Company: WBI
Filing Date: 2025-08-22
Form Type: S-1
Source: 0000950170-25-111048
Chunk: 35

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-08-22
Form: S-1
Chunk 35
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 and broadening our relationships with existing customers. With continued drilling activity and an overall increase in water-to-oil ratios (“WORs”) driven by maturing production and development of new regions and drilling zones, the supply of produced water in the Delaware Basin is expected to grow significantly through 2034, according to Pickering Energy Partners and B3 Insights. As a result, E&P companies have become increasingly focused on water management, especially as it relates to operational uptime of their oil and natural gas wells. Due in part to our strong operating record and access to underutilized pore space through our relationship with LandBridge, we have obtained and expect to continue to obtain new acreage dedications from E&P companies to expand the geographic reach of our existing network. We expect that these acreage dedications can be connected to our existing infrastructure network with minimal, capital-efficient investment.

Furthermore, as opportunities arise, we intend to evaluate and selectively pursue accretive acquisitions of high-quality, complementary water infrastructure assets. We will employ a rigorous framework to evaluate such opportunities, and potential acquisitions will compete with alternative uses of capital such as organic growth projects, shareholder dividends, share repurchases and debt reduction. When considering whether to pursue organic projects, we evaluate a number of factors, including expected produced water volumes, the creditworthiness of the potential counterparty, the duration and terms of the potential contract (including acreage dedications or MVCs and fixed fees with fee escalators based on the CPI), a build multiple that is expected to be less than 5.0x, and an ability to fund the project while maintaining our overall balance sheet strength. We and our predecessor companies have a demonstrated track record of acquiring water infrastructure assets from both midstream competitors and E&P companies and integrating them into our broader network.

Expand Service Offerings to Facilitate Growing Water Demand from New Industries . Although our core focus is to best serve our existing customer base of E&P companies, we regularly explore opportunities to expand our operations to serve customers outside the oil and natural gas industry, including future applications for data centers, the electric power sector, cryptocurrency mining, agriculture and municipal use. While these

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opportunities are not immediately actionable, we believe that they are potential examples of uses for produced water that are likely to become economically attractive for water management companies.

One such example is the water needs in power generation, particularly for combined cycle gas turbines (“CCGT”) that are common in power plants. It is estimated that for every