Q3 FY2026
Filed Nov 4, 2026WaterBridge reports record Q3 2026 produced water volumes of 2.8 million Bbl/d, revenue of $240.2 million and Adjusted EBITDA of $124.2 million, and raises its 2026 volume and Adjusted EBITDA guidance midpoints
Volumes, revenue and Adjusted EBITDA grew year-over-year and sequentially, and the company raised two of its three 2026 guidance midpoints. GAAP net income fell from the prior quarter, borrowings rose to $1.837 billion, and the release does not print a prior-year net income comparison in percentage terms.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Produced water handling volumes (Q3 2026)other | 2.8 million barrels per day | 6% | 9% |
| Total volumes handled, sold or transferred (Q3 2026, MBbls)other | 283,946 MBbls | – | – |
| Total revenues (Q3 2026)GAAP | $240.2M | 10% | 17% |
| Produced water handling revenue (Q3 2026)GAAP | $186.1M | – | – |
| Produced water handling - related party revenue (Q3 2026)GAAP | $30.89M | – | – |
| Water solutions revenue (Q3 2026)GAAP | $7.87M | – | – |
| Water solutions - related party revenue (Q3 2026)GAAP | $1.29M | – | – |
| Other revenues (Q3 2026)GAAP | $11.93M | – | – |
| Other revenues - related party (Q3 2026)GAAP | $2.12M | – | – |
| Direct operating costs (Q3 2026)GAAP | $83.09M | – | – |
| Direct operating costs - related party (Q3 2026)GAAP | $17.27M | – | – |
| Depreciation, depletion, amortization and accretion (Q3 2026)GAAP | $77.13M | – | – |
| Total cost of revenues (Q3 2026)GAAP | $177.5M | – | – |
| Gross margin (Q3 2026)GAAP | $62.67M | – | – |
| Gross margin per barrel (Q3 2026)other | $0.22 | – | – |
| General and administrative expense (Q3 2026)GAAP | $18.55M | – | – |
| (Gain) loss on disposal of assets, net (Q3 2026)GAAP | −$31K | – | – |
| Other operating expense, net (Q3 2026)GAAP | $2.84M | – | – |
| Operating income (Q3 2026)GAAP | $41.31M | – | – |
| Interest expense, net (Q3 2026)GAAP | $26.33M | – | – |
| Other expense (income), net (Q3 2026)GAAP | $71K | – | – |
| Income (loss) before income taxes (Q3 2026)GAAP | $14.91M | – | – |
| Income tax expense (benefit) (Q3 2026)GAAP | $1.58M | – | – |
| Net income (loss) (Q3 2026)GAAP | $13.33M | – | – |
| Net income (loss) margin (Q3 2026)GAAP | 6% | – | – |
| Adjusted EBITDA (Q3 2026)non-GAAP | $124.2M | 7% | 18% |
| Adjusted EBITDA margin (Q3 2026)non-GAAP | 52% | – | – |
| Adjusted Operating Margin (Q3 2026)non-GAAP | $131.8M | – | – |
| Adjusted Operating Margin per barrel (Q3 2026)non-GAAP | $0.46 | – | – |
| Capital expenditures (Q3 2026)other | $123.9M | – | – |
| Total revenues (nine months 2026)GAAP | $658.9M | – | – |
| Produced water handling revenue (nine months 2026)GAAP | $509.0M | – | – |
| Produced water handling - related party revenue (nine months 2026)GAAP | $87.55M | – | – |
| Water solutions revenue (nine months 2026)GAAP | $24.79M | – | – |
| Water solutions - related party revenue (nine months 2026)GAAP | $2.71M | – | – |
| Other revenues (nine months 2026)GAAP | $30.30M | – | – |
| Other revenues - related party (nine months 2026)GAAP | $4.59M | – | – |
| Direct operating costs (nine months 2026)GAAP | $226.1M | – | – |
| Direct operating costs - related party (nine months 2026)GAAP | $45.61M | – | – |
| Depreciation, depletion, amortization and accretion (nine months 2026)GAAP | $218.2M | – | – |
| Total cost of revenues (nine months 2026)GAAP | $489.9M | – | – |
| General and administrative expense (nine months 2026)GAAP | $53.04M | – | – |
| (Gain) loss on disposal of assets, net (nine months 2026)GAAP | −$97K | – | – |
| Other operating expense, net (nine months 2026)GAAP | $4.00M | – | – |
| Operating income (nine months 2026)GAAP | $112.0M | – | – |
| Interest expense, net (nine months 2026)GAAP | $69.03M | – | – |
| Other expense (income), net (nine months 2026)GAAP | $753K | – | – |
| Income (loss) before income taxes (nine months 2026)GAAP | $42.25M | – | – |
| Income tax expense (benefit) (nine months 2026)GAAP | $4.85M | – | – |
| Net income (loss) (nine months 2026)GAAP | $37.40M | – | – |
| Net cash provided by operating activities (nine months 2026)GAAP | $265.6M | – | – |
| Capital expenditures (nine months 2026)GAAP | −$358.1M | – | – |
| Dividends, dividend equivalents and distributions paid (nine months 2026)GAAP | −$18.67M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Produced water handlingVolume growth was driven by outperformance across the Company's infrastructure footprint, from both new and existing customers, driven by strong Delaware Basin activity levels and increased capture of existing volumes in pore pressure constrained areas like the Stateline (company explanation). | $186,068 thousand (Q3 2026) | – | – |
| Produced water handling - related partyNot separately explained in the filing. | $30,887 thousand (Q3 2026) | – | – |
| Water solutionsNot separately explained in the filing. The filing states that the Adjusted Operating Margin incrementally benefits from increased water solutions recycled water sales. | $7,870 thousand (Q3 2026) | – | – |
| Water solutions - related partyNot separately explained in the filing. | $1,292 thousand (Q3 2026) | – | – |
| Other revenuesNot separately explained in the filing. The filing states that other revenues include environmental waste management, gas transportation and divested crude transportation services in cost of other revenues. | $11,926 thousand (Q3 2026) | – | – |
| Other revenues - related partyNot separately explained in the filing. | $2,120 thousand (Q3 2026) | – | – |
FY2026 (updated) outlook
- NoteProduced water handling volumes: 2.65 to 2.75 million Bbl/d, midpoint increased 2% (filing states the midpoint was raised)
- NoteAdjusted EBITDA: $465 to $485 million, midpoint increased 4% (filing states the midpoint was raised)
- NoteCapital expenditures: $530 to $560 million, midpoint decreased 3% (filing states the range was narrowed and the midpoint lowered due to project timing shifting into 2027)
Capital returns
- Quarterly cash dividend of $0.05 per Class A share declared, payable December 10, 2026, to holders of record as of November 25, 2026, with a corresponding required cash distribution to OpCo unitholders.
- Dividends, dividend equivalents and distributions paid were $(18,672) thousand for the nine months ended September 30, 2026. The prior-year comparison is printed as a dash and is not reported here.
What drove it
- Company explanation: volume growth came from outperformance across the footprint, driven by Delaware Basin activity and increased capture of existing volumes in pore pressure constrained areas such as the Stateline.
- Company explanation: sequential revenue growth was mainly driven by increased volumes and higher rates on contracts operationalized within the quarter.
- Company explanation: Speedway Phase I pipeline volumes exceeded expectations after its Q3 in-service date, with new commercial agreements signed for pipeline access.
- Company explanation: the volume and Adjusted EBITDA guidance raise reflects outperformance in volumes and margin, and the capital expenditure reduction reflects project timing shifting into 2027.
Concerns
- Net income was $13,328 thousand in Q3 2026 compared with $14,555 thousand in Q2 2026, and the net income margin fell from 7% to 6%.
- Total borrowings rose to $1.837 billion from $1.636 billion over the quarter, and the company reports that it issued additional senior notes and upsized its revolver.
- The tax receivable agreement liability increased to $295,993 thousand from $201,375 thousand at December 31, 2025.
- Net income attributable to noncontrolling interest and to WaterBridge Infrastructure LLC is printed in the statement of operations without a clearly separable prior-year column, so it is not reported here.
- Q3 2025 comparative revenue differs between tables: $205,468 thousand in the statement of operations and Adjusted EBITDA reconciliation, and $199,549 thousand in the Adjusted Operating Margin reconciliation. This report uses the statement of operations and Adjusted EBITDA figures.
What to watch
- Whether the Q4 2026 results are consistent with the raised 2.65 to 2.75 million Bbl/d volume range and the $465 to $485 million Adjusted EBITDA range.
- The pace of the Speedway Phase I pipeline ramp and the new commercial agreements for pipeline access.
- Capital expenditure timing, given the narrowed $530 to $560 million range and the shift of projects into 2027.
- Borrowings and interest expense, given the increase in total borrowings to $1.837 billion and the company's statement that it is well positioned to keep funding high-return projects.
- The Form 10-Q for the quarter ended September 30, 2026, which the release says is expected to be filed on November 4, 2026, and the conference call on November 5, 2026.
Balance sheet and cash flow
- Total liquidity was $539.7 million as of September 30, 2026, including approximately $505.0 million of available revolver borrowing capacity and total cash and cash equivalents of $34.7 million (company text).
- Cash and cash equivalents: $34,669 thousand as of September 30, 2026, compared with $51,543 thousand as of December 31, 2025.
- Total borrowings outstanding: $1.837 billion as of September 30, 2026, compared with $1.636 billion as of June 30, 2026.
- Long-term debt, net of debt issuance costs: $1,801,698 thousand as of September 30, 2026, compared with $1,431,837 thousand as of December 31, 2025.
- Total assets: $4,232,875 thousand as of September 30, 2026, compared with $3,700,020 thousand as of December 31, 2025.
- Total shareholders' equity: $1,834,834 thousand as of September 30, 2026, compared with $1,847,609 thousand as of December 31, 2025.
- Tax receivable agreement liability: $295,993 thousand as of September 30, 2026, compared with $201,375 thousand as of December 31, 2025.
- In August 2026, WBI Operating LLC issued an additional $150.0 million of 6.50% fixed-rate senior unsecured notes due 2033. The filing states these are treated as a single series with the existing $600.0 million notes, bringing the total aggregate principal to $750.0 million.
- The filing states that the $250 million revolving credit facility upsize was announced previously and took effect on August 4, 2026.
- Acquisitions, net of cash acquired: $(275,028) thousand for the nine months ended September 30, 2026.
Analysis
WaterBridge reported record third quarter produced water handling volumes of 2.8 million barrels per day, up 9% year-over-year and 6% quarter-over-quarter, with total volumes of 283,946 MBbls. Total revenues were $240,163 thousand, up 17% year-over-year from $205,468 thousand (pro forma) and up 10% from $217,772 thousand in the second quarter. The company attributes the sequential growth mainly to increased volumes and higher rates on contracts operationalized within the quarter. Produced water handling revenue was $186,068 thousand, and the related party line was $30,887 thousand, while water solutions revenue fell to $7,870 thousand from $11,151 thousand in the prior-year quarter.
Profitability moved in a mixed direction. Adjusted EBITDA was $124,246 thousand, up 18% year-over-year and 7% sequentially, with an Adjusted EBITDA margin of 52% against 51% in the prior-year quarter and 53% in the second quarter. Gross margin was $62,669 thousand, or $0.22 per barrel, unchanged per barrel from both comparison periods. Adjusted Operating Margin was $131,754 thousand, or $0.46 per barrel, against $0.42 per barrel in the prior-year quarter. GAAP operating income was $41,312 thousand, compared with $19,683 thousand in the prior-year quarter. GAAP net income was $13,328 thousand, compared with $14,555 thousand in the second quarter, so the quarter-over-quarter GAAP earnings trend was slightly lower even as operating metrics improved.
Financing costs declined year-over-year. Interest expense, net was $26,329 thousand, against $41,039 thousand in the prior-year quarter, and $22,708 thousand in the second quarter. Total borrowings nonetheless rose to $1.837 billion from $1.636 billion at June 30, 2026, following the $150.0 million add-on to the 6.50% senior notes due 2033 issued in August and the revolver upsize. Liquidity was $539.7 million at September 30, 2026, including approximately $505.0 million of revolver availability and $34.7 million of cash.
Capital allocation remains focused on growth projects. Third quarter capital expenditures were $123.9 million, primarily for the first phase of the Speedway Pipeline and Delaware Basin infrastructure. Nine-month capital expenditures were $(358,123) thousand, against $(189,360) thousand a year earlier, and nine-month operating cash flow was $265,582 thousand, against $71,515 thousand. The board declared a $0.05 per share dividend payable December 10, 2026. The 2026 guidance update raises the midpoints of produced water handling volumes (2.65 to 2.75 million Bbl/d) and Adjusted EBITDA ($465 to $485 million) by 2% and 4%, and lowers the capital expenditure midpoint by 3% to a range of $530 to $560 million because project timing shifts into 2027. The filing does not print the prior guidance ranges, so this report does not compare them numerically.
Management, verbatim
Our third quarter results demonstrate the strength of the full WaterBridge platform.
Jason Long, Chief Executive Officer
Third quarter revenue and produced water volumes grew 10% and 6% quarter-over-quarter, respectively, reflecting continued strong demand across our network.
Scott McNeely, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-year and prior-quarter figures for most nine-month and quarterly revenue sub-lines, cost lines and operating income beyond those printed in the tables.
- Year-over-year percentage changes for net income, operating income, gross margin, Adjusted Operating Margin and cost lines, which the filing does not print.
- Basic and diluted net income per Class A share ($0.10 and $0.28) and net income attributable to noncontrolling interest and to WaterBridge Infrastructure LLC: the column placement for these figures is not clearly printed, so they are not reported.
- Prior-year capital expenditures for the third quarter, and the third quarter dividend history.
- Prior guidance ranges for volumes, Adjusted EBITDA and capital expenditures, which are needed for a numeric comparison (the filing states only the percentage changes at the midpoints).
- Share price reaction and analyst consensus estimates, which are not in the filing.
- Q2 2026 operating income and Q2 2026 values for most revenue sub-lines.
- Explanations for segment-level changes in water solutions and other revenues.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.