17:04:52 EDT Wed 06 May 2026
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Western Midstream Announces First-Quarter 2026 Results

2026-05-06 16:07 ET - News Release

Western Midstream Announces First-Quarter 2026 Results

PR Newswire

  • Reported first-quarter 2026 Net income attributable to limited partners of $342.4 million, generating record first-quarter Adjusted EBITDA(1) of $683.1 million, which represents a 15-percent increase compared to the prior-year period, and first-quarter Distributable Cash Flow(1) of $508.9 million.
  • Reported first-quarter 2026 Cash flows provided by operating activities of $469.9 million, generating first-quarter Free Cash Flow(1) 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(2) and Distributable Cash Flow(2) 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(3) to still range between $850.0 million to $1.00 billion.

HOUSTON, May 6, 2026 /PRNewswire/ -- 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(1) totaling $683.1 million and Distributable Cash Flow(1) totaling $508.9 million. First-quarter 2026 Cash flows provided by operating activities totaled $469.9 million and first-quarter 2026 Free Cash Flow(1) totaled $242.3 million. First-quarter 2026 capital expenditures(3) totaled $250.5 million.

RECENT HIGHLIGHTS

  • Generated record Adjusted EBITDA(1) 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(4) 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(1) after distributions totaled negative $137.4 million.

First-quarter 2026 natural-gas throughput(4) averaged 5.2 Bcf/d, representing a 1-percent sequential-quarter increase. First-quarter 2026 crude-oil and NGLs throughput(4) averaged 521 MBbls/d, representing a 3-percent sequential-quarter increase. First-quarter 2026 produced-water throughput(4) 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.




 (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)   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.

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,   December 31,
                                                                                                                                            2026           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,                                          3,361,526      4,016,606
  2026, and December 31, 2025, respectively)



         General partner units (9,060,641 units issued and outstanding at March 31, 2026, and                                             4,265          4,624
  December 31, 2025)



         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,                      December 31,
                                                                                                                                                               2025
                                                                                                                              2026



 
            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 (1)                                                        22,204                            20,719



 Adjusted Gross Margin                                                                                                   $990,655                          $934,803





 
            Gross margin



 Gross margin for natural-gas assets (2)                                                                                 $533,518                          $506,811



 Gross margin for crude-oil and NGLs assets (2)                                                                           106,212                            91,220



 Gross margin for produced-water assets (2)                                                                               187,779                           170,747



 
            Adjusted Gross Margin



 Adjusted Gross Margin for natural-gas assets (3)                                                                        $618,809                          $599,775



 Adjusted Gross Margin for crude-oil and NGLs assets (3)                                                                  144,193                           129,395



 Adjusted Gross Margin for produced-water assets (3)                                                                      227,190                           205,633




 (1)   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.



 (2) 
 Excludes corporate-level depreciation and amortization.



 (3) 
 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,                      December 31,
                                                                                                                                                                                    2025
                                                                                                                                                   2026



 
            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 (1)                                                                                   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 (1)                                                                                 (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




 (1) 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,                      December 31,
                                                                                                                                                                                 2025
                                                                                                                                                2026



 
            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 (1)                                                                        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 (1)                                                                       (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




 (1) 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,                      December 31,
                                                                                                                                                     2026                              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,        December 31,            Inc/
                                                                                                                                              2025
                                                                                                                       2026



                                                                                                                                                             (Dec)



 
            Throughput for natural-gas assets (MMcf/d)



 Gathering, treating, and transportation                                                                               430                     381             13 %



 Processing                                                                                                          4,499                   4,437              1 %



 Equity investments (1)                                                                                                464                     525           (12) %



 Total throughput                                                                                                    5,393                   5,343              1 %



 Throughput attributable to noncontrolling interests (2)                                                               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 (1)                                                                                                102                      99              3 %



 Total throughput                                                                                                      531                     518              3 %



 Throughput attributable to noncontrolling interests (2)                                                                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 (2)                                                                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 (3)                                                                     $1.10                   $1.03              7 %



 Per-Bbl Gross margin for crude-oil and NGLs assets (3)                                                               2.22                    1.91             16 %



 Per-Bbl Gross margin for produced-water assets (3)                                                                   0.73                    0.68              7 %





 Per-Mcf Adjusted Gross Margin for natural-gas assets (4)                                                            $1.32                   $1.26              5 %



 Per-Bbl Adjusted Gross Margin for crude-oil and NGLs assets (4)                                                      3.07                    2.77             11 %



 Per-Bbl Adjusted Gross Margin for produced-water assets (4)                                                          0.90                    0.83              8 %




 (1) 
 Represents our share of average throughput for investments accounted for under the equity method of accounting.



 (2)   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.



 (3)   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.



 (4)   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,        December 31,             Inc/
                                                                                                                   2026                    2025




                                                                                                                                                          (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 %

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SOURCE Western Midstream Partners, LP

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