Company: WBI
Filing Date: 2025-04-18
Form Type: DRS
Source: 0000950123-25-003575
Chunk: 160

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-04-18
Form: DRS
Chunk 160
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 us to more accurately determine the necessary timing and size of each system expansion, we are able to address projected system constraints in a more timely and cost-efficient manner.

Our long-term contracts are structured similarly to traditional crude gathering contracts. Key features of our long-term contracts include:

Long Term – an initial term of 15 years for a majority of our contracts, with a weighted-average remaining term of approximately years as of March 31, 2025;

Fixed Fee – a per-barrel fixed fee charged to transport and handle produced water volumes;

Acreage Dedications and AMIs – dedications of large acreage positions in which, other than diverted volumes described below, all produced water is required to be handled by our integrated network and, for certain of our contracts, AMIs designating areas in which producers will dedicate subsequently acquired or leased acreage and oil and natural gas wells to us;

MVCs – for certain of our contracts, MVCs, which require our customers to deliver, or pay for the delivery of, certain minimum volumes of produced water over specific time periods, which often serve to underwrite return thresholds on initial capital outlays and are intended to generate predictable cash flows;

Fee Escalators – annual fee escalation tied to the CPI or similar inflation index for substantially all of our long-term contracts; and

Fees for Diverted Volumes – a per-barrel fixed fee for produced water volumes diverted by customers prior to delivery to us, or redelivered by us, or for use in drilling and completion operations, which fees approximate or exceed the same net margin we would have received had we transported and handled the diverted or redelivered volumes.

In addition to organic growth opportunities, we routinely evaluate opportunities to acquire produced water assets owned by E&P companies or third-party water infrastructure companies. We believe that scale is critical for operational and capital efficiency of water handling and that there will be opportunities to expand our existing network through opportunistic acquisitions. Several of our customers commenced or expanded their commercial relationship with us by selling their water assets to us and signing long-term contracts in connection with the sale. We expect to continue to prioritize acquisitions of producer-owned water infrastructure assets over third-party assets due, in part, to the opportunity to enter into favorable long-term contracts as part of the transaction.

#### Sources of Revenue
We generate revenue primarily by charging produced water handling fees for transporting produced water for disposal into our produced water handling facilities and, to a lesser extent, by providing raw or recycled produced water to customers for reuse in drilling and completion