Western Midstream Partners (WES) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 Adjusted EBITDA of $737 million, up 8% sequentially and 19% year-over-year, driven by strong throughput in natural gas and produced water, and the Brazos Delaware acquisition.

• Closed the Brazos Delaware acquisition for $1.67 billion, expanding Delaware Basin footprint, adding 900 miles of pipeline and 460 MMcf/d processing capacity, and progressing integration with expected $15–$20 million in cost synergies.

• Entered new long-term gathering and processing agreements in the Powder River Basin, adding 270,000 acres and over 1,000 drilling locations with minimum volume commitments.

• Issued $700 million in senior notes due 2036 to refinance acquisition-related borrowings at a record-tight spread.

• Launched JIP2 water treatment facility, delivering 1,000 barrels/day of reclaimed water, supporting beneficial reuse strategy.

Financial highlights

• Q2 2026 total revenues were $1.22 billion, up 30% year-over-year; net income attributable to limited partners was $415 million, up 18% year-over-year.

• Adjusted EBITDA for Q2 2026 was $737 million; distributable cash flow was $537 million; free cash flow was $264 million.

• Cash flow from operating activities was $535 million, up $65 million from Q1 2026.

• Capital expenditures for Q2 2026 totaled $308.3 million.

• Ended quarter with over $1.8 billion in liquidity and a pro forma net leverage ratio of 3.15x.

Outlook and guidance

• 2026 Adjusted EBITDA guidance raised to $2.75–$2.95 billion (midpoint $2.85 billion), up $250 million from prior guidance.

• 2026 distributable cash flow guidance increased to $2.05–$2.25 billion (midpoint $2.15 billion), up $200 million.

• 2026 free cash flow guidance raised to $1.1–$1.3 billion (midpoint $1.2 billion), up $200 million.

• Capital expenditure guidance maintained at $850 million–$1 billion, expected toward high end due to new expansion projects.

• Target annual distribution of at least $3.70 per unit for 2026 remains unchanged.