WaterBridge’s fourth quarter and full-year 2025 earnings call highlighted a “transformative year” for the company following its upsized initial public offering in September, alongside continued volume growth and a slate of expansion projects designed to meet rising produced-water handling demand in the Delaware Basin.
Management of WBI (NYSE:WBI) said fourth-quarter produced water volumes rose to 2.6 million barrels per day (MMbpd), with a single-day record of 2.9 MMbpd. For full-year 2025, combined volumes averaged 2.4 MMbpd, representing 15% year-over-year growth versus combined 2024 volumes. The company also cited continued rate improvements, contributing to full-year 2025 pro forma revenue of $790 million, up 19% from pro forma 2024 revenue.
Business scale and Delaware Basin positioning
Long also said WaterBridge has delivered more than 22% compound annual growth in produced-water handling volumes since 2022, adding that the company anticipates continued revenue growth and is dedicating significant capital to high-return organic projects, including “long-haul and out-of-basin solutions” for New Mexico customers.
Operational performance and 2026 project priorities
Chief Operating Officer Michael Reitz said WaterBridge achieved 99.7% operational uptime in 2025, with measurement variance of less than 1% across the system. Reitz attributed performance to proprietary forecasting and real-time measurement and monitoring technologies, as well as the company’s access to disposal “pore space.”
Reitz outlined several key projects and milestones:
- Kraken project: Brought online in 2025 with an initial capacity of about 450,000 barrels per day. Reitz said the project includes a 10-year minimum volume commitment (MVC) from bpx, with an MVC increase expected midyear 2026 that management expects to support additional volume growth.
- Speedway Pipeline (Phase I): Intended to connect northern Delaware Basin development to out-of-basin pore space owned by LandBridge in the Central Basin Platform. Reitz said Phase I was oversubscribed, is expected to be placed in service in the middle of 2026, and the bulk of key contracts and MVCs are expected to go into effect in the third quarter. He added the project is expected to ramp through 2028.
- Speedway Pipeline (Phase II): Open season launched in February 2026, with demand described as already outperforming expectations. Reitz said the company anticipates accelerating some early Phase II projects into the back half of 2026, leveraging Phase I assets to unlock operational synergies, with incremental EBITDA contribution expected in 2027.
- New Devon Project: Reitz said WaterBridge expects to begin construction in the fourth quarter of 2026.
Reitz also emphasized the company’s relationship with LandBridge, describing access to underutilized pore space as a key differentiator that supports a “reliable, redundant flow assurance solution” for customers.
Fourth-quarter results and balance sheet actions
Chief Financial Officer Scott McNeely said the fourth quarter of 2025 was WaterBridge’s first full quarter as a publicly traded company. The company reported fourth-quarter revenue of $208.9 million, up 2% versus pro forma third-quarter revenue. Net loss for the quarter was $13.6 million, while adjusted EBITDA was $103.8 million, representing a 50% adjusted EBITDA margin.
For the full year 2025, WaterBridge reported:
- Pro forma revenue: $790 million
- Pro forma net loss: $58.1 million
- Adjusted EBITDA: $402.8 million, up 16% year over year
McNeely said the company closed an inaugural $1.425 billion senior unsecured notes offering during the fourth quarter and ended the year with total liquidity of $527 million, including $52 million in cash and cash equivalents and $475 million undrawn under a new $500 million secured revolving credit facility. WaterBridge’s covenant net leverage ratio was 3.3x at year-end, and management reiterated a long-term goal of reducing leverage to under 3x.
Fourth-quarter capital expenditures were $89.2 million, driven mainly by spending on Speedway Phase I and expansion projects on the Stateline systems, McNeely said.
2026 guidance, capital allocation, and themes from Q&A
WaterBridge initiated annual guidance for 2026. McNeely said the company expects:
- Produced-water handling volumes: 2.5 MMbpd to 2.7 MMbpd
- Capital expenditures: $430 million to $490 million
- Adjusted EBITDA: $420 million to $460 million (9% growth year over year), weighted to the back half of 2026
McNeely said the CapEx outlook includes about $100 million of newly sanctioned capital tied to incremental Speedway Phase II projects, plus other commercial projects, and that expectations for Speedway Phase I CapEx had not materially changed.
Management also announced an inaugural quarterly dividend of $0.05 per share and reiterated a capital allocation framework that prioritizes high-return organic growth, maintaining a conservative balance sheet, and returning capital through dividends and potential share repurchases.
During Q&A, executives characterized the 2026 volume guidance as conservative, saying it was informed by producer feedback received during budgeting at the end of 2025 when oil was in the mid- to high-$50 range. Management said the macro backdrop later shifted, creating potential upside—particularly in the back half of 2026—if current conditions persist.
Executives also discussed commercial momentum tied to Speedway Phase II, noting that some Phase II-related capital is tied to “discrete projects” the company expects to pursue regardless of the broader open-season outcome. On a separate topic, management said it expects margin expansion in 2026 as higher-rate projects such as Kraken and Speedway ramp, with higher unit-level revenue contributing to stronger margins.
Asked about potential further expansion, management said a Speedway Phase III is possible, citing strong demand for produced-water takeaway in New Mexico’s Eddy and Lea counties. The company also noted it can handle volumes above the 2.9 MMbpd single-day record, though management pointed to regional system dynamics as a practical consideration.
In closing remarks, McNeely said the company was pleased with how it exited 2025 and “how we’re stepping into 2026,” adding that WaterBridge sees “a lot of upside” for 2026 and into 2027 amid continued commercial opportunities.
About WBI (NYSE:WBI)
WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.
