New York City-based Horizon Kinetics Asset Management disclosed a new position in WaterBridge Infrastructure LLC (WBI +0.99%), acquiring about 6.35 million shares valued at $160.26 million, per a November 14 SEC filing.
What Happened
Horizon Kinetics Asset Management disclosed a position in WaterBridge Infrastructure LLC (WBI +0.99%) of about 6.35 million shares, according to a November 14 SEC filing. The reported stake was valued at $160.26 million at the end of the quarter, representing 1.95% of the firm’s $8.2 billion in reportable holdings. The fund held 329 U.S. equity positions at quarter-end.
What Else to Know
Top holdings after the filing:
- NYSE:TPL: $3.27 billion (40.2% of AUM)
- NYSEMKT:GBTC: $1.27 billion (15.6% of AUM)
- NYSE:WPM: $312.27 million (3.8% of AUM)
- NYSE:LB: $300.47 million (3.7% of AUM)
- NYSE:FNV: $225.67 million (2.8% of AUM)
As of Tuesday, shares of WaterBridge Infrastructure were priced at $20.29, roughly in line with their September IPO price of $20.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Tuesday) | $20.29 |
| Market Capitalization | $881.95 million |
| Revenue (TTM) | $749.75 million |
| Net Income (TTM) | ($11.95 million) |
Company Snapshot
WaterBridge Infrastructure provides water management infrastructure and services, including produced water collection, transportation, recycling, and management for oil and gas producers. The company serves oil and gas operators in the Delaware, Eagle Ford, and Arkoma basins, focusing on upstream energy sector clients. It operates a network of pipelines and facilities designed to support large-scale water logistics for the energy industry.
Foolish Take
Horizon Kinetics’ disclosure came just weeks after WaterBridge’s IPO -- a moment that marked a shift from a private, acquisition-driven story to a public operator with a fortified balance sheet and a clearer cash flow profile. In its first reported quarter as a public company, WaterBridge posted pro forma revenue of $205.5 million, up 8% quarter over quarter, driven by rising produced water volumes that reached 2.5 million barrels per day. Pro forma adjusted EBITDA came in at $105.7 million, translating to a notable 51% margin. Just as important, the company used its IPO and a subsequent $1.425 billion senior notes offering to refinance legacy debt, extend maturities, and boost liquidity to $547 million.
The stock has been fairly level since listing, partly due to dilution from a secondary offering and investor digestion of the capital structure. But within Horizon Kinetics’ portfolio, this sits alongside land, royalty, and real-asset businesses like Texas Pacific Land and LandBridge, suggesting a familiar thesis.
Glossary
Asset Management: Professional management of investments such as stocks, bonds, and other assets for clients.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or share that an investor holds in a company.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a financial institution.
Reportable Holdings: Investments that must be disclosed in regulatory filings, typically due to their size or regulatory requirements.
Top Holdings: The largest investments in a portfolio, often representing the greatest exposure or conviction.
52-week High: The highest price at which a security has traded during the previous 12 months.
Alpha: A measure of an investment's performance relative to a benchmark, indicating excess return.
Produced Water: Water generated as a byproduct during oil and gas extraction, often requiring specialized management.
Upstream: The sector of the oil and gas industry involved in exploration and production of raw materials.
Basin: A geographic area with significant accumulations of oil and gas resources.
TTM: The 12-month period ending with the most recent quarterly report.
