Western Midstream Partners LP
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.89%.
Did WES Beat Earnings? Q3 2025 Results
Western Midstream Partners came up just short of Wall Street's expectations in Q3 2025, posting earnings of $0.87 per diluted unit against a consensus estimate of $0.90, a miss of 3.07%, while revenue of $952.48 million trailed the $964.52 million estimate by 1.25%, though it still represented a solid 7.8% increase year-over-year. The headline misses, however, obscure an operationally strong quarter: the partnership delivered its second consecutive record Adjusted EBITDA of $633.80 million, fueled primarily by lower operating and maintenance expenses, which fell to $212.38 million from $231.07 million in the year-ago period, rather than volume growth alone. Natural-gas throughput hit a record 5.5 Bcf/d, while system operability reached a near-perfect 99.6%. The closing of the Aris Water Solutions acquisition in October, which established WES as a leading three-stream midstream provider in the Delaware Basin, adds further momentum heading into 2026. Management raised its outlook, now expecting to land at the high end of its $2.35 billion to $2.55 billion Adjusted EBITDA range and above the top of its Free Cash Flow guidance of $1.27 billion to $1.48 billion.
- Record natural-gas throughput of 5.5 Bcf/d, a 2% sequential increase
- Lower operating costs driven by efficiency improvements and cost management efforts
- System operability increased nearly 100 basis points year-over-year to 99.6%
- Fee-based revenue structure protecting cash flows from commodity price volatility
- Second consecutive quarter of record Adjusted EBITDA
“I am pleased to report another strong operational and financial quarter for WES as we generated our second consecutive quarter of record Adjusted EBITDA. Lower operational costs, inclusive of efficiency improvements and cost management efforts, drove a sequential-quarter increase in Adjusted EBITDA, even though volumes remained relatively in line with the second-quarter. These efficiency efforts have also enhanced productivity and cost competitiveness, positioning our partnership well as we advance Aris integration activities and continue to execute our near-term growth plans.”
Western Midstream Partners CEO, on the earnings call
Forward Guidance & Outlook
WES anticipates being towards the high end of its 2025 Adjusted EBITDA guidance range of $2,350 million to $2,550 million and total capital expenditures guidance range of $625 million to $775 million. The partnership expects to be above the high end of its 2025 Free Cash Flow guidance range of $1,275 million to $1,475 million. Management is focused on successfully integrating Aris Water Solutions, capturing the targeted $40 million in cost synergies, and executing organic growth projects including Pathfinder and North Loving II, which provide a strong growth platform for 2026 and beyond.
WES YoY Financials
WES Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.