WESTERN MIDSTREAM ANNOUNCES RECORD THIRD-QUARTER 2025 RESULTS

By PR Newswire | November 04, 2025, 4:05 PM
  • Reported third-quarter 2025 Net income attributable to limited partners of $331.7 million, generating record third-quarter Adjusted EBITDA(1) of $633.8 million.
  • Reported third-quarter 2025 Cash flows provided by operating activities of $570.2 million, generating third-quarter Free Cash Flow(1) of $397.4 million.
  • Announced a third-quarter distribution of $0.910 per unit, which is consistent with the prior quarter's distribution, or $3.64 per unit on an annualized basis.
  • On October 15, 2025, closed the previously announced acquisition of Aris Water Solutions, Inc. ("Aris") establishing WES as one of the largest three-stream midstream providers in the Delaware Basin.
  • Anticipates being towards the high end of the 2025 Adjusted EBITDA(2) and total capital expenditures guidance ranges of $2,350 million to $2,550 million and $625 million to $775 million, respectively.
  • Anticipates being above the high end of the 2025 Free Cash Flow(2) guidance range of $1,275 million to $1,475 million.

HOUSTON, Nov. 4, 2025 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced third-quarter financial and operating results. Net income (loss) attributable to limited partners for the third quarter of 2025 totaled $331.7 million, or $0.87 per common unit (diluted), with third-quarter 2025 Adjusted EBITDA(1) totaling $633.8 million. Third-quarter 2025 Cash flows provided by operating activities totaled $570.2 million, and third-quarter 2025 Free Cash Flow(1) totaled $397.4 million. Third-quarter 2025 capital expenditures(3) totaled $156.7 million.

RECENT HIGHLIGHTS

  • Achieved record Adjusted EBITDA for the second consecutive quarter due to lower operating costs and the Partnership's continued focus on cost optimization and prudent resource management.
  • Gathered record natural-gas throughput of 5.5 Bcf/d, for the third quarter, representing a 2-percent sequential-quarter increase.
  • Achieved record operational performance with system operability increasing nearly 100 basis points year-over-year to 99.6-percent in the third quarter, enabling increased throughput and profitability across our expansive asset base.
  • In conjunction with the closing of the Aris acquisition, issued approximately 26.6 million common units, paid $415.0 million in cash before transaction costs, and assumed approximately $500.0 million of debt.
  • Subsequent to quarter end, executed an agreement for incremental disposal capacity to support the Pathfinder pipeline project in the Delaware Basin, enabling WES to optimize the pipeline route and enhance overall project returns.

On November 14, 2025, WES will pay its third-quarter 2025 per-unit distribution of $0.910, or $3.64 on an annualized basis, which is in line with the prior quarter's distribution. Third-quarter 2025 Free Cash Flow(1) after distributions totaled $42.2 million.

Third-quarter 2025 natural-gas throughput(4) averaged 5.4 Bcf/d, representing a 2-percent sequential-quarter increase. Third-quarter 2025 crude-oil and NGLs throughput(4) averaged 510 MBbls/d, representing a 4-percent sequential-quarter decrease. Third-quarter 2025 produced-water throughput(4) averaged 1,217 MBbls/d, remaining flat quarter-over-quarter.

"I am pleased to report another strong operational and financial quarter for WES as we generated our second consecutive quarter of record Adjusted EBITDA," commented Oscar Brown, President and Chief Executive Officer. "Lower operational costs, inclusive of efficiency improvements and cost management efforts, drove a sequential-quarter increase in Adjusted EBITDA, even though volumes remained relatively in line with the second-quarter. These efficiency efforts have also enhanced productivity and cost competitiveness, positioning our partnership well as we advance Aris integration activities and continue to execute our near-term growth plans."

"The successful closing of the Aris acquisition marks a major milestone for WES, and we are well on our way to capturing the $40.0 million of targeted cost synergies. As produced-water management becomes more critical to the development of the Delaware Basin, WES has established a clear leadership position in full-service, integrated produced-water management, which will be a key differentiator and catalyst for future growth of the partnership. Additionally, subsequent to quarter end, we signed an agreement to expand access to strategic pore space along the Pathfinder pipeline route that enables us to optimize the pipeline's route, both of which should result in improved returns for the project."

"The Aris acquisition coupled with numerous organic projects, including Pathfinder and North Loving II, provide a strong growth platform for 2026 and beyond while further positioning WES to capture incremental synergies. Taken together, our actions year-to-date have put WES on track to be towards the high end of our 2025 Adjusted EBITDA guidance range for the year. As we exit 2025 on solid financial footing and begin to plan for 2026 in more detail, we remain focused on successfully integrating Aris, capturing targeted cost synergies, and executing on our numerous growth initiatives, which will drive future profitability and create incremental value for WES unitholders," Mr. Brown concluded.

CONFERENCE CALL TOMORROW AT 8:00 A.M. CT

WES will host a conference call on Wednesday, November 5, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its third-quarter results. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A small number of phone lines are available for analysts; individuals should dial 800-836-8184 (Domestic) or 646-357-8785 (International) ten to fifteen minutes before the scheduled conference call time. A replay of the live audio webcast can be accessed on the Partnership's website at www.westernmidstream.com for one year after the call.

For additional details on WES's financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.

ABOUT WESTERN MIDSTREAM

Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.

For more information about WES, please visit www.westernmidstream.com.

______________________________________________________________

(1)  

Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures.

(2)      

This release contains certain forward-looking non-GAAP measures such as the Adjusted EBITDA range and Free Cash Flow range for year ending December 31, 2025. A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Free Cash Flow range to net cash provided by operating activities, is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding forward-looking GAAP equivalent for the Adjusted EBITDA or Free Cash Flow ranges.

(3)  

Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.

(4)      

Represents total throughput attributable to WES, which excludes (i) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins

Director, Investor Relations

[email protected]

866.512.3523

Rhianna Disch

Manager, Investor Relations

[email protected]

866.512.3523

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 





Three Months Ended 

September 30,



Nine Months Ended 

September 30,

thousands except per-unit amounts



2025



2024



2025



2024

Revenues and other

















Service revenues – fee based



$      868,253



$      814,319



$   2,542,869



$   2,389,366

Service revenues – product based



33,919



49,115



143,613



177,321

Product sales



50,129



19,673



124,878



109,076

Other



183



255



562



957

Total revenues and other



952,484



883,362



2,811,922



2,676,720

Equity income, net – related parties



16,847



23,977



64,410



84,227

Operating expenses

















Cost of product



51,187



32,847



135,360



132,936

Operation and maintenance



212,385



231,066



663,528



649,324

General and administrative



64,119



64,726



197,051



195,498

Property and other taxes



15,725



12,635



51,356



43,984

Depreciation and amortization



170,323



166,015



512,896



487,438

Long-lived asset and other impairments



11,562



4,651



12,251



6,204

Total operating expenses



525,301



511,940



1,572,442



1,515,384

Gain (loss) on divestiture and other, net



(2,470)



467



(8,048)



299,426

Operating income (loss)



441,560



395,866



1,295,842



1,544,989

Interest expense



(92,353)



(94,149)



(284,816)



(279,177)

Gain (loss) on early extinguishment of debt









5,403

Other income (expense), net



1,754



9,565



12,923



16,124

Income (loss) before income taxes



350,961



311,282



1,023,949



1,287,339

Income tax expense (benefit)



2,089



15,390



7,763



17,667

Net income (loss)



348,872



295,892



1,016,186



1,269,672

Net income (loss) attributable to noncontrolling interests



9,257



7,412



25,884



29,714

Net income (loss) attributable to Western Midstream Partners, LP



$      339,615



$      288,480



$      990,302



$   1,239,958

Limited partners' interest in net income (loss):

















Net income (loss) attributable to Western Midstream Partners, LP



$      339,615



$      288,480



$      990,302



$   1,239,958

General partner interest in net (income) loss



(7,885)



(6,708)



(22,985)



(28,845)

Limited partners' interest in net income (loss)



$      331,730



$      281,772



$      967,317



$   1,211,113

Net income (loss) per common unit – basic



$            0.87



$            0.74



$            2.54



$            3.18

Net income (loss) per common unit – diluted



$            0.87



$            0.74



$            2.53



$            3.17

Weighted-average common units outstanding – basic



381,330



380,513



381,216



380,343

Weighted-average common units outstanding – diluted



382,788



382,620



382,630



382,189

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

thousands except number of units



September 30, 2025



December 31, 2024

Total current assets



$          917,051



$       1,847,190

Net property, plant, and equipment



9,726,347



9,714,609

Other assets



1,481,954



1,582,986

Total assets



$     12,125,352



$     13,144,785

Total current liabilities



$          640,472



$       1,691,694

Long-term debt



6,924,291



6,926,647

Asset retirement obligations



389,829



370,195

Other liabilities



842,124



781,079

Total liabilities



8,796,716



9,769,615

Equity and partners' capital









Common units (381,333,269 and 380,556,643 units issued and outstanding at September 30, 2025, and December 31, 2024, respectively)



3,172,802



3,224,802

General partner units (9,060,641 units issued and outstanding at September 30, 2025, and December 31, 2024)



9,370



10,803

Noncontrolling interests



146,464



139,565

Total liabilities, equity, and partners' capital



$     12,125,352



$     13,144,785

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 





Nine Months Ended 

September 30,

thousands



2025



2024

Cash flows from operating activities









Net income (loss)



$    1,016,186



$    1,269,672

Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:









Depreciation and amortization



512,896



487,438

Long-lived asset and other impairments



12,251



6,204

(Gain) loss on divestiture and other, net



8,048



(299,426)

(Gain) loss on early extinguishment of debt





(5,403)

Change in other items, net



115,599



123,929

Net cash provided by operating activities



$    1,664,980



$    1,582,414

Cash flows from investing activities









Capital expenditures



$     (505,783)



$     (595,087)

Acquisitions from third parties





(443)

Distributions from equity investments in excess of cumulative earnings – related parties



26,000



27,560

Proceeds from the sale of assets to third parties



162



792,241

(Increase) decrease in materials and supplies inventory and other



3,329



(33,118)

Net cash (used in) provided by investing activities



$     (476,292)



$       191,153

Cash flows from financing activities









Borrowings, net of debt issuance costs



$         (1,171)



$       789,193

Repayments of debt



(1,000,589)



(143,852)

Commercial paper borrowings (repayments), net





(610,312)

Increase (decrease) in outstanding checks



(3,114)



(2,282)

Distributions to Partnership unitholders



(1,051,503)



(905,155)

Distributions to Chipeta noncontrolling interest owner





(2,228)

Distributions to noncontrolling interest owner of WES Operating



(21,485)



(18,502)

Other



(24,002)



(28,479)

Net cash used in financing activities



$  (2,101,864)



$     (921,617)

Net increase (decrease) in cash and cash equivalents



$     (913,176)



$       851,950

Cash and cash equivalents at beginning of period



1,090,464



272,787

Cash and cash equivalents at end of period



$       177,288



$    1,124,737

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

WES defines Adjusted Gross Margin attributable to Western Midstream Partners, LP ("Adjusted Gross Margin") as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owners' proportionate share of revenues and cost of product.

WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA") as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) income tax benefit, (v) other income, (vi) other items impacting comparability with WES's core operating performance, and (vii) the noncontrolling interest owners' proportionate share of revenues and expenses.

WES defines Free Cash Flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings.

Below are reconciliations of (i) gross margin (GAAP) to Adjusted Gross Margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) net cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing WES's ability to incur and service debt, fund capital expenditures, and make distributions. Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as gross margin or cash flows provided by operating activities.

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

(Unaudited)

 

Adjusted Gross Margin

 





Three Months Ended

thousands



September 30, 2025



June 30, 2025

Reconciliation of Gross margin to Adjusted Gross Margin

Total revenues and other



$           952,484



$           942,322

Less:









Cost of product



51,187



42,681

Depreciation and amortization



170,323



172,113

Gross margin



730,974



727,528

Add:









Distributions from equity investments



29,751



31,122

Depreciation and amortization



170,323



172,113

Less:









Reimbursed electricity-related charges recorded as revenues



34,803



30,256

Adjusted Gross Margin attributable to noncontrolling interests (1)



21,342



21,439

Adjusted Gross Margin



$           874,903



$           879,068











Gross margin









Gross margin for natural-gas assets (2)



$           540,393



$           539,462

Gross margin for crude-oil and NGLs assets (2)



107,877



106,839

Gross margin for produced-water assets (2)



90,837



89,341

Adjusted Gross Margin









Adjusted Gross Margin for natural-gas assets



$           623,691



$           629,093

Adjusted Gross Margin for crude-oil and NGLs assets



145,463



146,128

Adjusted Gross Margin for produced-water assets



105,749



103,847





(1)       

Includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary, which collectively represent WES's noncontrolling interests.

(2)   

Excludes corporate-level depreciation and amortization.

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

(Unaudited)

 

Adjusted EBITDA

 





Three Months Ended

thousands



September 30, 2025



June 30, 2025

Reconciliation of Net income (loss) to Adjusted EBITDA

Net income (loss)



$           348,872



$           350,762

Add:









Distributions from equity investments



29,751



31,122

Non-cash equity-based compensation expense



10,456



10,713

Interest expense



92,353



95,170

Income tax expense



2,089



2,239

Depreciation and amortization



170,323



172,113

Long-lived asset and other impairments



11,562



686

Other expense



53



43

Less:









Gain (loss) on divestiture and other, net



(2,470)



(911)

Equity income, net – related parties



16,847



27,128

Other income



1,754



3,692

Adjusted EBITDA attributable to noncontrolling interests (1)



15,576



15,063

Adjusted EBITDA



$           633,752



$           617,876

Reconciliation of Net cash provided by operating activities to Adjusted EBITDA

Net cash provided by operating activities



$           570,210



$           563,977

Interest (income) expense, net



92,353



95,170

Accretion and amortization of long-term obligations, net



(1,896)



(2,032)

Current income tax expense (benefit)



1,865



1,940

Other (income) expense, net



(1,754)



(3,692)

Distributions from equity investments in excess of cumulative earnings – related parties



11,953



3,040

Changes in assets and liabilities:









Accounts receivable, net



(21,956)



31,425

Accounts and imbalance payables and accrued liabilities, net



40,837



(31,039)

Other items, net



(42,284)



(25,850)

Adjusted EBITDA attributable to noncontrolling interests (1)



(15,576)



(15,063)

Adjusted EBITDA



$           633,752



$           617,876

Cash flow information









Net cash provided by operating activities



$           570,210



$           563,977

Net cash (used in) provided by investing activities



(161,528)



(173,974)

Net cash used in financing activities



(361,126)



(708,718)





(1)       

Includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary, which collectively represent WES's noncontrolling interests.

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

(Unaudited)

 

Free Cash Flow

 





Three Months Ended

thousands



September 30, 2025



June 30, 2025

Reconciliation of Net cash provided by operating activities to Free Cash Flow

Net cash provided by operating activities



$           570,210



$           563,977

Less:









Capital expenditures



184,758



178,623

Add:









Distributions from equity investments in excess of cumulative earnings – related parties



11,953



3,040

Free Cash Flow



$           397,405



$           388,394

Cash flow information









Net cash provided by operating activities



$           570,210



$           563,977

Net cash (used in) provided by investing activities



(161,528)



(173,974)

Net cash used in financing activities



(361,126)



(708,718)

 

Western Midstream Partners, LP

OPERATING STATISTICS

(Unaudited)

 





Three Months Ended





September 30, 2025



June 30, 2025



Inc/

(Dec)

Throughput for natural-gas assets (MMcf/d)

Gathering, treating, and transportation



394



354



11 %

Processing



4,602



4,504



2 %

Equity investments (1)



553



575



(4) %

Total throughput



5,549



5,433



2 %

Throughput attributable to noncontrolling interests (2)



191



182



5 %

Total throughput attributable to WES for natural-gas assets



5,358



5,251



2 %

Throughput for crude-oil and NGLs assets (MBbls/d)

Gathering, treating, and transportation



418



431



(3) %

Equity investments (1)



102



112



(9) %

Total throughput



520



543



(4) %

Throughput attributable to noncontrolling interests (2)



10



11



(9) %

Total throughput attributable to WES for crude-oil and NGLs assets



510



532



(4) %

Throughput for produced-water assets (MBbls/d)

Gathering and disposal



1,242



1,242



— %

Throughput attributable to noncontrolling interests (2)



25



25



— %

Total throughput attributable to WES for produced-water assets



1,217



1,217



— %

Per-Mcf Gross margin for natural-gas assets (3)



$                 1.06



$                 1.09



(3) %

Per-Bbl Gross margin for crude-oil and NGLs assets (3)



2.25



2.16



4 %

Per-Bbl Gross margin for produced-water assets (3)



0.80



0.79



1 %















Per-Mcf Adjusted Gross Margin for natural-gas assets (4)



$                 1.27



$                 1.32



(4) %

Per-Bbl Adjusted Gross Margin for crude-oil and NGLs assets (4)



3.10



3.02



3 %

Per-Bbl Adjusted Gross Margin for produced-water assets (4)



0.94



0.94



— %





(1)  

Represents our share of average throughput for investments accounted for under the equity method of accounting.

(2)       

Includes (i) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary and (ii) for natural-gas assets, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.

(3)       

Average for period. Calculated as Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.

(4)       

Average for period. Calculated as Adjusted Gross Margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) attributable to WES for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.

 

Western Midstream Partners, LP

OPERATING STATISTICS (CONTINUED)

(Unaudited)

 





Three Months Ended





September 30, 2025



June 30, 2025



Inc/

(Dec)

Throughput for natural-gas assets (MMcf/d)

Operated













Delaware Basin



2,113



2,104



— %

DJ Basin



1,497



1,447



3 %

Powder River Basin



424



479



(11) %

Other



962



828



16 %

Total operated throughput for natural-gas assets



4,996



4,858



3 %

Non-operated













Equity investments



553



575



(4) %

Total non-operated throughput for natural-gas assets



553



575



(4) %

Total throughput for natural-gas assets



5,549



5,433



2 %

Throughput for crude-oil and NGLs assets (MBbls/d)

Operated













Delaware Basin



245



269



(9) %

DJ Basin



105



96



9 %

Powder River Basin



27



28



(4) %

Other



41



38



8 %

Total operated throughput for crude-oil and NGLs assets



418



431



(3) %

Non-operated













Equity investments



102



112



(9) %

Total non-operated throughput for crude-oil and NGLs assets



102



112



(9) %

Total throughput for crude-oil and NGLs assets



520



543



(4) %

Throughput for produced-water assets (MBbls/d)

Operated













Delaware Basin



1,242



1,242



— %

Total operated throughput for produced-water assets



1,242



1,242



— %

 

Cision
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SOURCE Western Midstream Partners, LP

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