Core Insights - Ave Maria Value Fund reported a return of 0.43% in Q3 2025, significantly underperforming the S&P 500 Index which returned 8.12% and the S&P MidCap 400® Index which gained 5.55% [1] Company Overview - WaterBridge Infrastructure LLC (NYSE:WBI) is highlighted as a new position in the Ave Maria Value Fund's portfolio, specializing in water infrastructure [2][3] - The company is the largest pure-play integrated water infrastructure firm in the U.S., primarily operating in the Permian Basin, a key area for oil and natural gas production [3] Stock Performance - As of January 6, 2026, WaterBridge Infrastructure LLC's stock closed at $18.99 per share, with a one-month return of -12.97% and a 52-week loss of 5.10% [2] - The market capitalization of WaterBridge Infrastructure LLC is reported at $821.6 million [2] Investment Strategy - The Ave Maria Value Fund maintained a stable portfolio with no liquidations and established only one new position in WaterBridge during Q3 2025 [3] - The fund aims to provide reliable and cost-effective water management solutions to meet the evolving needs of the exploration and production industry [3] Hedge Fund Interest - WaterBridge Infrastructure LLC was held by 44 hedge fund portfolios at the end of Q3 2025, indicating some level of interest among institutional investors [4] - Despite this interest, the analysis suggests that certain AI stocks may offer greater upside potential and lower downside risk compared to WaterBridge [4]

Core Insights - Deep Blue Midland Basin LLC has successfully acquired Environmental Disposal Systems, LLC from Diamondback Energy, marking a significant expansion in its water infrastructure platform in the Midland Basin [1][2][4] - Diamondback retains a 30% equity interest in Deep Blue and has received approximately $695 million in upfront cash, with potential additional earnings of up to $200 million based on performance until the end of 2028 [2] - Deep Blue operates nearly 2,000 miles of pipeline, providing comprehensive water management services, including gathering, transporting, treating, recycling, and disposing of produced water [3] Company Overview - Deep Blue was established in 2023 as a joint venture between Diamondback and Five Point Infrastructure, focusing on integrated midstream water infrastructure networks for exploration and production companies in the Midland Basin [1][6] - The company aims to create value through sustainable water management practices, minimizing disposal through recycling and advanced technologies [6] Financial Aspects - To finance the acquisition, Deep Blue closed a $950 million seven-year senior secured term loan B facility and paid down a revolving credit facility [4] - The company received inaugural corporate ratings of BB- from Fitch Ratings and S&P Global Ratings, and Ba3 from Moody's Investors Service, all with a stable outlook [4] Strategic Importance - The acquisition of EDS is expected to enhance operational excellence and commercial synergies, aligning with rising industry demand for water management solutions [4] - Deep Blue's growth strategy is focused on developing sustainable solutions that contribute to the Texas economy and U.S. energy leadership [4]