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WaterBridge shares fall after raised guidance despite record revenue
The company boosted full-year adjusted EBITDA to $435 million to $475 million and volume to 2.55 million to 2.75 million bpd, but increased capex by $100 million to $530 million to $590 million left net leverage at 3.3 times.
WaterBridge (WBI) reported record quarterly revenue of $217.8 million and raised its full-year outlook for a second straight quarter, but the stock dropped about 1.73% around the release, Yahoo Finance reported. The company posted adjusted EBITDA of $115.8 million, with margins at 53%, and said adjusted EBITDA guidance now ranges from $435 million to $475 million.
For the year, management also lifted volume guidance to 2.55 million to 2.75 million barrels per day. WaterBridge cited growth driven by acquisitions and project progress, including closing its purchase of Ranger Water Midstream, which added 70,000 barrels per day of disposal capacity and a treatment facility next to its Speedway project, launched in July.
WaterBridge also closed expansion steps in waste services, agreeing to buy a 560-acre NDB Landfill and receiving board approval for a fourth waste facility in the Stateline region, a move it said is expected to double its total facility count. Looking ahead, the company pointed to its partnership with LandBridge and access to about 13.4 million acre-feet of brackish water as a potential entry into data center cooling, described as a multi-gigawatt opportunity.
The guidance increase came alongside higher spending and leverage. Capital expenditure guidance rose by $100 million to $530 million to $590 million, total debt was $1.636 billion at quarter end, and the covenant net leverage ratio reached 3.3 times, above its long-term target of under 3 times, according to Yahoo Finance. To help fund the expansion, WaterBridge increased its revolving credit facility from $500 million to $750 million, with capacity to grow it to $1 billion.