Q: Hi 5i team,

I am interested in WaterBridge Infrastructure LLC's (WBI) recent IPO and its unique business model within the Permian Basin water management sector. I would appreciate your insights on the following aspects regarding WBI’s long-term growth prospects and its capital-light strategy in the energy infrastructure sector:

1. How do you assess the sustainability of WBI’s margins and cash flow profile, especially considering the long-term, CPI-linked contracts and the increasing scarcity of pore space for water disposal in the Permian Basin?

2. What is WBI’s competitive position as the industry shifts from in-house management of water infrastructure by exploration and production (E&P) companies to outsourcing?

3. What are the key risks and potential inflection points related to state regulatory changes, environmental liabilities, or technological advancements in produced water reuse or disposal (such as desalination for beneficial reuse)?

4. How does WBI compare to other listed midstream alternatives in terms of attractiveness, especially from the perspective of Canadian investors seeking exposure to this mid-cap, high-margin segment in the US? What are the risk/reward considerations?

Thank you for your insights!

Best,
Matt