Raymond James upgraded WaterBridge Infrastructure (WBI) to Strong Buy following a broader sector-wide review of midstream energy companies, signaling heightened confidence in WBI’s operational resilience and long-term cash flow generation.
- Raymond James upgraded WBI to Strong Buy following midstream sector-wide review
- WBI reported $412M in 2025 adjusted EBITDA with a 1.48x distribution coverage ratio
- Over 85% of WBI’s revenue is contracted, enhancing cash flow predictability
- WBI’s EV/EBITDA multiple of 12.3x is below the sector average of 14.1x
- East Texas pipeline expansion ($185M) to contribute to cash flows in Q3 2026
- Midstream sector reassessment signals growing investor confidence in infrastructure stability
Raymond James has upgraded WaterBridge Infrastructure (WBI) to Strong Buy, citing improved fundamentals and strategic positioning within the midstream energy infrastructure sector. The move comes after a comprehensive reassessment of midstream operators, reflecting evolving market dynamics driven by stable commodity flows and infrastructure demand. WBI’s diversified asset base across natural gas and crude oil logistics strengthens its long-term revenue visibility. The upgrade underscores WBI’s consistent distribution coverage and disciplined capital allocation. The company reported a 2025 adjusted EBITDA of $412 million, with a distribution coverage ratio of 1.48x, indicating solid financial health. Furthermore, WBI’s contracted revenue mix represents over 85% of total throughput, reducing exposure to commodity price volatility. Market participants are likely to respond to the upgrade with renewed interest in WBI shares, particularly among income-focused investors and infrastructure ETFs. The stock’s valuation, trading at a 12.3x EV/EBITDA multiple, remains below the sector average of 14.1x, suggesting potential upside. Analysts note that WBI’s growth projects, including the recently commissioned $185 million East Texas pipeline expansion, are expected to drive incremental cash flows beginning in Q3 2026. The sector-wide reassessment by Raymond James reflects broader confidence in midstream assets as essential infrastructure in the energy transition. Companies with strong balance sheets, stable contracts, and predictable maintenance schedules are being favored amid macroeconomic uncertainty.