WaterBridge Infrastructure LLC (WBI)·Q3 2025 Earnings Summary

Executive Summary

• Pro forma revenue rose 8% QoQ to $205.5M and pro forma Adjusted EBITDA reached $105.7M, as combined produced water volumes climbed to 2.5MM bpd; management framed this as a strong first public quarter with infrastructure momentum and a healthier balance sheet post-IPO and debt refinancing .
• Versus Street: company-reported pro forma Adjusted EBITDA ($105.7M) was above the S&P Global EBITDA consensus ($102.6M); pro forma revenue ($205.5M) was above the S&P Global revenue consensus ($199.6M), while S&P’s GAAP-reported revenue actual ($123.3M) reflects reporting differences vs company pro forma .
• Liquidity and capital structure improved following a $1.425B senior notes issuance (6.25% due 2030; 6.50% due 2033) and a new $500M secured revolver, with total liquidity of $547M at quarter-end; ratings assigned BB-/Ba3 by agencies .
• Strategic catalysts: BPX Kraken pipeline came online (initial ~400 kbpd capacity), Speedway Pipeline Phase 1 reached FID (expected ISD mid-2026; ~$290M capex) and the team highlighted future water reuse/data center opportunities and tariff/regulatory positioning in Texas .
• Pro forma net loss was $18.7M with a 51% pro forma Adjusted EBITDA margin; management emphasized long-term MVC-backed growth, pricing tailwinds, and flow assurance as drivers of margin durability .

What Went Well and What Went Wrong

What Went Well

• Combined produced water volumes increased 7% QoQ to 2.5MM bpd; pro forma revenue rose 8% QoQ to $205.5M, with pricing contributing alongside volumes .
• BPX Kraken pipeline placed into service (initial 400 kbpd, scalable to ~600 kbpd) and Speedway Pipeline Phase 1 FID, underscoring infrastructure scale and flow assurance strategy: “We provide industry-leading flow assurance…with best-in-class control room and proprietary forecast management software, WAVE” .
• Balance sheet reset post-IPO and notes offering improved liquidity and reduced interest/amortization burden; CFO: “We streamlined and optimized our balance sheet…increasing our liquidity and decreasing our annual interest and amortization expense burdens” .

What Went Wrong

• Reported pro forma net loss of $18.7M and continued GAAP complexity (Up-C structure, partial-period EPS) may cloud comparability in the first public quarter .
• Leverage remained notable at quarter-end ($1.727B legacy borrowings before notes refinancing), though subsequent actions materially changed the debt stack .
• Regulatory volatility in New Mexico and broader macro uncertainty were flagged; management noted Texas permitting alignment but variability in New Mexico could affect competitors and legacy capacity .

Financial Results

Pro Forma performance (company-reported) vs prior year

GAAP revenue breakdown (reported consolidated) vs prior year

KPIs and operating metrics

Guidance Changes

Earnings Call Themes & Trends

Note: WBI was newly public; prior two quarters had no public earnings calls, so “Previous Mentions” reflect context from S-1/IPO materials rather than prior call commentary.

Management Commentary

• CEO: “Produced water volumes in the Delaware Basin continue to rise…our network of nearly 200 produced water facilities, over 2,500 miles of pipeline, and 4.5 million barrels per day of capacity is well-positioned to provide a turnkey solution to rising demand” .
• CFO: “We will continue to invest in high-return organic capital projects…Kraken’s 10-year minimum volume commitment reflects long-term relationships providing stable cash flow and insight into future revenues” .
• COO: “Speedway garnered strong industry demand…Phase 1 capacity can reach 500,000 bpd; expansion could add another 500,000 bpd depending on customer needs” .

Q&A Highlights

• Project demand and build multiples: Speedway oversubscribed; Phase 1 up to 500 kbpd, optional additional 500 kbpd; build multiple ~3–4x with upside .
• Competitive landscape and pricing: WB’s flow assurance and scale driving higher rates vs legacy rock-bottom pricing; expect rising unit-level revenue and margin per barrel as new projects roll on .
• Kraken ramp: initially 50–60% utilized by BPX, expected to increase materially as MVCs ratchet .
• Regulatory environment: Texas permitting approach consistent with WB’s practices; New Mexico environment acknowledged as volatile but not a near-term risk to WB strategy .
• Data center water reuse: robust potential; water needs could range widely depending on technology; evaluating in-house vs partnership models to optimize margins and customer fit .

Estimates Context

Values marked with an asterisk were retrieved from S&P Global. Different bases (GAAP vs company pro forma) drive the revenue/EBITDA “actuals” variance; investors should anchor EBITDA comparisons on company-reported pro forma Adjusted EBITDA and revenue comparisons on company pro forma combined revenue for this quarter .

Key Takeaways for Investors

• Volume growth and pricing supported a strong pro forma quarter; pro forma Adjusted EBITDA exceeded Street estimates, indicating early execution momentum on large-scale projects .
• Balance sheet repositioning (notes + revolver) improved liquidity and reduced financing burden, with ratings in BB/Ba3 range; expect clearer leverage trajectory as projects ramp and MVCs ratchet .
• Kraken is online and ramping; Speedway Phase 1 is a multi-county backbone project with mid-2026 ISD—execution and contracting will be key near-term stock drivers .
• Pricing power appears to be improving given de-risked flow assurance and scale; watch margin per barrel trajectory as new projects fold in .
• Regulatory stance in Texas aligns with WB’s permitting approach; New Mexico volatility is a watch item but management believes WB’s access to pore space and redundancy mitigates risk .
• Near-term: expect narrative clarity in Q4/FY call with 2026 guidance; medium-term: MVC-backed growth, capital discipline, and optionality in beneficial reuse/data centers can expand cash flow and valuation .

Additional Data Points

• Market capitalization cited at $3.0B as of November 7, 2025, reflecting the initial public market read-through of WB’s pure-play water infrastructure positioning .
• Quarter-end liquidity $547M; cash $347M; pre-refinancing borrowings $1.727B (legacy facilities), subsequently refinanced and upsized .
• Segment reporting: WB operates as a single segment, supporting consolidated infrastructure strategy .