Form 4: Aris Water Director Converts Shares in Merger

Joseph Colonnetta, a director of Aris Water Solutions, Inc., disposed of all his direct and indirect holdings of Class A common stock as part of the company's merger with Western Midstream Partners, LP.

Summary

• Joseph Colonnetta, a director of Aris Water Solutions, Inc. (ARIS), reported the disposition of his beneficial ownership in the company.
• The transaction occurred on October 15, 2025, which is the effective time of a merger agreement.
• Colonnetta disposed of 39,485 shares of Class A Common Stock held directly.
• He also disposed of 123,313 shares of Class A Common Stock held indirectly through Colonnetta Family Partners I, LP.
• Following these transactions, Colonnetta beneficially owns 0 shares of Aris Water Solutions, Inc.
• The disposition is a direct result of a merger agreement entered into on August 6, 2025, with Western Midstream Partners, LP.
• Shareholders had options to receive consideration in the form of cash ($7.00 cash + 0.450 Parent Common Units, or $25.00 cash) or 0.625 Parent Common Units per share.
• 4,426 shares subject to time-vesting restricted stock units (RSU Awards) were converted into cash at $25.00 per share, plus any accrued but unpaid cash-based dividend equivalents.

Sentiment

Score: 7

Explanation: The filing reports a director's share disposition as part of a merger agreement, indicating a structured exit for shareholders at pre-determined consideration values, which is generally a neutral to slightly positive event for shareholders involved in the merger.

Positives

• The reporting person received consideration for shares as part of a merger, indicating a liquidity event for his holdings.
• Restricted stock units were converted to cash at a fixed price of $25.00 per share, plus accrued dividends, providing a clear valuation for these awards.

Negatives

• No explicit negatives are detailed in the filing regarding the company's performance or outlook.

Risks

• Shareholders who failed to timely deliver an election for consideration defaulted to receiving 0.625 Parent Common Units, potentially missing out on other preferred consideration options.

Future Outlook

Aris Water Solutions, Inc. is undergoing a merger with Western Midstream Partners, LP, which will result in its Class A common stock being converted into cash or Parent Common Units, effectively changing the company's structure and ownership.

Industry Context

The merger of Aris Water Solutions with Western Midstream Partners indicates consolidation within the water management or midstream energy sector. Such transactions are often driven by strategic alignment, pursuit of economies of scale, or market positioning.

Related Party Transactions

• Joseph Colonnetta indirectly beneficially owned shares through Colonnetta Family Partners I, LP. Colonnetta Management Company LLC, of which the reporting person and his spouse are managers, is the general partner of Colonnetta Partners. The disposition of these indirectly held shares is part of the reported transaction.

Stakeholder Impact

• Shareholders: Will receive cash or Parent Common Units in exchange for their Aris Water Solutions, Inc. shares due to the merger.
• Management: Joseph Colonnetta, a director, has disposed of his beneficial ownership in the company as part of the merger.

Next Steps

• Completion of the merger with Western Midstream Partners, LP.
• Conversion of Aris Water Solutions, Inc. Class A common stock into cash or Parent Common Units for remaining shareholders.

Key Dates

Keywords

Aris Water Solutions, ARIS, Western Midstream Partners, merger, acquisition, insider transaction, Form 4, beneficial ownership, stock disposition, director, Joseph Colonnetta, Class A Common Stock, restricted stock units