Company: WBI
Filing Date: 2025-04-18
Form Type: DRS
Source: 0000950123-25-003575
Chunk: 153

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-04-18
Form: DRS
Chunk 153
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 oil and natural gas wells. Produced water must be reliably separated and handled in order for these wells to be brought online and remain in production. From 2014 to 2024, produced water in the Delaware Basin grew from approximately 1.7 million bpd to approximately 11.8 million bpd, a CAGR of more than 20%, outpacing the approximately 2.8 million bpd of oil production growth over the same period by approximately 7.3 million bpd. Due to the significant produced water volumes in the Delaware Basin in particular, our operations are critical to the ability of E&P companies to develop and produce oil and natural gas over the life cycle of a well.

Our customers include some of the most active and well-capitalized E&P companies in the areas in which we operate, including Permian Resources Corp., Devon, Trinity Operating, LLC (a subsidiary of NextEra Energy Inc.), Chevron Corporation and EOG Resources, Inc. We serve our customers primarily under long-term, fixed-fee contracts that contain acreage dedications or MVCs, with annual fee escalators tied to the CPI or similar inflation index. Many of our contracts also include AMIs that grant us the right to provide water management solutions on any leases or oil and natural gas wells subsequently acquired or operated by a customer within a specified area. Our long-term contracts are generally structured similarly to crude oil gathering contracts, and in most cases, we receive water volumes from our customers at a central gathering facility at the same point where crude oil gathering providers receive their respective crude oil volumes. Additionally, our long-term contracts typically grant us the exclusive right to provide water management solutions for all produced water volumes from our customers’ oil and natural gas wells located within the dedicated acreage, and customers are typically required to either deliver all dedicated volumes to us or pay us a fee for any diverted dedicated volumes. For the year ended December 31, 2024, on a pro forma basis, we generated approximately % of our revenues under long-term, fixed-fee contracts in the Delaware Basin. As of March 31, 2025, the weighted average remaining term of our contracts in the Delaware Basin was approximately years.

We believe that our infrastructure network provides a competitive advantage relative to the alternatives available to E&P companies, including developing their own water management infrastructure networks, which requires significant capital investment. We believe that our strategically located infrastructure provides us with significant growth opportunities to expand our current dedicated acreage and broaden our customer base.

We developed our infrastructure network