| Additional Financial Statement Information |
3.Additional Financial Statement Information Other Balance Sheet information is as follows:
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June 30,
2026 |
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December 31,
2025 |
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Prepaids and other current assets |
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|
|
|
|
|
Prepaid insurance |
|
$ |
3,085 |
|
|
$ |
10,271 |
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Prepaid expenses |
|
|
2,558 |
|
|
|
1,884 |
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Debt issuance costs |
|
|
1,137 |
|
|
|
1,137 |
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Other |
|
|
1,226 |
|
|
|
1,542 |
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Total prepaids and other current assets |
|
$ |
8,006 |
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|
$ |
14,834 |
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|
|
|
|
|
|
|
Other assets |
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|
|
|
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Contractual customer relationships |
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$ |
17,113 |
|
|
$ |
18,029 |
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Operating lease right-of-use assets |
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|
6,142 |
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|
|
6,537 |
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Debt issuance costs |
|
|
3,685 |
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|
|
4,253 |
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Non-current prepaid expenses |
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|
2,887 |
|
|
|
2,703 |
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Other |
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|
1,589 |
|
|
|
1,197 |
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Total other assets |
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$ |
31,416 |
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|
$ |
32,719 |
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|
|
|
|
|
|
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Accounts payable |
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|
|
|
|
|
Trade payable |
|
$ |
37,996 |
|
|
$ |
26,304 |
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Working interest and royalty payable |
|
|
10,580 |
|
|
|
10,565 |
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Other |
|
|
2,653 |
|
|
|
1,863 |
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Total accounts payable |
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$ |
51,229 |
|
|
$ |
38,732 |
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|
|
|
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|
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Accrued liabilities |
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|
|
|
|
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Accrued operating and capital expenses |
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$ |
58,961 |
|
|
$ |
77,066 |
|
Accrued interest |
|
|
20,276 |
|
|
|
21,977 |
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Accrued payroll |
|
|
11,765 |
|
|
|
19,391 |
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Accrued property taxes |
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|
4,334 |
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|
|
6,000 |
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Other |
|
|
5,352 |
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|
|
5,176 |
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Total accrued liabilities |
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$ |
100,688 |
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|
$ |
129,610 |
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|
|
|
|
|
|
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Other long-term liabilities |
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|
|
|
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Asset retirement obligation liability |
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$ |
18,658 |
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|
$ |
16,464 |
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Operating lease liability |
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|
5,360 |
|
|
|
5,774 |
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Contract liabilities |
|
|
5,092 |
|
|
|
5,387 |
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Finance lease liability |
|
|
1,301 |
|
|
|
1,627 |
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Other |
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|
721 |
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|
|
1,007 |
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Total other long-term liabilities |
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$ |
31,132 |
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|
$ |
30,259 |
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As of June 30, 2026 and December 31, 2025, we had allowance for doubtful accounts of $3.0 million and $4.6 million, respectively. Other Statements of Operations information is as follows:
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
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Produced water handling revenues |
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$ |
177,590 |
|
|
$ |
80,491 |
|
|
$ |
342,495 |
|
|
$ |
157,862 |
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Skim oil revenues |
|
|
20,041 |
|
|
|
8,667 |
|
|
|
37,073 |
|
|
|
16,359 |
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Total produced water handling revenues |
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$ |
197,631 |
|
|
$ |
89,158 |
|
|
$ |
379,568 |
|
|
$ |
174,221 |
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Supplemental cash flow information is as follows:
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Six Months Ended June 30, |
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|
|
2026 |
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|
2025 |
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Supplemental cash flow information: |
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Cash paid for interest |
|
$ |
50,179 |
|
|
$ |
21,268 |
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Cash (refunded) paid for income taxes, net |
|
$ |
(43 |
) |
|
$ |
260 |
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|
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Non-cash investing and financing activities: |
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|
|
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Capital expenditures in accounts payable and accrued liabilities |
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$ |
66,242 |
|
|
$ |
73,167 |
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Asset financing |
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$ |
4,419 |
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|
$ |
- |
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Right-of-use assets obtained in exchange for finance lease liabilities |
|
$ |
499 |
|
|
$ |
253 |
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Asset retirement obligation additions |
|
$ |
1,575 |
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|
$ |
650 |
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| Additional Financial Statement Information |
3.Additional Financial Statement Information Statements of Operations information is as follows:
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Three Months Ended
June 30, 2025 |
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Six Months Ended
June 30, 2025 |
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Produced water handling revenues |
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$ |
74,839 |
|
|
$ |
143,580 |
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Skim oil revenues |
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|
6,093 |
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|
|
12,316 |
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Total produced water handling revenues |
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$ |
80,932 |
|
|
$ |
155,896 |
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For the three and six months ended June 30, 2025, the Company had $28.2 million and $51.8 million in depreciation expense, respectively, associated with property, plant and equipment. Supplemental cash flow information is as follows:
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Six Months Ended
June 30, 2025 |
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Supplemental cash flow information: |
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Cash paid for interest |
|
$ |
53,018 |
|
|
|
|
|
Non-cash investing and financing activities: |
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|
|
Capital expenditures in accounts payable and accrued liabilities |
|
$ |
18,108 |
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Asset financing |
|
$ |
1,146 |
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Asset retirement obligation additions |
|
$ |
284 |
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Litigation: On April 3, 2025, WaterBridge Texas Operating LLC (“WBTO”), a subsidiary of the Company, received an enforcement notice from the Railroad Commission of Texas (“RRC”) seeking reimbursement of approximately $6.9 million in expenses incurred by the RRC in connection with the plugging of an orphan well located in proximity to a produced water handling facility operated by WBTO. On January 7, 2026, WBTO received an enforcement action from the RRC related to such matter. WBTO filed its response on February 6, 2026 and requested a hearing on the merits. As of August 5, 2026, a hearing date had not been set. While we cannot predict the outcome of this matter, we believe the action is without merit and timing of resolution is uncertain. The Company has no amounts accrued related to this matter. Performance Incentives: During the three and six months ended June 30, 2025, the Company made $2.1 million and $2.7 million in incentive payments, respectively, under a performance-based contingent consideration arrangement entered into as part of a December 2022 asset acquisition. No other activity occurred under this arrangement during the period.
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