WBI

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 12:00 p.m. ET Director of Investor Relations - Mae Herrington Chief Executive Officer - Jason Long Chief Operating Officer - Michael Chop Reitz Chief Financial Officer - Scott McNeely Operator: Hello, everyone. Thank you for joining us, and welcome to the WaterBridge's Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Mae Herrington, Director of Investor Relations. Please go ahead. Mae Herrington: Good morning, and thank you for joining WaterBridge's Second Quarter 2026 Earnings Call. I'm joined today by our Chief Executive Officer, Jason Long; our Chief Operating Officer, Michael Chop Reitz; and our Chief Financial Officer, Scott McNeely. Before we begin, I'd like to remind you that in this call and the related presentation, we will make forward-looking statements regarding our current beliefs, plans and expectations, which are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from results and events contemplated by such forward-looking statements. You're cautioned not to place undue reliance on forward-looking statements. Please refer to the risk factors and other cautionary statements included in our filings with the SEC. I would also like to point out that our investor presentation and today's conference call will contain discussions of non-GAAP financial measures, which we believe are useful in evaluating our performance. These supplemental measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Reconciliations to the most directly comparable GAAP measures are included in our earnings release and the appendix of today's accompanying presentation. I will now turn the call over to our CEO, Jason Long. Jason Long: Thanks, Mae, and good morning, everyone. I'm pleased to announce that we delivered another strong quarter, achieving record revenues and adjusted EBITDA. Our results were driven by organic growth across our core business, underpinned by WaterBridge's unique ability to handle and recycle the rising volumes of produced water across our scaled integrated network. We were able to monetize strong commercial demand for access to our existing infrastructure, especially along the Stateline where pore pressure constraints are limiting injection capacity. In addition to our organic growth and strong commercial execution, we also announced a number of accretive transactions that strengthen our position across the Delaware Basin. First, we closed the acquisition of Ranger Water Midstream. The acquisition increases our capacity in the highly active and disposal-constrained Lea County in New Mexico. The acquisition includes disposal wells with approximately 70,000 barrels per day of total permitted capacity, approximately 30 miles of produced water gathering pipelines, a water treatment facility with up to 100,000 barrels per day of capacity and 1.2 million barrels of storage capacity. The acquired infrastructure is adjacent to Speedway, creating meaningful opportunities for future integration, additional throughput and enhanced operational flexibility for both new and existing customers. With established contracts and acreage dedications with blue-chip producers already in place, we anticipate Ranger will be immediately accretive and a strong tailwind to WaterBridge's increasing market share in the region. We also announced 2 new investments that will allow us to significantly expand our synergistic environmental waste management business. First, we entered into an agreement to acquire the NDB Landfill in Lea County, expanding our waste management footprint into new markets across New Mexico. The 560-acre NDB Landfill is a large oilfield waste facility with 44 million cubic yards of permitted capacity with open capacity currently representing more than 40 years of future volumes. This acquisition provides us with a large scalable platform for growth in a region of high E&P activity. Additionally, our Board has approved the organic construction of a 280-acre environmental waste management facility in the Stateline region, which will be our fourth site in the basin. Construction is expected to begin in the third quarter with an anticipated in-service date of mid-2027. This project represents a high-return opportunity to construct an additional landfill facility with an approximately 2-year capital payback period expected. Once completed, the facility will significantly expand our integrated waste management capabilities in the region and create operational efficiencies for our core water business through reduced waste hauling costs. Together, these 2 waste management transactions are expected to double our total facility count and more than double our permitted waste handling capacity in the Delaware Basin. Overall, each of these acquisitions and investments reflect our disciplined approach to capital allocation. They provide attractive stand-alone returns, support the economics of our existing water infrastructure assets and support market share growth through new and existing customer relationships. As a result of these accretive acquisitions as well as a number of new or accelerated commercial capital projects expected in the second half of this year, we have increased our 2026 guidance, raising volume and adjusted EBITDA guidance for the second quarter in a row and raising capital expenditures guidance as we capitalize on compelling opportunities. Scott will provide further details on the increases in his remarks. I'd like to now turn the call over to Chop Reitz. Michael Reitz: Thanks, Jason. Operational performance was strong across the platform in the second quarter, and I'm happy to announce that Speedway Phase 1 launched on schedule with first volumes coming online in July as expected. Speedway is one of our most important near-term growth projects. It connects growing produced water volumes in Lea and Eddy County to long-term out-of-basin disposal capacity, supported by our infrastructure network and our access to vast pore space through LandBridge. We expect volumes to continue ramping through the second half of the year, adding high-margin volume growth for this year and beyond. Momentum behind Speedway Phase 2 continues to build. Customer demand for the second phase has been robust, which is consistent with what we shared last quarter, and our commercial and operational discussions are advancing towards underwriting the project, a milestone that we hope to share very soon. Customer activity remains strong across the footprint, reflected in our volume and revenue performance this quarter. Operators are prioritizing development in areas where WaterBridge has meaningful infrastructure density, particularly in New Mexico, subsequently driving demand for access to our out-of-basin and Stateline disposal assets. WaterBridge offers responsible long-term disposal solutions in a Stateline ecosystem where capacity is shrinking due to pore pressure limitations. And that dynamic is already creating new growth opportunities for us in the near term. Part of the increase to our CapEx guidance this year comes from a number of commercially driven new build and bolt-on infrastructure projects across our footprint. These smaller projects are a strong signal of growing customer demand for our network, and they're a very attractive use of capital alongside larger organic projects like Speedway, delivering build multiples of 5x or better. We're also building momentum in '27 by accelerating construction on the previously announced New Devon project, which moves up its in-service date. This pipeline will transport volumes from New Mexico to low-pressure LandBridge-owned pore space in Loving and Winkler counties. By accelerating it, we expect to shift growth from this project into early '27. It's a good example of how we direct capital toward highest return opportunities as they develop, and it's one of the reasons behind our increased capital plan. Another way we're supporting high activity levels in the Northern Delaware Basin is through the acquisition of Ranger. Beyond the immediate contribution from existing assets and contracted volumes, Ranger is highly complementary to our Speedway Phase 1 and anticipated Phase 2 infrastructure. In the second half of the year, we plan to invest in connecting Ranger and Speedway, which will fully unlock the operational advantages of the acquired infrastructure. Once they're connected, we'll have even more flexibility to enable recycling and treated water supply, and we'll be well positioned to maximize throughput as customer development continues across the region. Our recent investments in our environmental waste management business are a complementary growth driver that adds value to our core business. The NDB Landfill acquisition delivers immediate high-margin revenue upside and the construction of a fourth solids facility along the Stateline is an attractive opportunity to grow our business with high return on capital revenue realization beginning in '27. Looking out further, WaterBridge is uniquely positioned to participate in the digital infrastructure opportunity rapidly developing across the Delaware Basin. This is where our operating model and our partnership with LandBridge really sets us apart, positioning WaterBridge to move beyond traditional oil and gas enablement by potentially serving as a full-scale utility partner to hyperscalers. This opportunity is a direct result of the scale of our infrastructure in place today. We have access to large and growing produced water volumes, approximately 5 million barrels a day of handling capacity in the Delaware Basin with roughly 2.6 million barrels a day of total active volumes in the second quarter. Through our partnership with LandBridge, we're also well positioned to be an infrastructure partner for brackish water supply with access to approximately 13.4 million acre-feet, which satisfies multi-gigawatt scale data center water needs almost indefinitely. Our integrated network connects those resources directly to the high-demand growth centers and industrial corridors where the digital infrastructure is taking shape. And because we manage the entire water life cycle, backed by more than a decade of disposal expertise, we can supply data center water needs for cooling, then recycle and dispose of the liquid and solid waste products. That full-cycle capability from supply through disposal is critical for data center operations and the scale of infrastructure required gives WaterBridge a distinct advantage over its competitors. From near-term projects like Speedway and the New Devon project to longer term opportunities in digital infrastructure, we've never had more attractive high-return growth in front of us. And with that, I'll hand it over to Scott to walk you through the quarter's financial results. Scott McNeely: Thank you, Chop, and good morning, everyone. We reported strong second quarter results, capping off significant growth for the first half of the year. As Jason referenced, we are raising our full year 2026 guidance and now expect full year volumes of 2.55 million to 2.75 million barrels per day and adjusted EBITDA in the range of $435 million to $475 million due to the expected second half impacts of the Ranger and NDB Landfill acquisitions. We are also raising our CapEx guidance by $100 million to a range of $530 million to $590 million, reflective of the planned investments in Ranger, construction of a new landfill facility in the Stateline region, acceleration of the New Devon project and other commercially driven new build and bolt-on infrastructure projects. Importantly, every incremental project in our forecast meets or exceeds our capital allocation criteria, featuring build multiples below 5x, long-term contracts, creditworthy counterparties and the ability to fund them while maintaining the strength of our balance sheet. In Q2, we delivered record revenue of $217.8 million, representing 8% sequential growth. The increase was primarily driven by higher produced water volumes and higher rates on contracts that became operational during the quarter. As you know, our contracts are primarily longer term with minimal volumes. Net income was $14.6 million compared to $9.5 million in the first quarter. Adjusted EBITDA increased to $115.8 million, up from $102.9 million in the first quarter, representing approximately 12% sequential growth. Adjusted EBITDA margin improved to 53%, reflecting the benefits of higher throughput, the scalability of our infrastructure base and continued operating discipline across the platform. Adjusted operating margin was $124.1 million, up from $111.3 million in the first quarter, and gross margin improved sequentially to $58.1 million from $48.2 million in Q1. Capital expenditures were $123.3 million during the quarter. Spending was primarily driven by the Speedway build-out and ongoing Stateline infrastructure development. We ended the quarter with total liquidity of $347.6 million, including $47.6 million of cash and approximately $300 million of available borrowing capacity under our revolving credit facility. Total debt was $1.636 billion, and our covenant net leverage ratio was 3.3x. We remain committed to our long-term leverage target of sub 3x. Subsequent to quarter end, we took steps to increase our liquidity by expanding our revolving credit borrowing base. We amended our revolving credit facility, increasing commitments from $500 million to $750 million with the ability to grow it further to as much as $1 billion, and we reduced our borrowing cost by 25 basis points across the pricing grid. That gives us even more flexibility to fund our high-return capital program while staying within our leverage targets. WaterBridge maintains a disciplined capital allocation framework, empowering the company to strategically deploy capital and execute on our fiscal priorities, which include: first, driving organic growth across our infrastructure network alongside accretive acquisitions such as Ranger and NDB Landfill. Second, maintaining a conservative balance sheet and prudent capital structure that maximizes financial flexibility and contributes to our long-term leverage target. And third, opportunistically returning capital to shareholders through dividends and share repurchases. This quarter, we announced a dividend of $0.05 per share. To close, our results this quarter reflect the business with real operating leverage, a disciplined approach to capital and a balance sheet built to fund growth. A 53% adjusted EBITDA margin, a second straight guidance raise, an upsized revolver and a dividend all point to the same thing: durable, high-return growth that continues to reward shareholders. We are confident in the path ahead. Thank you for joining today. Operator, can you please open the line for questions? Operator: [Operator Instructions] Your first question comes from the line of Derrick Whitfield with Texas Capital. Derrick Whitfield: Congrats on the quarter and your acquisitions. Wanted to start with the landfill acquisition and your organic landfill opportunity in the Stateline area. Could you speak to why you chose to buy versus build in New Mexico and also the kind of broader growth opportunity you see for solid waste over the next few years across the Delaware and perhaps ending with just how you see the convergence in value between water and solid waste streams? Scott McNeely: Yes. Thanks for the question, Derrick. As a reminder, we had about 5% of our business at IPO through Desert Environmental, which was environmental waste management. At the time, we had flagged that business line as very promising, but we hadn't contemplated any meaningful growth. But ultimately, today, we see a lot of the same fundamentals that drive our core produced water business driving waste management. So a mix of overlapping customers, the criticality of surface control, a meaningful permitting and regulatory components serving as a competitive moat and that long-term criticality to the Delaware Basin operators, all of which are driving water is also driving the need for a good waste management solution. And so it was a real -- it was a natural step--out for us as we look to other ways to kind of intelligently grow but stick with our core strategy and our core operations. Coming out of this, we will be at about 10% of our business at waste management. So by no means a meaningful ramp-up, but we think a step in the right direction here. And to add just kind of a couple of other points of additional context, and I think relevant to your questions. First, WaterBridge itself actually generates a meaningful amount of solid waste as part of its operations. So as we look to build and scale our infrastructure on the water handling side along the Stateline, there is going to be waste byproducts that come with that. And so establishing a foothold for waste management in Lea County, which is the core of the oil and gas activity as we see it here for the foreseeable future and adjacent to our infrastructure allows us not just to capture third parties, but also keep our cost structure at WaterBridge tight and margins attractive. So a real vertical integration story and one that we think is additive. And then lastly, to address your view on valuations, I mean, we've said from the onset that there are just so many parallels with the waste management thesis and the water handling thesis. And it goes back to a lot of those same fundamentals that I mentioned earlier, primarily the criticality of geography of surface control and of regulatory footprint and a regulatory dynamic. And so from our seat, they're really -- because of those competitive moats, there wasn't an opportunity to work through the organic build-out in New Mexico like we had in the fourth site in Texas. And so it made stepping into this acquisition make all of the sense at the time. And so as we kind of see it coming together, see waste management growing as a part of our business at WaterBridge, obviously, we're excited for all the reasons I just mentioned. But I mean, I would finalize by flagging the market has already seen a lot of this already work out very positively. And I'd refer you to SECURE Waste acquisition by GFL Environmental earlier this year as a meaningful premium. And for those of you who aren't familiar with SECURE Waste, a similar, call it, Canadian analog to WaterBridge in which they handle both produced water and solid waste, and it worked out fantastic for them. And so while that serves as a helpful data point, it's certainly not the only reason we're doing this, but we are excited about it. We're able to work through this growth at both from an acquisition standpoint as well as an organic standpoint that competes with or is not better than what we're seeing from a return perspective on produced water. Derrick Whitfield: Extremely helpful. And as my follow-up, I wanted to focus on the Ranger Water Midstream acquisition. Its fit and value are very clear as shown on Slides 8 and 9. But as we think about the sizing of Project Speedway Phase 2, could you elaborate on the impact this acquisition could have on total throughput as you're closing in on your FID decision? Michael Reitz: Yes. Thanks for the question. It's a really complementary set of assets and comes with a new set of customers as well. So we do think that it could add volumes to the Speedway system as it grows, but we'll remind you that we're not going to overcommit our firm capacity on that pipeline system. So yes, we do have the ability to utilize both the Ranger assets for overflow from Speedway as well as the Speedway system for overflow from the Ranger contracts. Scott McNeely: Yes. I would just add, Ranger, similar to the landfill acquisition we're working through, 18- to 24-month time frame, we expect that to be competitive with, if not better than the 5x investment multiple we seek to achieve on organic growth projects. And so we've said historically, we'll be judicious around M&A, but it has to compete for our capital against the attractive returns we're seeing organically and both of these acquisitions certainly fit that mold. Operator: Your next question comes from the line of Jackie Koletas with Goldman Sachs. Jacqueline Koletas: First, just wanted to touch a little bit again on the waste management business. I mean, so is there appetite for further waste management investments from here? Are there -- or are there incremental opportunities for you to grow this further in the near term? And how do those returns compare to the water opportunities across your footprint? From a margin perspective, how would you potentially square the difference between those 2 businesses? Scott McNeely: Jackie, we will continue to look at acquisition opportunities. I think for waste management, very similar to our water infrastructure, we need to ensure that it meets our underwriting thresholds. We need to ensure that it's not cannibalizing an opportunity set or a business line that we can either service via the infrastructure we have in place today or that we can tackle through organic growth. I mentioned in my answer to Derrick that there are very real competitive moats that exist here, the regulatory piece being the big one that sometimes prohibits our ability to work through an organic growth project, which drives the need for acquisitions like we're seeing here. But no, we will continue to evaluate these. We think the demand for these types of facilities is only going to increase. And we'll have to constantly look at just the evolving landscape to see how that need kind of moves. From a returns perspective, very similar to water infrastructure, we'd always prefer to do it organically if we could. We spoke in the prepared remarks as well as in the deck that the returns on the organic build-out here eclipse even what we see on the water side. And so that Stateline opportunity on build-out that we're going to be working through, we expect a 2-year payback on the capital needed for that facility. And so incredibly attractive returns on capital. And then kind of once those facilities are online, a margin profile that is either equivalent to or slightly improved compared to what we see on the free water handling piece of the business. Jacqueline Koletas: That's helpful color. I appreciate it. And just as a follow-up, touching a little bit more on your data center opportunities. Water security is rapidly emerging as a critical gating item for data center development. In your discussions with potential hyperscaler customers, how high of a priority is securing long-term water solutions? Could treated produced water help support a water positive narrative for these companies required to meet ESG mandates? And how do you see commercial demand for water treatment evolving as a result? Scott McNeely: Yes. I'll start, and then I'll turn it over to Chop for any follow-up remarks. But ultimately, water is critical for both enabling operations and keeping operations online once they're up and running. So these have been active discussions with virtually all the counterparties we're working through on the LandBridge side, but also some incremental counterparties that are called WaterBridge specific. Now ultimately, what we're looking to deploy here is not the kind of water that the municipalities necessarily need. It is non-potable brackish or treated produced water like I mentioned. And so a real value proposition in terms of, one, being able to access the water, the brackish water resource that LandBridge has today and use that in the near term. But second, and what I think is really exciting is this potential to treat produced water and deploy that for cooling for both power as well as for digital infrastructure. And I would say with where we sit at the moment, we have incredibly high confidence in both the operational and the commercial viability of deploying treated produced water for cooling. And at the moment, we're working with both local state as well as national level officials on effectively defining the regulatory framework that is going to allow us to do that. And we've got buy-in from blue-chip counterparties as part of those efforts. And so it's a very exciting point for us on the WaterBridge side. We think that there's going to be some very -- I would call it definitive, but very optimistic news that we can share with the public in the back half of the year, if not more imminently to put a little better framework out there for everyone to understand. And Chop, anything you'd add to that? Michael Reitz: You said it pretty well. But -- yes, I would just add that we do have the scale of brackish water supply and access to that brackish water supply to, as we mentioned, supply these multi-gigawatt data centers for a very, very long time. But what we think is really the holy grail is being able to take this waste byproduct, which is produced water and convert that to a usable industrial supply water. And we think it's real, and we think that we have probably the best opportunity to do so because of our infrastructure in place today, we can aggregate a lot of water into one single point, which is really hard to replicate. And that's really what these data centers need is the assurance that they have not only enough supply from the brackish side, but enough supply from the produced side, and that's really what we can offer. Operator: [Operator Instructions] Our next question comes from the line of Michael Furrow with Pickering Energy Partners. Michael Furrow: Based on the updated produced water handling guidance range, the upper end of the range implies a meaningful ramp in volumes over the next 2 quarters, which I think you guys said in the prepared remarks. So what would you need to see in order to bring the lower half of guidance into play based on what you're seeing on the current ramp of Speedway and other projects? Is that sort of dependent on a meaningful pullback in drilling activity? Scott McNeely: Michael, yes, that's exactly right. I mean I think with where we're at today, it's a very low likelihood. But if we saw a black swan event and kind of commodity prices pivot to the negative and drilling activity falls, I think that becomes a risk, and we just want to be honest about that. But ultimately, we're very much focused on stepping out with, call it, conservative guidance. And I would say it's going to take something pretty outsized for that bottom half to really be a meaningfully call it potential outcome here. Michael Furrow: Yes. That makes a lot of sense. And as a follow-up, just staying with the Northern Delaware Basin landfill. We're trying to get a better understanding of the unit economics. So looking at Slide 8, the deck discloses 44 million cubic yards of capacity that represents 40 years of solid waste handling capacity. So the rough math would suggest something like 1 million cubic yards per year. From what we can find, a waste management facility can often collect somewhere between $25 to $30 a cubic yard, but of course, that's dependent upon a multitude of factors. So from your perspective, does that sound like the right ballpark for the acquired facility? Scott McNeely: That's ultimately going to be conservative. I would say the all-in figures, if you were to work through the framework you just laid out are going to be higher. You're probably looking closer to $40 to $45 all in if you were looking for a simple way to model it. Operator: Our final question will come from the line of Don Crist with Johnson Rice. Donald Crist: I wanted to talk about Speedway. I know you said it's taking volumes now and it's going to ramp up as we go into the back half of the year. But I also wanted to ask about Speedway 2 and the time line of sanctioning and kind of inflationary factors there. Just any comments around, number one, the ramp-up of Speedway 1, but the progress of Speedway 2 as we move forward? Michael Reitz: Yes. Thanks, Don. I'll take that and then Scott can follow up. But Speedway Phase 1 is online. The team did a really great job getting prepared for bringing that system online. And so we're being thoughtful about how we ramp that system to really learn how it operates and prevent any kind of issues and potential downtime in the future. So we will ramp over the next couple of months up to around 100,000 barrels a day and hope to exit the year well above that. As far as Speedway 2 goes, the commercial conversations are going great. But as you can appreciate, with the quality of counterparties and sophisticated counterparties that we're working with, contracting takes time. And so that's what we're working through right now. Donald Crist: Okay. But you would still expect to have something sanctioned probably by year-end. I don't want to pin you down to a time frame, but is that the right time frame to think of? Michael Reitz: Yes, we think so. Scott McNeely: Yes, potentially imminent, but back half of this year, we have a high degree of confidence in. Donald Crist: Okay. And if I could squeeze in one more. Just on customer activity going forward. We've seen a bunch of rigs being added to the rig count, but we haven't seen a lot of completion crews and it's our analyst contention that there's going to be a whole lot more activity as we move into '27. Are you -- I know you're early in the process when these guys are planning. Are you seeing increased activity as we move into '27 from kind of the bigger guys? I know we've seen a little bit from the smaller guys to date, but are you seeing increased activity as we move into '27 from the bigger operators out there? Scott McNeely: Yes, I think that's a good way to look at it. I mean there's been several public statements made through the course of the last 6 months that if the forward strip into '27 kind of hit or exceeded the mid-70s, you would see a more aggressive hedge program put in place and greater activity in '27 and certainly what was contemplated stepping out of '25 in a much softer commodity price environment. And so no one has come to us and kind of formally firmed up their '27 programs yet, although we expect to start getting that here pretty soon. But I think generally speaking, we expect a much more constructive year next year than certainly what we were expecting at the beginning of this year. But even I would say, over the course of the last few months, we've seen it evolve to the positive. Operator: There are no further questions at this time. I will now turn the call back to Scott McNeely for closing remarks. Scott McNeely: Yes. Thanks again to everyone for joining us today. We appreciate your ongoing focus on WaterBridge. Again, we're very excited stepping out of the quarter with both the acquisitions as well as just the operational momentum we have stepping into the back half of this year. Again, just so much opportunity ahead of us in a number of different business lines, and we're really excited to circle back and give you all more updates here as they materialize. But thanks again. We hope you all have a good day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in WaterBridge Infrastructure Llc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and WaterBridge Infrastructure Llc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. WaterBridge Infrastructure (WBI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. WaterBridge Infrastructure (WBI) moved into focus after its August 5 earnings release, which combined second quarter results, updated full year volume guidance, and a new Class A dividend declaration. See our latest analysis for WaterBridge Infrastructure. Since the earnings release and updated 2026 volume guidance on August 5, WaterBridge Infrastructure’s share price has eased, with a 1 day share price return of 2.2% lower and a 7 day share price return of 5.4% lower, although the year to date share price return of 62.3% still reflects strong recent momentum. If you are weighing WaterBridge Infrastructure against other opportunities in energy infrastructure, it can help to scan a wider field of potential ideas with the 37 power grid technology and infrastructure stocks After a sharp run and a recent pullback, the question for WaterBridge Infrastructure is whether the main repricing has already played out or if the current level still leaves meaningful upside on the table. The valuation numbers offer some clues in the next section. The most followed narrative pegs WaterBridge Infrastructure’s fair value around $33.57, slightly above the recent $32.00 close. This frames the stock as modestly discounted on that view. Read the complete narrative. Read the complete narrative. Want to understand why this valuation leans supportive of WaterBridge Infrastructure at today’s price? The core of the narrative is a multi year build out, rising contracted volumes and a richer margin mix. Together, these factors underpin the cash flow path behind that fair value. Result: Fair Value of $33.57 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the WaterBridge Infrastructure story can change quickly if large capital projects encounter cost or timing issues, or if Delaware Basin water volumes soften. Find out about the key risks to this WaterBridge Infrastructure narrative. With a mix of positives and concerns in the WaterBridge Infrastructure story, it makes sense to review the details for yourself and decide quickly where you stand. To see both sides of the argument in one place, take a closer look at the 3 key rewards and 2 important warning signs If you stop with just WaterBridge Infrastructure, you might miss other stocks that fit your goals. Give yourself options and keep building your opportunity set. Spot potential value standouts early by scanning the 52 high quality undervalued stocks that combine quality fundamentals with attractively priced shares. Secure more dependable income streams by reviewing the 8 dividend fortresses focused on companies that offer yields above 5% alongside resilient profiles. Strengthen the defensive side of your portfolio by checking the 83 resilient stocks with low risk scores built around stocks with relatively lower overall risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WBI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in WBI? Here are five stocks we like better. Record second-quarter performance: Revenue rose 8% sequentially to $217.8 million, while adjusted EBITDA increased 12% to $115.8 million, supported by higher volumes, stronger contract rates and operating leverage. 2026 guidance was raised again: WaterBridge now expects volumes of 2.55 million–2.75 million barrels per day and adjusted EBITDA of $435 million–$475 million, while increasing capital-expenditure guidance by $100 million to $530 million–$590 million. Expansion broadens the growth platform: The Ranger acquisition, planned NDB Landfill purchase and new state-line waste facility add disposal, recycling and waste-management capacity, while Speedway is ramping toward 100,000 barrels per day and the company explores longer-term data-center water demand. WBI (NYSE:WBI) reported record second-quarter revenue and adjusted EBITDA, citing higher produced-water volumes, new contract rates and organic growth across its Delaware Basin infrastructure network. The company also raised its 2026 outlook for volumes, adjusted EBITDA and capital expenditures following the acquisition of Ranger Water Midstream and an agreement to acquire the NDB Landfill in Lea County, New Mexico. Chief Executive Officer Jason Long said demand for the company’s existing infrastructure has been particularly strong along the state line, where pore-pressure constraints are reducing injection capacity. He said the company is benefiting from its ability to handle and recycle rising produced-water volumes through its integrated network. → No Hangover: Revisiting Microsoft One Week After Earnings WaterBridge reported second-quarter revenue of $217.8 million, up 8% sequentially. Net income rose to $14.6 million from $9.5 million in the first quarter, while adjusted EBITDA increased about 12% sequentially to $115.8 million from $102.9 million. Chief Financial Officer Scott McNeely said adjusted EBITDA margin reached 53%, reflecting higher throughput, the scalability of the company’s infrastructure and operating discipline. Adjusted operating margin was $124.1 million, compared with $111.3 million in the first quarter, while gross margin increased to $58.1 million from $48.2 million. → MarketBeat Week in Review – 08/03 - 08/07 Second-quarter capital expenditures totaled $123.3 million, largely directed toward the Speedway build-out and continued state-line infrastructure development. WaterBridge ended the quarter with $347.6 million of total liquidity, consisting of $47.6 million in cash and about $300 million of available revolver capacity. Total debt was $1.636 billion, and its covenant net leverage ratio was 3.3 times. After the quarter ended, the company expanded commitments under its revolving credit facility to $750 million from $500 million, with capacity to increase to as much as $1 billion. McNeely said the amendment also reduced borrowing costs by 25 basis points across the pricing grid. The company reiterated its long-term target of maintaining leverage below 3 times. → Why the Landlord of the AI Boom Could Outlast the Chipmakers WaterBridge raised its full-year 2026 outlook for the second consecutive quarter. The company now expects volumes of 2.55 million to 2.75 million barrels per day and adjusted EBITDA of $435 million to $475 million. McNeely attributed the higher forecast to expected second-half contributions from the Ranger Water Midstream and NDB Landfill acquisitions. The company also increased its 2026 capital-expenditure guidance by $100 million to a range of $530 million to $590 million. The expanded plan includes investments to connect Ranger assets with Speedway, construction of a new state-line landfill, acceleration of the New Devon project and other customer-backed new-build and bolt-on infrastructure projects. McNeely said incremental projects in the forecast meet the company’s capital-allocation criteria, including build multiples below 5 times, long-term contracts and creditworthy counterparties. WaterBridge also declared a quarterly dividend of $0.05 per share. WaterBridge completed its acquisition of Ranger Water Midstream, adding disposal wells with about 70,000 barrels per day of permitted capacity, approximately 30 miles of produced-water gathering pipelines, a treatment facility with capacity of up to 100,000 barrels per day and 1.2 million barrels of storage. The assets are in disposal-constrained Lea County and are adjacent to the company’s Speedway system. Long said Ranger has established contracts and acreage dedications with blue-chip producers and is expected to be immediately accretive. Chief Operating Officer Michael “Chop” Reitz said WaterBridge plans to invest during the second half to connect Ranger and Speedway, providing flexibility for recycling, treated-water supply and throughput management. Management said it expects the acquisition to achieve returns competitive with, or better than, its targeted 5-times investment multiple over an 18- to 24-month period. The company also agreed to acquire the 560-acre NDB Landfill in Lea County. The facility has 44 million cubic yards of permitted capacity, with current open capacity representing more than 40 years of future volumes, according to WaterBridge. McNeely said the company expects waste management to represent roughly 10% of its business after the transactions, compared with about 5% at its initial public offering through its Desert Environmental business. In addition, WaterBridge’s board approved construction of a 280-acre environmental waste-management facility in the state-line region. Construction is expected to begin in the third quarter, with an anticipated mid-2027 in-service date. Management expects the project to have an approximately two-year capital payback period and said the new facility will be the company’s fourth site in the basin. Reitz said Speedway Phase I began receiving first volumes in July as scheduled. The company expects to ramp the system to roughly 100,000 barrels per day over the next several months and to exit 2026 above that level. Commercial discussions for Speedway Phase II are advancing, and management said it has a high degree of confidence that a sanctioning decision could come in the second half of the year. Management also highlighted potential demand from digital infrastructure and data-center development in the Delaware Basin. Reitz said WaterBridge has approximately 5 million barrels per day of handling capacity in the basin and handled roughly 2.6 million barrels per day of active volumes during the second quarter. Through its partnership with LandBridge, WaterBridge said it has access to approximately 13.4 million acre-feet of brackish-water resources. McNeely said the company is discussing long-term water solutions with potential hyperscale data-center customers and sees an opportunity to provide non-potable brackish water or treated produced water for cooling, while also managing recycling and disposal of associated waste streams. The company said it is working with local, state and national officials to help establish a regulatory framework for treated produced water to be used in cooling applications. Management said it expects to provide further updates on the opportunity in the second half of the year or sooner. WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "WBI Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record revenue and adjusted EBITDA by leveraging a scaled integrated network to monetize high commercial demand for produced water recycling and disposal. Capitalized on pore pressure constraints along the Stateline region, where shrinking injection capacity has increased the value of WaterBridge's existing infrastructure and out-of-basin disposal access. Executed the acquisition of Ranger Water Midstream to secure 70,000 barrels per day of permitted capacity in the disposal-constrained Lea County, providing immediate accretion and operational flexibility. Strategically expanded into environmental waste management with the NDB Landfill acquisition and a new organic facility build, doubling permitted waste handling capacity in the Delaware Basin. Integrated waste management serves as a vertical integration play, reducing internal hauling costs for water operations while capturing high-margin third-party revenue from overlapping E&P customers. Maintained a disciplined capital allocation framework, prioritizing projects with build multiples of 5x or better and long-term contracts with creditworthy counterparties. Raised full-year 2026 guidance for volumes and adjusted EBITDA, reflecting the anticipated second-half contributions from the Ranger and NDB Landfill acquisitions. Accelerated the New Devon project timeline to move growth into early 2027, shifting capital toward high-return opportunities that transport volumes to low-pressure pore space. Anticipate a formal investment decision on Speedway Phase 2 in the second half of 2026, supported by robust customer demand and ongoing commercial underwriting. Positioning as a utility partner for digital infrastructure, leveraging vast brackish water resources and produced water treatment capabilities to meet multi-gigawatt data center cooling needs. Guidance assumes a constructive commodity price environment, with management noting that only a 'black swan' event or significant drilling pullback would threaten the lower end of the range. Increased 2026 CapEx guidance by $100 million to fund the Ranger integration, new landfill construction, and accelerated infrastructure projects. Expanded revolving credit facility commitments from $500 million to $750 million, with a 25 basis point reduction in borrowing costs to enhance financial flexibility. Identified regulatory framework definition as a key dependency for the commercial deployment of treated produced water in industrial and data center applications. Targeting a long-term covenant net leverage ratio of sub 3x, down from the current 3.3x, through disciplined growth and operating leverage. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that waste management shares the same fundamentals as water—criticality of surface control, regulatory moats, and overlapping customers. The business is expected to grow from 5% to 10% of the total portfolio, offering margins equivalent to or better than water handling. Referenced the SECURE Waste acquisition by GFL Environmental as a positive market valuation analog for integrated water and waste platforms. Expressed high confidence in the operational and commercial viability of using treated produced water for data center cooling. Currently working with state and national officials to define the regulatory framework, with 'optimistic news' expected in the back half of the year. Emphasized that WaterBridge's ability to aggregate large volumes at single points is a unique advantage for hyperscale supply requirements. Speedway Phase 1 is currently ramping toward 100,000 barrels per day, with Phase 2 sanctioning expected by year-end 2026. The Ranger acquisition provides overflow capacity for Speedway and vice versa, though management will not overcommit firm capacity on the pipeline system. Management clarified that all-in revenue figures for the acquired waste facility are expected to be between $40 to $45 per cubic yard. The organic landfill build in the Stateline region is projected to have an exceptionally short two-year capital payback period.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record revenue and adjusted EBITDA in Q2 2026, with 8% sequential revenue growth and 12% sequential adjusted EBITDA growth. Adjusted EBITDA margin improved to 53%, reflecting higher throughput and operational scalability. Closed accretive acquisition of Ranger Water Midstream, adding disposal capacity, pipelines, and treatment facilities in the Delaware Basin. Expanding environmental waste management business with NDB landfill acquisition and organic construction of a new facility, doubling total facility count and more than doubling permitted waste handling capacity. Raised full-year 2026 guidance for volumes and adjusted EBITDA for the second consecutive quarter, driven by strong demand and new projects. Speedway Phase 1 launched on schedule, with volumes ramping and Phase 2 demand robust, potentially leading to near-term FID. Increased liquidity by expanding revolving credit facility from $500 million to $750 million (with potential to $1 billion) and reduced borrowing costs by 25 basis points. Strong positioning for digital infrastructure opportunities, leveraging produced water and brackish water resources for potential hyperscaler partnerships. Disciplined capital allocation with all incremental projects meeting or exceeding return criteria, including build multiples below 5 times. Declared a dividend of $0.05 per share, returning capital to shareholders. Net leverage ratio at 3.3 times, above the long-term target of sub 3 times, indicating higher debt levels. Capital expenditures guidance raised by $100 million to $530-$590 million, increasing financial commitments. Speedway Phase 1 volumes are still ramping, with potential operational risks during the ramp-up period. Speedway Phase 2 FID not yet finalized, with contracting taking time and no definitive timeline provided. Lower end of volume guidance could be at risk if commodity prices decline sharply and drilling activity halts. Acquisitions (Ranger, NDB landfill) may face integration risks and may not achieve expected returns if market conditions change. Dependence on regulatory approvals for treated produced water use in data centers, which is not yet fully defined. Increased competition and capacity constraints in the Delaware Basin could pressure pricing and margins. The company's growth strategy relies heavily on continued high activity levels in the Permian Basin, which could be cyclical. Potential for higher interest costs despite the revolver expansion, as debt levels remain elevated. Warning! GuruFocus has detected 8 Warning Signs with WBI. Is WBI fairly valued? Test your thesis with our free DCF calculator. Q: Could you speak to why you chose to buy versus build the landfill in New Mexico, and the broader growth opportunity you see for solid waste over the next few years across the Delaware? A: CEO Jason Long explained that the acquisition was a natural step, driven by overlapping customers, the criticality of surface control, and a meaningful permitting and regulatory component serving as a competitive moat. He noted that WaterBridge itself generates solid waste, making the vertical integration additive. He highlighted that the organic build-out in New Mexico wasn't feasible due to regulatory dynamics, making the NDB acquisition the right move. He also referenced the Secure Waste acquisition by GFL Environmental as a positive data point for the sector. Q: As we think about the sizing of Project Speedway Phase 2, could you elaborate on the impact the Ranger acquisition could have on total throughput as you're closing in on your FID decision? A: COO Michael Choff-Wrights stated that Ranger is a highly complementary set of assets that comes with a new set of customers, potentially adding volumes to the Speedway system. However, he emphasized that the company will not overcommit its firm capacity on the pipeline system, and the assets can be used for overflow in either direction. CFO Scott McNeely added that Ranger is expected to be competitive with, if not better than, the five times investment multiple sought on organic growth projects. Q: Is there appetite for further waste management investments from here, and how do those returns compare to the water opportunities across your footprint? A: CFO Scott McNeely confirmed the company will continue to evaluate acquisition opportunities, but they must meet underwriting thresholds and not cannibalize existing infrastructure. He noted that the organic build-out in the state line region offers a two-year capital payback period, which is even more attractive than water-side returns. Once online, the margin profile for waste management is expected to be equivalent to or slightly improved compared to produced water handling. Q: In your discussions with potential hyperscaler customers, how high of a priority is securing long-term water solutions, and could treated produced water help support a water-positive narrative? A: CFO Scott McNeely stated that water is critical for enabling and keeping operations online, with active discussions underway with virtually all counterparties. He highlighted the potential to treat produced water for cooling, expressing high confidence in its operational and commercial viability. He noted ongoing work with local, state, and national officials to define the regulatory framework, with optimistic news expected in the back half of the year. COO Michael Choff-Wrights added that the company's scale of brackish water supply and ability to aggregate produced water into a single point provides a distinct advantage for data center needs. Q: Based on the updated produced water handling guidance range, what would you need to see in order to bring the lower half of guidance into play? A: CFO Scott McNeely stated that the lower half of guidance is a very low likelihood outcome, requiring a "black swan" event such as a commodity price pivot and halt in drilling activity. He emphasized that the company is focused on providing conservative guidance, and it would take something pretty outsized for the bottom half to become a meaningful potential outcome. Q: From your perspective, does the $25 to $30 per cubic yard figure sound like the right ballpark for the acquired NDB landfill facility? A: CFO Scott McNeely indicated that the all-in figures would be higher than the suggested range, closer to $40 to $45 per cubic yard for simple modeling purposes, making the acquisition more attractive than initially estimated. Q: Could you provide comments around the ramp-up of Speedway Phase 1 and the progress of Speedway Phase 2, including the timeline for sanctioning and inflationary factors? A: COO Michael Choff-Wrights stated that Speedway Phase 1 is online and ramping thoughtfully to around 100,000 barrels per day over the next couple of months, with expectations to exit the year well above that. For Phase 2, commercial conversations are progressing well, but contracting with sophisticated counterparties takes time. CFO Scott McNeely added that sanctioning could be "potentially imminent" but with a high degree of confidence within the year. Q: Are you seeing increased activity as we move into 2027 from the bigger operators out there? A: CFO Scott McNeely noted that several public statements suggest that if the forward strip into 2027 hits or exceeds the mid-$70s, operators would implement more aggressive hedge programs and greater activity. While no operators have formally firmed up their 2027 programs yet, he expects a much more constructive year next year than initially anticipated, with the outlook evolving positively over the last few months. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Reports second quarter 2026 produced water handling volumes of 2.6 million barrels per day and revenue of $217.8 million, representing quarter-over-quarter growth of 6% and 8%, respectively Announces strategic acquisition of Ranger Water Midstream in Lea County, New Mexico Announces doubling of environmental waste management business facilities and scale through agreement to acquire the Northern Delaware Basin Landfill in Lea County, New Mexico, and greenfield investment in constructing a fourth waste management facility in the Stateline area Increases full year 2026 guidance as a result of recent acquisitions and positive commercial project developments Declares quarterly cash dividend of $0.05 per share HOUSTON, August 05, 2026--(BUSINESS WIRE)--WaterBridge Infrastructure LLC (NYSE: WBI; NYSE TX: WBI) (the "Company" or "WaterBridge") today announced its financial and operating results for the second quarter of 2026. Second Quarter 2026 Financial and Operational Highlights Produced water handling volumes of 2.6 million barrels per day, representing an increase of 6% quarter-over-quarter Revenue of $217.8 million, representing an increase of 8% quarter-over-quarter Net income of $14.6 million Net income margin of 7% Adjusted EBITDA of $115.8 million Adjusted EBITDA Margin of 53%(1) Gross margin of $58.1 million Adjusted Operating Margin of $124.1 million(1) Announced quarterly cash dividend of $0.05 per share Recent Milestones Closed strategic acquisition of Ranger Water Midstream, adding ~70 Mbpd of produced water handling capacity, ~30 miles of produced water pipelines, and ~1.2MM barrels of produced water storage capacity in Lea County, New Mexico Announced the near-term doubling of facilities and capacity of the Company's complementary environmental waste management business through two investments: Updated full year 2026 guidance ranges based on the anticipated impacts of the Ranger Water Midstream acquisition, NDB Landfill acquisition, greenfield landfill facility construction, and high-return commercial projects to allow incremental growth capture: Brought first volumes online for Speedway Phase I Pipeline project in July 2026, with volumes on track to continue ramping through the quarter Announced that the special committee of independent directors formed to evaluate the potential conversion from a Delaware limited liability company to a Texas corporation acknowledges the long-term benefits of conversion and expects to re-visit the decision when full index eligibility requirements are met Prior to the closing of WaterBridge's initial public offering (the "IPO") on September 18, 2025, WaterBridge completed the successful combination (the "Combination") of its legacy entities WaterBridge Equity Finance LLC ("WBEF"), WaterBridge NDB Operating LLC ("NDB Operating") and Desert Environmental LLC ("Desert Environmental"). For second quarter 2026 figures presented in this release, prior year figures are not presented for comparison, as they reflect only NDB Operating results, and therefore have limited utility relative to the current period. Instead, the Company will compare our current quarter results to the prior quarter results, and expects to be able to provide prior-year periods for comparison beginning in the third quarter of 2026. Comparisons to the second quarter of 2025 can be found in the Company's Quarterly Report on Form 10-Q, which was filed with the U.S. Securities and Exchange Commission ("SEC") on August 5, 2026. Management Commentary Jason Long, Chief Executive Officer of WaterBridge, stated, "Our second quarter results reflect the continued strength of our base business, with sequential growth in both volumes and revenue and operations continuing to outperform across the platform. Speedway Phase I is now online and ramping as expected, giving us strong visibility into one of our most important near-term growth drivers, while the ongoing ramp of the Kraken project further reinforces the durability of our underlying network. Just as encouraging is our ability to pair organic momentum with disciplined acquisitions, including the Ranger Water Midstream acquisition and the expansion of our environmental waste management platform through the NDB Landfill acquisition and new Stateline landfill construction, a reflection of the breadth of opportunity we continue to see across the Delaware Basin." Scott McNeely, Chief Financial Officer of WaterBridge, stated, "Our second quarter results demonstrate the scalability of our platform, with revenue growing 8% quarter-over-quarter and Adjusted EBITDA increasing to $115.8 million from $102.9 million in the first quarter. We continue to generate competitive returns on the capital we are deploying, both toward strategic M&A and toward organic growth projects like Speedway and the New Devon Project, all of which are reflected in our increased full-year capital expenditure and Adjusted EBITDA guidance. With a strong balance sheet, ample liquidity, and growing visibility into the back half of the year, we are well positioned to fund this growth while continuing to return capital to shareholders." Second Quarter Operational Results Produced water handling volumes for the second quarter were 2.6 million barrels per day, representing a 6% increase compared to first quarter volumes. Volume growth was driven by the continued ramp of the Kraken project and an increase in commercial demand for access to our existing infrastructure. Second quarter capital expenditures were $123.3 million, primarily driven by continued construction costs for the first phase of the Speedway Pipeline project and continued investments in our Stateline produced water infrastructure. Gross margin and gross margin per barrel for the second quarter were $58.1 million and $0.22, respectively, an increase as compared to first quarter gross margin and gross margin per barrel of $48.2 million and $0.20, respectively. Adjusted Operating Margin and Adjusted Operating Margin per barrel were $124.1 million and $0.46 per barrel, respectively, as compared to first quarter Adjusted Operating Margin and Adjusted Operating Margin per barrel of $111.3 million and $0.45 per barrel, respectively.(1) Second Quarter Financial Results Revenue for the second quarter of 2026 was $217.8 million as compared to $201.0 million of revenue in the first quarter, representing an 8% sequential increase. Sequential revenue growth was mainly driven by increased volumes and higher rates on contracts operationalized within the quarter. Net income for the second quarter of 2026 was $14.6 million as compared to net income of $9.5 million in the first quarter. Adjusted EBITDA was $115.8 million in the second quarter of 2026 as compared to Adjusted EBITDA of $102.9 million in the first quarter.(1) Net income margin was 7% in the second quarter of 2026, and Adjusted EBITDA Margin was 53% in the second quarter of 2026.(1) Second Quarter Commercial Updates Ranger Water Midstream Acquisition On June 22, 2026, WaterBridge closed the acquisition of Ranger Water Midstream ("Ranger") in Lea County, New Mexico. Under the terms of the agreement, WaterBridge acquired Ranger’s produced water gathering infrastructure in Lea County, New Mexico, for $80 million in cash. The acquired infrastructure includes disposal wells with approximately 70,000 barrels per day of total permitted capacity, approximately 30 miles of produced water gathering pipelines, and approximately 1.2 million barrels of produced water storage capacity. The Ranger transaction further strengthens WaterBridge's position as the leading pure-play water infrastructure operator in the Northern Delaware Basin. The acquired infrastructure spans several townships in northern Lea County, extending the WaterBridge service footprint into central northern Lea County, where key Speedway operators continue to prioritize oil and gas development. The acquired bolt-on system serves a variety of large, high-quality producers and carries established acreage dedications that expand the Company's contracted throughput capacity for both produced water handling and supply water. The acquired assets are proximal to WaterBridge's Speedway Phase 1 and anticipated Phase 2 infrastructure and service areas, providing operational flexibility and positioning the combined platform to maximize throughput as Speedway is placed into service. The acquired infrastructure provides WaterBridge with access to both gathering and supply volume streams in a competitive recycling environment. Existing contracts and surface use agreements associated with the acquisition further provide WaterBridge the opportunity to utilize dedicated Speedway volumes for treated supply. In addition to its operational benefits, the transaction expands WaterBridge's commercial opportunity in the region, deepening relationships with key customers and broadening its overall service offering. The transaction is expected to be immediately accretive to all financial metrics prior to any synergies. Environmental Waste Management Business Acquisitions Subsequent to the quarter end, WaterBridge entered into an agreement to acquire the NDB Landfill in Lea County, New Mexico for net consideration of $169 million. The 560-acre facility includes ~44 million cubic yards of permitted capacity, with open capacity sufficient to handle more than 40 years of future solid waste volume, and includes on-site infrastructure that supports efficient liquid waste handling alongside its solid waste operations. The acquisition immediately expands WaterBridge's environmental waste management footprint into new markets across New Mexico. Lea County's sustained high levels of E&P activity support predictable and recurring waste volumes, and the transaction provides the Company another large, scalable platform in the basin for future growth in its environmental waste management business. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, including the receipt of all required approvals and consents. The $169 million net acquisition price reflects a purchase price of $189 million for the NDB Landfill offset by a subsequent agreement to sell approximately 560 acres of fee surface underlying the NDB Landfill to LandBridge for total consideration of $20 million and enter into a long-term surface use agreement with LandBridge, which is anticipated to close simultaneously with the NDB Landfill acquisition, subject to customary closing conditions and receipt of all required consents and approvals, so that net consideration is considered to be $169 million for the transaction. The sale of the land to LandBridge, including the valuation and the surface use agreement, was approved by a Conflicts Committee of the Board consisting entirely of independent directors. Subsequent to the quarter end, WaterBridge also invested in the near-term organic construction of a fourth environmental waste management facility in the Stateline region of the Delaware Basin. WaterBridge expects to begin construction on the facility in the third quarter of 2026, with the full facility expected to reach completion in mid-2027. Once constructed, the facility is expected to expand WaterBridge's integrated service capabilities across the Delaware Basin and generate direct operational efficiencies for the Company's core water handling business via reduced waste hauling costs. These investments reflect WaterBridge's continued commitment to the high-return environmental waste management side of its business. Together, the NDB Landfill transaction and Stateline facility construction are expected to double WaterBridge's environmental waste management site count, expanding its platform from two facilities to four, and more than double its total permitted waste handling capacity across the Delaware Basin. WaterBridge's environmental waste management business is a leading provider of waste management services in the Delaware Basin, supporting the Company's core produced water infrastructure network by reducing hauling costs and reinforcing operational efficiencies across WaterBridge's broader footprint, while also expanding WaterBridge's general waste management potential as a complementary growth platform. In addition, these investments build on the Company's existing relationships with E&P customers and its strategically located infrastructure to extend high-margin, high-return waste solutions into new markets. Strong Balance Sheet with Ample Liquidity Total liquidity was $347.6 million as of June 30, 2026, including approximately $300.0 million of available borrowing capacity under its revolving credit facility and total cash and cash equivalents of $47.6 million. The Company had $1.636 billion of total borrowings outstanding as of June 30, 2026, versus $1.486 billion as of March 31, 2026. Subsequent to quarter close on August 4, 2026, WBI Operating LLC, a subsidiary of the Company ("OpCo"), entered into an agreement to amend (the "Amendment") its 2025 revolving credit agreement (the "2025 Revolving Credit Facility"). Pursuant to the Amendment, the aggregate revolving commitments were increased by $250.0 million, from $500.0 million to $750.0 million, through the exercise in full of the incremental commitment capacity available under the facility. Concurrently, the Amendment re-established incremental commitment capacity of up to an additional $250.0 million, which may be exercised by OpCo from time to time subject to the receipt of additional commitments and the satisfaction of the other conditions set forth in the 2025 Revolving Credit Facility. Giving effect to the foregoing, aggregate revolving commitments may be increased to up to $1.0 billion. In addition, the Amendment reduced the applicable margins under the 2025 Revolving Credit Facility across the pricing grid by 0.25% (25 basis points) at each level. As amended, borrowings under the 2025 Revolving Credit Facility bear interest, at OpCo's option, at either (i) Term SOFR plus an applicable margin ranging from 1.75% to 2.75% or (ii) a base rate plus an applicable margin ranging from 0.75% to 1.75%, in each case determined based on the Company's leverage ratio. Except as described above, the other material terms of the 2025 Revolving Credit Facility, including the maturity date and the financial and other covenants, remained unchanged. Second Quarter 2026 Dividend The Board declared a dividend on our Class A shares of $0.05 per share, payable on September 10, 2026, to shareholders of record as of August 27, 2026, and a corresponding required cash distribution to OpCo unitholders. Updated 2026 Outlook WaterBridge is updating its full-year 2026 guidance across three key metrics. Produced water handling volumes are now expected in the range of 2.55 to 2.75 million Bbl/d, reflecting the second-half volume impact of the Ranger infrastructure acquisition. Capital expenditures guidance has increased by $100 million to a range of $530 to $590 million, driven by high-return projects including integration-related capex for the Ranger infrastructure assets, construction of the Stateline landfill, acceleration of the New Devon Project, and incremental strategic capital projects across the footprint. Adjusted EBITDA guidance is now expected in the range of $435 to $475 million, reflecting expected second-half EBITDA contributions from both the Ranger infrastructure acquisition and the NDB Landfill acquisition. (1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Margin and Adjusted Operating Margin per barrel are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. Quarterly Report on Form 10-Q Our financial statements and related footnotes are available in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which was filed with the SEC on August 5, 2026. Conference Call and Webcast Information The Company will hold a conference call on Thursday, August 6, 2026, at 11:00 a.m. Central Time to discuss its second quarter 2026 results. A live webcast of the conference call will be available on the Events and Presentations section of the WaterBridge Investor Relations website. To listen to the live broadcast, go to the site at least 10-15 minutes prior to the scheduled start time to register and install any necessary audio software. To access the live conference call, participants must pre-register online at https://events.q4inc.com/analyst/566497241?pwd=t3X901xA to receive unique dial-in information. Pre-registration may be completed at any time up to the call start time. About WaterBridge WaterBridge is a leading integrated, pure-play water infrastructure company with operations predominantly in the Delaware Basin, the most prolific oil and natural gas basin in North America, with additional assets in the Eagle Ford and Arkoma Basins. WaterBridge operates the largest integrated produced water infrastructure network in the United States, through which it provides water management solutions to oil and natural gas exploration and production companies under long-term contracts, which include gathering, transporting, recycling and handling produced water. Headquartered in Houston, Texas, WaterBridge is a first mover in the water midstream sector and benefits from an experienced and entrepreneurial management team. WaterBridge was formed by Five Point Infrastructure LLC, a private equity firm with a track record of investing in and developing energy, environmental water management and sustainable infrastructure companies within the Permian Basin. Learn more at www.wbinfra.com. Cautionary Statement Regarding Forward-Looking Statements This news release may contain forward-looking statements that are based on WaterBridge’s beliefs, as well as assumptions made by, and information currently available to, WaterBridge, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as "will," "would," "should," or "could," and the words "believe," "anticipate," "continue," "intend," "expect" and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts, including our estimated future financial performance. You should not place undue reliance on forward-looking statements. Although WaterBridge believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, WaterBridge may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news release due to a number of factors including, but not limited to: our customers’ demand for and use of our services; the domestic and foreign supply of, and demand for, energy sources, including the impact of political instability or armed conflict in oil and natural gas producing regions, including increased hostilities in the Middle East, including Iran, and other sustained military campaigns, the Russia-Ukraine war, as well as the conditions in South America, Central America, China and Russia and acts of terrorism or sabotage, actions relating to oil price and production controls by OPEC+, with respect to oil production levels and announcements of potential changes to such levels; our reliance on a limited number of customers, and on a particular region for a substantial majority of our revenues, including the potential consolidation of such customers within such region and the degree to which such consolidation may affect spending on U.S. drilling and completions in the near term; our ability to enter into favorable contracts with our customers, including the prices we are able to charge and the margins we are able to realize; commodity price volatility and trends related to changes in commodity prices, and our customers’ ability to successfully navigate through such volatility; the availability of additional pore space for future capacity expansion; the level of competition from other water management companies; changes in the prices charged to our customers and availability of services necessary for our customers to conduct their businesses, as a result of scarcity, government regulations or other factors; our and our customers’ ability to obtain necessary supplies, raw materials and other critical components on a timely basis, or at all, including any impacts presented by imposed or potential tariffs, shortages, price increases and any reactions thereto in international trade; any planned or future expansion projects by us or our customers; our ability to continue the payment of dividends; the development of advances or changes in energy technologies or practices; our ability to successfully implement our growth plans, including through organic growth projects, future acquisitions or otherwise; the potential deterioration of our customers’ financial condition and their ability to access capital to fund their development programs; our and our customers’ ability to obtain government approvals or acquire or maintain necessary permits, including those related to the development and operation of produced water handling facilities; operational disruptions and liability related thereto associated with our customers, including those due to environmental hazards, fires, explosions, chemical mishandling or other industrial accidents; our customers' liquidity and ability to access the capital markets on favorable terms, or at all, which depends on general market conditions, including the impact of inflation, tariffs and international trade, interest rates and related governmental policies; the effects of changes in general economic, business or industry conditions and market volatility, including as a result of slowing growth, a potential economic recession, an elevated inflation rate, high interest rates, changes in U.S. and international trade policies and relations, and central bank policy, as well as associated liquidity risks; uncertainty surrounding potential foreign, federal, state or local legal, regulatory and policy changes, including with respect to energy production, taxes, imposed or proposed tariffs and foreign trade policies, safety and surface uses, as well as the potential for general market volatility and regulatory uncertainty; and our level of indebtedness and our ability to service our indebtedness. These risks, as well as other risks associated with WaterBridge, are also more fully discussed in WaterBridge’s filings with the SEC, including its most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You can access WaterBridge’s filings with the SEC through the SEC's website at http://www.sec.gov. Except as required by applicable law, WaterBridge undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made. Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Margin, and Adjusted Operating Margin per barrel are supplemental non-GAAP measures that we use to evaluate current, past and expected future performance. Although these non-GAAP financial measures are important factors in assessing our operating results, they should not be considered in isolation or as a substitute for net income, gross margin or any other measures presented under GAAP. Adjusted EBITDA and Adjusted EBITDA Margin are used to assess the financial performance of our assets over the long term. We define Adjusted EBITDA as net income (loss) before interest; taxes; depreciation, amortization, depletion and accretion; share-based compensation; non-recurring transaction-related expenses; litigation settlements and expenses incurred outside of the ordinary course of business; debt modification and extinguishment costs; gains or losses on disposal of assets and other non-cash or non-recurring expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues. We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period, and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA and Adjusted EBITDA Margin because these amounts can vary substantially from company to company within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired. The following table sets forth a reconciliation of net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated. Adjusted Operating Margin and Adjusted Operating Margin per barrel are dependent upon the volume of produced water the Company gathers and handles, the volume of recycled water and brackish water WaterBridge sells and transfers, the fees WaterBridge charges for such services and the recurring operating expenses WaterBridge incurs to perform such services. The Company defines Adjusted Operating Margin as gross margin plus depreciation, depletion, amortization and accretion excluding other revenues and cost of other revenues not associated with our produced water handling and water solution revenue streams. WaterBridge defines Adjusted Operating Margin per barrel as Adjusted Operating Margin divided by total volumes handled, sold or transferred. WaterBridge seeks to enhance WaterBridge’s Adjusted Operating Margin in part by reducing, to the extent appropriate, expenses directly tied to operating WaterBridge’s assets. Landowner royalties, power expenses for handling and treatment facilities, direct labor costs, chemical costs, workover expenses and repair and maintenance costs comprise the most significant portion of its expenses. WaterBridge’s operating expenses are largely variable and, as such, generally fluctuate in correlation with throughput volumes. WaterBridge’s Adjusted Operating Margin incrementally benefits from increased water solutions recycled water sales. When produced water is recycled, WaterBridge recognizes cost savings from reduced landowner royalties, reduced pumping costs, lower chemical treatment and filtration costs and reduced power consumption. The following table sets forth a reconciliation of gross margin and gross margin per barrel, as determined in accordance with GAAP to Adjusted Operating Margin and Adjusted Operating Margin per barrel for the periods presented for our produced water handling and water solutions revenues. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805187461/en/ Contacts Contacts Scott McNeelyChief Financial [email protected] Mae HerringtonDirector, Investor [email protected] Media Daniel Yunger / Nathaniel ShahanKekst [email protected]

On May 15, 2026, Horizon Kinetics Asset Management reported buying 504,627 shares of WaterBridge Infrastructure (NYSE:WBI), an estimated $12.02 million trade based on quarterly average pricing. According to a SEC filing dated May 15, 2026, Horizon Kinetics Asset Management increased its holding in WaterBridge Infrastructure by 504,627 shares. The estimated value of the shares acquired was $12.02 million, based on the average closing price during the first quarter of 2026. The quarter-end valuation of the position rose by $59.88 million, reflecting both the purchase and price appreciation. WaterBridge Infrastructure now represents 2.1% of Horizon Kinetics Asset Management’s reportable AUM. Top holdings after the filing: As of Monday, shares of WaterBridge Infrastructure were priced at $31.06, up about 55% from their September IPO price of $20. WaterBridge Infrastructure provides water management solutions, including collection, transportation, recycling, and management of produced water for oil and gas operations. The firm operates an integrated water infrastructure network in major U.S. shale basins. It serves oil exploration and production companies, primarily in the Delaware Basin with additional assets in the Eagle Ford and Arkoma basins. WaterBridge Infrastructure LLC is a specialized water management provider supporting the energy sector, with a focus on efficient handling of produced water for oil and gas producers. The company leverages its extensive infrastructure network to deliver reliable and scalable services across key U.S. shale regions. Horizon Kinetics already has exposure to real asset and energy-adjacent plays (top holdings include Texas Pacific Land and LandBridge), so adding to WaterBridge fits neatly into that broader strategy.The company’s latest results suggest demand remains strong. WaterBridge reported first-quarter revenue of $201 million and adjusted EBITDA of $102.9 million, while raising full-year guidance for both produced water volumes and adjusted EBITDA. Management now expects up to 2.725 million barrels per day of produced water handling volume and as much as $465 million in adjusted EBITDA this year.The bigger story may be the company’s Speedway pipeline expansion and growing commercial demand from both existing and new customers. WaterBridge also generated a 51% adjusted EBITDA margin in the quarter. Ultimately, it looks like the appeal here is less about oil prices themselves and more about owning the infrastructure that producers increasingly rely on, regardless of commodity swings. Before you buy stock in WaterBridge Infrastructure Llc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and WaterBridge Infrastructure Llc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $469,293!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,332!* Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 18, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. WaterBridge Stock Is Up 55% Since IPO. One Fund Bought Up $12 Million More Last Quarter was originally published by The Motley Fool