Western Midstream Partners (WES) Q1 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in Q1 2025, including record Delaware Basin natural-gas throughput and the successful commissioning of the North Loving Plant, which added 250 MMcf/d processing capacity in West Texas.

• Increased quarterly distribution by 4% sequentially to $0.91 per unit, continuing a multi-year trend of distribution growth.

• Retired $664 million of senior notes in January 2025, reinforcing a strong balance sheet and investment-grade credit rating.

• Maintained high customer service, system operability at 99.1%, and proactive engagement to manage market volatility.

• Continued disciplined capital allocation, cost containment, and focus on organic growth supported by minimum volume commitments.

Financial highlights

• Q1 2025 net income attributable to limited partners ranged from $301.8 million to $316.6 million; adjusted EBITDA was $593.6 million.

• Total revenues for Q1 2025 were $917.1 million, up 3% year-over-year.

• Free cash flow for Q1 2025 was $399.4 million, with $58.4 million remaining after distributions.

• Net cash provided by operating activities was $530.8 million; capital expenditures ranged from $131.4 million to $163.6 million.

• Quarterly cash distribution paid was $341.0 million.

Outlook and guidance

• 2025 adjusted EBITDA guidance is $2.35–$2.55 billion; free cash flow guidance is $1.275–$1.475 billion.

• Capital expenditures for 2025 expected between $625 million and $775 million, with 65% allocated to expansion projects.

• Throughput growth for 2025 expected: mid-single digits for natural gas and produced water, low-single digits for crude oil and NGLs, led by the Delaware Basin.

• Guidance remains unchanged despite market volatility, with flexibility to adjust capital spending as needed.

• Targeting at least $3.605 per unit in distributions for 2025, with mid- to low single-digit annual growth.