WBI (NYSE:WBI) reported record second-quarter revenue and adjusted EBITDA, citing higher produced-water volumes, new contract rates and organic growth across its Delaware Basin infrastructure network. The company also raised its 2026 outlook for volumes, adjusted EBITDA and capital expenditures following the acquisition of Ranger Water Midstream and an agreement to acquire the NDB Landfill in Lea County, New Mexico.
Chief Executive Officer Jason Long said demand for the company’s existing infrastructure has been particularly strong along the state line, where pore-pressure constraints are reducing injection capacity. He said the company is benefiting from its ability to handle and recycle rising produced-water volumes through its integrated network.
Second-Quarter Financial Results
WaterBridge reported second-quarter revenue of $217.8 million, up 8% sequentially. Net income rose to $14.6 million from $9.5 million in the first quarter, while adjusted EBITDA increased about 12% sequentially to $115.8 million from $102.9 million.
Chief Financial Officer Scott McNeely said adjusted EBITDA margin reached 53%, reflecting higher throughput, the scalability of the company’s infrastructure and operating discipline. Adjusted operating margin was $124.1 million, compared with $111.3 million in the first quarter, while gross margin increased to $58.1 million from $48.2 million.
Second-quarter capital expenditures totaled $123.3 million, largely directed toward the Speedway build-out and continued state-line infrastructure development. WaterBridge ended the quarter with $347.6 million of total liquidity, consisting of $47.6 million in cash and about $300 million of available revolver capacity. Total debt was $1.636 billion, and its covenant net leverage ratio was 3.3 times.
After the quarter ended, the company expanded commitments under its revolving credit facility to $750 million from $500 million, with capacity to increase to as much as $1 billion. McNeely said the amendment also reduced borrowing costs by 25 basis points across the pricing grid. The company reiterated its long-term target of maintaining leverage below 3 times.
Guidance Raised as Capital Program Expands
WaterBridge raised its full-year 2026 outlook for the second consecutive quarter. The company now expects volumes of 2.55 million to 2.75 million barrels per day and adjusted EBITDA of $435 million to $475 million. McNeely attributed the higher forecast to expected second-half contributions from the Ranger Water Midstream and NDB Landfill acquisitions.
The company also increased its 2026 capital-expenditure guidance by $100 million to a range of $530 million to $590 million. The expanded plan includes investments to connect Ranger assets with Speedway, construction of a new state-line landfill, acceleration of the New Devon project and other customer-backed new-build and bolt-on infrastructure projects.
McNeely said incremental projects in the forecast meet the company’s capital-allocation criteria, including build multiples below 5 times, long-term contracts and creditworthy counterparties. WaterBridge also declared a quarterly dividend of $0.05 per share.
Ranger, Landfill Investments and Speedway Development
WaterBridge completed its acquisition of Ranger Water Midstream, adding disposal wells with about 70,000 barrels per day of permitted capacity, approximately 30 miles of produced-water gathering pipelines, a treatment facility with capacity of up to 100,000 barrels per day and 1.2 million barrels of storage. The assets are in disposal-constrained Lea County and are adjacent to the company’s Speedway system.
Long said Ranger has established contracts and acreage dedications with blue-chip producers and is expected to be immediately accretive. Chief Operating Officer Michael “Chop” Reitz said WaterBridge plans to invest during the second half to connect Ranger and Speedway, providing flexibility for recycling, treated-water supply and throughput management. Management said it expects the acquisition to achieve returns competitive with, or better than, its targeted 5-times investment multiple over an 18- to 24-month period.
The company also agreed to acquire the 560-acre NDB Landfill in Lea County. The facility has 44 million cubic yards of permitted capacity, with current open capacity representing more than 40 years of future volumes, according to WaterBridge. McNeely said the company expects waste management to represent roughly 10% of its business after the transactions, compared with about 5% at its initial public offering through its Desert Environmental business.
In addition, WaterBridge’s board approved construction of a 280-acre environmental waste-management facility in the state-line region. Construction is expected to begin in the third quarter, with an anticipated mid-2027 in-service date. Management expects the project to have an approximately two-year capital payback period and said the new facility will be the company’s fourth site in the basin.
Reitz said Speedway Phase I began receiving first volumes in July as scheduled. The company expects to ramp the system to roughly 100,000 barrels per day over the next several months and to exit 2026 above that level. Commercial discussions for Speedway Phase II are advancing, and management said it has a high degree of confidence that a sanctioning decision could come in the second half of the year.
Longer-Term Data Center Opportunity
Management also highlighted potential demand from digital infrastructure and data-center development in the Delaware Basin. Reitz said WaterBridge has approximately 5 million barrels per day of handling capacity in the basin and handled roughly 2.6 million barrels per day of active volumes during the second quarter.
Through its partnership with LandBridge, WaterBridge said it has access to approximately 13.4 million acre-feet of brackish-water resources. McNeely said the company is discussing long-term water solutions with potential hyperscale data-center customers and sees an opportunity to provide non-potable brackish water or treated produced water for cooling, while also managing recycling and disposal of associated waste streams.
The company said it is working with local, state and national officials to help establish a regulatory framework for treated produced water to be used in cooling applications. Management said it expects to provide further updates on the opportunity in the second half of the year or sooner.
About WBI (NYSE:WBI)
WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.
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