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].
WaterBridge Infrastructure LLC(WBI) - 2025 Q3 - Quarterly Results