It's not new news and isn't a major development. TPL's project is for 10k barrels a day and the Delaware produces several million barrels per day. Cleaning for beneficial re-use is too expensive to be the only solution now. That said, as incremental pore space is used up, what remains becomes more expensive. Perhaps in the distant future, as the cost to clean comes down, it will intersect with the cost to dispose below ground.
what's your thought on the Gotham City short report on Landbridge?
Business model wise both landbridge and waterbridge are definitley attractive but the related party and the conflict of interest risks seem high... unless you own them both at the same time i suppose to hedge the risk of one riasing / lowering price on the other
1) You want them separate as LB would never get an appropriate valuation if it's within WBI.
2) You want senior management to be the same, as you want them acting as one entity.
3) Their ownership base has always been different, and they manage potential conflicts via policies, then independent conflicts committees maid up of shareholders of both.
4) The risk is that economics flows from WBI to LB given LB's premium valuation. Devon owns ~20% of WBI and is a major customer. I doubt they would sit back and let LB take advantage of WBI.
5) I think Deep Blue will be part of WBI in the future, so the point 4, Diamondback would be a large owner of WBI. I doubt they are waiting in line to get taken advantage of.
Great article, you have become the produced water whisperer! Keep up the great coverage.
Great article!
https://www.bloomberg.com/news/features/2025-12-11/texas-mulls-allowing-oil-companies-to-pump-treated-fracking-water-into-rivers
thoughts on this?
It's not new news and isn't a major development. TPL's project is for 10k barrels a day and the Delaware produces several million barrels per day. Cleaning for beneficial re-use is too expensive to be the only solution now. That said, as incremental pore space is used up, what remains becomes more expensive. Perhaps in the distant future, as the cost to clean comes down, it will intersect with the cost to dispose below ground.
what's your thought on the Gotham City short report on Landbridge?
Business model wise both landbridge and waterbridge are definitley attractive but the related party and the conflict of interest risks seem high... unless you own them both at the same time i suppose to hedge the risk of one riasing / lowering price on the other
1) You want them separate as LB would never get an appropriate valuation if it's within WBI.
2) You want senior management to be the same, as you want them acting as one entity.
3) Their ownership base has always been different, and they manage potential conflicts via policies, then independent conflicts committees maid up of shareholders of both.
4) The risk is that economics flows from WBI to LB given LB's premium valuation. Devon owns ~20% of WBI and is a major customer. I doubt they would sit back and let LB take advantage of WBI.
5) I think Deep Blue will be part of WBI in the future, so the point 4, Diamondback would be a large owner of WBI. I doubt they are waiting in line to get taken advantage of.