Waterbridge Chairman David Capobianco on Enabling Energy Development and Water Management

Waterbridge's Business Evolution

• 💡 Waterbridge has evolved from a service business to an infrastructure business, with the next stage focusing on environmental water management.
• 🎯 The company's core strategy involves gathering, treating, and filtering water, primarily for producers to recycle.

Water Management in the Delaware Basin

• 💧 In the Delaware basin, a significant portion of produced water, beyond recycling capabilities, is managed through underground sequestration wells.
• 🔑 Water is presented as a critical enabler for energy infrastructure and the continuous flow of oil and gas; without it, operations would cease.

Financial Strategy and Market Perception

• 📈 Waterbridge went public via an IPO to support commercial development strategies and drive business growth, alongside an educational process to highlight the value of their infrastructure.
• 💰 The company aims for a market re-rating, asserting that their contracts are comparable to gas gathering contracts, with superior moats and competitive barriers resembling waste management.

Resilience to Oil Price Fluctuations

• 📉 Waterbridge's success is not solely dependent on oil prices due to specific dynamics in the Delaware basin.
• 📈 The decline curve for water production is shallower than for oil, and new exploitation areas have higher water-cut benches, leading to water production growing faster than oil production.

Ecosystem and Data Center Opportunities

• 🧩 Waterbridge, Landbridge, and PowerBridge form an ecosystem where Waterbridge gathers and transports water for disposal by Landbridge.
• ⚡ PowerBridge is positioned to leverage the abundant, inexpensive natural gas and water in West Texas for data center development, offering a low-cost environment away from population centers.