— 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.
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 November14, 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 $40.0million 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, November5, 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 Investors@westernmidstream.com 866.512.3523
Rhianna Disch Manager, Investor Relations Investors@westernmidstream.com 866.512.3523
Western Midstream Partners, LPCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months Ended Nine Months Ended September 30, September 30,thousands except per-unit amounts 2025 2024 2025 2024Revenues and otherService revenues – fee based $ 868,253 $ 814,319 $ 2,542,869 $ 2,389,366Service revenues – product based 33,919 49,115 143,613 177,321Product sales 50,129 19,673 124,878 109,076Other 183 255 562 957Total revenues and other 952,484 883,362 2,811,922 2,676,720Equity income, net – related parties 16,847 23,977 64,410 84,227Operating expensesCost of product 51,187 32,847 135,360 132,936Operation and maintenance 212,385 231,066 663,528 649,324General and administrative 64,119 64,726 197,051 195,498Property and other taxes 15,725 12,635 51,356 43,984Depreciation and amortization 170,323 166,015 512,896 487,438Long-lived asset and other impairments 11,562 4,651 12,251 6,204Total operating expenses 525,301 511,940 1,572,442 1,515,384Gain (loss) on divestiture and other, net (2,470) 467 (8,048) 299,426Operating income (loss) 441,560 395,866 1,295,842 1,544,989Interest expense (92,353) (94,149) (284,816) (279,177)Gain (loss) on early extinguishment of debt – – – 5,403Other income (expense), net 1,754 9,565 12,923 16,124Income (loss) before income taxes 350,961 311,282 1,023,949 1,287,339Income tax expense (benefit) 2,089 15,390 7,763 17,667Net income (loss) 348,872 295,892 1,016,186 1,269,672Net income (loss) attributable to noncontrolling interests 9,257 7,412 25,884 29,714Net income (loss) attributable to Western Midstream Partners, LP $ 339,615 $ 288,480 $ 990,302 $ 1,239,958Limited partners' interest in net income (loss):Net income (loss) attributable to Western Midstream Partners, LP $ 339,615 $ 288,480 $ 990,302 $ 1,239,958General 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 $ 1,211,113Net income (loss) per common unit – basic $ 0.87 $ 0.74 $ 2.54 $ 3.18Net income (loss) per common unit – diluted $ 0.87 $ 0.74 $ 2.53 $ 3.17Weighted-average common units outstanding – basic 381,330 380,513 381,216 380,343Weighted-average common units outstanding – diluted 382,788 382,620 382,630 382,189
Western Midstream Partners, LPCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)thousands except number of units September 30, 2025 December 31, 2024Total current assets $ 917,051 $ 1,847,190Net property, plant, and equipment 9,726,347 9,714,609Other assets 1,481,954 1,582,986Total assets $ 12,125,352 $ 13,144,785Total current liabilities $ 640,472 $ 1,691,694Long-term debt 6,924,291 6,926,647Asset retirement obligations 389,829 370,195Other liabilities 842,124 781,079Total liabilities 8,796,716 9,769,615Equity and partners' capitalCommon units (381,333,269 and 380,556,643 units issued and outstanding at September30, 2025, and December31, 2024, respectively) 3,172,802 3,224,802General partner units (9,060,641 units issued and outstanding at September30, 2025, and December31, 2024) 9,370 10,803Noncontrolling interests 146,464 139,565Total liabilities, equity, and partners' capital $ 12,125,352 $ 13,144,785
Western Midstream Partners, LPCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Nine Months Ended September 30,thousands 2025 2024Cash flows from operating activitiesNet income (loss) $ 1,016,186 $ 1,269,672Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:Depreciation and amortization 512,896 487,438Long-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 115,599 123,929Net cash provided by operating activities $ 1,664,980 $ 1,582,414Cash flows from investing activitiesCapital expenditures $ (505,783) $ (595,087)Acquisitions from third parties – (443)Distributions from equity investments in excess of cumulative earnings – related parties 26,000 27,560Proceeds 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) $ 191,153Cash flows from financing activitiesBorrowings, net of debt issuance costs $ (1,171) $ 789,193Repayments 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) $ 851,950Cash and cash equivalents at beginning of period 1,090,464 272,787Cash 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, LPRECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)(Unaudited)Adjusted Gross Margin Three Months Endedthousands September 30, 2025 June 30, 2025Reconciliation of Gross margin to Adjusted Gross MarginTotal revenues and other $ 952,484 $ 942,322Less:Cost of product 51,187 42,681Depreciation and amortization 170,323 172,113Gross margin 730,974 727,528Add:Distributions from equity investments 29,751 31,122Depreciation and amortization 170,323 172,113Less:Reimbursed electricity-related charges recorded as revenues 34,803 30,256Adjusted Gross Margin attributable to noncontrolling interests (1) 21,342 21,439Adjusted Gross Margin $ 874,903 $ 879,068Gross marginGross margin for natural-gas assets (2) $ 540,393 $ 539,462Gross margin for crude-oil and NGLs assets (2) 107,877 106,839Gross margin for produced-water assets (2) 90,837 89,341Adjusted Gross MarginAdjusted Gross Margin for natural-gas assets $ 623,691 $ 629,093Adjusted Gross Margin for crude-oil and NGLs assets 145,463 146,128Adjusted 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, LPRECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)(Unaudited)Adjusted EBITDA Three Months Endedthousands September 30, 2025 June 30, 2025Reconciliation of Net income (loss) to Adjusted EBITDANet income (loss) $ 348,872 $ 350,762Add:Distributions from equity investments 29,751 31,122Non-cash equity-based compensation expense 10,456 10,713Interest expense 92,353 95,170Income tax expense 2,089 2,239Depreciation and amortization 170,323 172,113Long-lived asset and other impairments 11,562 686Other expense 53 43Less:Gain (loss) on divestiture and other, net (2,470) (911)Equity income, net – related parties 16,847 27,128Other income 1,754 3,692Adjusted EBITDA attributable to noncontrolling interests (1) 15,576 15,063Adjusted EBITDA $ 633,752 $ 617,876Reconciliation of Net cash provided by operating activities to Adjusted EBITDANet cash provided by operating activities $ 570,210 $ 563,977Interest (income) expense, net 92,353 95,170Accretion and amortization of long-term obligations, net (1,896) (2,032)Current income tax expense (benefit) 1,865 1,940Other (income) expense, net (1,754) (3,692)Distributions from equity investments in excess of cumulative earnings – related parties 11,953 3,040Changes in assets and liabilities:Accounts receivable, net (21,956) 31,425Accounts 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 $ 617,876Cash flow informationNet cash provided by operating activities $ 570,210 $ 563,977Net 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, LPRECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)(Unaudited)Free Cash Flow Three Months Endedthousands September 30, 2025 June 30, 2025Reconciliation of Net cash provided by operating activities to Free Cash FlowNet cash provided by operating activities $ 570,210 $ 563,977Less:Capital expenditures 184,758 178,623Add:Distributions from equity investments in excess of cumulative earnings – related parties 11,953 3,040Free Cash Flow $ 397,405 $ 388,394Cash flow informationNet cash provided by operating activities $ 570,210 $ 563,977Net cash (used in) provided by investing activities (161,528) (173,974)Net cash used in financing activities (361,126) (708,718)
Western Midstream Partners, LPOPERATING 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, LPOPERATING STATISTICS (CONTINUED)(Unaudited) Three Months Ended September 30, 2025 June 30, 2025 Inc/ (Dec)Throughput for natural-gas assets (MMcf/d)OperatedDelaware 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-operatedEquity 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)OperatedDelaware 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-operatedEquity 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)OperatedDelaware Basin 1,242 1,242 -%Total operated throughput for produced-water assets 1,242 1,242 -%
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