Open the filing on EDGARWestern Midstream Announces First-Quarter 2026 Results
- Reported first-quarter 2026 Net income attributable to limited partners of $342.4 million, generating record first-quarter Adjusted EBITDA of $683.1 million, which represents a 15-percent increase compared to the prior-year period, and first-quarter Distributable Cash Flow of $508.9 million.
- Reported first-quarter 2026 Cash flows provided by operating activities of $469.9 million, generating first-quarter Free Cash Flow of $242.3 million.
- Announced a first-quarter distribution of $0.930 per unit, which is 2.2-percent higher than the prior quarter’s distribution, or $3.72 per unit on an annualized basis, and in-line with prior management commentary.
- Expecting to be towards the high-end of the 2026 Adjusted EBITDA and Distributable Cash Flow guidance ranges of $2.50 billion to $2.70 billion and $1.85 billion to $2.05 billion, respectively, should the current crude-oil and NGLs pricing environment continue.
- Expecting 2026 total capital expenditures to still range between $850.0 million to $1.00 billion.
HOUSTON - (PR NEWSWIRE) - May 6, 2026 - Today Western Midstream Partners, LP (NYSE: WES) (“WES” or the “Partnership”) announced first-quarter 2026 financial and operating results. Net income (loss) attributable to limited partners for the first quarter of 2026 totaled $342.4 million, or $0.85 per common unit (diluted), with first-quarter 2026 Adjusted EBITDA totaling $683.1 million and Distributable Cash Flow totaling $508.9 million. First-quarter 2026 Cash flows provided by operating activities totaled $469.9 million and first-quarter 2026 Free Cash Flow totaled $242.3 million. First-quarter 2026 capital expenditures totaled $250.5 million.
RECENT HIGHLIGHTS
- Generated record Adjusted EBITDA of $683.1 million, an increase of approximately 7-percent sequentially, driven by a full quarter of contribution from the Aris acquisition and excess natural-gas liquids and higher skim oil volumes at elevated commodity prices.
- Reduced operation and maintenance expense by 7-percent, compared to the first-quarter of 2025,
excluding the Aris acquisition, reflecting continued cost discipline despite increased throughput.
- Gathered record crude-oil and NGLs throughput in the Delaware Basin of 272 MBbls/d, representing a 4-percent sequential-quarter increase and a 6-percent year-over-year increase.
- Achieved record produced-water throughput of 2,795 MBbls/d, representing a 4-percent sequential-quarter increase, and 140-percent year-over-year increase primarily driven by the full quarter contribution from the Aris acquisition.
- Subsequent to quarter-end, retired $440.5 million of senior notes due 2026 with proceeds from the senior notes issued in the fourth quarter of 2025.
- Subsequent to quarter-end, and as announced earlier today, executed an agreement to acquire Brazos Delaware II, LLC (“Brazos”) in the Delaware Basin for a purchase price of approximately $1.6 billion, comprised of $800 million in cash and $800 million in WES common units, with an expected close by the end of the second quarter of 2026.
On May 15, 2026, WES will pay its first-quarter 2026 per-unit distribution of $0.930, or $3.72 on an annualized basis, which represents growth of 2.2-percent over the prior quarter’s distribution. First-quarter 2026 Free Cash Flow after distributions totaled negative $137.4 million.
First-quarter 2026 natural-gas throughput averaged 5.2 Bcf/d, representing a 1-percent sequential-quarter increase. First-quarter 2026 crude-oil and NGLs throughput averaged 521 MBbls/d, representing a 3-percent sequential-quarter increase. First-quarter 2026 produced-water throughput averaged 2,795 MBbls/d, representing a 4-percent sequential-quarter increase.
“WES delivered record Adjusted EBITDA of $683.1 million in the first-quarter of 2026, increasing 7-percent sequentially and 15-percent compared to the prior-year period, which was primarily driven by a full quarter’s contribution from the Aris acquisition, throughput growth across all three products, and successful cost reduction efforts,” commented Oscar K. Brown, President and Chief Executive Officer of WES. “Additionally, our Adjusted Gross Margin in the first quarter benefited as crude-oil prices increased in March. This performance also reflects the results of our efficiency and cost reduction strategies, as this and several other variables came together to produce the strongest quarter in the Partnership’s history.”
“What distinguished Aris among its peers was the quality and structure of its long-term contracts, which include substantial acreage dedications that provide the same fee-based cash flow foundation that defines WES’s broader portfolio, and the ability to create additional value from retained skim oil volumes in a favorable commodity price environment. As crude-oil prices increased in March, we benefited directly through skim oil recoveries on the Aris system and the fixed recovery natural-gas processing contracts we have been deliberately building across our portfolio. Combined with the cost reduction actions executed in 2025, which have materially improved our operating leverage, the earnings power of WES is increasingly evident.”
“The Delaware Basin remains the cornerstone of our growth strategy and the primary driver of our capital allocation. It is the premier operating basin in North America, and WES has built one of the most integrated midstream platforms across crude-oil, natural-gas, and produced-water in an area which will continue to attract producer capital for decades. The sanctioning of the Pathfinder Pipeline and North Loving II, the Aris acquisition, and today’s announcement pertaining to the purchase of Brazos, each reflect that conviction. More than 60-percent of WES’s 2026 Adjusted EBITDA is expected to be generated from the Delaware Basin, and that proportion will only grow as our organic growth projects come online in first and second quarters of 2027.”
“The Brazos acquisition further enhances our Delaware Basin footprint and is in line with WES’s M&A philosophy of making accretive, strategic acquisitions that enhance the value of WES’s existing asset base, provide a diverse set of high-quality customers, and generate strong Free Cash Flow, all while protecting our investment grade credit ratings. The asset is contiguous to our existing footprint, can be efficiently integrated into our system, and provides exposure to additional geologic trends, including the growing Woodford Shale. The transaction is expected to contribute approximately $100 million of incremental Adjusted EBITDA in 2026, assuming a close by the end of the second quarter.”
“Looking ahead, our fee-based contract structures, supported by substantial minimum-volume commitments and acreage dedications, provide durable, protected cash flows across commodity cycles. While we are not currently updating our annual guidance ranges, as we have not yet received formal changes to our producers’ drilling plans for this year, we expect to be towards the high end of both the Adjusted EBITDA and Distributable Cash Flow ranges, without taking into account the impact of the Brazos transaction. This improved outlook is due to increased commercial discussions, the very favorable commodity price environment, and our improving operating leverage due to our successful and ongoing cost competitiveness efforts. With that said, we intend to reevaluate our 2026 guidance ranges in conjunction with our second-quarter results after the scheduled close of the Brazos transaction.”
“All in all, years of hard work that have culminated in multiple quarters of record operational and financial results continue to demonstrate WES’s financial flexibility to consummate accretive M&A, fund its organic growth program, and sustain a balanced capital return program, all while maintaining one of the strongest balance sheets in the midstream sector.”
CONFERENCE CALL TOMORROW AT 9:00 A.M. CT
WES will host a conference call on Thursday, May 7, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first-quarter 2026 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 888-880-3330 (Domestic) or 646-357-8766 (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.
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.
This release contains certain forward-looking non-GAAP measures such as the Adjusted EBITDA range and Distributable Cash Flow range for year ending December 31, 2026. A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Distributable Cash Flow range to net income (loss), 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 Distributable Cash Flow ranges.
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.
Represents total throughput attributable to WES, which excludes (i) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, 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.
Source: Western Midstream Partners, LP
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, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended March 31, |
|---|
| thousands except per-unit amounts | | 2026 | | 2025 |
| Revenues and other | | |
| Service revenues - fee based | $933,302 | | $823,197 | |
| Service revenues - product based | 88,767 | | 59,252 | |
| Product sales | 99,616 | | 34,469 | |
| Other | 1,894 | | 198 | |
| Total revenues and other | 1,123,579 | | 917,116 | |
| Equity income, net - related parties | 14,776 | | 20,435 | |
| Operating expenses | | |
| Cost of product | 102,884 | | 41,492 | |
| Operation and maintenance | 264,241 | | 226,514 | |
| General and administrative | 75,150 | | 66,786 | |
| Property and other taxes | 19,486 | | 17,826 | |
| Depreciation and amortization | 200,426 | | 170,460 | |
| Long-lived asset and other impairments | 608 | | 3 | |
| Total operating expenses | 662,795 | | 523,081 | |
| Gain (loss) on divestiture and other, net | (6,367) | | (4,667) | |
| Operating income (loss) | 469,193 | | 409,803 | |
| Interest expense | (113,390) | | (97,293) | |
| Other income (expense), net | 6,730 | | 7,477 | |
| Income (loss) before income taxes | 362,533 | | 319,987 | |
| Income tax expense (benefit) | 3,501 | | 3,435 | |
| Net income (loss) | 359,032 | | 316,552 | |
| Net income (loss) attributable to noncontrolling interests | 8,756 | | 7,545 | |
| Net income (loss) attributable to Western Midstream Partners, LP | $350,276 | | $309,007 | |
| Limited partners’ interest in net income (loss): | | |
| Net income (loss) attributable to Western Midstream Partners, LP | $350,276 | | $309,007 | |
| General partner interest in net (income) loss | (7,886) | | (7,170) | |
| Limited partners’ interest in net income (loss) | $342,390 | | $301,837 | |
| Net income (loss) per common unit - basic | $0.86 | | $0.79 | |
| Net income (loss) per common unit - diluted | $0.85 | | $0.79 | |
| Weighted-average common units outstanding - basic | 399,095 | | 380,986 | |
| Weighted-average common units outstanding - diluted | 400,569 | | 382,494 | |
Western Midstream Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| thousands except number of units | March 31, 2026 | December 31, 2025 |
| Total current assets | $1,539,407 | $1,656,941 |
| Net property, plant, and equipment | 11,294,693 | 11,220,908 |
| Other assets | 2,090,402 | 2,120,571 |
| Total assets | $14,924,502 | $14,998,420 |
| Total current liabilities | $1,407,157 | $1,236,484 |
| Long-term debt | 8,194,171 | 8,195,170 |
| Asset retirement obligations | 443,152 | 427,858 |
| Other liabilities | 1,373,032 | 975,786 |
| Total liabilities | 11,417,512 | 10,835,298 |
| Equity and partners’ capital | | |
| Common units (393,775,833 and 408,141,366 units issued and outstanding at March 31, 2026, and December 31, 2025, respectively) | 3,361,526 | 4,016,606 |
| General partner units (9,060,641 units issued and outstanding at March 31, 2026, and December 31, 2025) | 4,265 | 4,624 |
| Noncontrolling interests | 141,199 | 141,892 |
| Total liabilities, equity, and partners’ capital | $14,924,502 | $14,998,420 |
Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended March 31, |
|---|
| thousands | | 2026 | | 2025 |
| Cash flows from operating activities | | |
| Net income (loss) | $359,032 | | $316,552 | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | | |
| Depreciation and amortization | 200,426 | | 170,460 | |
| Long-lived asset and other impairments | 608 | | 3 | |
| (Gain) loss on divestiture and other, net | 6,367 | | 4,667 | |
| Change in other items, net | (96,530) | | 39,111 | |
| Net cash provided by operating activities | $469,903 | | $530,793 | |
| Cash flows from investing activities | | |
| Capital expenditures | $(235,726) | | $(142,402) | |
| Contributions to equity investments - related parties | (1,768) | | - | |
| Distributions from equity investments in excess of cumulative earnings - related parties | 9,889 | | 11,007 | |
| Proceeds from the sale of assets to third parties | - | | 19 | |
| (Increase) decrease in materials and supplies inventory and other | (7,272) | | (9,414) | |
| Net cash used in investing activities | $(234,877) | | $(140,790) | |
| Cash flows from financing activities | | |
| Borrowings, net of debt issuance costs | $(132) | | $ - | |
| Repayments of debt | - | | (663,831) | |
| Increase (decrease) in outstanding checks | 13,461 | | (113) | |
| Distributions to Partnership unitholders | (379,675) | | (340,996) | |
| Distributions to Chipeta noncontrolling interest owner | (2,117) | | - | |
| Distributions to noncontrolling interest owner of WES Operating | (7,332) | | (6,949) | |
| Other | (31,227) | | (20,131) | |
| Net cash used in financing activities | $(407,022) | | $(1,032,020) | |
| Net increase (decrease) in cash and cash equivalents | $(171,996) | | $(642,017) | |
| Cash and cash equivalents at beginning of period | 819,491 | | 1,090,464 | |
| Cash and cash equivalents at end of period | $647,495 | | $448,447 | |
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 Distributable Cash Flow as Adjusted EBITDA, less total revenues and other recognized in Adjusted EBITDA in excess of (less than) customer billings; net cash paid for (i) interest expense (net of interest income recorded in other income (expense) and non-cash capitalized interest), (ii) maintenance capital expenditures, (iii) income taxes; and Distributable Cash Flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.
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.
Adjusted Gross Margin, Adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow are not defined in GAAP. The GAAP measure that is most directly comparable to Adjusted Gross Margin is gross margin. Net income (loss) and net cash provided by operating activities are the GAAP measures that are most directly comparable to Adjusted EBITDA. The GAAP measure that is most directly comparable to Distributable Cash Flow is net income (loss). The GAAP measure that is most directly comparable to Free Cash Flow is net cash provided by operating activities. Our non-GAAP financial measures (i) should not be considered as alternatives to the comparable GAAP measures or any other measure of financial performance presented in accordance with GAAP, (ii) have important limitations as analytical tools because they exclude some, but not all, items that affect the comparable GAAP measures, (iii) should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, and (iv) may not be comparable to similarly titled measures of other companies in our industry, thereby diminishing their utility as comparative measures.
Management compensates for the limitations of our non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences, and incorporating this knowledge into its decision-making processes. We believe that investors benefit from having access to the same financial measures that our management considers in evaluating our operating results.
The following tables present reconciliations of the GAAP measures to our non-GAAP measures:
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Adjusted Gross Margin
| Three Months Ended |
|---|
| thousands | March 31, 2026 | December 31, 2025 |
| Reconciliation of Gross margin to Adjusted Gross Margin |
| Total revenues and other | $1,123,579 | $1,031,481 |
| Less: | | |
| Cost of product | 102,884 | 71,618 |
| Depreciation and amortization | 200,426 | 197,882 |
| Gross margin | 820,269 | 761,981 |
| Add: | | |
| Distributions from equity investments | 25,652 | 27,147 |
| Depreciation and amortization | 200,426 | 197,882 |
| Less: | | |
| Reimbursed electricity-related charges recorded as revenues | 33,488 | 31,488 |
| Adjusted Gross Margin attributable to noncontrolling interests | 22,204 | 20,719 |
| Adjusted Gross Margin | $990,655 | $934,803 |
| Gross margin | | |
| Gross margin for natural-gas assets | $533,518 | $506,811 |
| Gross margin for crude-oil and NGLs assets | 106,212 | 91,220 |
| Gross margin for produced-water assets | 187,779 | 170,747 |
| Adjusted Gross Margin | | |
| Adjusted Gross Margin for natural-gas assets | $618,809 | $599,775 |
| Adjusted Gross Margin for crude-oil and NGLs assets | 144,193 | 129,395 |
| Adjusted Gross Margin for produced-water assets | 227,190 | 205,633 |
Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES’s noncontrolling interests.
Excludes corporate-level depreciation and amortization.
Excludes certain corporate-level items.
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Adjusted EBITDA
| Three Months Ended |
|---|
| thousands | March 31, 2026 | December 31, 2025 |
| Reconciliation of Net income (loss) to Adjusted EBITDA |
| Net income (loss) | $359,032 | $196,269 |
| Add: | | |
| Distributions from equity investments | 25,652 | 27,147 |
| Non-cash equity-based compensation expense | 10,854 | 21,386 |
| Interest expense | 113,390 | 105,674 |
| Income tax expense | 3,501 | 7,323 |
| Depreciation and amortization | 200,426 | 197,882 |
| Long-lived asset and other impairments | 608 | 2,509 |
| Other expense | - | 17 |
| Less: | | |
| Gain (loss) on divestiture and other, net | (6,367) | (3,065) |
| Equity income, net - related parties | 14,776 | 21,378 |
| Other income | 6,734 | 3,706 |
| Items impacting comparability | | |
| Acquisition-related expenses and other, net | (119) | (113,188) |
| Adjusted EBITDA attributable to noncontrolling interests | 15,302 | 13,794 |
| Adjusted EBITDA | $683,137 | $635,582 |
| Reconciliation of Net cash provided by operating activities to Adjusted EBITDA |
| Net cash provided by operating activities | $469,903 | $557,645 |
| Interest (income) expense, net | 113,390 | 105,674 |
| Accretion and amortization of long-term obligations, net | (882) | (815) |
| Current income tax expense (benefit) | 2,880 | 5,615 |
| Other (income) expense, net | (6,730) | (3,706) |
| Distributions from equity investments in excess of cumulative earnings - related parties | 9,889 | 5,391 |
| Changes in assets and liabilities: | | |
| Accounts receivable, net | 50,226 | (16,853) |
| Accounts and imbalance payables and accrued liabilities, net | 28,316 | (52,513) |
| Other items, net | 31,328 | (64,250) |
| Acquisition-related expenses | 119 | 113,188 |
| Adjusted EBITDA attributable to noncontrolling interests | (15,302) | (13,794) |
| Adjusted EBITDA | $683,137 | $635,582 |
| Cash flow information | | |
| Net cash provided by operating activities | $469,903 | $557,645 |
| Net cash used in investing activities | (234,877) | (608,914) |
| Net cash provided by (used in) financing activities | (407,022) | 693,472 |
Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES’s noncontrolling interests.
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Distributable Cash Flow
| Three Months Ended |
|---|
| thousands | March 31, 2026 | December 31, 2025 |
| Reconciliation of Net income (loss) to Distributable Cash Flow | |
| Net income (loss) | $359,032 | | $196,269 | |
| Add: | | |
| Distributions from equity investments | 25,652 | | 27,147 | |
| Non-cash equity-based compensation expense | 10,854 | | 21,386 | |
| Income tax expense | 3,501 | | 7,323 | |
| Depreciation and amortization | 200,426 | | 197,882 | |
| Long-lived asset and other impairments | 608 | | 2,509 | |
| Other expense | - | | 17 | |
| Less: | | |
| Recognized service revenues - fee based (less than) in excess of customer billings | 35,508 | | (31,627) | |
| Gain (loss) on divestiture and other, net | (6,367) | | (3,065) | |
| Equity income, net - related parties | 14,776 | | 21,378 | |
| Items impacting comparability | (119) | | (113,188) | |
| Cash paid for maintenance capital expenditures | 27,704 | | 36,276 | |
| Capitalized interest | 4,306 | | 3,518 | |
| Cash paid for (reimbursement of) income taxes | 3,449 | | 806 | |
| Other income (net of interest income) | (86) | | 87 | |
| Distributable cash flow attributable to noncontrolling interests | 11,978 | | 11,715 | |
| Distributable cash flow | $508,924 | | $526,633 | |
| Reconciliation of Adjusted EBITDA to Distributable Cash Flow | |
| Adjusted EBITDA | $683,137 | | $635,582 | |
| Less: | | |
| Recognized service revenues - fee based (less than) in excess of customer billings | 35,508 | | (31,627) | |
| Capitalized interest | 4,306 | | 3,518 | |
| Cash paid for maintenance capital expenditures | 27,704 | | 36,276 | |
| Cash paid for (reimbursement of) income taxes | 3,449 | | 806 | |
| Interest expense (net of interest income) | 106,570 | | 102,055 | |
| Distributable cash flow attributable to noncontrolling interests | (3,324) | | (2,079) | |
| Distributable cash flow | $508,924 | | $526,633 | |
| Weighted-average common units outstanding | | 399,095 | | 400,491 |
| Weighted-average general partner units | | 9,061 | | 9,061 |
Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES’s noncontrolling interests.
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Free Cash Flow
| Three Months Ended |
|---|
| thousands | March 31, 2026 | December 31, 2025 |
| Reconciliation of Net cash provided by operating activities to Free Cash Flow |
| Net cash provided by operating activities | $469,903 | $557,645 |
| Less: | | |
| Capital expenditures | 235,726 | 222,208 |
| Contributions to equity investments - related parties | 1,768 | - |
| Add: | | |
| Distributions from equity investments in excess of cumulative earnings - related parties | 9,889 | 5,391 |
| Free Cash Flow | $242,298 | $340,828 |
| Cash flow information | | |
| Net cash provided by operating activities | $469,903 | $557,645 |
| Net cash used in investing activities | (234,877) | (608,914) |
| Net cash provided by (used in) financing activities | (407,022) | 693,472 |
Western Midstream Partners, LP
OPERATING STATISTICS
(Unaudited)
| Three Months Ended |
|---|
| March 31, 2026 | December 31, 2025 | Inc/ (Dec) |
|---|
| Throughput for natural-gas assets (MMcf/d) |
| Gathering, treating, and transportation | 430 | 381 | 13% |
| Processing | 4,499 | 4,437 | 1% |
| Equity investments | 464 | 525 | (12)% |
| Total throughput | 5,393 | 5,343 | 1% |
| Throughput attributable to noncontrolling interests | 184 | 181 | 2% |
| Total throughput attributable to WES for natural-gas assets | 5,209 | 5,162 | 1% |
| Throughput for crude-oil and NGLs assets (MBbls/d) |
| Gathering, treating, and transportation | 429 | 419 | 2% |
| Equity investments | 102 | 99 | 3% |
| Total throughput | 531 | 518 | 3% |
| Throughput attributable to noncontrolling interests | 10 | 10 | - % |
| Total throughput attributable to WES for crude-oil and NGLs assets | 521 | 508 | 3% |
| Throughput for produced-water assets (MBbls/d) |
| Gathering and disposal | 2,848 | 2,744 | 4% |
| Throughput attributable to noncontrolling interests | 53 | 51 | 4% |
| Total throughput attributable to WES for produced-water assets | 2,795 | 2,693 | 4% |
| Per-Mcf Gross margin for natural-gas assets | $1.10 | $1.03 | 7% |
| Per-Bbl Gross margin for crude-oil and NGLs assets | 2.22 | 1.91 | 16% |
| Per-Bbl Gross margin for produced-water assets | 0.73 | 0.68 | 7% |
| Per-Mcf Adjusted Gross Margin for natural-gas assets | $1.32 | $1.26 | 5% |
| Per-Bbl Adjusted Gross Margin for crude-oil and NGLs assets | 3.07 | 2.77 | 11% |
| Per-Bbl Adjusted Gross Margin for produced-water assets | 0.90 | 0.83 | 8% |
Represents our share of average throughput for investments accounted for under the equity method of accounting.
Includes (i) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, and (ii) for natural-gas assets, the 25% third-party interest in Chipeta, which collectively represent WES’s noncontrolling interests.
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.
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, LP
OPERATING STATISTICS (CONTINUED)
(Unaudited)
| Three Months Ended |
|---|
| March 31, 2026 | December 31, 2025 | Inc/ (Dec) |
|---|
| Throughput for natural-gas assets (MMcf/d) |
| Operated | | | |
| Delaware Basin | 2,035 | 1,974 | 3% |
| DJ Basin | 1,520 | 1,530 | (1)% |
| Powder River Basin | 396 | 383 | 3% |
| Other | 932 | 931 | - % |
| Total operated throughput for natural-gas assets | 4,883 | 4,818 | 1% |
| Non-operated | | | |
| Equity investments | 464 | 525 | (12)% |
| Other | 46 | - | - % |
| Total non-operated throughput for natural-gas assets | 510 | 525 | (3)% |
| Total throughput for natural-gas assets | 5,393 | 5,343 | 1% |
| Throughput for crude-oil and NGLs assets (MBbls/d) |
| Operated | | | |
| Delaware Basin | 272 | 261 | 4% |
| DJ Basin | 97 | 95 | 2% |
| Powder River Basin | 25 | 26 | (4)% |
| Other | 35 | 37 | (5)% |
| Total operated throughput for crude-oil and NGLs assets | 429 | 419 | 2% |
| Non-operated | | | |
| Equity investments | 102 | 99 | 3% |
| Total non-operated throughput for crude-oil and NGLs assets | 102 | 99 | 3% |
| Total throughput for crude-oil and NGLs assets | 531 | 518 | 3% |
| Throughput for produced-water assets (MBbls/d) |
| Operated | | | |
| Delaware Basin | 2,848 | 2,744 | 4% |
| Total operated throughput for produced-water assets | 2,848 | 2,744 | 4% |