Reported fourth-quarter 2025 Net income attributable to limited partners of $187.2 million, generating record fourth-quarter Adjusted EBITDA(1) of $635.6 million, which included $29.5 million of unfavorable non-cash revenue adjustments.
Reported full-year 2025 Net income attributable to limited partners of $1.154 billion, generating record full-year Adjusted EBITDA(1) of $2.481 billion, exceeding the midpoint of the full-year 2025 Adjusted EBITDA guidance range of $2.350 billion to $2.550 billion, and representing a 6-percent year-over-year increase.
Reported fourth-quarter 2025 Cash flows provided by operating activities of $557.6 million, generating fourth-quarter Free Cash Flow(1) of $340.8 million.
Reported full-year 2025 Cash flows provided by operating activities of $2.223 billion, generating full-year Free Cash Flow(1) of $1.526 billion, exceeding the high end of the full-year 2025 Free Cash Flow guidance range of $1.275 billion to $1.475 billion, and representing a 15-percent year-over-year increase.
Announced a fourth-quarter distribution of $0.910 per unit, which is consistent with the prior quarter's distribution, or $3.64 per unit on an annualized basis.
Providing 2026 Adjusted EBITDA(2) guidance range of $2.500 billion to $2.700 billion, representing an approximate 5-percent increase at the mid-point relative to 2025.
Providing 2026 total capital expenditure(3) guidance range of $850.0 million to $1.000 billion, implying a mid-point of $925 million, which is significantly below previous expectations of at least $1.1 billion of total capital expenditures.
Providing 2026 Distributable Cash Flow(2) ("DCF") guidance range of $1.850 billion to $2.050 billion, or $4.59 to $5.08 per unit(4), respectively.
Planning to recommend to the Board a distribution increase of $0.02 per unit to $0.93 per unit, or $3.72 per unit on an annualized basis, starting in the first quarter of 2026, which represents a 2.2-percent increase over the prior quarter's distribution.
HOUSTON, Feb. 18, 2026 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE:WES) ("WES" or the "Partnership") announced fourth-quarter and full-year 2025 financial and operating results. Net income (loss) attributable to limited partners for the fourth quarter of 2025 totaled $187.2 million, or $0.47 per common unit (diluted), with fourth-quarter 2025 Adjusted EBITDA(1) totaling $635.6 million. Net income (loss) attributable to limited partners and Adjusted EBITDA(1) for the fourth quarter of 2025 include a non-cash decrease to revenue of approximately $29.5 million associated with revenue recognition cumulative adjustments related to cost-of-service agreements at the DJ Basin oil and Springfield systems. Fourth-quarter 2025 Cash flows provided by operating activities totaled $557.6 million, and fourth-quarter 2025 Free Cash Flow(1) totaled $340.8 million. Fourth-quarter 2025 capital expenditures(3) totaled $231.0 million.
Net income (loss) attributable to limited partners for the full-year 2025 totaled $1.154 billion, or $2.98 per common unit (diluted), with full-year 2025 Adjusted EBITDA(1) totaling $2.481 billion. Full-year 2025 Cash flows provided by operating activities totaled $2.223 billion, full-year 2025 Free Cash Flow(1) totaled $1.526 billion, and full-year 2025 capital expenditures(3) totaled $721.8 million.
FULL-YEAR 2025 AND RECENT HIGHLIGHTS
Generated record Adjusted EBITDA(1) in 2025 primarily driven by increased Delaware Basin throughput and cost reduction initiatives that commenced during the second quarter of 2025, resulting in a 2-percent year-over-year reduction in reported operation and maintenance expense, excluding the acquisition of Aris Water Solutions, Inc. ("Aris").
Excluding the Aris acquisition, reduced operation and maintenance expense by 8-percent in the third quarter and 12-percent in the fourth quarter, compared to the corresponding periods in 2024, reflecting continued cost discipline despite increased throughput.
Achieved record annual natural-gas throughput(5) of 5.2 Bcf/d, representing a 4-percent(6) year-over-year increase, in-line with our 2025 expectations of mid-single-digits growth.
Achieved annual crude-oil and NGLs throughput(5) of 514 MBbls/d, representing a 1-percent(7) year-over-year increase, in-line with our 2025 expectations of low-single-digits growth.
Gathered record annual produced-water throughput(5) of 1,578 MBbls/d, representing a 40-percent year-over-year increase, primarily due to the acquisition of Aris in fourth-quarter 2025. Excluding throughput associated with the legacy Aris system, gathered record annual produced-water throughput of 1,224 MBbls/d, representing a 7-percent year-over-year increase in-line with our original 2025 expectations of mid-single digits growth.
Achieved strong throughput growth across all products in the Delaware Basin, including 9-percent and 6-percent, for natural-gas and crude-oil and NGLs, respectively, and 40-percent for produced water driven by the incremental Aris volumes.
Expanded Delaware Basin natural-gas processing capacity by 18-percent and continued supporting WES's position as one of the largest natural-gas processors in the basin through the completion of North Loving I in the second-quarter of 2025 and the addition of dedicated capacity at the Mi Vida plant.
Sanctioned North Loving II that will increase Delaware Basin natural-gas processing capacity by an incremental 13-percent when completed early in the second quarter of 2027.
Sanctioned the long-haul Pathfinder pipeline ("Pathfinder") to transport over 800 MBbls/d of produced water for disposal and reuse opportunities in eastern Loving County, supported by long-term fixed-fee contracts.
Completed the acquisition of Aris, creating one of the largest, fully-integrated Delaware Basin produced-water solutions providers, significantly expanding WES's New Mexico footprint and further diversifying our customer base with mostly investment-grade counterparties.
Continued to execute on our capital return framework by returning $1.431 billion to unitholders in 2025 while maintaining a net leverage ratio near 3.0 times throughout the year.
Subsequent to year-end, and as previously announced, renegotiated natural-gas gathering and processing contracts in the Delaware Basin with Occidental and ConocoPhillips, replacing the legacy cost-of-service structure with a simplified, fixed-fee structure in exchange for $610 million in WES units owned by Occidental.
On February 13, 2026, WES paid its fourth-quarter 2025 per-unit distribution of $0.910, or $3.64 on an annualized basis, which is consistent with the prior quarter's distribution. Fourth-quarter and full-year 2025 Free Cash Flow(1) after distributions totaled negative $38.7 million and positive $95.0 million, respectively.
Fourth-quarter 2025 natural-gas throughput(5) averaged 5.2 Bcf/d, representing a 4-percent sequential-quarter decrease. Fourth-quarter 2025 crude-oil and NGLs throughput(5) averaged 508 MBbls/d, representing a slight sequential-quarter decrease. Fourth-quarter 2025 produced-water throughput(5) averaged 2,693 MBbls/d, representing a 121-percent sequential-quarter increase which includes two-and-a-half months' contribution from Aris.
Full-year 2025 natural-gas throughput(5) averaged 5.2 Bcf/d, representing a 4-percent(6) increase year-over-year, adjusting for the sale of Marcellus assets in the second quarter of 2024. Full-year 2025 crude-oil and NGLs throughput(5) averaged 514 MBbls/d, representing a 1-percent(7) increase year-over-year, adjusting for the asset sales during 2024. Full-year 2025 produced-water throughput(5) averaged 1,578 MBbls/d, an increase of 40-percent year-over-year, including two-and-a-half months' contribution from Aris in the fourth quarter 2025.
"2025 was a successful and impactful year for WES," commented Oscar K. Brown, President and Chief Executive Officer. "We delivered record Adjusted EBITDA and Free Cash Flow due to another year of steady throughput growth across all three products, including quarterly records in the Delaware and DJ Basins. We met or exceeded our 2025 financial guidance ranges, advanced our growth strategy with the acquisition of Aris Water Solutions, which meaningfully expands our produced-water capabilities and adds a new operating footprint in New Mexico, all while navigating industry challenges that included volatile Waha Hub pricing and associated third-party production curtailments. The consistency of our assets and the discipline of our teams were evident throughout the year."
"We also moved key strategic projects forward. We sanctioned and began constructing Pathfinder, backed by long-term agreements, brought the North Loving I natural-gas processing train online ahead of schedule and under budget, and sanctioned North Loving II to meet growing natural-gas processing demand. Even as we continued to grow the business and throughput, we successfully executed on our cost reduction plan initiated during the second quarter, enabling us to reduce operation and maintenance expense by 8-percent in the third quarter and 12-percent in the fourth quarter compared to the corresponding periods in 2024, excluding the Aris acquisition. Additionally, the Aris integration is on track to deliver meaningful synergies, with approximately 85-percent of our $40 million target to be captured by the end of the first quarter."
"Financially, we outperformed across several key metrics, achieving Adjusted EBITDA above the mid-point of our guidance range, and Free Cash Flow above the high end of the range. Additionally, we increased the distribution by 4-percent year-over-year, in line with our target of mid-to-low single-digits growth, and returned more than $1.4 billion to unitholders. Taken together, our 2025 accomplishments, including successful organic growth projects, accretive M&A, efficiency and cost reduction success, and contract renegotiations, all strengthen our operating leverage and position WES for sustainable growth, while maintaining a strong balance sheet and low leverage profile. With an investment-grade balance sheet and roughly $2.0 billion of liquidity, we have the financial flexibility to fund organic and inorganic growth opportunities, while continuing to return a substantial amount of our Distributable Cash Flow to unitholders."
2026 GUIDANCE
Based on the current production forecast information from our producer customers, and the inclusion of Aris, WES is providing 2026 guidance as follows:
Adjusted EBITDA(2) between $2.500 billion and $2.700 billion.
Total capital expenditures(3) between $850.0 million and $1.000 billion.
Distributable Cash Flow(2) ("DCF") between $1.850 billion and $2.050 billion, or $4.59 to $5.08 per unit(4).
Full-year distribution of at least $3.70 per unit(8), which includes an increase to $0.93 per unit on a quarterly basis, starting with our first quarter distribution in May, which represents an annualized rate of $3.72 per unit.
"As we enter 2026, our outlook reflects both the contribution of the Aris acquisition and the effects of a more challenging commodity price environment. We expect continued throughput growth in the Delaware Basin, though at a more moderate pace relative to prior expectations given recently updated producer forecasts reflecting lower activity levels. Specifically, in the Delaware Basin, crude-oil and NGLs and natural-gas throughput are now expected to increase at low-to-mid single digits average percentage growth year-over-year, while produced-water throughput is expected to increase over 80-percent, primarily driven by the Aris acquisition. However, when combined with anticipated declines in several of our other operating basins, we expect portfolio-wide operated throughput for crude oil and NGLs to decline by low-to-mid single digits and natural gas to remain relatively flat year-over-year," commented Kristen Shults, Senior Vice President and Chief Financial Officer.
"Despite these headwinds, we expect to realize additional cost efficiencies in 2026. Excluding Aris and utility costs, the majority of which are reimbursed through producer contracts, operation and maintenance expense decreased by more than $100 million from the first quarter to the fourth quarter of 2025, based on the change between the first and fourth-quarter annualized run-rates."
"Building on this progress, we anticipate further reductions in operation and maintenance expense from our legacy WES assets in 2026, and only a 10 to 15-percent average increase year-over-year partnership-wide, which is significantly below the combined entities' pro forma operation and maintenance expense. Furthermore, excluding Aris acquisition costs, we expect our average annual general and administrative expense to remain flat year-over-year, even after accounting for the increased scale of the business and strategically retaining and further investing in select personnel and growth-oriented functions from Aris, including beneficial reuse and commercial operations. This continued discipline strengthens our ability to protect margins, support capital allocation priorities, promote enhanced competitiveness, and deliver value to unitholders even in a more challenging commodity-price environment."
"Taking these factors into account, the mid-point of our 2026 Adjusted EBITDA range is $2.6 billion, representing approximately a 5-percent year-over-year increase and aligning with our mid-to-low single-digit annual growth rate target we outlined last year. The mid-point of our 2026 capital expenditures range is $925 million, significantly below our initial $1.1 billion estimate, as we adjust spending to reflect the softer macroeconomic backdrop. Approximately half of our expected 2026 capital program is directed towards the construction of Pathfinder and North Loving II, demonstrating our ability to materially reduce the remainder of our growth-capital program when needed, thereby limiting the impact on Free Cash Flow."
"In light of our organic growth spending opportunities this year, we are now providing DCF and DCF per unit guidance as an additional measure of our capacity to fund the distribution and a substantial portion of our growth-capital program. We continue to believe that Free Cash Flow is a meaningful indicator of the Partnership's financial strength and will continue to provide both metrics going forward."
"Finally, our disciplined capital allocation framework remains unchanged. The 2.2-percent distribution increase enables our unitholders to continue benefiting from one of the most attractive total capital return yields in the sector. We will also continue prioritizing high-returning organic growth projects and accretive M&A opportunities that expand our asset footprint, strengthen our competitive position, and support distribution growth over time. Even amid a more challenged environment, our expanded asset base and more efficient cost structure positions WES to secure new commercial agreements, grow steadily over time, and continue delivering compelling returns for our stakeholders."
CONFERENCE CALL TOMORROW AT 9:00 A.M. CT
WES will host a conference call on Thursday, February 19, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its fourth-quarter and full-year 2025 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.
(1)
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.
(2)
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.
(3)
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.
(4)
Based on expected weighted average common and general partner units outstanding during full-year 2026.
(5)
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 December 31, 2025, and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.
(6)
For the year ended December 31, 2024, excludes an average of 38 MMcf/d of throughput associated with the sale of the Marcellus Interest gathering system in April 2024.
(7)
For the year ended December 31, 2024, excludes an average of 23 MBbls/d of throughput associated with the sale of (i) Saddlehorn Pipeline LLC, Whitethorn Pipeline Company LLC, Panola Pipeline Company LLC, and Enterprise EF78 LLC in the first quarter of 2024 and (ii) Wamsutter Pipeline LLC in the third quarter of 2024.
(8)
Full-year 2026 distribution (paid in 2026) of at least $3.67 per unit, which includes the February 2026 distribution of $0.910 per unit. Board action on any distribution increase will be requested on a quarterly basis and is subject to the Board's assessment of the needs of the business at that time.
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.
WESTERN MIDSTREAM CONTACTS
Daniel JenkinsDirector, Investor Relations[email protected]866.512.3523
Rhianna DischManager, Investor Relations[email protected]866.512.3523
Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
thousands except per-unit amounts
2025
2024
2025
2024
Revenues and other
Service revenues, fee based
$ 910,183
$ 858,896
$ 3,453,052
$ 3,248,262
Service revenues, product based
50,253
38,455
193,866
215,776
Product sales
69,803
31,024
194,681
140,100
Other
1,242
128
1,804
1,085
Total revenues and other
1,031,481
928,503
3,843,403
3,605,223
Equity income, net, related parties
21,378
28,158
85,788
112,385
Operating expenses
Cost of product
71,618
39,315
206,978
172,251
Operation and maintenance
252,368
231,244
915,896
880,568
General and administrative
201,871
76,028
398,922
271,526
Property and other taxes
17,986
18,684
69,342
62,668
Depreciation and amortization
197,882
162,990
710,778
650,428
Long-lived asset and other impairments
2,509
2
14,760
6,206
Total operating expenses
744,234
528,263
2,316,676
2,043,647
Gain (loss) on divestiture and other, net
(3,065)
(2,655)
(11,113)
296,771
Operating income (loss)
305,560
425,743
1,601,402
1,970,732
Interest expense
(105,674)
(99,336)
(390,490)
(378,513)
Gain (loss) on early extinguishment of debt
—
—
—
5,403
Other income (expense), net
3,706
15,617
16,629
31,741
Income (loss) before income taxes
203,592
342,024
1,227,541
1,629,363
Income tax expense (benefit)
7,323
444
15,086
18,111
Net income (loss)
196,269
341,580
1,212,455
1,611,252
Net income (loss) attributable to noncontrolling interests
5,588
7,967
31,472
37,681
Net income (loss) attributable to Western Midstream Partners, LP
$ 190,681
$ 333,613
$ 1,180,983
$ 1,573,571
Limited partners' interest in net income (loss):
Net income (loss) attributable to Western Midstream Partners, LP
$ 190,681
$ 333,613
$ 1,180,983
$ 1,573,571
General partner interest in net (income) loss
(3,500)
(7,759)
(26,485)
(36,604)
Limited partners' interest in net income (loss)
$ 187,181
$ 325,854
$ 1,154,498
$ 1,536,967
Net income (loss) per common unit, basic
$ 0.47
$ 0.86
$ 2.99
$ 4.04
Net income (loss) per common unit, diluted
$ 0.47
$ 0.85
$ 2.98
$ 4.02
Weighted-average common units outstanding, basic
400,492
380,556
386,074
380,397
Weighted-average common units outstanding, diluted
402,464
382,918
387,880
382,455
Western Midstream Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
thousands except number of units
2025
2024
Total current assets
$ 1,656,941
$ 1,847,190
Net property, plant, and equipment
11,220,908
9,714,609
Other assets
2,120,571
1,582,986
Total assets
$ 14,998,420
$ 13,144,785
Total current liabilities
$ 1,236,484
$ 1,691,694
Long-term debt
8,195,170
6,926,647
Asset retirement obligations
427,858
370,195
Other liabilities
975,786
781,079
Total liabilities
10,835,298
9,769,615
Equity and partners' capital
Common units (408,141,366 and 380,556,643 units issued and outstanding at December 31, 2025 and 2024, respectively)
4,016,606
3,224,802
General partner units (9,060,641 units issued and outstanding at December 31, 2025 and 2024)
4,624
10,803
Noncontrolling interests
141,892
139,565
Total liabilities, equity, and partners' capital
$ 14,998,420
$ 13,144,785
Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended
December 31,
thousands
2025
2024
Cash flows from operating activities
Net income (loss)
$ 1,212,455
$ 1,611,252
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:
