Company: WBI
Filing Date: 2025-08-22
Form Type: S-1
Source: 0000950170-25-111048
Chunk: 187

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-08-22
Form: S-1
Chunk 187
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 marginal wells that otherwise may have been allowed to continue to produce for a longer period under conditions of higher prices, which could negatively impact their financial condition and their ability to meet their obligations to us.

A portion of our revenue is derived from our sale of skim oil at prevailing market prices, less applicable discounts, and is directly exposed to fluctuations in the price of crude oil. Based on our recovery of skim oil for the year ended December 31, 2024, on a pro forma basis, our skim oil sales for the year ended December 31, 2024, would have increased or decreased approximately $5.4 million for each 10% change in the realized price per barrel.

We do not currently intend to hedge our exposure to commodity price risk. We may in the future enter into derivative instruments, such as collars, swaps and basis swaps, to partially mitigate the impact of commodity price volatility. These hedging instruments would allow us to reduce, but not eliminate, the potential effects of the variability in cash flow from operations due to fluctuations in oil and natural gas prices.

Interest Rate Risks

Our ability to borrow and the rates offered by lenders can be adversely affected by deterioration in the credit markets and/or deterioration of our credit profile rating. We may elect for outstanding borrowings under our WBM Revolving Credit Facility and NDB Revolving Credit Facility to accrue interest at a rate based on either (i) Term SOFR or (ii)

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Base Rate, plus an applicable margin, which exposes us to interest rate risk to the extent we have borrowings outstanding under our WBM Revolving Credit Facility and/or NDB Revolving Credit Facility.

As of December 31, 2024, we had (i) $573.6 million of outstanding borrowings under the NDB Term Loan with a weighted average interest rate of 9.54%; (ii) $35.0 million of outstanding borrowings under the NDB Revolving Credit Facility with a weighted average interest rate of 8.67%; (iii) $1,147.1 million of outstanding borrowings under the WBM Term Loan with a weighted average interest rate of 10.51%; and (iv) no borrowings under the WBM Revolving Credit Facility with a weighted average interest rate of 9.06%. On a pro forma basis, assuming no change in the amounts outstanding, the impact on interest expense of a 1.0% increase or decrease in the weighted average interest rates would