WaterBridge Infrastructure LLC (NYSE: WBI)

WaterBridge Infrastructure LLC is a pure play water infrastructure company that focuses on the gathering transport treatment recycling and disposal of produced water for oil and natural gas producers. The company operates primarily in the Delaware Basin the most prolific oil and natural gas basin in North America and also maintains assets in the Eagle Ford and Arkoma basins. Its integrated network of pipelines and handling facilities enables customers to manage water volumes reliably throughout the life cycle of their wells.

WaterBridge generates revenue mainly by charging fees for transporting and handling produced water through its pipeline network and treatment facilities. The company also earns income from selling recycled or raw water for use in drilling and completion operations and from recovering and selling skim oil that is separated during water treatment. Its customers are primarily exploration and production companies that enter long term contracts for water management services.

The company operates through the following segments.

• Produced Water Handling: This segment provides gathering transportation treatment recycling and disposal of produced water for oil and natural gas wells.

• Water Solutions: This segment sells raw and recycled water to customers for use in drilling and completion operations and provides water treatment services.

• Other: This segment includes gas transportation services in the Arkoma Basin and solid waste management and reclamation services in the Delaware Basin.

WaterBridge holds a leading position in the US produced water market due to its extensive pipeline network and large handling capacity which give it scale advantages over competitors. The company benefits from long term contracts with major exploration and production firms that provide predictable cash flows. Its proprietary WAVE forecasting platform enhances efficiency and reliability while its state of the art operations center supports consistent operations. Additionally the company’s relationship with LandBridge supplies access to underutilized pore space supporting future growth.

The company serves a diverse group of exploration and production companies that are among the largest and most active operators in the basins where it works. Key customers include bpx energy, Chevron Corporation, Devon, EOG Resources Inc, Permian Resources Corporation, APA Corporation, Vital Energy Inc, Trinity Operating LLC, ConocoPhillips, and Continental Resources Inc. These relationships are typically governed by long term contracts that provide steady revenue streams.