Yet Another Value Podcast Chadd Garcia breaks down WaterBridge's post-IPO value creation story $WBI
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Nov 9, 2025 Chadd Garcia, an investor and analyst specializing in oilfield services and waste sectors, shares his insights on WaterBridge, a recent IPO focused on managing produced water from oil drilling. He delves into the company's operational efficiencies, especially its pipeline network, and discusses the potential for growth driven by minimum volume contracts. Chadd also explores the strategic relationship with LandBridge and explains how regulatory dynamics in Texas and New Mexico could impact the future. He highlights valuation comparisons with peers and outlines key risks that could affect the investment landscape.
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Produced Water Is The Choke Point
- Produced water is the choke point for Permian oil because wells increasingly produce water over time.
- WaterBridge processes, transports, and disposes produced water while recovering skim oil and solids for sale or landfill.
Waste Parallels Matter For Valuation
- Analysts view WaterBridge as a midstream pipeline company but the business resembles waste management economics.
- Reclassifying to a waste multiple could drive meaningful multiple expansion beyond current midstream valuation.
Underwrite On Contracted Volumes First
- Underwrite conservatively using contracted revenues and disclosed MVCs because >70% of revenue is contracted.
- Expect mid-to-high-teens volume growth from MVCs plus pricing that flows to EBITDA with limited incremental cost.