 

Number of Hedge Fund Holders: 19

Cramer called Aris Water Solutions, Inc. (NYSE:ARIS) profitable and mentioned that the stock’s valuation is reasonable.

“Aris Water Solutions offers water management, recycling, and supply solutions to frackers in the Permian Basin. It’s up more than 63%… Once again, big moves there. I can’t say they’re unreasonable. These are three very profitable businesses, reasonable valuations. They’re about to face a much more benign regulatory environment.”

Aris Water Solutions (NYSE:ARIS) is an environmental infrastructure company that specializes in handling and recycling produced water from oil and gas production, and operating facilities to treat, store, and recycle this water. In the third quarter, it reported strong financial results, reflecting growth in both its produced water volumes and recycled water sales. The company also maintained healthy margins during this period.

Net income for the quarter was $16.4 million, an increase from $12.2 million in the same period of 2023 and $13.1 million in the second quarter of 2024. This growth was supported by CPI-linked revenue escalation clauses in its contracts and operational cost improvements made over the past year. These factors contributed to a 13% increase in operating margins per barrel, which reached $0.45 in the third quarter of 2024, compared to the same period last year.

Aris Water Solutions (NYSE:ARIS) continues to explore additional commercial opportunities related to mineral extraction from its produced water streams. The company is currently selecting a site for an iodine extraction facility in partnership with a strategic ally. Additionally, it has been approached by companies that specialize in extracting minerals such as magnesium, ammonia, and lithium. While management expects to have more information on potential future revenues from these opportunities in 2025, no further updates have been provided at this time.