Operational cash flow generation remains disconnected from reported earnings, with a 2026Q1 OCF/NI ratio of 9.99, while the company continues to distribute $6.2 million in dividends despite a negative free cash flow margin of -7.9%.
| Cash from Operations | 254.8M | 159.69M |
| Operating CF Margin % | - | 30.39% |
| Operating CF Growth % | 0% | - |
| Net Income | 15.67M | 9K |
| Depreciation & Amortization | 209.85M | 140.9M |
| Stock-Based Compensation | 7.92M | 5.34M |
| Deferred Taxes | -354K | -1.25M |
| Other Non-Cash Items | 17.17M | 14.7M |
| Working Capital Changes | 0 | 0 |
| Change in Receivables | -32.05M | -37.05M |
| Change in Inventory | 0 | 0 |
| Change in Payables | 7.5M | 5.09M |
| Cash from Investing | -328.32M | -218.62M |
| Capital Expenditures | -389.51M | -278.57M |
| CapEx % of Revenue | 71.02% | 53% |
| Acquisitions | 39.9M | 39.9M |
| Investments | - | - |
| Other Investing | 21.29M | 20.05M |
| Cash from Financing | 110.91M | 97.19M |
| Debt Issued (Net) | 0 | 0 |
| Equity Issued (Net) | 0 | 0 |
| Dividends Paid | -6.22M | 0 |
| Share Repurchases | 0 | 0 |
| Other Financing | 117.12M | 97.19M |
| Net Change in Cash | 50.67M | 38.26M |
| Free Cash Flow | -134.71M | -118.87M |
| FCF Margin % | -24.56% | -22.62% |
| FCF Growth % | - | - |
| FCF per Share | - | -2.75 |
| FCF Conversion (FCF/Net Income) | -8.60x | -35.20x |
| Interest Paid | 0 | 0 |
| Taxes Paid | 0 | 0 |
Capital intensity versus returns
According to recent financial statements, WBI exhibits a significant disconnect between net income and operating cash flow, evidenced by a 2026Q1 OCF/NI ratio of 9.99, which suggests that reported earnings are currently failing to capture the underlying cash-generative capacity of the company's core infrastructure assets.
The extreme variance in the OCF/NI ratio indicates that non-cash charges and accounting adjustments are heavily distorting the bottom line. Investors should monitor whether this divergence is a temporary result of regulatory accounting or a structural issue where earnings are consistently overstated relative to actual cash inflows.
As reported in quarterly filings, WBI's free cash flow remains consistently negative, with a 2026Q1 FCF margin of -7.9%, highlighting the company's current inability to fund its extensive infrastructure maintenance and expansion requirements solely through its internal operational cash generation.
The persistent negative FCF trajectory suggests that the company is in a heavy investment phase, likely prioritizing long-term asset footprint expansion over immediate cash return. This trend warrants investigation into whether these capital outlays will eventually yield the expected regulatory returns or if they represent a permanent cash-burning cycle.
Based on the provided figures, WBI's capital intensity is substantial, with a 2026Q1 CapEx/Revenue ratio of 55.2%, indicating that the company must reinvest a majority of its top-line revenue to maintain its gathering and transmission network within the competitive Williston Basin environment.
This high level of capital intensity suggests that the company's infrastructure requires constant, significant investment to remain operational and compliant. Such a structure limits the company's ability to generate surplus cash, making it highly dependent on the successful execution of its growth projects to justify the ongoing expenditure.
Financial data indicates that WBI continues to pay dividends despite negative free cash flow, with $6.2 million distributed in 2026Q1, a practice that appears to prioritize shareholder returns even while the company's core operations are currently consuming more cash than they are generating.
The decision to maintain dividend payments while FCF is negative suggests a management strategy focused on investor retention, though it may be unsustainable if the current cash burn persists. This allocation strategy warrants further investigation into the company's long-term liquidity planning and the durability of its cash reserves.
Quick answers to the most common questions about buying WBI stock.
WaterBridge Infrastructure LLC (WBI) generated $159.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
WaterBridge Infrastructure LLC (WBI) reported negative free cash flow of $118.9M in 2025, indicating capital requirements exceeded cash from operations.
WaterBridge Infrastructure LLC (WBI) spent $278.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.