Western Midstream Partners (WES) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with Adjusted EBITDA of $2.48 billion (up 6% YoY), Free Cash Flow of $1.53 billion (up 15% YoY), and Net Income attributable to limited partners of $1.154 billion, all exceeding guidance midpoints.

• Completed the Aris Water Solutions acquisition, expanding produced-water solutions, recycling capabilities, and New Mexico presence.

• Integrated Aris ahead of schedule, realizing $40 million in targeted cost synergies, with 85% expected by Q1 2026.

• Increased annual distribution by 4% to $3.64 per unit, returning $1.43 billion to unitholders in 2025, and maintaining net leverage near 3x.

Financial highlights

• Q4 2025 Adjusted EBITDA was $636 million (up 7% QoQ); full-year Adjusted EBITDA was $2.48 billion, and Free Cash Flow was $1.53 billion.

• Q4 2025 Net Income attributable to limited partners was $187 million; full-year was $1.154 billion.

• Operating cash flow for 2025 was $2.22 billion; capital expenditures totaled $722 million.

• Q4 2025 distributable cash flow was $527 million; declared Q4 distribution of $0.91 per unit.

• 2025 per-unit cash distribution was $3.605; net leverage at year-end was 3.18x.

Outlook and guidance

• 2026 Adjusted EBITDA guidance: $2.5–$2.7 billion (midpoint $2.6 billion, ~5% YoY growth); capital expenditures: $850 million–$1 billion (midpoint $925 million), below prior guidance.

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

• 2026 full-year distribution expected at least $3.70 per unit, with a planned increase to $0.93 per unit quarterly starting Q1 2026.

• Produced-water throughput projected to increase over 80% in 2026, driven by Aris acquisition and Pathfinder pipeline.

• Expect mid- to low-single-digit Adjusted EBITDA growth long-term; distribution growth to lag EBITDA to increase coverage.