Waterbridge Infrastructure LLC Class A ((WBI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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WaterBridge Infrastructure LLC’s first earnings call as a public company painted a picture of optimism and growth. Despite facing a net loss and regulatory hurdles in New Mexico, the company celebrated significant milestones, including a successful IPO and robust quarterly revenue growth. These achievements, coupled with a strong financial footing, suggest a promising future for the company.
Successful IPO and Public Market Entry
WaterBridge made a notable entrance into the public market with its IPO on September 18, 2025. The offering was significantly oversubscribed and priced at the high end of the range, marking it as the largest energy sector IPO since 2019. This successful market debut underscores investor confidence in WaterBridge’s business model and future prospects.
Strong Quarterly Performance
The third quarter saw WaterBridge’s pro forma revenue rise to $205.5 million, an 8% increase from the previous quarter. This growth was driven by higher volumes and rates, showcasing the company’s ability to capitalize on market opportunities and enhance its financial performance.
Operational Achievements
WaterBridge reported a 7% quarter-over-quarter growth in produced water handling volumes, reaching 2.5 million barrels per day. This operational achievement highlights the company’s capacity to efficiently manage and expand its water infrastructure operations.
Commercial Momentum
The company demonstrated its commercial momentum by bringing the bpx Kraken project online, which includes a 10-year minimum volume commitment. Additionally, WaterBridge announced the final investment decision for the Speedway pipeline project, further solidifying its growth trajectory.
Solid Financial Position
Ending the quarter with total liquidity of $547 million, including $347 million in cash and cash equivalents, WaterBridge maintains a solid financial position. This liquidity, supported by a new $500 million senior secured revolving credit facility, provides the company with the flexibility to pursue strategic initiatives.
Net Loss Reported
Despite the positive developments, WaterBridge reported a pro forma net loss of $18.7 million for the third quarter. This loss highlights the challenges the company faces as it navigates its growth phase.
High Borrowings
WaterBridge’s financial statements revealed approximately $1.73 billion in borrowings outstanding, linked to its legacy entities. Managing this debt will be crucial for the company’s financial health moving forward.
Regulatory Challenges
The regulatory environment in New Mexico presents potential challenges for WaterBridge’s future operations. Navigating these regulatory hurdles will be essential for sustaining the company’s growth and operational success.
Forward-Looking Guidance
Looking ahead, WaterBridge plans to provide 2026 guidance in its fourth-quarter earnings call. The company remains focused on scaling its water infrastructure in the Delaware Basin and maintaining a conservative balance sheet with a long-term leverage target of less than 3x. These strategic initiatives aim to strengthen WaterBridge’s market position and drive future growth.
In conclusion, WaterBridge Infrastructure LLC’s first earnings call as a public company reflects a generally positive sentiment, marked by significant achievements and a solid financial position. While challenges such as net losses and regulatory issues persist, the company’s strategic initiatives and commercial momentum suggest a promising outlook. Investors and market watchers will be keen to see how WaterBridge navigates these challenges and capitalizes on its growth opportunities.