WaterBridge Infrastructure LLC Q3 FY2025 earnings call

• Jason Long highlighted the successful IPO, WaterBridge being a leading integrated pure-play water infrastructure company in the Delaware Basin, with infrastructure including ~2,500 miles of pipeline and nearly 200 produced water handling facilities. • Michael Reitz discussed key advantages: best-in-class infrastructure and solutions with scale, strategic location, high efficiency; access to underutilized pore space; industry-leading flow assurance; long-term relationships with diversified customer base; and commitment to responsible produced water management. Also mentioned bringing the bpx Kraken project online and final investment decision for the Speedway pipeline project. • Scott McNeely reported strong first public quarter financials, pro forma net loss of $18.7 million, pro forma adjusted EBITDA of $105.7 million with margin of 51%, and details on capital structure including net proceeds from IPO, liquidity, and senior notes offering.

Produced water handling comprises approximately 90% of revenue. Water Solutions (including sales of brackish water, recycled and produced water, and waste management) makes up the remaining revenue. Pro forma revenue for the third quarter was $205.5 million, up 8% from the last quarter. Combined produced water handling volumes for the quarter were 2.5 million barrels per day, representing a 7% quarter-over-quarter growth.

• Scott mentioned they anticipate providing 2026 guidance concurrent with the fourth quarter and full year 2025 earnings call.

Q: Could you provide some color on the level of demand for Speedway for additional phases, magnitude of upsizing, CapEx required, and build multiple?

A: Michael Reitz said they're seeing a lot of demand for Speedway, first phase was oversubscribed, additional line can add 500,000 bbls/day, can't give exact CapEx but thinks it will be less than Phase 1, Jason Long and Michael Reitz mentioned build multiple is likely 3 or 4x conservatively with upside.

Q: Zooming out on the broader basin, color on macro backdrop, recent conversations with producer customers, shifts in tone or plans impacting demand?

A: Scott McNeely said they're insulated in Stateline, growth expected from minimum volume commitment backed contracts, water volumes and demand for services growing despite macro backdrop, critical to enable production.

Q: Competitive landscape, discussions with producer customers, opportunities seen?

A: Scott McNeely said they've had abundance of traction, demand still there, producers looking for long-term large-scale flow assurance solutions, and they come ahead of peers by focusing on prudent operators, balance sheet, assets at scale, and differentiated pore space.

Q: Contract rate outlook, new contracting and portfolio rollover compared to base business, rate outlook in Delaware?

A: Scott McNeely said they've seen meaningful increase in rates in recent deals, due to larger capital programs and recognition of premium derisked flow assurance, average unit level revenue and operating margin to increase as projects come online.

Q: Focus on 1918 surface acquisition, degree of pore space value driven by WaterBridge versus industry, period?

A: Scott McNeely said it's an acquisition to unlock new surface and pore space for industry, WaterBridge has option value to access surface and pore space geographically close to infrastructure, but no near-term plans to construct infrastructure on 1918.

Q: Beneficial reuse case, lift for organization, margins compared to produced water disposal?

A: Scott McNeely said they're excited about beneficial reuse, actively in conversations, would pursue or explore treating themselves or partnering, expect economic uplift for WaterBridge but approach not formally set yet.

Q: Volumes on Kraken side, current fill, ramp, timeline for Phase 2?

A: Michael Reitz said initial capacity is ~50%-60% filled by bpx, will increase materially over years, additional 200,000 bbls/day will be added when commercially justified.

Q: Regulatory reforms in Texas, how it's a tailwind or WaterBridge is set up for it, view on future regulatory environment in Texas and New Mexico?

A: Michael Reitz said WaterBridge's permitting approach aligns with Railroad Commission's guidelines, not affected negatively due to access to undeveloped pore space, Texas is favorable, New Mexico has volatile regulatory environment but Texas is not expected to have drastic changes.

Q: Elaboration on data center opportunity, TAM, cost to treat, number of data centers, water supply to data centers, timeline for deals?

A: Scott McNeely said demand for data center water is robust, water needed per gigawatt facility is a moving target, rate needed varies, opportunity set could be significant but goalpost is wide, few players have WaterBridge's infrastructure, expertise, and water quantity to deliver solutions.

Q: Approach to securing MVCs for Speedway Phase 2, aiming for similar commitments as Phase 1, balancing MVCs versus overall returns?

A: Scott McNeely said they balance factors like customer concentration, project scale, macro landscape, and ability to commercialize with other E&Ps, aim to provide asymmetric risk profile with protected downside and captured upside.