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]

Core Points - WaterBridge Infrastructure LLC successfully closed the full exercise of the underwriters' option to purchase additional shares in connection with its initial public offering [1] - The underwriters exercised their option to purchase an additional 4,755,000 Class A shares at the public offering price, excluding underwriting discounts and commissions [1] - WaterBridge received net proceeds from this transaction, enhancing its capital position [1]

Group 1: IPO Activity Overview - Six companies went public last week, raising a total of $2.7 billion, along with two SPACs [1] - Ten companies filed for IPOs, with six SPACs also submitting initial applications [4][5] Group 2: Notable IPOs - Netskope (NTSK) priced its IPO at the upper end of its range, raising $908 million at a market cap of $9.08 billion, with a strong customer base but significant losses [1] - StubHub (STUB) raised $800 million at a market cap of $9.5 billion, facing legal challenges but with strong brand recognition [1] - WaterBridge (WBI) raised $634 million at a market cap of $2.4 billion, benefiting from long-term contracts despite being capital-intensive [2] - Pattern Group (PTRN) raised $300 million at a market cap of $2.6 billion, focusing on e-commerce acceleration but facing consumer and inflation risks [2] - ChowChow Cloud International (CHOW) raised $10 million at a market cap of $140 million, primarily operating in the Asia-Pacific region [3] - Platinum Analytics (PLTS) raised $8 million at a market cap of $71 million, targeting financial institutions in emerging markets [3] Group 3: SPAC Activity - Galata Acquisition II (LATAU) raised $150 million, while Chenghe Acquisition III (CHECU) raised $110 million, both targeting businesses in Asia [3] - Six SPACs filed for initial applications, with Silicon Valley Acquisition (SVAQU) seeking $200 million and K2 Capital Acquisition (KIIU) targeting robotics and nuclear energy [5][6] Group 4: Upcoming IPOs and Market Outlook - The IPO market is currently quiet, with no transactions scheduled for the upcoming week, although smaller issuers may still price [7] - Notable companies like Commercial Bancroup (CBK) and Phoenix Education (PXED) are expected to join the IPO schedule before the quarter ends [7]

Core Insights - WaterBridge Infrastructure LLC (NYSE: WBI) has successfully completed a public offering, with shares experiencing healthy gains from the outset, indicating strong investor interest despite concerns regarding the asset-intensive nature of the business [1]. Group 1 - The public offering of WaterBridge Infrastructure LLC has attracted significant investor interest, leading to positive share performance [1]. - The company operates in an asset-intensive sector, which typically raises concerns among investors, yet the current market response has been favorable [1]. - The investing group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers, and earnings reports, providing members with actionable insights [1].

Company Vision and Strategy - The company aims to transition from a service-oriented business to an environmental water management business, focusing on sustainable practices in water treatment and management [2][6] - The long-term strategy involves gathering, treating, and recycling water for producers, while also managing water sustainably over time [3][6] Market Position and Growth Potential - The company is positioned to support energy development in key North American basins, particularly the Delaware basin, where water management is critical for oil and gas production [5][11] - The production of water is expected to grow faster than oil production due to the increasing water-to-oil ratio as wells age and new areas with higher water cuts are exploited [12][11] IPO and Investor Engagement - The recent IPO is intended to support commercial development strategies and drive growth, with an emphasis on educating the market about the value of infrastructure in the energy sector [8][9] - The company believes that its contracts and competitive advantages are comparable to those in waste management, which could lead to a revaluation of the sector [9] Industry Dynamics - The company operates in a challenging environment where oil and natural gas prices have been declining, but it maintains that its success is not solely dependent on these prices [10][11] - The Delaware basin's unique dynamics, including a shallow decline curve for water production, provide a favorable outlook for the company's operations [11][12] Ecosystem and Synergies - The company is part of a broader ecosystem that includes Landbridge and PowerBridge, which enhances its operational capabilities and revenue predictability through a structured flow of royalties [15] - The combination of inexpensive gas and abundant water resources in West Texas creates an optimal environment for developing data centers, further diversifying the company's opportunities [16]

Group 1 - WaterBridge Infrastructure LLC closed its upsized initial public offering of 31,700,000 Class A shares at a price of $20.00 per share [1] - The underwriters fully exercised their option to purchase an additional 4,755,000 Class A shares at the public offering price, excluding underwriting discounts and commissions [1]

Company Overview - WaterBridge Infrastructure (WBI) is a Houston-based company that has launched its initial public offering (IPO) on the New York Stock Exchange under the ticker WBI, with plans to sell 27 million shares priced between $17 to $20, aiming to raise approximately $540 million [3][4] - The company is seeking an overall valuation of around $2.3 billion [4] Industry Context - The global water supply is under significant pressure, with less than 1% of it being fresh and accessible, highlighting the importance of water management solutions [2] - WaterBridge operates the largest produced water infrastructure network in the U.S., providing essential water management services to oil and natural gas exploration and production companies [4] Revenue Model - WaterBridge generates revenue through produced water handling fees for transporting water to disposal facilities and by providing raw or recycled produced water for reuse in drilling and completion operations [5] - The company's revenue is linked to the long-life production of oil and natural gas wells, which offers a more stable income stream compared to the cyclical nature of drilling activities [5]