Group 1 - WaterBridge Infrastructure (WBI) has seen a rise in stock price and is approaching its first buy point after its September initial public offering [1] - The company is recognized as Investor's Business Daily's IPO Stock Of The Week and is included in IBD's IPO Leaders screen [1] - WaterBridge operates primarily in the Delaware Basin and focuses on integrated water infrastructure [1]

Financial Data and Key Metrics Changes - Pro forma revenue for Q3 2025 increased to $205.5 million, up 8% compared to the previous quarter, driven mainly by increased volumes and rates [16] - Combined produced water handling volumes for the quarter were 2.5 million barrels per day, representing quarter-over-quarter growth of 7% [16] - Pro forma net loss was $18.7 million for the third quarter, with pro forma adjusted EBITDA of $105.7 million and an adjusted EBITDA margin of 51% [16][18] Business Line Data and Key Metrics Changes - Produced water handling comprises approximately 90% of the company's revenue, derived from fixed-fee contracts for transportation, treatment, handling, and disposal [8] - The water solutions business, including fees from sales of brackish water and waste management, contributes the remainder of the revenue [9] Market Data and Key Metrics Changes - The company operates primarily in the Delaware Basin, the most prolific oil and natural gas basin in North America, with a network of approximately 2,500 miles of pipeline and nearly 200 produced water handling facilities [6][8] - The demand for water handling services is expected to grow significantly, particularly in New Mexico, as recycling capacity declines and produced water volumes increase [25] Company Strategy and Development Direction - WaterBridge aims to capitalize on its strong balance sheet and proven business strategy to meet the growing needs of customers in the water infrastructure sector [5] - The company is focused on expanding its infrastructure network and commercial relationships while maintaining a conservative balance sheet [18] - WaterBridge is exploring opportunities to serve a wider range of industries, including data center cooling and beneficial reuse of produced water [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth despite macroeconomic volatility, citing long-term contracts and minimum volume commitments as key factors [24] - The company anticipates providing 2026 guidance during the fourth quarter and full year 2025 earnings call [18] Other Important Information - The company completed a successful IPO in September 2025, raising approximately $673 million to strengthen its balance sheet [16] - WaterBridge has secured significant access to pore space through partnerships with LandBridge and Texas Pacific Land, which supports future growth in produced water handling capacity [10] Q&A Session Summary Question: Demand for Speedway Pipeline project - Management noted strong demand for the Speedway Pipeline project, with the potential to add an additional 500,000 barrels per day capacity [21][22] Question: Macro backdrop and growth expectations - Management indicated that the company is well-insulated from broader market volatility, with growth underpinned by minimum volume commitments [24] Question: Competitive landscape and customer discussions - Management highlighted strong traction with producers, emphasizing the importance of partnerships with experienced operators and access to differentiated pore space [30] Question: Contract rate outlook - Management reported meaningful increases in rates for recent deals, reflecting the value of premium flow assurance [31] Question: Regulatory reforms in Texas - Management expressed confidence in their relationship with the Railroad Commission and noted that recent regulatory changes have not negatively impacted the company [40][41] Question: Data center opportunity - Management acknowledged the potential for significant demand from data centers and the company's advantageous position due to its infrastructure and expertise [45][46]

Financial Performance - WaterBridge reported strong third quarter combined produced water handling volumes of approximately 2.5 million barrels per day, a 7% quarterly increase[8] - The company's third quarter pro forma revenue reached $205.5 million, accompanied by a pro forma net loss of $18.7 million, and a pro forma Adjusted EBITDA of $105.7 million[8] - Pro Forma Adjusted EBITDA Margin was 51%[18] Capital Structure and Investments - WaterBridge completed the largest energy-sector IPO since 2019, establishing a publicly-traded pure-play water infrastructure company with a market capitalization of approximately $3.0 billion[8] - The company streamlined its balance sheet by closing an inaugural $1.425 billion senior notes offering in October 2025[8] - WaterBridge commenced construction on the first phase of the Speedway pipeline project[8] Assets and Operations - WaterBridge possesses approximately 2,500 miles of pipeline and 197 produced water handling facilities[10] - The company's produced water handling capacity exceeds 4.5 million barrels per day[10] - WaterBridge has acreage dedications of approximately 2.5 million acres[10] Future Growth and Strategy - The Speedway Pipeline project is expected to be online by mid-2026[30] - By 2035, approximately 9 million barrels per day of incremental produced water handling capacity will be needed[42]

Financial Performance - Pro forma revenue for the third quarter was $205.5 million, reflecting an 8% increase compared to the second quarter of 2025[12]. - Total revenues for the three months ended September 30, 2025, were $205,468,000, representing an increase from the previous period[26]. - Pro forma net loss for the third quarter was $18.7 million, with a pro forma Adjusted EBITDA of $105.7 million, resulting in a 51% Adjusted EBITDA margin[12]. - Pro forma net loss for the same period was $(18,683,000), with a pro forma net loss margin of (9%)[36]. - Pro forma Adjusted EBITDA for the three months ended September 30, 2025, was $105,688,000, with a pro forma Adjusted EBITDA margin of 51%[36]. - The pro forma Adjusted Operating Margin for the nine months ended September 30, 2025, was also 51%[36]. - Pro forma produced water handling and water solutions total revenues for the three months ended September 30, 2025, were $199,549,000, and for the nine months ended, they were $559,306,000[43]. - Pro forma produced water handling and water solutions gross margin for the three months ended September 30, 2025, was $58,348,000, resulting in a gross margin per barrel of $0.22[43]. - Pro forma Adjusted Operating Margin for the three months ended September 30, 2025, was $130,865,000, with an Adjusted Operating Margin per barrel of $0.50[43]. - The cost of revenues for produced water handling and water solutions for the three months ended September 30, 2025, was $141,201,000, leading to an adjusted gross margin of $55,355,000[43]. Operational Highlights - Third quarter produced water handling volumes reached 2.5 million barrels per day, a 7% increase quarter-over-quarter[5]. - The company operates a network of nearly 200 produced water facilities and over 2,500 miles of pipeline, with a total handling capacity of more than 4.5 million barrels per day[7]. - The combined total volumes handled for produced water and water solutions for the three months ended September 30, 2025, were 261,862 MBbls[43]. - Pro forma depreciation, depletion, amortization, and accretion for the three months ended September 30, 2025, amounted to $75,510,000[43]. Capital and Liquidity - Total liquidity as of September 30, 2025, was $547 million, including $347 million in cash and cash equivalents[13]. - Following the quarter, WaterBridge closed a $1.425 billion senior notes offering to enhance liquidity and reduce annual interest expenses[15]. - Long-term debt, net of debt issuance costs, increased to $1,682,211,000 as of September 30, 2025, compared to $586,417,000 at the end of 2024[30]. - Cash and cash equivalents increased significantly to $346,649,000 as of September 30, 2025, compared to $13,284,000 at the end of 2024[30]. - Total assets reached $3,939,207,000 as of September 30, 2025, up from $1,350,587,000 at the end of 2024[30]. Projects and Developments - WaterBridge completed the largest energy-sector IPO since 2019, achieving a market capitalization of $3.0 billion as of November 7, 2025[5]. - The bpx Kraken pipeline project commenced operations with an initial capacity of approximately 400,000 barrels per day and a 10-year minimum volume commitment[9]. - The Speedway Pipeline project has begun construction with an expected capital expenditure of approximately $290 million[11]. Expenses and Cost Management - General and administrative expenses for the three months ended September 30, 2025, were $17,411,000, reflecting a significant adjustment from previous periods[26]. - The company reported a total cost of revenues of $162,705,000 for the three months ended September 30, 2025[26]. - WaterBridge aims to enhance its pro forma Adjusted Operating Margin by reducing variable operating expenses, which include landowner royalties and power expenses[40]. - Increased sales of recycled water contribute to cost savings, impacting the pro forma Adjusted Operating Margin positively[41]. - WaterBridge's operating expenses are largely variable and fluctuate in correlation with throughput volumes, impacting overall profitability[40]. Credit Ratings - Credit ratings of BB- / BB- / Ba3 were assigned by S&P Global, Fitch, and Moody's, indicating positive leverage and growth developments[6].

Financial Performance - Total revenues for the three months ended September 30, 2025, were $123,250 thousand, up 37% from $89,803 thousand in the same period of 2024[49] - Net income for the three months ended September 30, 2025, was $4,756 thousand, compared to $3,305 thousand for the same period in 2024, reflecting a year-over-year increase of 44%[49] - For the nine months ended September 30, 2025, net income increased to $13,592,000 from $2,463,000 in the same period of 2024, representing a significant growth[54] - The company reported a net income of $4.756 million for the period from September 18, 2025, to September 30, 2025[182] - The net income for the three months ended September 30, 2025, was $2.3 million, a significant improvement from a net loss of $21.9 million in the same period of 2024[115] - The Company experienced a net loss of $16.862 million for the nine months ended September 16, 2025, compared to a net loss of $56.517 million for the same period in 2024, showing a reduction in losses by 70%[206] Assets and Liabilities - Total assets increased to $3,939,207 thousand as of September 30, 2025, compared to $1,350,587 thousand on December 31, 2024, representing a growth of 191%[47] - Current assets rose significantly to $555,090 thousand as of September 30, 2025, compared to $120,338 thousand at the end of 2024, marking an increase of 362%[47] - Total liabilities increased to $2,079,143 thousand as of September 30, 2025, compared to $687,538 thousand at the end of 2024, representing a growth of 203%[47] - Long-term debt increased to $1,682,211 thousand as of September 30, 2025, from $586,417 thousand on December 31, 2024, indicating a rise of 187%[47] - As of September 30, 2025, total debt was recorded at $1.727 billion, an increase from $609.4 million as of December 31, 2024[126] Cash Flow and Investments - Net cash provided by operating activities for the nine months was $71,515,000, compared to $64,618,000 in the prior year, indicating a 10.5% increase[54] - The company reported a net cash used in investing activities of $(129,529,000), a decrease from $(291,392,000) in the previous year, showing improved cash management[54] - Proceeds from the issuance of Class A shares generated $685,354,000, contributing to a net increase in cash and cash equivalents of $333,365,000[54] - The total cash and cash equivalents at the end of the period stood at $346,649,000, a substantial increase from $14,076,000 at the beginning of the period[54] Revenue Streams - Total produced water handling revenues for the three months ended September 30, 2025, were $111.375 million, a 38.5% increase from $80.395 million in the same period of 2024[102] - For the nine months ended September 30, 2025, total produced water handling revenues reached $285.596 million, up 41.2% from $202.183 million in 2024[102] - Revenues from WBEF for the period from September 17, 2025, to September 30, 2025, amounted to approximately $12.0 million, with an operating loss before taxes of $3.5 million[113] - Revenues from Desert Environmental for the same period were approximately $1.2 million, with an operating income before taxes of $0.4 million[113] Capital Expenditures and Investments - Capital expenditures for the nine months totaled $(189,360,000), compared to $(128,049,000) in the prior year, reflecting increased investment in infrastructure[54] - The company recorded an equity contribution related to acquisitions amounting to $784.513 million for the nine months ended September 30, 2025[102] Debt and Financing - WaterBridge Midstream entered into a $1.15 billion SDB Term Loan with a maturity date of June 27, 2029, secured by a first-priority lien on substantially all assets[136] - The SDB Term Loan bears interest at a variable rate of Term SOFR plus a margin of 4.75% or a Base Rate plus a margin of 3.75%[137] - The NDB Revolving Credit Facility has a total facility size of $100 million, with an outstanding balance of $0 and available commitment of $100 million as of September 30, 2025[143] - The NDB Revolving Credit Facility was amended to decrease the total aggregate commitment from $380 million to $100 million and extend the maturity date to June 8, 2027[144] - On October 6, 2025, the Company issued $825.0 million of 6.25% senior unsecured notes due 2030 and $600.0 million of 6.50% senior unsecured notes due 2033[165] Shareholder Equity - The total shareholders' equity attributable to WaterBridge Infrastructure LLC was $607,701 thousand as of September 30, 2025, with no prior equity reported as of December 31, 2024[47] - The company’s non-controlling interest was $1,252,363 thousand as of September 30, 2025, reflecting the significant equity structure post-IPO[47] Related Party Transactions - Related party revenues for the three months ended September 30, 2025, were $28,523 thousand, a decrease of 3.8% from $29,664 thousand in 2024[184] - Direct operating costs from related party supplier agreements increased to $12,458 thousand for the three months ended September 30, 2025, up 57.5% from $7,932 thousand in 2024[184] - Accounts receivable from related parties totaled $35,884 thousand as of September 30, 2025, down from $50,025 thousand in 2024, representing a decrease of 28.5%[184] Accounting and Compliance - The Company’s significant accounting policies remained consistent with those discussed in the previous year’s financial statements, with no significant updates during the three and nine months ended September 30, 2025[79] - The Company accounts for share-based compensation expense for incentive units, with a total of 10,000 Incentive Units authorized under each of the WBR and WB II plans[227] - The Company evaluates mezzanine equity instruments at each reporting period to determine if reclassification to permanent equity or liability treatment is required[243]

Core Insights - WaterBridge Infrastructure LLC reported strong financial and operational growth in its first public quarter, with pro forma revenue increasing by 8% quarter-over-quarter and key infrastructure projects progressing on schedule [1][10][13]. Financial Highlights - Total pro forma revenue for Q3 2025 was $205.5 million, an 8% increase compared to Q2 2025, driven by volume growth and higher prices for produced water [10][13]. - Pro forma net loss for Q3 2025 was $18.7 million, with pro forma Adjusted EBITDA at $105.7 million [10][11][13]. - Pro forma gross margin was $55.4 million, with a gross margin per barrel of $0.22 [7][10]. - Total liquidity as of September 30, 2025, was $547 million, with cash and cash equivalents at $347 million [12][14]. Operational Highlights - Combined produced water handling volumes reached 2.5 million barrels per day, a 7% increase from Q2 2025, supported by the development of East Stateline infrastructure and the bpx Kraken pipeline project [6][10][13]. - The bpx Kraken pipeline project, which began service on July 1, 2025, has an initial capacity of approximately 400,000 barrels per day, expandable to 600,000 barrels per day [8][10]. - Construction of the Speedway Pipeline project commenced in October 2025, with an expected capital expenditure of approximately $290 million [9][10]. Strategic Developments - The company successfully completed its IPO on September 18, 2025, raising significant capital and establishing a market capitalization of $3.0 billion as of November 7, 2025 [13][21]. - Following the IPO, WaterBridge closed a $1.425 billion senior notes offering to enhance liquidity and reduce annual interest expenses [16][17][13]. - Credit ratings of BB- / BB- / Ba3 were assigned by S&P Global, Fitch, and Moody's, reflecting positive leverage and growth developments [15][13].

Summary of the Conference Call on North American Midstream & Renewable Energy Infrastructure Industry Overview - The report focuses on the North American midstream sector, particularly how crude oil prices, specifically WTI (West Texas Intermediate), influence midstream stocks performance [1][2]. Key Insights - A quantitative analysis was conducted to understand the historical relationship between WTI prices and individual midstream stocks, aiming to prepare investors for potential near-term oil price declines [9][10]. - The report indicates that midstream stocks exhibit negative convexity to oil prices, meaning they tend to decline more sharply when WTI prices fall than they rise when prices increase [10]. - Current market conditions show that WTI has decreased by 24% since its recent peak in January 2025, which is in the $60 price band, a scenario that correlates with higher risks for midstream stocks [10]. Investment Recommendations - The report suggests a cautious approach, recommending to consider long positions in specific midstream stocks such as TRGP (Overweight), OKE (Overweight), WBI (Equal-weight), and PAA (Equal-weight) if WTI falls below $55 per barrel [10][12][15]. - The valuation of these stocks appears inexpensive, but a more aggressive capital allocation is advised only if WTI drops to the $50-$55 range [12][15]. Market Dynamics - The report highlights that the potential for a global oil market oversupply could lead to further downside risks for oil-levered midstream equities [12]. - Despite the current lag in performance of oil-levered midstream equities during recent down days for crude oil, the long-term contracted nature of most midstream companies provides cash flow resiliency and limits funding risks [12]. Correlation Analysis - The report includes various exhibits showing the correlation between WTI prices and midstream companies over the years, indicating that correlations tend to be higher during periods of significant price movements [16][17]. - Historical data from 2014 to 2025 shows varying degrees of correlation between WTI and midstream stocks, with a notable increase in correlation during downturns [17]. Conclusion - The North American midstream sector is currently viewed as attractive, but investors are advised to remain patient and strategic in their approach, particularly in light of potential oil price corrections and the associated risks for midstream equities [8][12].

Core Viewpoint - WaterBridge Infrastructure (NYSE: WBI) is positioned for stable growth due to long-term contracts with investment-grade producers and access to underutilized pore space through LandBridge, which enhances its capability in water management [1] Group 1: Company Overview - WaterBridge Infrastructure offers infrastructure-like stability and high-quality growth potential [1] - The company has long-term contracts with investment-grade producers, ensuring reliable revenue streams [1] - Access to underutilized pore space through LandBridge allows the company to capture increasing demand for water management solutions [1]

Company Overview - WaterBridge Infrastructure LLC is a leading integrated, pure-play water infrastructure company primarily operating in the Delaware Basin, which is the most prolific oil and natural gas basin in North America [4] - The company also has assets in the Eagle Ford and Arkoma Basins, operating the largest produced water infrastructure network in the United States [4] - As of August 31, 2025, WaterBridge's infrastructure network included approximately 2,500 miles of pipelines and 197 produced water handling facilities, managing over 2.6 million barrels per day (bpd) of produced water with a total handling capacity exceeding 4.5 million bpd [4] Financial Events - WaterBridge will release its financial results for the third quarter of 2025 after market close on November 12, 2025, followed by a conference call on November 13, 2025, at 10:30 a.m. Central Time [1] - The company has announced a pricing of an upsized offering of $1,425 million in senior notes, which includes $825 million of 6.25% senior unsecured notes due 2030 and $600 million of 6.50% senior unsecured notes due 2033 [7] - WaterBridge intends to use the net proceeds from the offering of the notes, along with cash on hand, to repay all outstanding borrowings under its credit facility [8]

Core Viewpoint - WaterBridge Infrastructure LLC has announced the pricing of its senior unsecured notes offering, indicating a strategic move to raise capital through debt issuance [1] Group 1: Offering Details - The company priced an offering of $825 million aggregate principal amount of 6.25% senior unsecured notes due 2030 at par [1] - Additionally, the company priced $600 million aggregate principal amount of 6.50% senior unsecured notes due 2033 at par [1] - The offering is expected to close on October 6, 2025, subject to customary closing conditions [1]