Western Midstream Partners Earnings Call Transcripts
Fiscal Year 2026
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Fourth quarter and full year 2025 saw strong financial performance, with Adjusted EBITDA and Free Cash Flow exceeding guidance. Cost-cutting and efficiency initiatives reduced O&M expenses, and 2026 guidance projects continued growth, disciplined capital allocation, and increased distributions.
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Recent contract amendments in the Delaware Basin simplify fee structures, diversify revenue, and reduce related-party exposure. Cost reduction initiatives and unit redemptions are expected to offset cash flow impacts, while strategic clarity and growth focus position the company for long-term value.
Fiscal Year 2025
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Record 2025 results driven by throughput growth and cost reductions, with the Aris acquisition expanding water solutions and synergies. 2026 guidance anticipates moderated growth due to lower producer activity and commodity prices, but long-term EBITDA growth and distribution increases remain on track.
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Record adjusted EBITDA and operational efficiency marked Q3, with the Aris acquisition boosting produced water capabilities and setting up for strong growth. Guidance was raised to the high end for 2025, with continued cost discipline and major projects supporting future expansion.
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Record Q2 2025 adjusted EBITDA driven by strong throughput, especially in the Delaware Basin. Major capital projects, including North Loving 2 and Pathfinder, will drive 2026 spending above $1.1 billion, with continued throughput growth expected.
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Record Q2 adjusted EBITDA and strong throughput growth were driven by Delaware Basin performance and operational efficiency. The Aris Water Solutions acquisition and North Loving II expansion position the company for multi-year growth, with leverage and distribution coverage remaining strong.
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Strong Q1 2025 results featured robust financials, increased processing capacity, and disciplined capital allocation. Guidance remains unchanged, with growth led by the Delaware Basin and flexibility to adjust CapEx as needed. Distribution increased 4% and leverage remains below 3x.
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Q4 and full-year 2024 saw strong growth in gas, oil, and water throughput, with financial results exceeding guidance. Major investments in the Delaware and PRB basins, including the Pathfinder Pipeline, are set to drive further growth and responsible water management in 2025 and beyond.
Fiscal Year 2024
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Announced major Delaware Basin water infrastructure expansion and record 2024 throughput and financial results, with 2025 guidance targeting 5% EBITDA growth and a 4% distribution increase. Capital allocation will focus on organic growth and bolt-on deals, with leverage at 3x and no enhanced distribution planned.
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Leadership transition brings continuity in strategy, with a focus on organic growth, disciplined M&A, and capital returns. Operational performance remains strong, though growth rates are expected to moderate in 2025 due to asset divestitures and project completions.
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Third quarter saw strong operational performance and record natural gas throughput in key basins, though Adjusted EBITDA declined sequentially due to lower NGL recoveries and commodity prices. 2024 guidance remains at the high end, with moderated growth expected in 2025 following asset sales and steady activity levels.
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Record throughput and strong commercial wins drove robust Q2 results, with net income of $370M and Adjusted EBITDA of $578M. Guidance remains at the high end for 2024, supported by new agreements and disciplined capital allocation.