Financial Data and Key Metrics Changes - In Q4 2025, WaterBridge achieved record revenue of $208.9 million, a 2% increase compared to the pro forma Q3 revenue [14] - Full year 2025 pro forma revenues reached $790 million, representing a 19% annual increase compared to pro forma 2024 revenues [5][14] - Full-year adjusted EBITDA was $402.8 million, a 16% year-over-year increase [15] - The company reported a full-year net loss of $58.1 million [15] Business Line Data and Key Metrics Changes - Produced water volumes in Q4 2025 increased to 2.6 million barrels per day, with full year combined volumes averaging 2.4 million barrels per day, reflecting a 15% year-over-year growth [5][10] - The Kraken project was brought online, contributing an initial capacity of approximately 450,000 barrels per day [11] - The Speedway Phase 1 project was oversubscribed, with expectations for significant volume growth in 2026 and beyond [12] Market Data and Key Metrics Changes - WaterBridge's produced water handling capacity exceeds 5 million barrels per day across over 2,600 miles of integrated pipeline [6] - The company has experienced a compound annual growth rate (CAGR) of over 22% in produced water handling volumes since 2022 [7] - Rates for produced water takeaway are increasing due to rising demand, with new contracts expected to drive higher unit-level revenue [58] Company Strategy and Development Direction - WaterBridge aims to continue its operational and commercial momentum in 2026, focusing on high-return organic growth projects and expanding its water infrastructure network [8][16] - The company is committed to maintaining a conservative balance sheet while exploring selective strategic acquisitions [16][39] - Future growth is anticipated from the Speedway Phase II project and potential Phase III developments, driven by increasing demand for water solutions [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position entering 2026, highlighting strong commercial momentum and opportunities for growth [14][18] - The current macro environment is viewed as more favorable than when the 2026 guidance was set, suggesting potential upside in produced water handling volumes [25][46] - Management noted that the merger between Devon and Coterra could present incremental growth opportunities for WaterBridge [27][29] Other Important Information - The company ended 2025 with total liquidity of $527 million, including $52 million in cash and cash equivalents [15] - Capital expenditures in Q4 2025 were $89.2 million, primarily for the development of Speedway Phase 1 [16] - An inaugural quarterly dividend of $0.05 per share was declared [16] Q&A Session Summary Question: 2026 produced water handling volumes guidance - Management acknowledged that the guidance reflects a conservative approach based on previous producer feedback when oil prices were lower, but noted potential for upside in the latter half of 2026 [25][26] Question: Opportunities from the Devon and Coterra merger - Management expressed excitement about the merger and the potential for growth opportunities, particularly with the Devon team [27][29] Question: Acceleration of growth project opportunities - Management confirmed that several commercial projects are firmed up and will serve as the foundation for Speedway Phase II, with additional capital allocated for these projects [35][36] Question: Capital allocation philosophy post-growth project spend - Management emphasized prioritizing high-return organic growth projects while remaining open to M&A opportunities, maintaining a healthy balance sheet, and considering dividends and buybacks in the future [39][40] Question: Capacity to handle more produced water volumes - Management indicated that the company could exceed the peak of 2.9 million barrels per day, highlighting the importance of having infrastructure in place to accommodate larger multi-well pads [65][66]