WaterBridge Revenues Surge 38% Post-IPO, Net Income Up 452%

TL;DR

**WaterBridge's post-IPO numbers are strong, signaling a clear buy for growth-focused investors in the Permian water sector.**

AI Summary

WaterBridge Infrastructure LLC reported a significant increase in total revenues for the nine months ended September 30, 2025, reaching $316.67 million, up from $229.09 million in the same period of 2024, representing a 38.2% increase. Produced water handling revenue, a core service, grew to $201.57 million from $124.77 million, a 61.6% jump. Net income also saw a substantial rise, climbing to $13.59 million for the nine months ended September 30, 2025, compared to $2.46 million in the prior year, an increase of 451.8%. The company completed an Initial Public Offering (IPO) on September 18, 2025, issuing 43,264,850 Class A shares and 80,190,150 Class B shares, which significantly altered its capital structure. Total assets surged to $3.94 billion as of September 30, 2025, from $1.35 billion at December 31, 2024, driven by a substantial increase in property, plant, and equipment, net, to $2.20 billion from $1.10 billion. Long-term debt, net, also increased significantly to $1.68 billion from $586.42 million. The company's strategic outlook is focused on expanding its water management services in the Delaware Basin, a key operational area.

Why It Matters

This 10-Q filing reveals WaterBridge Infrastructure's strong financial performance following its September 2025 IPO, indicating robust demand for its water management services in the energy sector. For investors, the substantial revenue and net income growth, coupled with the recent public listing, suggests a company in an expansion phase, potentially offering growth opportunities. Employees may see increased job security and opportunities as the company expands its infrastructure. Customers, primarily E&P companies in the Delaware Basin, benefit from WaterBridge's expanded capacity and services, crucial for their operations. In the broader market, WaterBridge's growth highlights the increasing importance of efficient water infrastructure in the Permian Basin, intensifying competition among water management providers.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to its significant increase in long-term debt to $1.68 billion as of September 30, 2025, from $586.42 million at December 31, 2024, which could impact financial flexibility. Additionally, the filing highlights a reliance on a limited number of customers and operations primarily within the Delaware Basin, making it susceptible to regional economic downturns or changes in E&P activity in that specific area.

Analyst Insight

Investors should consider initiating a position in WBI, given the strong revenue growth of 38.2% and net income increase of 451.8% year-over-year. Monitor the company's debt management strategies and its ability to diversify its customer base and geographic footprint beyond the Delaware Basin to mitigate concentration risks.

Financial Highlights

debt To Equity

1.12

revenue

$316.67M

operating Margin

N/A

total Assets

$3.94B

total Debt

$1.71B

net Income

$13.59M

eps

$0.02

gross Margin

N/A

cash Position

$346.65M

revenue Growth

+38.2%

Revenue Breakdown

Key Numbers

• $316.67M — Total Revenues (Increased 38.2% for the nine months ended September 30, 2025, from $229.09 million in 2024.)
• $13.59M — Net Income (Increased 451.8% for the nine months ended September 30, 2025, from $2.46 million in 2024.)
• $201.57M — Produced Water Handling Revenue (Increased 61.6% for the nine months ended September 30, 2025, from $124.77 million in 2024.)
• $3.94B — Total Assets (Increased from $1.35 billion at December 31, 2024, to September 30, 2025.)
• $2.20B — Property, Plant and Equipment, net (Increased from $1.10 billion at December 31, 2024, to September 30, 2025.)
• $1.68B — Long-term debt, net (Increased from $586.42 million at December 31, 2024, to September 30, 2025.)
• 43,264,850 — Class A shares outstanding (As of September 30, 2025, following the IPO.)
• $0.02 — Basic and dilutive net loss per Class A share (For the period from September 18, 2025, to September 30, 2025.)
• $123.25M — Total Revenues (Q3 2025) (Increased from $89.80 million in Q3 2024.)
• $4.76M — Net Income (Q3 2025) (Increased from $3.31 million in Q3 2024.)

Key Players & Entities

• WaterBridge Infrastructure LLC (company) — registrant
• WBI Operating LLC (company) — subsidiary and sole material asset
• Delaware Basin (location) — primary operational area
• Five Point Infrastructure LLC (company) — legacy financial sponsor
• Ashburton Investment Private Limited (company) — affiliate of Singapore's sovereign wealth fund (GIC)
• New York Stock Exchange (regulator) — exchange where Class A shares are registered
• SEC (regulator) — Securities and Exchange Commission
• OPEC+ (company) — influences oil price and production controls
• Russia-Ukraine war (event) — global economic distress
• IRA (event) — Inflation Reduction Act, impacting energy transition

FAQ

Risk Factors

• Increased Indebtedness [high — financial]: The company's long-term debt increased significantly to $1.68 billion as of September 30, 2025, from $586.42 million at December 31, 2024. This substantial increase in leverage could impact financial flexibility and increase interest expense.
• Dependence on Delaware Basin [medium — operational]: The company's strategic outlook is focused on expanding its water management services in the Delaware Basin. Concentration in a single geographic area exposes the company to localized economic downturns, regulatory changes, or operational disruptions specific to that region.
• Commodity Price Volatility [medium — market]: As an infrastructure provider to E&P companies, WaterBridge's revenues are indirectly tied to the price of crude oil and natural gas. Significant downturns in commodity prices could lead to reduced drilling activity by E&P companies, impacting demand for WaterBridge's services.
• Environmental Regulations [medium — regulatory]: The company operates in the oil and gas industry, which is subject to extensive environmental regulations. Changes in environmental laws or stricter enforcement could increase compliance costs or require significant capital expenditures for new equipment or processes.
• IPO Capital Structure Changes [medium — financial]: The IPO on September 18, 2025, significantly altered the capital structure with the issuance of Class A and Class B shares. Managing the complexities of this new structure, including potential future equity issuances or debt management, presents a risk.

Industry Context

WaterBridge operates in the critical midstream infrastructure sector, specifically focusing on water management for oil and gas E&P companies. The industry is characterized by significant capital intensity, regulatory oversight, and a direct correlation to upstream drilling activity. Key trends include the increasing need for efficient water handling due to water scarcity and environmental concerns, as well as consolidation among service providers.

Regulatory Implications

WaterBridge's operations are subject to a complex web of environmental regulations at federal, state, and local levels, particularly concerning water disposal and treatment. Compliance with these regulations is paramount, and any changes or increased enforcement could lead to higher operating costs or capital expenditures. The company's infrastructure development also requires navigating land use and permitting processes.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios
2. Analyze revenue growth drivers by segment
3. Assess the impact of the Delaware Basin focus
4. Review management commentary on operational efficiency and expansion plans

Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Provides year-to-date financial performance and balance sheet position.
• 2025-09-18: Initial Public Offering (IPO) — Significantly altered the company's capital structure, providing capital for growth and increasing public scrutiny.
• 2025-09-30: Balance Sheet Date — Reflects the substantial growth in assets and liabilities post-IPO.
• 2024-12-31: Prior Year-End Balance Sheet Date — Establishes a baseline for significant asset and liability growth.

Glossary

Produced water handling

The process of collecting, treating, and disposing of water that is brought to the surface during oil and gas extraction. (This is WaterBridge's core revenue-generating service, and its significant growth is a key driver of the company's performance.)

Delaware Basin

A geological region in West Texas and southern New Mexico, part of the larger Permian Basin, known for significant oil and gas reserves. (This is WaterBridge's primary area of operation and strategic focus for expansion.)

E&P companies

Oil and natural gas exploration and production companies. (These are WaterBridge's primary customers, and their activity levels directly impact demand for WaterBridge's services.)

IPO

Initial Public Offering, the process by which a private company first sells shares of stock to the public. (The IPO on September 18, 2025, fundamentally changed WaterBridge's capital structure and financial reporting.)

Class A shares

A class of common stock issued by WaterBridge Infrastructure LLC following its IPO. (Represents a significant portion of the company's newly issued public equity.)

Class B shares

Another class of common stock issued by WaterBridge Infrastructure LLC following its IPO, often with different voting rights or characteristics. (Represents the other portion of the company's newly issued public equity.)

MVC

Minimum Volume Commitments, a contractual agreement where a customer agrees to purchase a minimum quantity of a service over a specified period. (Indicates a level of revenue predictability and commitment from customers.)

Year-Over-Year Comparison

WaterBridge Infrastructure LLC has demonstrated substantial growth compared to the prior year. Total revenues surged by 38.2% to $316.67 million for the nine months ended September 30, 2025, driven by a significant 61.6% increase in produced water handling revenue. Net income also saw a dramatic rise of 451.8% to $13.59 million. This growth is accompanied by a significant expansion of the balance sheet, with total assets more than doubling to $3.94 billion, largely due to increased property, plant, and equipment, and a corresponding substantial increase in long-term debt to $1.68 billion. The company's capital structure was fundamentally altered by its IPO in September 2025.

Filing Documents

• wbi-20250930.htm (10-Q) — 6555KB
• wbi-ex31_1.htm (EX-31.1) — 17KB
• wbi-ex31_2.htm (EX-31.2) — 17KB
• wbi-ex32_1.htm (EX-32.1) — 10KB
• wbi-ex32_2.htm (EX-32.2) — 10KB
• img46198934_0.jpg (GRAPHIC) — 111KB
• 0001193125-25-278007.txt ( ) — 18897KB
• wbi-20250930.xsd (EX-101.SCH) — 1766KB
• wbi-20250930_htm.xml (XML) — 3420KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Glossary 2 Cautionary Statement Regarding Forward Looking Statements 4 Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 7 WaterBridge Infrastructure LLC Condensed Consolidated Balance Sheets 7 Condensed Consolidated Statements of Operations 8 Condensed Consolidated Statements of Shareholders' and Member's Equity 9 Condensed Consolidated Statements of Cash Flows 11 Notes to the Unaudited Condensed Consolidated Financial Statements 12 WaterBridge Equity Finance LLC Condensed Consolidated Balance Sheet 33 Condensed Consolidated Statements of Operations 34 Condensed Consolidated Statements of Changes in Mezzanine Equity and Members' Equity 35 Condensed Consolidated Statements of Cash Flows 36 Notes to the Unaudited Condensed Consolidated Financial Statements 37 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 52 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 93 Item 4.

Controls and Procedures

Controls and Procedures 94

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 95 Item 1A.

Risk Factors

Risk Factors 95 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 124 Item 3. Defaults Upon Senior Securities 124 Item 4. Mine Safety Disclosures 125 Item 5. Other Information 125 Item 6. Exhibits 126

Signatures

Signatures 128 i

– FINANCIAL INFORMAT ION

PART I – FINANCIAL INFORMAT ION Glossar y The following are abbreviations and definitions of certain terms used in this document, many of which are commonly used in the industry: Bpd or Bbl/d . Barrels per calendar day. Brackish water . Water with salinity levels between seawater and freshwater. CAGR . Compound annual growth rate. Completion . The process of preparing a well for the production of oil and gas by injecting high-pressure fluids mixed with proppants to create fractures in reservoir rock to enhance permeability. Crude oil . A mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities. Delaware Basin . A geological depositional and structural basin in West Texas and southern New Mexico, which is a part of the Permian Basin. Desert Environmental . Desert Environmental LLC, a Delaware limited liability company and portfolio company of funds affiliated with Five Point. Desert Holdings . Desert Environmental Holdings LLC, a Delaware limited liability company. Devon Holdco . Devon WB Holdco L.L.C., a Delaware limited liability company. E&P . Oil and natural gas exploration and production. E&P companies . Oil and natural gas exploration and production companies, including producers and/or operators. Elda River . Elda River Infrastructure WB LLC, a Delaware limited liability company. Five Point . Five Point Infrastructure LLC, a Delaware limited liability company and our legacy financial sponsor. GAAP . Accounting principles generally accepted in the United States of America. GIC . Ashburton Investment Private Limited, an affiliate of Singapore's sovereign wealth fund. Incentive Units . Management incentive units consisting of timebased awards of profits interests. LandBridge . LandBridge Company LLC, a Delaware limited liability company (NYSE: LB), and its subsidiaries. LandBridge Holdings . LandBridge

Financial Statements

Item 1. Financial Statements WaterBridge Infrastructure LLC and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited) September 30, 2025 December 31, 2024 Current assets: Cash and cash equivalents $ 346,649 $ 13,284 Accounts receivable, net 153,222 49,472 Other receivables 1,985 1,549 Related party accounts receivable 35,884 50,025 Prepaid expenses and other current assets 17,350 6,008 Total current assets 555,090 120,338 Non-current assets: Property, plant and equipment, net 2,201,224 1,101,041 Goodwill 52,119 9,091 Intangible assets, net 967,724 98,589 Deferred tax assets 133,630 - Other assets 29,420 21,528 Total non-current assets 3,384,117 1,230,249 Total assets $ 3,939,207 $ 1,350,587 Liabilities and equity Current liabilities: Accounts payable $ 43,146 $ 16,899 Related party accounts payable 5,018 13,721 Accrued liabilities 81,720 44,553 Current portion of long-term debt 33,336 6,536 Other current liabilities 1,783 1,759 Total current liabilities 165,003 83,468 Non-current liabilities: Long-term debt, net of debt issuance costs 1,682,211 586,417 Tax receivable agreement liability 201,613 - Other long-term liabilities 30,316 17,653 Total non-current liabilities 1,914,140 604,070 Total liabilities 2,079,143 687,538 Commitments and contingencies (Note 12) Member's equity - 663,049 Class A shares, unlimited shares authorized and 43,264,850 shares issued and outstanding as of September 30, 2025. None authorized, issued or outstanding as of December 31, 2024. 608,288 - Class B shares, unlimited shares authorized and 80,190,150 shares issued and outstanding as of September 30, 2025. None authorized, issued or outstanding as of December 31, 2024. 80 - Retained earnings ( 667 ) - Total shareholders' equity attributable to WaterBridge Infras

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