Western Midstream Partners LP
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did WES Beat Earnings? Q2 2025 Results
Western Midstream Partners posted a solid second quarter in 2025, with earnings per unit of $0.87 beating the $0.84 consensus by 3.76%, even as revenue of $942.32 million came in fractionally below the $944.62 million estimate, a miss of just 0.24%. The top line still grew 4.0% year over year, underscoring steady underlying demand for the partnership's midstream services. The quarter's headline result was a record Adjusted EBITDA of $617.88 million, powered by sequential throughput growth across all product lines, including record Delaware Basin natural-gas volumes of 2.1 Bcf/d. The most transformative development, however, was WES's agreement to acquire Aris Water Solutions in a deal valued at approximately $2.00 billion, which is expected to add roughly $40.00 million in annualized cost synergies and be accretive to 2026 Free Cash Flow per unit. Management reaffirmed its 2025 Adjusted EBITDA guidance of $2.35 billion to $2.55 billion, keeping the partnership well-positioned as investors continue to weigh midstream MLPs for their distribution stability and cash flow durability.
- Record Delaware Basin natural-gas throughput of 2.1 Bcf/d, up 7% sequentially
- Record Delaware Basin crude-oil and NGLs throughput of 269 MBbls/d, up 5% sequentially
- Record Delaware Basin produced-water throughput of 1,242 MBbls/d, up 4% sequentially
- Sequential throughput growth across all products: 3% natural gas, 6% crude-oil and NGLs, 4% produced water
- Productivity and efficiency focus resulting in cost reductions and process improvements
- Fee-based contract structure protecting cash flows from commodity price volatility
“WES had a successful second quarter as we generated the highest quarterly Adjusted EBITDA in our partnership's history, delivered increased throughput across all core operating basins and across all products, and executed on numerous significant growth initiatives. Additionally, our strategic focus on productivity and efficiency has resulted in cost reductions and process improvements, which should help WES remain competitive and better execute on our near-term growth plans. These results have kept WES on track to achieve our annual throughput growth expectations, and we remain within our previously announced financial guidance ranges for the year.”
Western Midstream Partners CEO, on the earnings call
Forward Guidance & Outlook
WES reaffirmed its 2025 financial guidance ranges: Adjusted EBITDA of $2.350 billion to $2.550 billion, total capital expenditures of $625 million to $775 million, and Free Cash Flow of $1.275 billion to $1.475 billion. The partnership is not updating 2025 guidance for the Aris acquisition given the expected Q4 2025 closing; it will incorporate the Aris impact into 2026 guidance to be announced in late February 2026. The Aris acquisition is expected to be accretive to 2026 Free Cash Flow per unit. The sanctioning of North Loving Train II (300 MMcf/d, expected in service early Q2 2027) will increase West Texas complex processing capacity to approximately 2.5 Bcf/d. The Aris acquisition, North Loving Train II, and other organic expansion projects such as the Pathfinder pipeline support WES's growth outlook in 2026, 2027, and beyond.
WES YoY Financials
WES Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.