WaterBridge Infrastructure LLC Q4 2025 Earnings Call Summary

<h3>Strategic Operational and Market Context</h3>
<ul>
<li> <p class="yf-1fy9kyt">Achieved 15% year-over-year volume growth in 2025, driven by the successful integration of legacy entities and the launch of the Kraken project.</p></li>
<li> <p class="yf-1fy9kyt">Maintained 99.7% operational uptime through proprietary forecasting and real-time monitoring, providing critical flow assurance for E&amp;P partners.</p></li>
<li> <p class="yf-1fy9kyt">Capitalized on high water-to-oil ratios in the Delaware Basin, where produced water volumes are currently outpacing oil volume growth.</p></li>
<li> <p class="yf-1fy9kyt">Strengthened competitive positioning via a strategic relationship with Landbridge, securing access to high-quality, out-of-basin pore space.</p></li>
<li> <p class="yf-1fy9kyt">Improved 2025 pro forma revenues by 19% through a combination of increased handling volumes and successful rate improvement initiatives.</p></li>
<li> <p class="yf-1fy9kyt">Focused organic growth on the Northern Delaware Basin to address the infrastructure deficit for New Mexico customers facing a challenged operating environment.</p></li>
</ul>
<h3>2026 Guidance and Strategic Outlook</h3>
<ul>
<li> <p class="yf-1fy9kyt">2026 volume guidance of 2,500,000 to 2,700,000 barrels per day assumes conservative producer activity based on late-2025 oil prices in the high $50s.</p></li>
<li> <p class="yf-1fy9kyt">Anticipate 2026 adjusted EBITDA between $420,000,000 and $460,000,000, with performance weighted toward the second half following the Kraken MVC step-up.</p></li>
<li> <p class="yf-1fy9kyt">Allocated $430,000,000 to $490,000,000 in 2026 CapEx, including $100,000,000 for newly sanctioned Speedway Phase Two and other commercial projects.</p></li>
<li> <p class="yf-1fy9kyt">Expect Speedway Phase One to enter service mid-2026, with the majority of contracts and minimum volume commitments (MVCs) commencing in the third quarter.</p></li>
<li> <p class="yf-1fy9kyt">Projected 2027 and 2028 growth is underpinned by the Devon project construction and the potential for a Speedway Phase Three expansion.</p></li>
</ul>
<h3>Financial Structure and Risk Factors</h3>
<ul>
<li> <p class="yf-1fy9kyt">Closed a $1.425 billion senior unsecured notes offering in Q4 to optimize the balance sheet and fund long-term infrastructure projects.</p></li>
<li> <p class="yf-1fy9kyt">Established a medium-term leverage goal of sub-3.0x, down from the current 3.3x covenant net leverage ratio.</p></li>
<li> <p class="yf-1fy9kyt">Declared an inaugural quarterly dividend of $0.50 per share while maintaining a primary focus on high-return organic capital deployment.</p></li>
<li> <p class="yf-1fy9kyt">Accelerated approximately $100,000,000 in CapEx, primarily for Speedway Phase Two foundational projects and a smaller portion for Devon projects, to derisk construction phases and prepare for 2027 infrastructure needs.</p></li>
</ul>
<h3>Q&amp;A Session Highlights</h3>
<h4>Conservatism in 2026 volume guidance relative to current oil prices</h4>
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