WaterBridge Infrastructure LLC

Hello everyone. Thank you for joining us and welcome to the Waterbridge First Quarter 2026 results. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. I will now hand the call over to May Harrington, Director of Investor Relations. Please go ahead.

Good morning, and thank you for joining Waterbridge's first quarter 2026 earnings call. I am joined today by our Chief Executive Officer, Jason Long, our Chief Operating Officer, Michael Chopp-Wrights, and our Chief Financial Officer, Scott McNeely. Before we begin, I'd like to remind you that in this call and the related presentation, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from results and events contemplated by such forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements. Please refer to the risk factors and other cautionary statements included in our filings with the SEC. I would also like to point out that our investor presentation and today's conference call will contain discussions of non-GAAP financial measures which we believe are useful in evaluating our performance. These supplemental measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Reconciliations to the most directly comparable GAAP measures are included in our earnings release in the appendix of today's accompanying presentation. I'll now turn the call over to Chief Executive Officer Jason Long.

Thank you, Mae, and good morning, everyone. I'm pleased to report that we delivered a strong first quarter, underscoring the value of our integrated water and infrastructure network. and a sustained growing demand for responsible produced water handling solutions across the Delaware Basin. The operational momentum we built through Q1, combined with increased visibility and conviction in our commercial demand outlook for the remainder of the year, and a more supportive macro environment gives us the confidence to raise our 2026 guidance today. As Scott will detail, we are increasing our full-year volume guidance to 2.525% 2.725 million barrels a day, and our adjusted EBITDA guidance to 425 million to 465 million. First quarter produced water handling volumes came in at approximately 2.5 million barrels per day. That represents a modest sequential decline from Q4, which we anticipated. Activity levels at the start of the year are typically lower following a strong prior quarter, and the fourth quarter was particularly active. Volume growth accelerated through the quarter, and we have strong operational momentum heading into Q2. On the financial side, first quarter revenue was 201 million and adjusted EBITDA was 102.9 million, with adjusted EBITDA margins of 51%. Gross margin per barrel improved sequentially from 18 cents per barrel in Q4 to 20 cents per barrel in Q1, a meaningful improvement that reflects the operating strengths of our model. Now let me turn to our two key growth drivers for the back half of the year. Speedway Phase 1 and the Kraken Project. Speedway Phase 1 is on track for a mid-year in-service date as we prepare for the pipeline to come online. We are already signing interoperable contracts with customers looking to utilize available capacity in the second half. To be clear, these are non-obligatory agreements for both sides. We would not build them into our guidance, but there are meaningful demands to them. They indicate that interest in Speedway capacity extends well beyond our committed customer base. and they represent potential incremental upside as the pipeline ramps. The Kraken Project NBC increase is expected mid-year as well. Together, Speedway Phase 1 and Kraken are the primary volume and revenue growth drivers for 2026, and both are progressing on schedule. The other headline from the quarter is the conclusion of our Speedway Phase 2 open season, which represents up to 500,000 barrels per day of incremental capacity. The formal process wrapped up in April, and the results were strong. So I'll let Shop provide some details shortly on what we saw through that process and our expectations going forward. Finally, as our E&P partners require capacity and integrated solutions, WaterBridge will continue to scale our network to meet demand in the most efficient way possible. At the same time, as our infrastructure network continues to grow, we are more encouraged than ever as we consider new ways to create incremental value via the large and growing water resource asset that we own. There is a very interesting and rapidly shifting economic landscape for water supply and demand in the Delaware Basin. Treatment technologies continue to improve, and downstream demand from industries like digital infrastructure continue to shift the potential role of treated produced water in the historically water-stressed basin in a meaningful way. We continue to leverage our role as an industry leader to explore these beneficial reuse opportunities and are excited about the potential opportunities that the scale and strategic geography of our assets may be able to unlock. The combination of these factors, Speedway Phase 1 on track for a mid-year start, cracking, ramping, and Phase 2 open season that exceeded our expectations in an operational and commercial environment that has become more supportive since we set initial guidance, is what underpins our decision to raise guidance today. CHOP will give you more color on the operational specifics, and Scott will walk through the financial implications.