WaterBridge Infrastructure LLC (WBI)

Price$32.21Cached quoteAs of 2026-09-05 01:02 UTC

AI: Overvalued

Price checkThe market price assumes strong growth and clean execution despite heavy spending and elevated debt.

At the observed quote, 55.5 million Class A shares plus 68.0 million Class B shares imply roughly $4.0 billion of fully exchanged equity value. Adding about $1.76 billion of pro forma net debt gives an enterprise value near $5.8 billion, about 12.7 times the midpoint of 2026 adjusted EBITDA, a company-defined earnings measure before interest, taxes, depreciation and amortization plus selected adjustments. Even against the $501.8 million lender-covenant measure, which includes project and acquisition add-backs, the multiple is about 11.5 times. That looks demanding with leverage still high.

Big pictureGrowth is real, but cash generation has not yet caught up with the construction program.

Revenue rose from $200.8 million in 2023 to $525.6 million in 2025, while operating cash flow increased from $48.5 million to $159.7 million. Yet capital spending also climbed from $148.0 million to $278.6 million, leaving free cash flow—cash left after operations and capital spending—negative in each of those years. In the first half of 2026, operating cash flow was about $160.0 million versus $234.2 million of capital spending, a roughly $74 million shortfall. The growth engine is working, but it still needs outside capital. Pasted text

Business strengthLong contracts and rising water volumes support durable revenue, though activity remains tied to drilling.

WaterBridge mainly serves producers under long-term, fixed-fee contracts with dedicated acreage or minimum-volume protections, which makes revenue steadier than spot-priced oilfield services. Second-quarter 2026 produced-water volumes reached 2.6 million barrels per day, up 6% from the first quarter, while adjusted EBITDA rose to $115.8 million and margin reached 53%. The concentration cuts both ways: 91% of handling volumes were in the Delaware Basin, and the top five customers produced about 43% of 2025 water-related revenue. A drilling slowdown would still reduce growth.

What could change the storyThe stock can earn its premium if new projects raise cash flow faster than debt.

The bull case is straightforward: Speedway Phase I ramps, Phase II gains contracts, Ranger and the new landfill add earnings, and 2026 spending creates a larger cash-producing network. The bear case is that $530 million to $590 million of planned 2026 capital spending keeps free cash flow weak while pro forma net leverage sits near 3.5 times. Class A shares rose from 43.3 million at year-end to 55.5 million by June, largely as Class B units converted one-for-one, so much of the increase changes public float rather than economic ownership. Deleveraging below 3 times would materially strengthen the valuation case.

AI: News

Growth meets higher spendingSecond-quarter growth beat operating expectations, but higher spending and an earnings miss tempered the stronger outlook.

On August 5, WaterBridge reported $217.8 million of revenue, $115.8 million of adjusted EBITDA and 2.6 million barrels per day of produced-water handling. It raised 2026 adjusted EBITDA guidance to $435 million to $475 million, but also raised capital spending guidance by $100 million to $530 million to $590 million. Reported earnings per share were below the cited analyst forecast, and the shares slipped about 0.9% after hours and 2.5% the next regular session. The timing suggests mixed investor reaction, not proven causation.

Legacy holder sells sharesA large legacy-holder share sale increased public supply without issuing new economic ownership.

On June 22, a legacy WaterBridge owner reported converting 4.46 million Class B interests into Class A shares and selling about 5.89 million Class A shares at roughly thirty dollars each. Because the conversion was one-for-one, it was primarily a change in form and ownership rather than company dilution. The stock fell 9.7% that trading day on roughly 4.4 million shares of volume. The unusually large sale and timing make supply pressure a plausible contributor, although the filing does not prove it caused the full move.

Index inclusion catalystIndex additions created a technical demand catalyst while management explored a structure that could broaden eligibility.

VettaFi announced WaterBridge would enter several Alerian midstream indexes after the June 18 close, and the company said a special committee was evaluating conversion from a Delaware limited liability company to a Texas corporation for broader index eligibility. On June 18, the shares rose about 8.1% on roughly 14.8 million shares of volume, far above nearby sessions. The coincidence is consistent with index-rebalance demand, but price timing alone cannot establish causation. A future corporate conversion could widen the pool of passive and benchmark-driven investors.

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Revenue

2023

2024

2025

Net income

2023

2024

2025

Free cash flow

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023
Revenue	$525.6M	$316.3M	$200.8M
Gross profit	$142.2M	$88.4M	$55.3M
Gross margin	27.07%	27.96%	27.55%
Operating expenses	$63.4M	$32.0M	$14.8M
Operating income	$78.9M	$56.4M	$40.5M
Operating margin	15.01%	17.84%	20.17%
EBITDA	$219.8M	$134.7M	$88.9M
EBITDA margin	41.82%	42.60%	44.29%
Net income	$9,000	$3.0M	$14.7M
Net profit margin	0.00%	0.95%	7.31%
Basic EPSper basic share	-$0.10	$0.08	$0.38
Diluted EPSper diluted share	-$0.10	$0.08	$0.38

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

28.86%of listed shares

Devon Energy Corp/DE16M shares · Jun 30, 2026

View holders

Top 20 reported holders of WBI
Holder	% owned
Devon Energy Corp/DE	28.86%16M shares
ALPS ADVISORS INC	17.77%9.85M shares
HORIZON KINETICS ASSET MANAGEMENT LLC	13.80%7.65M shares
T. Rowe Price Investment Management, Inc.	9.69%5.38M shares
FMR LLC	6.98%3.87M shares
Hood River Capital Management LLC	3.54%1.96M shares
UBS Group AG	3.49%1.94M shares
SCHWARTZ INVESTMENT COUNSEL INC	3.03%1.68M shares
Capital Research Global Investors	2.70%1.5M shares
Tensile Capital Management LP	1.95%1.08M shares
AMERIPRISE FINANCIAL INC	1.94%1.07M shares
EMORY UNIVERSITY	1.81%1M shares
JPMORGAN CHASE & CO	1.63%905.08K shares
Balyasny Asset Management L.P.	1.50%831.45K shares
JENNISON ASSOCIATES LLC	1.48%821.53K shares
FIRST MANHATTAN CO. LLC.	1.45%803.72K shares
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC	1.41%783.78K shares
MARSHALL WACE, LLP	1.27%705.8K shares
Hill City Capital, LP	1.26%700K shares
Ranger Investment Management, L.P.	1.23%682.26K shares

Percentages use 55.45M shares of this listed class outstanding on Jun 30, 2026.

Reported positions exceed 100% in total, so the circle shows the selected holder only.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$7.76M disclosed value

Sells (SEC code S)4$584.16M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 22, 2026Form 4	DEVON ENERGY CORP/DE +3TenPercentOwner	SellClass A Shares · indirect	1.76M	$30.05	$52.74M	0
Jun 22, 2026Form 4	WaterBridge Resources LLC +1TenPercentOwner	SellClass A shares · indirect	5.89M	$30.05	$177.14M	1.98M
Jun 22, 2026Form 4	Five Point Energy GP I LP +8TenPercentOwner	SellClass A shares · indirect	5.89M	$30.05	$177.14M	1.98M
Jun 22, 2026Form 4	Capobianco David NDirector,TenPercentOwner	SellClass A shares · indirect	5.89M	$30.05	$177.14M	1.98M
Jan 6, 2026Form 4	McNeely Scott LloydSee Remarks	BuyClass A shares	1.3K	$19.56	$25.0K	76.3K

Review ownership filings at SEC.gov ↗

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WaterBridge Infrastructure LLC (WBI)

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