Second quarter 2026
Filed Aug 5, 2026WaterBridge Announces Second Quarter 2026 Results
Sequential produced water handling volumes, revenue, net income, gross margin and Adjusted EBITDA increased, while the Company raised full-year produced water handling volumes, Adjusted EBITDA and capital expenditures guidance following acquisitions and commercial-project developments.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Produced water handling volumesother | 2.6 million barrels per day | 6% | – |
| RevenueGAAP | $217.8 million | 8% | – |
| Net incomeGAAP | $14.6 million | – | – |
| Net income marginGAAP | 7% | – | – |
| Adjusted EBITDAnon-GAAP | $115.8 million | – | – |
| Adjusted EBITDA Marginnon-GAAP | 53% | – | – |
| Gross marginother | $58.1 million | – | – |
| Gross margin per barrelother | $0.22 | – | – |
| Adjusted Operating Marginnon-GAAP | $124.1 million | – | – |
| Adjusted Operating Margin per barrelnon-GAAP | $0.46 per barrel | – | – |
| Capital expendituresother | $123.3 million | – | – |
full year 2026 outlook
- NoteProduced water handling volumes: 2.55 to 2.75 million barrels per day
- NoteAdjusted EBITDA: $435 to $475 million
- NoteCapital Expenditures: $530 to $590 million
Capital returns
- Declared quarterly cash dividend of $0.05 per share
What drove it
- Volume growth was driven by the continued ramp of the Kraken project and an increase in commercial demand for access to existing infrastructure.
- Sequential revenue growth was mainly driven by increased volumes and higher rates on contracts operationalized within the quarter.
- Second quarter capital expenditures were primarily driven by continued construction costs for the first phase of the Speedway Pipeline project and continued investments in Stateline produced water infrastructure.
- Speedway Phase I Pipeline first volumes came online in July 2026, with volumes expected to continue ramping through the quarter.
- The Ranger acquisition added approximately 70,000 barrels per day of total permitted disposal-well capacity, approximately 30 miles of produced water gathering pipelines and approximately 1.2 million barrels of produced water storage capacity.
- The Company cited anticipated impacts from the Ranger acquisition, NDB Landfill acquisition, greenfield landfill construction and high-return commercial projects in raising full-year guidance.
Concerns
- Prior-year figures were not presented because they reflect only NDB Operating results and have limited utility relative to the current period following the Combination.
- The NDB Landfill acquisition is expected to close in the third quarter of 2026 and remains subject to customary closing conditions, including required approvals and consents.
- The increased full-year Capital Expenditures guidance range is $530 to $590 million.
- No revenue, gross margin, operating expense or tax-rate guidance was reported.
What to watch
- The continued ramp of Speedway Phase I Pipeline volumes through the quarter.
- The ongoing ramp of the Kraken project and commercial demand for existing infrastructure.
- Closing of the NDB Landfill acquisition in the third quarter of 2026, subject to closing conditions, approvals and consents.
- Execution of the near-term construction of a fourth environmental waste management facility in the Stateline region.
- Delivery against full-year produced water handling volumes guidance of 2.55 to 2.75 million barrels per day and Adjusted EBITDA guidance of $435 to $475 million.
Balance sheet and cash flow
- Second quarter capital expenditures were $123.3 million.
- On June 22, 2026, WaterBridge closed the Ranger Water Midstream acquisition for $80 million in cash.
- WaterBridge entered into an agreement to acquire the NDB Landfill for net consideration of $169 million.
- The $169 million net acquisition price reflects a purchase price of $189 million for the NDB Landfill offset by a subsequent agreement to sell approximately 560 acres of fee surface underlying the NDB Landfill to LandBridge for total consideration of $20 million.
Analysis
WaterBridge reported broad sequential operating and financial growth in the second quarter of 2026. Produced water handling volumes were 2.6 million barrels per day, up 6% quarter-over-quarter, and revenue was $217.8 million, up 8% quarter-over-quarter from $201.0 million. Management attributed volume growth to the Kraken project ramp and increased commercial demand for its existing infrastructure. Revenue growth was driven by higher volumes and higher rates on contracts operationalized during the quarter.
Profitability also improved sequentially. Net income was $14.6 million versus $9.5 million in the first quarter, while gross margin increased to $58.1 million from $48.2 million. Adjusted EBITDA increased to $115.8 million from $102.9 million, and Adjusted Operating Margin rose to $124.1 million from $111.3 million. Gross margin per barrel was $0.22 compared with $0.20 in the first quarter, and Adjusted Operating Margin per barrel was $0.46 per barrel compared with $0.45 per barrel.
Capital deployment is centered on organic network expansion and acquisitions. Second-quarter capital expenditures were $123.3 million, primarily for Speedway Pipeline Phase I construction and Stateline produced water infrastructure. The Company closed the Ranger acquisition on June 22, 2026 for $80 million in cash. Subsequent to quarter end, it agreed to acquire the NDB Landfill for net consideration of $169 million and invested in construction of a fourth environmental waste management facility in the Stateline region.
Guidance increased for the full year 2026. Produced water handling volumes guidance is 2.55 to 2.75 million barrels per day, Adjusted EBITDA guidance is $435 to $475 million, and Capital Expenditures guidance is $530 to $590 million. The Company linked the revised ranges to anticipated impacts from the Ranger and NDB Landfill acquisitions, greenfield landfill construction and commercial projects. It also declared a quarterly cash dividend of $0.05 per share.
The reported period does not provide prior-year comparisons because management stated that prior-year figures reflect only NDB Operating results before the Combination. The principal execution items are the ramp of Speedway Phase I, the continuing Kraken ramp, the planned NDB Landfill closing in the third quarter of 2026, and implementation of the expanded capital program.
Management, verbatim
Our second quarter results reflect the continued strength of our base business, with sequential growth in both volumes and revenue and operations continuing to outperform across the platform. Speedway Phase I is now online and ramping as expected, giving us strong visibility into one of our most important near-term growth drivers, while the ongoing ramp of the Kraken project further reinforces the durability of our underlying network.
Jason Long, Chief Executive Officer of WaterBridge
Our second quarter results demonstrate the scalability of our platform, with revenue growing 8% quarter-over-quarter and Adjusted EBITDA increasing to $115.8 million from $102.9 million in the first quarter. We continue to generate competitive returns on the capital we are deploying, both toward strategic M&A and toward organic growth projects like Speedway and the New Devon Project, all of which are reflected in our increased full-year capital expenditure and Adjusted EBITDA guidance.
Scott McNeely, Chief Financial Officer of WaterBridge
Not in the filing
stated, not guessed- Period-end date
- GAAP and non-GAAP EPS
- Operating income
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Segment revenue and segment profitability
- Prior-year figures for reported metrics
- Revenue guidance
- Gross margin guidance
- Operating expenses guidance
- Tax-rate guidance
- Prior guidance for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.