Western Midstream Partners (WES) Q4 2025 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of $2.48 billion and Free Cash Flow of $1.53 billion in 2025, both up year-over-year and exceeding guidance, driven by throughput growth, cost competitiveness, and the Aris acquisition expanding water solutions and New Mexico presence.

• Returned $1.43 billion to unitholders in 2025 and increased annual distribution by 4% to $3.64 per unit, with a planned increase to at least $3.70 in 2026.

• Organic growth projects, M&A, efficiency gains, and contract renegotiations strengthened operating leverage and balance sheet.

• 2026 expected to be a transition year with moderate growth due to reduced producer activity and commodity price volatility.

Financial highlights

• Full-year 2025 Adjusted EBITDA was $2.48 billion, Free Cash Flow $1.53 billion, and Net Income attributable to limited partners $1.15 billion, all exceeding guidance.

• Q4 2025 Adjusted EBITDA was $636 million, Net Income $187 million, and Free Cash Flow $340.8 million.

• 2025 capital expenditures totaled $722 million, within guidance.

• 2025 per-unit cash distribution was $3.64; net leverage at year-end was near 3.0x.

• Operating cash flow for 2025 was $2.22 billion.

Outlook and guidance

• 2026 Adjusted EBITDA guidance: $2.5–$2.7 billion, midpoint implies 5% year-over-year growth.

• 2026 capital expenditures expected at $850 million–$1 billion, midpoint $925 million, below prior guidance.

• 2026 free cash flow guidance: $900 million–$1.1 billion; distributable cash flow: $1.85–$2.05 billion.

• Distribution guidance for 2026: at least $3.70 per unit, a 3% increase over 2025.

• Produced water throughput projected to increase over 80% in 2026 due to Aris acquisition and Pathfinder pipeline.