Business Breakdowns WaterBridge: Oil and Water - [Business Breakdowns, EP.228]
69 snips
Sep 24, 2025 James Davalos, an investment professional at Horizon Kinetics, dives into the fascinating world of Waterbridge and Landbridge, two key players in oil and water infrastructure. He discusses the critical role of Waterbridge as a leading produced-water disposal operator in Texas, the unique challenges of water disposal from shale operations, and the importance of land value in this sector. With insights on contract structures, the economics of water management, and next-gen opportunities in West Texas, Davalos paints a compelling picture of this often overlooked industry.
AI Snips
Chapters
Transcript
Episode notes
What Waterbridge And Landbridge Do
- Waterbridge is a third-party water infrastructure company handling produced water from oil and gas in the Permian Basin.
- Landbridge is the land owner that provides surface acreage and easements to enable Waterbridge's systems.
How Horizon Kinetics Entered The Space
- Horizon Kinetics' interest began with Texas Pacific Land Corporation, a liquidating land trust discovered in 1995 by Murray Stahl.
- That early thesis on land optionality led HK to follow related land and water infrastructure opportunities.
Produced Water Volumes And Hazard
- In the Delaware Basin roughly four barrels of produced water emerge for every barrel of oil, and it's extremely saline and corrosive.
- That produced water is a hazardous waste stream that requires specialized disposal and monitoring.