Commodity ExposureDownside pressure on oil prices can reduce water handling demand and volumes, exposing revenue to commodity-driven cycles and potential margin compression.
Customer ConcentrationMore than half of revenue is generated by the top five customers, creating concentration risk that could materially affect results if any major customer curtails activity.
Geographic And Regulatory ConcentrationHeavy reliance on the Delaware Basin for a large portion of revenue, combined with local regulatory changes and competitive pressures, increases vulnerability to regional downturns or policy shifts.