WaterBridge Q4 2025 Earnings Call - IPO Momentum, Speedway Demand, and a Conservative 2026 Guide with Clear Upside

Operator: Hello, everyone. Thank you for joining us, and welcome to the WaterBridge fourth quarter 2025 results earnings call. After today’s prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Mae Herrington, Director of Investor Relations. Please go ahead.

Mae Herrington, Director of Investor Relations, WaterBridge: Good morning, everyone, and thank you for joining WaterBridge’s fourth quarter and fiscal year 2025 earnings call. I’m joined today by our Chief Executive Officer, Jason Long, our Chief Operating Officer, Michael Reitz, and our Chief Financial Officer, Scott McNeely. Before we begin, I’d like to remind you that in this call and the related presentation, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from results and events contemplated by such forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements. Please refer to the risk factors and other cautionary statements included in our filings with the SEC.

I would also like to point out that our investor presentation and today’s conference call will contain discussions of non-GAAP financial measures, which we believe are useful in evaluating our performance. These supplemental measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Reconciliations to the most directly comparable GAAP measures are included in our earnings release in the appendix of today’s accompanying presentation. Prior to the closing of WaterBridge’s initial public offering on September 18, 2025, WaterBridge completed the successful combination of its legacy entities, WaterBridge Equity Finance LLC, WaterBridge NDB Operating LLC, and Desert Environmental LLC.

Full year 2025 key operational metrics discussed today are presented on a combined basis, and full year 2025 financial results discussed today are presented on a pro forma basis in accordance with Article 11 of Regulation S-X, assuming the combination in the IPO had occurred on January 1, 2024. I’ll now turn the call over to our Chief Executive Officer, Jason Long.

Jason Long, Chief Executive Officer, WaterBridge: Thank you, Mae, and good morning, everyone. 2025 was a transformative year for WaterBridge as we completed our upsized and highly successful IPO in September, bringing to market the largest pure-play water infrastructure network in the United States. To begin today, I’m proud to announce that our fourth quarter and full year 2025 results continue to demonstrate strong operations with fourth quarter produced water volumes up to 2.6 million barrels per day and full year combined volumes averaging 2.4 million barrels per day, representing 15% year-over-year growth compared to combined 2024 volumes. Our volume growth is combined with continued rate improvements to contribute to full year 2025 pro forma revenues of $790 million, a 19% annual increase compared to pro forma 2024 revenues.

Shortly, Chop will walk us through how we plan to continue our operational and commercial momentum in 2026, and then Scott will translate that into details for our 2026 guidance. First, I want to walk through some context of the business today. WaterBridge provides innovative and full cycle produced water solutions to E&Ps and is well-positioned to meet evolving industry needs via our produced water handling capacity of more than 5 million barrels per day of produced water handling capacity across over 2,600 miles of integrated pipeline and 212 produced water handling facilities. With this extensive produced water handling and supply network and deep operational and geological expertise in the Delaware Basin, the most prolific oil and natural gas basin in North America, we’re well-positioned to be a sought-after partner for years to come.

Our value proposition of providing innovative, geologically focused, and technologically advanced solutions for our E&P partners has translated into a strong track record of growth as demonstrated by our more than 22% CAGR in produced water handling volumes since 2022. Due to the significant remaining inventory of low breakeven locations, produced water volumes continue to grow alongside and even recently outpacing oil volume growth in the Delaware Basin, where the water-to-oil ratios are among the highest in the U.S. Our permanent integrated water infrastructure network is strategically located to meet this need, and we anticipate continued revenue growth in the coming years. To meet that growth, we continue to dedicate significant capital to high-return organic growth projects and pipelines in the basin, focusing on long-haul and out-of-basin solutions for New Mexico customers as they continue to increase operational focus in the high-return, high-inventory Northern Delaware Basin.

The strong demand and positive response we received during the open season for the first phase of the Speedway Pipeline project led us to continue those discussions with customers via the recently announced Speedway Phase II pipeline. As a long-term flow assurance partner of choice in the basin, we expect to continue dialogues with the existing and new customers in the region to ensure that we can expand water infrastructure capacity in step with their development needs. With that, I’ll turn it over to our COO, Michael Reitz, to talk about our operational minimum and priorities for 2026.

Michael Reitz, Chief Operating Officer, WaterBridge: Thanks, Jason. At the operational level, we continue to prioritize delivering critical flow assurance for our customers through unparalleled pore space access, as well as our advanced technology and measurement systems. Our continued execution is reflected in our produced water handling volume growth. In the fourth quarter, we achieved a single-day record of 2.9 million barrels per day of water handled. In 2025, we achieved 99.7% operational uptime with measurement variance of less than 1% across our system, driven by our proprietary forecasting capabilities and real-time measurement and monitoring technologies.

Commercial efforts continue to advance meaningfully. In 2025, we brought high-value new infrastructure online and expanded existing facilities across our network, enabling 15% year-over-year combined volume growth. In particular, we brought the Kraken project online, representing an initial capacity of approximately 450,000 barrels per day. This project will continue to drive volume growth in 2026 with a midyear minimum volume commitment or MVC increase. As previously announced, this project includes a 10-year MVC from bpx to support its long-term development plans in the region. We also meaningfully advanced the development of our Speedway project, which will provide produced water transport and handling in the northern Delaware Basin, connecting oil and gas development to out-of-basin pore space owned by LandBridge in the Central Basin Platform.

Phase 1 was oversubscribed, and we anticipate the project to be put into service in the middle of this year, with the bulk of key contracts and MVCs going into effect in the third quarter. The first phase of Speedway is expected to drive volume growth in 2026 and beyond as it continues to ramp through 2028. Speedway’s Phase II open season was launched in February of 2026, and demand is already outperforming expectations. We also anticipate being able to accelerate some early Phase II projects into the back half of 2026, which represents an opportunity to leverage recently constructed Phase 1 assets, unlocking operational synergies and subsequently providing an incremental EBITDA contribution in 2027.

The success of the Speedway project emphasizes the continued benefits from our synergistic relationship with LandBridge, which not only provides critical access to underutilized high-quality pore space, but also continues to expand its surface and subsurface portfolio, subsequently de-risking future needs. Access to pore space through LandBridge and other large strategic landowner relationships is a key differentiator for WaterBridge and a critical component of the reliable, redundant flow assurance solution that we provide our customers. Finally, we expect to begin construction on the previously announced New Devon Project in the fourth quarter of 2026 and will continue to execute incremental high-return capital projects to meet the existing customer demand throughout our infrastructure footprint. With that, I’ll turn things over to our CFO, Scott McNeely, for an update on our financial results and formal 2026 guidance.

Scott McNeely, Chief Financial Officer, WaterBridge: Thank you, Chop, and good morning to everyone on the call today. We entered 2026 with significant commercial momentum, having realized major successes in 2025 with our IPO, the launch of Kraken, and the success of the Speedway Phase 1 project, all while executing on record water handling volumes for the full year, as Jason and Chop mentioned. In the fourth quarter, our first full quarter as a publicly traded company, we achieved record revenue of $208.9 million, up 2% compared to the pro forma third quarter revenue. Fourth quarter net loss was $13.6 million, and adjusted EBITDA for the quarter came in at $103.8 million, with a 50% adjusted EBITDA margin. For the year, we delivered pro forma revenue of $790 million, representing 19% year-over-year pro forma revenue growth.

Full-year pro forma net loss was $58.1 million. Full-year adjusted EBITDA was $402.8 million, a 16% year-over-year increase. In Q4, we further optimized our balance sheet by closing on an inaugural $1.425 billion senior unsecured notes offering, which will help WaterBridge capitalize on the many compelling opportunities before us. We ended the year with total liquidity of $527 million, including $52 million of cash and cash equivalents and $475 million undrawn under our new $500 million secured revolving credit facility. Our covenant net leverage ratio was 3.3x at the end of the year, and we remain committed to our long-term goal to be under 3x levered.

Capital expenditures in the fourth quarter were $89.2 million, mainly driven by spending on the development of Speedway Phase 1 and continued expansion projects on our Stateline systems as we continue to grow our footprint with high-quality assets. Our disciplined capital allocation framework allows us to effectively deploy free cash flow and manage our top priorities, which includes, first, prioritizing high-return capital projects, building out our water infrastructure network, and maintaining our commercial relationships. This also includes selective strategic acquisitions. Second, maintaining a conservative balance sheet and prudent capital structure to ensure maximum financial flexibility over time. Finally, returning capital to shareholders through opportunistic share repurchases and dividends. This quarter, we declared an inaugural quarterly dividend of $0.05 per share. As anticipated, we are initiating annual guidance this quarter.

For full year 2026, we expect produced water handling volumes of 2.5-2.7 million barrels per day, driven by the midyear bpx Kraken MVC increase in Speedway phase one. We also expect CapEx to be between $430 million and $490 million. Importantly, our expectations for Speedway phase one CapEx have not materially changed, and this guide contemplates approximately $100 million of newly sanctioned CapEx attributable to the incremental Speedway phase two projects Chop discussed, as well as other commercial projects throughout our acreage. Finally, we expect 2026 adjusted EBITDA between $420 million and $460 million, representing 9% annual adjusted EBITDA growth. This is expected to be weighted towards the back half of 2026 following the Kraken MVC increase and initiation of Speedway phase one.

With our ongoing commercial success and in anticipation of Speedway Phase II, expectations for 2027 are meaningfully higher than previously contemplated. To conclude, we’re proud to have delivered a strong year of growth and look forward to continuing to deliver for our customers in 2026 and beyond as we meet the increasing demand for produced water handling across the Delaware Basin and innovate for the future. We would now like to open the line for your questions. Operator?

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up.

If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Derrick Whitfield of Texas Capital. Your line is open. Please go ahead.

Derrick Whitfield, Analyst, Texas Capital: Good morning, all, and congrats on a strong 4Q.

Scott McNeely, Chief Financial Officer, WaterBridge: Hey, good morning, Derrick.

Derrick Whitfield, Analyst, Texas Capital: Wanted to start with your 2026 produced water handling volumes guidance of 2.5-2.7 million barrels per day. In our view, it seems that you have baked some degree of conservatism in your plan relative to where you exited the year. Could you speak to when this activity projection was assessed and what price forecast is assumed? Finally, highlight any timing considerations that could place you on the upper side of your forecast.

Scott McNeely, Chief Financial Officer, WaterBridge: Thanks for the question, Derrick. Yeah, you know, I guess I’d answer it in two different ways. You know, first, we had a very strong fourth quarter. You know, volumes came in, you know, and kind of exited the year in that position of strength, which is what we wanted to see, and so feel really good stepping into 2026. You know, I would say the second piece, you know, when we worked through budgeting for this year, you know, like many others did so at the end of 2025, we were just in a very different macro environment than we’re in today. The bulk of the guidance, or the volumes that are baked into the guidance are informed, you know, by producer feedback that was provided when oil was in the mid- to high 50s.

You know, where we’re sitting today, it’s just a drastically different environment. You know, as such, we think that there’s a lot of upside, particularly in the back half of the year, you know, if the current macro backdrop holds. You know, I think we feel really good about the conservatism baked into the guidance. You know, again, did that by design. You know, the world we’re living in today is very different than the one we were living in when we received that producer input, and I think as a result has a lot more upside now than, you know, we would have expected to see, back in late December.

Derrick Whitfield, Analyst, Texas Capital: Great. For my follow-up, I wanted to shift over to the Devon and Coterra merger and kind of think through that for a bit. With the understanding that clearly the merger is not final, it would seem logical to us that the consummation of that merger could present incremental growth opportunities for WaterBridge. Based on past discussions with both counterparties, do you see or expect to see greater opportunity from the Coterra side of the house based on your working relationship with Devon? I know that Coterra’s Franklin Mountain asset literally sits on top of Project Speedway.

Scott McNeely, Chief Financial Officer, WaterBridge: Great observation. I mean, I think we’re you know obviously excited for the Devon team and the Coterra team. They’re gonna be stepping out of the merger in a very strong position. You know, we’ve got a great relationship with the Devon team, with you know a lot of the you know the folks that we work with day-to-day as part of that new management team. I think we’re excited to kind of step into conversations with them about what is next for their plans. You know, we have had great relationships with Coterra in the past as well. I think a lot of those we hope you know will obviously continue to accrue to our benefit. You know, I think stepping out of this, we’re excited.

You know, I think the combined company is gonna be, you know, obviously a great one in the Delaware Basin. I think we’re excited to work for them. We’re excited to deliver our part, you know, in enabling, you know, what’s next for their company.

Derrick Whitfield, Analyst, Texas Capital: Thanks. Great update.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Thanks, Derrick.

Operator: Your next question comes from the line of Eli Jossen of J.P. Morgan. Your line is open. Please go ahead.

Eli Jossen, Analyst, J.P. Morgan: Hey, thanks everyone. Wanted to start on the acceleration of growth project opportunities you alluded to. I think you talked about some opportunities to accelerate in the back half of 2026, leveraging, you know, some of the ongoing construction. Can you just speak more specifically to the magnitude of that? Help us understand what the kind of 4Q exit rate might look like and the overall framing you see for 2027. Thanks.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Hey, Eli. Appreciate the question. I mean, we’re in a really great spot right now where we’ve received, you know, a number of inbounds working through a number of different commercial discussions, which is ultimately what sparked the announcement around Speedway Phase Two. I think, you know, in addition to that, you know, we also have just several commercial projects that are, you know, fairly firmed up at this point that will serve somewhat as the foundation for Speedway Phase Two as well. We added another $100 million to capital expectations for this year. Now, that is still somewhat, you know, front-weighted for the year. The bulk of that extra $100 million is gonna be tied to these new commercial projects that will serve as the foundation for Speedway Two.

You know, there is a smaller amount, so, I’m not gonna quantify it, but we’ll say a smaller amount, which is going to be related to the Devon projects. Now, if you recall, Devon has an MVC with us that comes online in second quarter of 2027. You know, we’re just accelerating the construction of that infrastructure just by a few months, and it’s really just to de-risk effectively that construction phase. As a result of that, we expect just a little more cash to go out the door at the end of this year versus 2027. No real change in the scope of that project, but just call it recognizing the fact that cash may leave the system a little bit earlier than we were thinking. Again, by design, just to de-risk the development there.

Eli Jossen, Analyst, J.P. Morgan: Thanks. Then shifting to the capital allocation philosophy subsequent to the growth project spend, it seems like there might be a bit of a free cash flow inflection as you get Speedway Phase II in service and I guess, you know, as that spend kind of comes to a conclusion at the end of 2027, maybe 2028 looks more like a you know, an inflection on free cash flow. How do you guys kinda think about what the capital allocation framework looks like at that point?

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. No, it’s a great question. I mean, like we said during the IPO process, I think we will continue to prioritize these higher return organic growth projects. You know, you look at Kraken, you look at Speedway, you know, we would expect for Speedway Phase Two to be incredibly attractive from a return standpoint. That will continue to be the most accretive use of the cash flow that we’re generating as a business. I don’t expect that changes. You know, I think we aim here, just to continue finding creative ways to continue to generate those same kinds of returns. Now, you know, beyond that, we will continue to explore M&A. It does need to compete with the organic growth projects that we’re working through as we think through our capital allocation framework.

You know, to the extent there is an opportunity that checks all of those boxes on a risk-adjusted basis, I think, you know, we would absolutely be open to pursuing M&A as another way to continue to feed growth to the company. Lastly, you know, we think through just kind of balance sheet management and return of capital. I think making sure that we work through this growth while keeping the balance sheet healthy is a top priority. You know, staying kind of at mid threes at max during growth is something I think we’re comfortable with, but getting sub three times is certainly a longer term goal. I would call it medium-term goal for us.

You know, beyond that, you know, obviously initiating this first dividend, you know, not looking to overly lean into dividends here, particularly through this growth phase, but potential for those to grow going forward, depending on other competing uses of capital. Likewise, you know, potentially exploring buybacks, you know, in the future when it makes sense in the context of other capital allocation options we have, as well as, you know, the float and float dynamics at the time.

John Mackay, Analyst, Goldman Sachs & Company: Great. Thanks very much.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Thanks a lot.

Operator: Your next question comes from the line of John Mackay of Goldman Sachs & Company. Your line is open. Please go ahead.

John Mackay, Analyst, Goldman Sachs & Company: Hey, guys. Thank you for the time. Maybe I’ll go back to the first one around the 2026 guidance. Appreciate the comments, but I guess I wanted to follow up. When you’re talking about it potentially being conservative, I mean, how much is that based on maybe comments that the higher oil deck will incentivize new activity versus just a, "Hey, we’re kind of baking a little bit of wiggle room into these numbers"? I guess I’m asking, you know, are you guys expecting activity to pick up at this higher deck? Because we’re generally not seeing it elsewhere.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Hey, John, good question. Yeah, the conservatism was really in the context of what was a high $50 oil environment when we worked through that budget. I mean, when I think through the conservatism today, I would make the argument that it is, you know, that much more conservative given the context of where WTI is at and expectations through year-end. You know, we have certainly heard, you know, some initial chatter on thoughts from producers, although most of that was really around the thought process of, is this a short-term blip or do we expect to see, you know, a more enduring elevation of WTI through year-end?

I think, over the last couple of weeks, you know, the market certainly seems to think that, you know, WTI is gonna stay elevated at least to a certain extent through year-end at this point, as we’ve seen the backwardation start to fall off, you know, slightly. Too early to say or really to aggregate feedback from producer reaction just yet. You know, what was a conservative, call it outlook in a high $50 oil environment, I think is again, very conservative now, particularly in the context of the strip through year-end. You know, to the extent producers are able to capitalize on that, I would expect some of them will. Although, as we all know, there are, you know, different idiosyncrasies with different producers out there.

All that to say, I’d say we have much stronger tailwinds now than we had in late 2025 as it relates to the macro backdrop.

John Mackay, Analyst, Goldman Sachs & Company: Yeah, thanks for that. Maybe just a quick follow-up on Speedway two. I know the open season closes next month. Can you just walk us through kind of, you know, expectations for reaching FID? On the CapEx for this year, you know, how much is kind of total project CapEx? Or maybe if you’re just able to compare it to what the build for phase one looked like. Thanks.

Scott McNeely, Chief Financial Officer, WaterBridge: You know, we’ve gotten obviously a few of the bulk commercial deals we expect to be part of phase two buttoned up at this point. That is why the CapEx is incorporated in the budget now. I mean, those are projects that we’ll pursue, you know, regardless of the outcome of the broader phase two process. You know, wanna make that perfectly clear that this isn’t speculative CapEx that’s built into the budget. You know, these are discrete projects that we expect great returns from, even on a standalone basis, although they could serve, you know, certainly as the so-called commercial foundation for broader phase two.

Too early to say exactly what the aggregate capital spend or returns will look like on the broader phase two, but you know, I would expect those to be fairly in line with what we saw for phase one, if not slightly more attractive, just depending on how the dust settles.

John Mackay, Analyst, Goldman Sachs & Company: Cool. Sounds good. Looking forward to Thursday. Thanks.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Thanks, John.

Operator: If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Your next question comes from the line of Theresa Chen of Barclays. Your line is open. Please go ahead.

Theresa Chen, Analyst, Barclays: Thank you. Hi there. On the topic of Speedway and the commercial development momentum that you’ve seen to date, is there a possibility or a likelihood at this point for a Phase Three? Is there a likelihood that you will loop the 30-inch system given the demand for the egress?

Scott McNeely, Chief Financial Officer, WaterBridge: Hey, Theresa. Appreciate the question. Yeah, the short answer is yes. You know, I think we see a lot of demand throughout New Mexico, Eddy and Lea County, you know, and I would say expectations certainly have not dropped. They are growing rapidly as developers look for water solutions, you know, out of what is a very challenged environment, and we are obviously positioned to deliver that. You know, timing of that will ultimately be driven by the outcome of commercial discussions for phase two, and when initial operating capacity or capability is gonna be needed for phase three.

We’re having all those discussions now, and I think what’s exciting, if you look at Kraken, you look at Speedway Phase 1, you look at Devon coming online, we’ve already set the stage for what is great growth exiting 2026 into 2027, 2028. You know, these new commercial projects plus Speedway Phase II is only gonna further bolster the back half of 2027 stepping into 2028. As you allude to, you know, there is a need for Speedway Phase Three. There’s a need for more water takeaway. You know, we see just fantastic growth kind of over the next several years, and we’re just working, you know, very diligently to ensure that we’re being thoughtful around the underwriting.

We’re de-risking those projects with MVCs, and we’re setting ourselves up for just long-term, you know, de-risked growth.

Theresa Chen, Analyst, Barclays: Got it. On that note of just persistent tightness in supply and demand for water takeaway, what are you seeing in the evolution of rates at this point? What is the going rate at this juncture as you try to commercialize the second phase of Speedway in addition to future organic endeavors versus your legacy in $0.60 per barrel-ish rate?

Michael Reitz, Chief Operating Officer, WaterBridge: Thanks, Theresa. This is Michael Reitz. Rates are increasing over time as you could expect as, you know, capital needs for these projects increase over time. You know, we are seeing, you know, more demand and rates increasing along with that demand.

Scott McNeely, Chief Financial Officer, WaterBridge: Relative to the mid-$0.60 kind of average that we’ve had through the middle of last year, you know, these new rates, you know, Kraken, Speedway, some of these others that we’re working through and talking through, meaningfully higher. I think to Chop’s point, some of that is to underwrite the capital coming out of New Mexico, and some of that is just a reaction by the market to, you know, just the supply-demand economics for water takeaway.

Theresa Chen, Analyst, Barclays: Thank you.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Thanks, Theresa.

Operator: Your final question comes from the line of Kevin MacCurdy of Pickering Energy Partners. Your line is open. Please go ahead.

Kevin MacCurdy, Analyst, Pickering Energy Partners: Hey, good morning. Maybe to follow up on the question about rates. You know, your 2026 EBITDA guidance was in line with expectations, but maybe on slightly lower volumes than anticipated. Are we right to think that, you know, margins will be a little bit higher in 2026 compared to what we saw in the back half of 2025? If so, any comments you can provide on the near-term driver of that?

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Hey, Kevin, good question. Yes is the answer. As we see Kraken step up, we see Speedway come online, we see some of these other new commercial projects come online, we would expect, you know, the higher unit level revenue from those contracts to continue to drive margin expansion across the system. You know, we would expect that trend just to continue going forward for all the reasons, you know, I just kind of walked through with Teresa. Obviously, you know, some of that is gonna be used to underwrite the capital that is needed for some of these larger projects. Like I mentioned, some of that also is just a reaction to the supply-demand economics for water takeaway today.

Kevin MacCurdy, Analyst, Pickering Energy Partners: Thanks for that answer. You know, appreciate your comments on what you’re seeing on the ground in terms of activity pickups, or not seeing so far yet. Just kinda curious what your capacity is to handle more produced water volumes, in both the short and the near term. I mean, you did 2.9 million barrels in the fourth quarter. Is that kind of a near-term cap, or could you go even higher?

Scott McNeely, Chief Financial Officer, WaterBridge: We could go even higher than that. There is some regional dynamics that are involved. You know, the system obviously isn’t wholly accessible from any other point in the system, so there is just, you know, the operational realities that come into the mix. You know, the point I would make as you look through, you know, our average of, you know, roughly 2.6 million barrels a day against our peak of 2.9, it’s a real reflection of the criticality of having infrastructure of scale in place today.

You know, these producers are working through these much larger multi-well pads that bring on much higher peaks, and you’ve got to have the operational expertise and the infrastructure already in place that can accommodate those peaks and do so with the certainty that’s needed, you know, by these E&P operators. There’s a real kind of competitive moat that’s introduced as a result of that.

When you look forward to 2026 and you think through our ability to capture the upside potential, I mean, I would make the argument, you know, we already have those assets in hand to do quite a bit of that today, and that’s before we bring Speedway online midyear, which only gives us an additional asset to continue to capture, you know, what we would expect to see as some upside coming out of New Mexico in today’s commodity price environment. We feel very good about being well positioned here kind of through the year, you know, hopefully to continue to enable, you know, some of the E&P development, particularly in the back half of this year, that’s really resulting from, you know, the macro evolution we’ve seen here over the last couple of months.

Kevin MacCurdy, Analyst, Pickering Energy Partners: Thank you, and congratulations on the quarter.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Thanks, Kevin.

Operator: There are no further questions at this time. I will now turn the call to Scott McNeely, Chief Financial Officer, for closing remarks.

Scott McNeely, Chief Financial Officer, WaterBridge: Yeah. Thank you, operator, and thanks to everyone for joining us today. Again, very happy with how we exited the year and how we’re stepping into 2026. We feel like there’s a lot of upside for us in 2026, stepping into 2027. Like I mentioned, you know, a lot of commercial opportunities out there for us to continue to pursue and drive growth. You know, as always, please feel free to reach out to our team here if there are any questions. Otherwise, we hope, you know, everyone has a great week and look forward to staying synced up. Thank you.

Operator: This concludes today’s call. Thank you for attending. You may now disconnect.