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Dec 31, 2025
Western Midstream Q4 2025 Earnings Report
Western Midstream announced record fourth-quarter and full-year 2025 results, with strong financial performance and strategic project advancements.
Key Takeaways
Western Midstream Partners, LP reported record fourth-quarter and full-year 2025 results, driven by increased Delaware Basin throughput and cost reduction initiatives. The company exceeded its full-year Adjusted EBITDA and Free Cash Flow guidance ranges, completed the acquisition of Aris Water Solutions, and sanctioned key infrastructure projects. They also announced a distribution increase for 2026 and provided optimistic financial guidance.
Fourth-quarter 2025 Net income attributable to limited partners was $187.2 million, with Adjusted EBITDA of $635.6 million.
Full-year 2025 Net income attributable to limited partners reached $1.154 billion, and Adjusted EBITDA was $2.481 billion, exceeding guidance.
Full-year 2025 Free Cash Flow totaled $1.526 billion, surpassing the high end of the guidance range by 15% year-over-year.
The company announced a fourth-quarter distribution of $0.910 per unit and plans to increase the distribution to $0.93 per unit starting in Q1 2026.
Revenue by Segment
Forward Guidance
Western Midstream's 2026 guidance reflects the contribution of the Aris acquisition and a more challenging commodity price environment, with continued throughput growth in the Delaware Basin at a moderate pace and anticipated declines in other operating basins.
Positive Outlook
- Adjusted EBITDA guidance range of $2.500 billion to $2.700 billion, representing an approximate 5-percent increase at the mid-point relative to 2025.
- Total capital expenditure guidance range of $850.0 million to $1.000 billion, significantly below previous expectations of at least $1.1 billion.
- Distributable Cash Flow guidance range of $1.850 billion to $2.050 billion, or $4.59 to $5.08 per unit.
- Full-year distribution of at least $3.70 per unit, including an increase to $0.93 per unit on a quarterly basis starting in Q1 2026.
- Expected continued throughput growth in the Delaware Basin, with produced-water throughput expected to increase over 80-percent, primarily driven by the Aris acquisition.
Challenges Ahead
- More challenging commodity price environment anticipated.
- Throughput growth in the Delaware Basin is expected at a more moderate pace relative to prior expectations due to updated producer forecasts reflecting lower activity levels.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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