WaterBridge — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for Q3 2026 was $240.2 million, a 17% year-over-year increase and 10% quarter-over-quarter increase compared to $217.8 million in Q2 2026.
• Net income was $13.3 million, down from $14.6 million in Q2 2026.
• Net income margin was 6%.
• Adjusted EBITDA was $124.2 million, representing an 18% year-over-year increase and 7% quarter-over-quarter increase compared to $115.8 million in Q2 2026.
• Adjusted EBITDA Margin was 52%.
• Gross margin was $62.7 million, up from $58.1 million in Q2 2026.
• Adjusted Operating Margin was $131.8 million, up from $124.1 million in Q2 2026.
• Gross margin per barrel was $0.22, consistent with Q2 2026.
• Adjusted Operating Margin per barrel was $0.46, consistent with Q2 2026 but up from $0.42 in Q3 2025.
• Total liquidity was $539.7 million as of September 30, 2026, including $505.0 million in available borrowing capacity and $34.7 million in cash and cash equivalents.
• Total borrowings outstanding were $1.837 billion as of September 30, 2026, up from $1.636 billion as of June 30, 2026.
• Capital expenditures for Q3 2026 were $123.9 million.

Guidance and Future Outlook:

• Raised the midpoint of 2026 produced water handling volumes guidance by 2% to a range of 2.65 to 2.75 million barrels per day.
• Raised the midpoint of 2026 Adjusted EBITDA guidance by 4% to a range of $465 to $485 million.
• Lowered the midpoint of 2026 Capital Expenditures guidance by 3% to a range of $530 to $560 million due to shifted timing into 2027.
• Management stated the 2027 outlook is meaningfully stronger than at the time of the IPO.
• Future growth is expected to be driven by higher overall activity in the basin, increased capture of existing volumes in pore-pressure-constrained areas, and organic pipeline projects.

Business Segments and Product Lines:

• Produced water handling volumes reached a record 2.8 million barrels per day in Q3 2026, up 9% year-over-year and 6% quarter-over-quarter.
• Volume growth was driven by outperformance across the infrastructure footprint, new and existing customers, strong Delaware Basin activity, and increased capture in pore-pressure-constrained areas like the Stateline.
• The Speedway Phase I pipeline outperformed expectations following its Q3 in-service date, with new commercial agreements signed for pipeline access.
• WaterBridge is positioned to source, treat, and deliver non-potable cooling water and manage produced and discharge water for PowerBridge's Alpha Digital campus.
• Operations are predominantly in the Delaware Basin, with additional assets in the Eagle Ford and Arkoma Basins.

Market and Competitive Landscape:

• WaterBridge operates the largest integrated produced water infrastructure network in the United States.
• The company benefits from continued demand for long-haul, out-of-basin produced water handling solutions.
• Water is viewed as an increasingly valuable resource in West Texas as industrial growth drives demand for supply that does not compete with municipal and agricultural needs.

Risks and Challenges:

• Forward-looking statements involve risks including customer demand, energy supply/demand volatility, political instability, armed conflict, and OPEC+ production controls.
• Risks include reliance on a limited number of customers and a specific region, potential customer consolidation, and commodity price volatility.
• Operational risks include environmental hazards, fires, explosions, chemical mishandling, and the need for government approvals and permits.
• Financial risks include the ability to service indebtedness, access to capital markets, and impacts from inflation, tariffs, and interest rates.

Management Commentary and Tone:

• CEO Jason Long highlighted record volumes and outperformance on volumes and margins, attributing strength to higher basin activity and increased capture in constrained areas.
• CFO Scott McNeely noted that the company's infrastructure scale allows it to absorb significant incremental volumes through capital-efficient investments.
• Management expressed confidence in funding high-return projects with an upsized revolver and additional senior notes issued in August.

Other Key Points:

• Declared a quarterly cash dividend of $0.05 per share on Class A shares, payable on December 10, 2026.
• Increased liquidity through a $250 million revolving credit facility upsize on August 4, 2026.
• Issued an additional $150 million of 6.50% fixed-rate senior unsecured notes due 2033 in August 2026, bringing total senior notes to $750 million.
• The Company completed the combination of legacy entities (WaterBridge Equity Finance LLC, WaterBridge NDB Operating LLC, and Desert Environmental LLC) prior to its IPO on September 18, 2025.
• Financial results for Q3 2025 are presented on a pro forma basis assuming the Combination and IPO occurred on January 1, 2024.
• The Form 10-Q for the quarter ended September 30, 2026, is expected to be filed with the SEC on November 4, 2026.
• A conference call to discuss results is scheduled for November 5, 2026, at 11:00 a.m. Central Time.