Western Midstream Partners (WES) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 adjusted EBITDA of $618 million, with strong sequential throughput growth across all core assets, especially in the Delaware Basin.

• Announced the acquisition of Aris Water Solutions for up to $2.0 billion, expanding water services and footprint in the Delaware Basin and New Mexico, and sanctioned a second 300 MMcf/d train at the North Loving natural gas processing plant.

• Retired $337 million of senior notes in June 2025 using cash on hand, further strengthening the balance sheet.

• Continued focus on prudent growth strategy, operational efficiency, and cost reduction, positioning for sustained distribution growth and long-term value creation.

• Reaffirmed 2025 financial guidance ranges for Adjusted EBITDA, capital expenditures, and Free Cash Flow.

Financial highlights

• Q2 2025 net income attributable to limited partners was $334 million; adjusted EBITDA reached $618 million, a quarterly record.

• Adjusted gross margin increased by $18 million sequentially, primarily from Delaware Basin throughput gains.

• Cash flow from operations was $564 million; free cash flow totaled $388.4 million for the quarter; free cash flow after distributions was $33.1 million.

• Q2 2025 revenues totaled $942.3 million, up from $905.6 million in Q2 2024.

• Quarterly distribution of $0.91 per unit declared, consistent with the prior quarter.

Outlook and guidance

• 2025 Adjusted EBITDA guidance reaffirmed at $2.35–$2.55 billion; capital expenditures at $625–$775 million; free cash flow at $1.275–$1.475 billion.

• Aris acquisition expected to close in Q4 2025; impact to be included in 2026 guidance.

• 2025 capital expenditures expected at the high end of guidance due to North Loving II and Aris acquisition; 2026 CapEx projected at least $1.1 billion.

• Anticipates mid-single digit year-over-year throughput growth for natural gas and produced water, and low single digit for crude oil and NGLs in 2025.

• Targeting mid-to-low single-digit annual distribution growth, with a 2025 per-unit distribution of at least $3.605.