Western Midstream Partners Q2 Earnings Beat on Higher Throughputs

Western Midstream Partners LP WES reported second-quarter 2025 earnings of 87 cents per common unit, which beat the Zacks Consensus Estimate of 82 cents. The bottom line, however, declined from the year-ago quarter’s level of 97 cents.

Total quarterly revenues of $942.3 million surpassed the Zacks Consensus Estimate of $941 million. The top line increased from the prior-year level of $905.6 million.

The better-than-expected quarterly results can be primarily attributed to higher throughputs across its natural gas and crude oil and NGL assets. However, an increase in total operating expenses partially offset the positives.

Western Midstream Partners, LP Price, Consensus and EPS Surprise

Western Midstream Partners, LP price-consensus-eps-surprise-chart | Western Midstream Partners, LP Quote

Operational Performance of WES

The throughput attributable to WES’ natural gas assets totaled 5,251 million cubic feet per day (MMcf/d), up 5% from the prior-year quarter. The increase can be primarily attributed to volume growth from the Delaware Basin and the Powder River Basin.

Total throughput for crude oil and NGL assets was 532 thousand barrels per day (MBbls/d) compared with 515 MBbls/d in the second quarter of 2024. The increase can be attributed to higher throughputs from the partnership’s Delaware Basin and DJ-Basin assets. Total operated throughput for crude oil and NGLs assets was 431 MBbls/d compared with 396 MBbls/d in the prior-year quarter.

Total throughput attributable to WES for produced-water assets was 1,217 MBbls/d, up from 1,080 MBbls/d in the year-ago quarter.

WES’ Costs and Expenses

Total operating expenses for the quarter stood at $524.1 million, higher than the prior-year reported figure of $522.7 million. The increase was driven primarily by a rise in general and administrative expenses and higher depreciation and amortization costs.

Cash Flow of WES

Net cash provided by operating activities totaled $564 million in the second quarter, down from $631.4 million reported in the corresponding period of 2024. The partnership’s free cash flow for the quarter totaled $388.4 million.

Balance Sheet

As of June 30, 2025, the partnership’s long-term debt totaled $6.92 billion. Its cash and cash equivalents at the end of the six-month period totaled $129.7 million.

WES’ Outlook

WES reiterated its adjusted EBITDA guidance for full-year 2025 to be in the range of $2,350-$2,550 million and total capital expenditures for the year to lie between $625 million and $775 million.

WES’ Zacks Rank & Key Picks

Currently, WES carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Antero Midstream Corporation AM, Galp Energia SGPS SA GLPEY and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

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This article originally published on Zacks Investment Research (zacks.com).

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