WaterBridge Infrastructure LLC

WaterBridge reported record Q2 revenue of $217.8 million, up 8% sequentially. Net income was $14.6 million versus $9.5 million in Q1. Adjusted EBITDA was $115.8 million, up from $102.9 million in Q1, and adjusted EBITDA margin improved to 53%. Gross margin improved sequentially to $58.1 million from $48.2 million in Q1, while adjusted operating margin was $124.1 million versus $111.3 million in Q1. Capital expenditures were $123.3 million in the quarter. For full-year 2026, the company raised volume guidance to 2.55 million to 2.75 million barrels per day and adjusted EBITDA guidance to $435 million to $475 million, while increasing capex guidance by $100 million to $530 million to $590 million. The company ended Q2 with total liquidity of $347.6 million, including $47.6 million of cash, total debt of $1.636 billion, and covenant net leverage of 3.3x. Management also said the revolver commitments were increased from $500 million to $750 million, with potential to grow to as much as $1 billion.

Jason Long said the quarter showed record revenues and adjusted EBITDA, driven by organic growth across the core business and strong demand for access to WaterBridge’s integrated network. He framed the Ranger Water Midstream acquisition, the NDB Landfill deal, and the approved Stateline landfill build as disciplined capital allocation moves that expand the Delaware Basin platform and support market share growth. His tone was upbeat and strategic, emphasizing that these investments are accretive, complementary to core water assets, and part of a growing pipeline of high-return opportunities.

Scott McNeely focused on the financial upside from the raised 2026 outlook and the company’s balance sheet flexibility. He said the company now expects full-year volumes of 2.55 million to 2.75 million barrels per day and adjusted EBITDA of $435 million to $475 million, while capex rises to $530 million to $590 million due to Ranger, the new landfill, New Devon, and other projects. He cited Q2 revenue of $217.8 million, adjusted EBITDA of $115.8 million, gross margin of $58.1 million, cash of $47.6 million, liquidity of $347.6 million, debt of $1.636 billion, and net leverage of 3.3x. He also noted the revolver was expanded to $750 million with the ability to increase to $1 billion and that borrowing costs were reduced by 25 basis points.

Analysts pressed on why WaterBridge chose to buy the New Mexico landfill rather than build it, and management answered that permitting, geography, and regulatory moats make acquisition the better route in that market. Questions also focused on waste management returns, where Scott said the organic Stateline landfill build could have a roughly 2-year payback and margins similar to or slightly better than free water handling. On Speedway, management said Phase 1 is online and will ramp to around 100,000 barrels a day over the next couple of months, while Phase 2 is advancing commercially and could be sanctioned in the back half of the year, potentially imminently. Analysts also asked about 2027 activity, and management said sentiment is turning more constructive, though no customers have formally firmed up 2027 programs yet.