Western Midstream Partners LP
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did WES Beat Earnings? Q1 2025 Results
Western Midstream Partners fell short of Wall Street expectations in the first quarter of 2025, posting earnings of $0.79 per diluted common unit against a consensus estimate of $0.82, a miss of 3.89%, while revenue of $917.12 million trailed the $926.55 million estimate by 1.02%, even as the top line grew 3.3% year over year. The shortfall was shaped in part by modest sequential throughput declines across all product categories, with total natural-gas volumes dipping 2% to 5.1 Bcf/d and crude-oil and NGLs throughput falling 6% to 503 MBbls/d. Offsetting those headwinds, the early completion of the North Loving natural-gas processing plant added 250 MMcf/d of capacity and helped drive record Delaware Basin gas throughput of 2.0 Bcf/d, while free cash flow climbed to $399.40 million from $309.28 million the prior quarter. Management raised the quarterly distribution 4% to $0.91 per unit and kept full-year capital expenditure guidance unchanged at $625 million to $775 million, citing stable customer activity and contract structures that support predictable cash flows through commodity price volatility.
- Record natural-gas throughput in the Delaware Basin of 2.0 Bcf/d
- Increased NGLs recoveries combined with higher commodity pricing
- Increased margin contribution from the Delaware Basin
- Lower operating expenses
- Fee-based contract structures providing predictable cash flows
“I am pleased to report another successful quarter for WES marked by strong financial performance and stability. We also successfully commenced operations at the North Loving plant in the Delaware Basin ahead of schedule and under budget in late February. This significant milestone positions WES for continued growth within the basin and demonstrates our commitment to operational excellence.”
Western Midstream Partners CEO, on the earnings call
Forward Guidance & Outlook
WES's 2025 guidance remains unchanged despite recent market volatility, with no significant near-term forecast changes observed from customers. The Partnership anticipates throughput growth across all products in 2025, primarily driven by the Delaware Basin and the tie-in of the Altamont pipeline to the Chipeta plant in Utah. Capital expenditures are expected to range between $625 million and $775 million, driven by the North Loving plant completion, Pathfinder Pipeline expenses, and expansion in the Powder River Basin and Chipeta. Management noted that contract structures provide predictable cash flows during commodity price volatility, and WES has flexibility to cancel or defer growth projects if producer activity declines. Steel orders for the Pathfinder Pipeline have been placed with a domestic mill to minimize tariff exposure.
WES YoY Financials
WES Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.