WBI Q2 Earnings Call Highlights

Record second-quarter performance: Revenue rose 8% sequentially to $217.8 million, while adjusted EBITDA increased 12% to $115.8 million, supported by higher volumes, stronger contract rates and operating leverage.

2026 guidance was raised again: WaterBridge now expects volumes of 2.55 million–2.75 million barrels per day and adjusted EBITDA of $435 million–$475 million, while increasing capital-expenditure guidance by $100 million to $530 million–$590 million.

Expansion broadens the growth platform: The Ranger acquisition, planned NDB Landfill purchase and new state-line waste facility add disposal, recycling and waste-management capacity, while Speedway is ramping toward 100,000 barrels per day and the company explores longer-term data-center water demand.

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.

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.

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...