To withdraw your question, press star 1 again. Our next question comes from the line of Michael Furrow with Pickering Energy Partners. Your line is now open. Please go ahead.

Hi, good morning. Thanks for taking our questions. Based on the updated produced water handling guidance range, the upper end of the range implies a meaningful ramp in volumes over the next two quarters, which I think you guys hit on in the prepared remarks.

So what would you need to see in order to bring the lower half of guidance into play based on what you're seeing on the current ramp of speedway and other projects is that sort of dependent on a meaningful pullback and uh in drilling activity hey morning michael yeah that's exactly right i mean i think with where we're at today it's it's a very low likelihood um but if we saw black swan event event and kind of commodity prices pivot to the negative and drilling activity halt i think that that becomes a risk and we just want to be honest about that but you know ultimately we're very much focused on stepping out with um you know call it conservative guidance and you know i i would say it's going to take something pretty outsized for

that that bottom half to really be a meaningfully called potential outcome here yeah that makes a lot of sense and as a follow-up just just staying with the northern delaware basin landfill we're trying to get a better understanding of the unit economics so looking at slide eight the deck discloses 44 million cubic yards of capacity that represents 40 years of solid waste handling capacity so the rough math would suggest something like a million cubic yards per year from what we can find a waste management facility can often collect somewhere between 25 to 30 dollars a cubic yard but of course that's dependent upon a multitude of factors so uh from your perspective does that sound like the right ballpark for the acquired facility um that's ultimately going to

be conservative. I would say the all-in figures, if you were to work through the framework you just laid out, are going to be higher. You're probably looking closer to $40 to $45 all-in if you were looking for a simple way to model it.

All right. That's great detail. Thanks.

Our final question will come from the line of Don Crist with Johnson Rice. Your line is now open. Please go ahead.

Thanks, guys. Good morning, and thanks for letting me in. I wanted to talk about speedway um i know you you said it's taken volumes now and it's going to ramp up uh as we go into the the back half of the year but i also wanted to ask about speedway two and the timeline of sanctioning and and kind of inflationary factors there just any any comments around uh number one the ramp up of speedway one but but the the progress of speedway two as we move forward Yeah, thanks.

Thanks, Don. I'll take that and then Scott can follow up. But, you know, Speedway Phase 1 is online. The team did a really great job getting prepared for bringing that system online. And so we're being thoughtful about how we ramp that system to really learn how it operates and prevent any kind of issues and potential downtime in the future. So we will ramp over the next couple of months up to around 100,000 barrels a day and hope to exit the year well above that. As far as Speedway 2 goes, the commercial conversations are going great. But as you can appreciate with the quality of counterparties and sophisticated counterparties that we're working with, contracting takes time. And so that's what we're working through right now.

Okay, but you would still expect to have something sanctioned probably by year-end? I don't want to pin you down to a timeframe, but is that the right timeframe to think of?

Yeah, we think so.

Yeah, potentially imminent, but back after this year, we have high degree of confidence in.

Okay, and if I could squeeze in one more, just on customer activity going forward, you know, we've seen a bunch of rigs being added to the rig count, but we haven't seen a lot of completion crews. And, you know, it's our analyst contention that, you know, there's going to be a whole lot more activity as we move into 27. I know you're early in the process when these guys are planning. Are you seeing increased activity as we move into 27 from kind of the bigger guys? I know we've seen a little bit from the smaller guys to date, but are you seeing increased activity as we move into 27 from the bigger operators out there?

Yeah, I think that's a good way to look at it. I mean, there's been several public statements made through the course of the last six months that if the forward strip into 27 kind of hit or exceeded the mid-70s, you would see a more aggressive hedge program put in place and greater activity in 27 than certainly what was contemplated It's stepping out of 25 in a much softer commodity price environment. And so no one, you know, no one has come to us and kind of formally firmed up their 27 programs yet, although we expect to start getting that here pretty soon. But I think generally speaking, we expect a much more constructive year next year than certainly what we were expecting at the beginning of this year. But, you know, even I would say over the course of the last few months, we've seen it evolve to the positive. I appreciate the color. I'll turn it back.

Thanks, guys.

There are no further questions at this time. I will now turn the call back to Scott McNeely for closing remarks.

Thanks again to everyone for joining us today. We appreciate your ongoing focus on Waterbridge. Again, we're very excited stepping out of the quarter with both the acquisitions as well as just the operational momentum we have stepping into the back half of this year. Again, there's so much opportunity ahead of us in a number of different business lines. and we're really excited to circle back and give you all more updates here as they materialize. But thanks again. We hope you all have a good day.

This concludes today's call. Thank you for attending. You may now disconnect.