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Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

12. Related Party Transactions

 

 

 

Year Ended December 31,

 

 

Financial Statements Location

 

2025

 

 

2024

 

 

2023

 

Revenues - Related Party

 

 

 

 

 

 

 

 

 

 

Affiliate access agreements

Surface use royalties

 

$

36,168

 

 

$

18,499

 

 

$

5,436

 

Data center agreement

Easements and other surface-related revenues

 

 

-

 

 

 

8,000

 

 

 

-

 

Affiliate access agreements

Easements and other surface-related revenues

 

 

10,716

 

 

 

5,486

 

 

 

4,249

 

Affiliate access agreements

Resource royalties

 

 

7,297

 

 

 

3,062

 

 

 

-

 

Affiliate access agreements

Resource sales

 

 

1,718

 

 

 

387

 

 

 

1,785

 

 

 

$

55,899

 

 

$

35,434

 

 

$

11,470

 

 

 

 

 

December 31,

 

 

Financial Statements Location

 

2025

 

 

2024

 

Accounts Receivable - Related Party

 

 

 

 

 

 

 

Affiliate access agreements

Related party accounts receivable

 

$

4,945

 

 

$

2,111

 

 

 

 

 

 

 

 

Accounts Payable - Related Party

 

 

 

 

 

 

 

Shared services agreement

Related party accounts payable

 

$

781

 

 

$

686

 

 

Shared Services Agreement

The Company is party to a services agreement with WaterBridge Operating LLC (“WaterBridge Operating”), an affiliate of the Company, and other affiliates pursuant to which the Company receives common management and general, administrative, overhead and operating services in support of the Company’s operations and development activities. The Company reimburses all fees incurred by WaterBridge Operating or its affiliates for services provided to the Company under the agreement. For shared services, the basis of allocation is an approximation of time spent on activities supporting the Company. For shared expenses paid on behalf of the Company, the costs are directly allocated to the Company based on its pro rata share of the expenses. For the years ended December 31, 2025, 2024 and 2023, the Company paid approximately $17.2 million, $10.1 million and $5 million for the shared services and direct cost reimbursements, respectively.

Affiliate Facility Access Agreements

 

The Company is party to facility access and surface use agreements and easements and rights-of-way with WaterBridge Infrastructure LLC and its subsidiaries (“WaterBridge”). Under these agreements, the Company has granted WaterBridge certain rights to construct, operate and maintain produced water, brackish water and waste reclamation facilities on our land, as applicable, in the ordinary course of business. Each of these agreements includes a standard fee schedule and provision for specified surface use activities. Each of these agreements also includes a provision for royalties related to certain specified activities.

Equity Sponsor Services Agreement

Five Point Infrastructure LLC (“Five Point”), our financial sponsor, invoices the Company, and the Company reimburses Five Point in cash, for expenses associated with the Company’s use of Five Point’s geographic information system (“GIS”) and certain legal services provided by Five Point. The reimbursement includes allocated Five Point personnel costs and third-party software and hardware expenses and is determined based on the Company’s use of Five Point’s total services for such period. For the years ended December 31, 2025, 2024 and 2023, the GIS and legal services reimbursements paid were $0.5 million, $0.3 million and $0.2 million, respectively. As of December 31, 2025 and 2024, the Company had no amount and an immaterial amount due to Five Point, respectively.

Data Center Agreement

The Company is party to a lease development agreement for the development of a data center and related facilities on approximately 2,000 acres of our land in Reeves County, Texas with Powered Land Partners LLC, a joint venture between a third-party developer and funds affiliated with Five Point (“PowLan”). PowLan is obligated to meet certain timing milestones to maintain its lease, to include the commencement of site development within a two-year period and construction of the data center within a subsequent four-year period. To the extent PowLan does not commence site development within two years of entry into the lease development agreement or commence construction of the data center within a subsequent four-year period, the agreement will automatically terminate. The lease development agreement includes, among other things, a non-refundable deposit, for a two-year site selection and pre-development period. The deposit of $8.0 million was paid in December 2024 and is included within Easements and other surface-related revenues - Related Party on the consolidated statements of operations for the year ended December 31, 2024.