Western Midstream Announces First-Quarter 2026 Results

Rhea-AI Summary

Western Midstream (NYSE: WES) reported Q1 2026 net income attributable to limited partners of $342.4M, record Adjusted EBITDA of $683.1M (+15% YoY) and Distributable Cash Flow of $508.9M. Q1 cash from operations was $469.9M, Free Cash Flow $242.3M, and capex $250.5M. The Partnership declared a Q1 distribution of $0.930 per unit (annualized $3.72).

WES expects to be toward the high end of its 2026 guidance ranges of $2.50B–$2.70B Adjusted EBITDA and $1.85B–$2.05B DCF, and announced a ~$1.6B acquisition of Brazos Delaware II with expected close by end of Q2 2026.

Positive

• Adjusted EBITDA of $683.1M (+15% YoY)
• Distributable Cash Flow of $508.9M
• Declared distribution of $0.930 per unit (annualized $3.72)
• Brazos acquisition expected to add ~$100M incremental Adjusted EBITDA in 2026

Negative

• Free Cash Flow after distributions of -$137.4M in Q1 2026
• Q1 capital expenditures of $250.5M contribute to full-year capex range of $850M–$1.0B

Key Figures

Net income: $342.4 million Adjusted EBITDA: $683.1 million Distributable Cash Flow: $508.9 million +5 more

8 metrics

Net income $342.4 million Net income attributable to limited partners, Q1 2026

Adjusted EBITDA $683.1 million Record Adjusted EBITDA, Q1 2026, 15% above prior-year period

Distributable Cash Flow $508.9 million Distributable Cash Flow, Q1 2026

Free Cash Flow $242.3 million Free Cash Flow, Q1 2026

Quarterly distribution $0.930 per unit Q1 2026 distribution, 2.2% higher than prior quarter, $3.72 annualized

2026 EBITDA guidance $2.50–$2.70 billion 2026 Adjusted EBITDA guidance range; management expects results toward high end

Brazos acquisition price approximately $1.6 billion Purchase price for Brazos Delaware II, LLC; $800M cash and $800M in units

Brazos 2026 EBITDA $100 million Expected incremental Adjusted EBITDA contribution in 2026, assuming Q2 close

Market Reality Check

Price: $42.77 Vol: Volume 1,032,823 is at 0....

low vol

$42.77 Last Close

Volume Volume 1,032,823 is at 0.63x the 20-day average, indicating subdued pre-news trading. low

Technical Shares trade above the 200-day MA, with price at $42.77 versus MA(200) at $39.89 and 4.4% below the 52-week high.

Peers on Argus

WES was up 0.47% pre-release, while peers were mixed: TRGP up 1.18%, PAA up 0.18...

WES was up 0.47% pre-release, while peers were mixed: TRGP up 1.18%, PAA up 0.18%, but VNOM, DTM, and PBA slightly negative. With no peers in the momentum scanner and mixed directions, the setup reflects stock-specific rather than broad sector momentum.

Historical Context

5 past events · Latest: Apr 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 20	Distribution & call	Positive	+0.4%	Announced Q1 2026 distribution increase and set earnings call details.
Feb 23	Post-earnings interview	Neutral	+0.2%	Planned CFO interview and conference participation on 2025 results and 2026 outlook.
Feb 18	Record FY 2025 results	Positive	-5.5%	Reported record 2025 results and issued 2026 guidance with higher distribution plans.
Jan 23	Q4 distribution notice	Neutral	-0.2%	Declared Q4 2025 distribution and scheduled earnings call and webcast.
Jan 20	Contract amendments	Neutral	-2.3%	Amended Delaware gas contracts with Occidental and ConocoPhillips and received WES units.

Pattern Detected

Recent news has typically produced modest single-day moves, with one notable divergence when record 2025 results on Feb 18, 2026 coincided with a -5.49% reaction.

Recent Company History

Over the last few months, WES has highlighted growing Delaware Basin scale, record 2025 results, and higher 2026 distributions. On Jan 20, it restructured Delaware gas contracts and received WES units from Occidental, followed by record full-year 2025 earnings and 2026 guidance on Feb 18. Subsequent items focused on distributions and investor outreach. Today’s Q1 2026 record results and guidance commentary build directly on that earnings and capital-return narrative.

Market Pulse Summary

This announcement details record Q1 2026 performance, with Adjusted EBITDA of $683.1 million, Distri...

Analysis

This announcement details record Q1 2026 performance, with Adjusted EBITDA of $683.1 million, Distributable Cash Flow of $508.9 million, and a higher quarterly distribution of $0.93 per unit. Management reiterates 2026 guidance of $2.50–$2.70 billion Adjusted EBITDA and outlines the approximately $1.6 billion Brazos acquisition. Investors may focus on integration of Aris and Brazos, capital expenditure needs, and whether results track toward the high end of the stated guidance ranges.

Key Terms

Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, senior notes, +4 more

8 terms

Adjusted EBITDA financial

"record first-quarter Adjusted EBITDA(1) of $683.1 million, which represents a 15-percent"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Distributable Cash Flow financial

"first-quarter Distributable Cash Flow(1) of $508.9 million."

Distributable cash flow is the amount of money a business generates from its operations that management considers available to pay dividends, buy back shares, or make other distributions to owners after setting aside what’s needed to keep the business running and meet routine obligations. Investors care because it shows how much real cash can be returned to them—like a household’s leftover paycheck after paying rent and groceries—and helps judge whether payouts are sustainable and backed by operations rather than accounting entries.

Free Cash Flow financial

"generating first-quarter Free Cash Flow(1) of $242.3 million."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

senior notes financial

"retired $440.5 million of senior notes due 2026 with proceeds from the senior notes"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

throughput technical

"Gathered record crude-oil and NGLs throughput in the Delaware Basin of 272 MBbls/d,"

Throughput is the amount of stuff, like products or data, that a system can handle or move through in a certain period of time. For example, a factory’s throughput is how many items it produces each hour, and it matters because higher throughput usually means things are running efficiently and meeting demand quickly.

MBbls/d technical

"crude-oil and NGLs throughput in the Delaware Basin of 272 MBbls/d, representing"

mbbls/d denotes a flow rate of crude oil or petroleum products equal to thousands of barrels per day (one barrel is 42 U.S. gallons). It tells investors how much oil a company or facility is producing, transporting, or processing each day, so it directly affects potential sales, cash flow and market supply; think of it like how many gallons per minute a water pump moves, but on an industrial, revenue-driving scale.

Bcf/d technical

"natural-gas throughput(4) averaged 5.2 Bcf/d, representing a 1-percent"

A measure of natural gas volume equal to one billion cubic feet delivered or produced each day (bcf/d). Investors use it like a speedometer for gas flow: higher bcf/d figures mean more product to sell, greater revenue potential, and a bigger effect on market supply and prices, while drops can signal lower income or tighter market conditions.

produced-water technical

"Achieved record produced-water throughput(4) of 2,795 MBbls/d, representing"

Produced water is the salty, often chemically altered water that comes up from underground along with oil and gas during production. Like wastewater from a factory, it can carry hydrocarbons, salts and chemicals and therefore creates costs and environmental risks for operators; managing, treating or disposing of it affects operating expenses, regulatory compliance and potential liabilities, so investors watch it as a driver of cash flow and risk exposure.

AI-generated analysis. Not financial advice.

• Reported first-quarter 2026 Net income attributable to limited partners of $342.4 million, generating record first-quarter Adjusted EBITDA⁽¹⁾ of $683.1 million, which represents a 15-percent increase compared to the prior-year period, and first-quarter Distributable Cash Flow⁽¹⁾ of $508.9 million.
• Reported first-quarter 2026 Cash flows provided by operating activities of $469.9 million, generating first-quarter Free Cash Flow⁽¹⁾ of $242.3 million.
• Announced a first-quarter distribution of $0.930 per unit, which is 2.2-percent higher than the prior quarter's distribution, or $3.72 per unit on an annualized basis, and in-line with prior management commentary.
• Expecting to be towards the high-end of the 2026 Adjusted EBITDA⁽²⁾ and Distributable Cash Flow⁽²⁾ guidance ranges of $2.50 billion to $2.70 billion and $1.85 billion to $2.05 billion, respectively, should the current crude-oil and NGLs pricing environment continue.
• Expecting 2026 total capital expenditures⁽³⁾ to still range between $850.0 million to $1.00 billion.

HOUSTON, May 6, 2026 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced first-quarter 2026 financial and operating results. Net income (loss) attributable to limited partners for the first quarter of 2026 totaled $342.4 million, or $0.85 per common unit (diluted), with first-quarter 2026 Adjusted EBITDA⁽¹⁾ totaling $683.1 million and Distributable Cash Flow⁽¹⁾ totaling $508.9 million. First-quarter 2026 Cash flows provided by operating activities totaled $469.9 million and first-quarter 2026 Free Cash Flow⁽¹⁾ totaled $242.3 million. First-quarter 2026 capital expenditures⁽³⁾ totaled $250.5 million.

RECENT HIGHLIGHTS

• Generated record Adjusted EBITDA⁽¹⁾ of $683.1 million, an increase of approximately 7-percent sequentially, driven by a full quarter of contribution from the Aris acquisition and excess natural-gas liquids and higher skim oil volumes at elevated commodity prices.
• Reduced operation and maintenance expense by 7-percent, compared to the first-quarter of 2025, excluding the Aris acquisition, reflecting continued cost discipline despite increased throughput.
• Gathered record crude-oil and NGLs throughput in the Delaware Basin of 272 MBbls/d, representing a 4-percent sequential-quarter increase and a 6-percent year-over-year increase.
• Achieved record produced-water throughput⁽⁴⁾ of 2,795 MBbls/d, representing a 4-percent sequential-quarter increase, and 140-percent year-over-year increase primarily driven by the full quarter contribution from the Aris acquisition.
• Subsequent to quarter-end, retired $440.5 million of senior notes due 2026 with proceeds from the senior notes issued in the fourth quarter of 2025.
• Subsequent to quarter-end, and as announced earlier today, executed an agreement to acquire Brazos Delaware II, LLC ("Brazos") in the Delaware Basin for a purchase price of approximately $1.6 billion, comprised of $800 million in cash and $800 million in WES common units, with an expected close by the end of the second quarter of 2026.

On May 15, 2026, WES will pay its first-quarter 2026 per-unit distribution of $0.930, or $3.72 on an annualized basis, which represents growth of 2.2-percent over the prior quarter's distribution. First-quarter 2026 Free Cash Flow⁽¹⁾ after distributions totaled negative $137.4 million.

First-quarter 2026 natural-gas throughput⁽⁴⁾ averaged 5.2 Bcf/d, representing a 1-percent sequential-quarter increase. First-quarter 2026 crude-oil and NGLs throughput⁽⁴⁾ averaged 521 MBbls/d, representing a 3-percent sequential-quarter increase. First-quarter 2026 produced-water throughput⁽⁴⁾ averaged 2,795 MBbls/d, representing a 4-percent sequential-quarter increase.

"WES delivered record Adjusted EBITDA of $683.1 million in the first-quarter of 2026, increasing 7-percent sequentially and 15-percent compared to the prior-year period, which was primarily driven by a full quarter's contribution from the Aris acquisition, throughput growth across all three products, and successful cost reduction efforts," commented Oscar K. Brown, President and Chief Executive Officer of WES. "Additionally, our Adjusted Gross Margin in the first quarter benefited as crude-oil prices increased in March. This performance also reflects the results of our efficiency and cost reduction strategies, as this and several other variables came together to produce the strongest quarter in the Partnership's history."

"What distinguished Aris among its peers was the quality and structure of its long-term contracts, which include substantial acreage dedications that provide the same fee-based cash flow foundation that defines WES's broader portfolio, and the ability to create additional value from retained skim oil volumes in a favorable commodity price environment. As crude-oil prices increased in March, we benefited directly through skim oil recoveries on the Aris system and the fixed recovery natural-gas processing contracts we have been deliberately building across our portfolio. Combined with the cost reduction actions executed in 2025, which have materially improved our operating leverage, the earnings power of WES is increasingly evident."

"The Delaware Basin remains the cornerstone of our growth strategy and the primary driver of our capital allocation. It is the premier operating basin in North America, and WES has built one of the most integrated midstream platforms across crude-oil, natural-gas, and produced-water in an area which will continue to attract producer capital for decades. The sanctioning of the Pathfinder Pipeline and North Loving II, the Aris acquisition, and today's announcement pertaining to the purchase of Brazos, each reflect that conviction. More than 60-percent of WES's 2026 Adjusted EBITDA is expected to be generated from the Delaware Basin, and that proportion will only grow as our organic growth projects come online in first and second quarters of 2027."

"The Brazos acquisition further enhances our Delaware Basin footprint and is in line with WES's M&A philosophy of making accretive, strategic acquisitions that enhance the value of WES's existing asset base, provide a diverse set of high-quality customers, and generate strong Free Cash Flow, all while protecting our investment grade credit ratings. The asset is contiguous to our existing footprint, can be efficiently integrated into our system, and provides exposure to additional geologic trends, including the growing Woodford Shale. The transaction is expected to contribute approximately $100 million of incremental Adjusted EBITDA in 2026, assuming a close by the end of the second quarter."

"Looking ahead, our fee-based contract structures, supported by substantial minimum-volume commitments and acreage dedications, provide durable, protected cash flows across commodity cycles. While we are not currently updating our annual guidance ranges, as we have not yet received formal changes to our producers' drilling plans for this year, we expect to be towards the high end of both the Adjusted EBITDA and Distributable Cash Flow ranges, without taking into account the impact of the Brazos transaction. This improved outlook is due to increased commercial discussions, the very favorable commodity price environment, and our improving operating leverage due to our successful and ongoing cost competitiveness efforts. With that said, we intend to reevaluate our 2026 guidance ranges in conjunction with our second-quarter results after the scheduled close of the Brazos transaction."

"All in all, years of hard work that have culminated in multiple quarters of record operational and financial results continue to demonstrate WES's financial flexibility to consummate accretive M&A, fund its organic growth program, and sustain a balanced capital return program, all while maintaining one of the strongest balance sheets in the midstream sector."

CONFERENCE CALL TOMORROW AT 9:00 A.M. CT

WES will host a conference call on Thursday, May 7, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first-quarter 2026 results. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A small number of phone lines are available for analysts; individuals should dial 888-880-3330 (Domestic) or 646-357-8766 (International) ten to fifteen minutes before the scheduled conference call time. A replay of the live audio webcast can be accessed on the Partnership's website at www.westernmidstream.com for one year after the call.

For additional details on WES's financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.

ABOUT WESTERN MIDSTREAM

Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.

For more information about WES, please visit www.westernmidstream.com.

(1)	Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures.
(2)	This release contains certain forward-looking non-GAAP measures such as the Adjusted EBITDA range and Distributable Cash Flow range for year ending December 31, 2026. A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Distributable Cash Flow range to net income (loss), is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding forward-looking GAAP equivalent for the Adjusted EBITDA or Distributable Cash Flow ranges.
(3)	Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.
(4)	Represents total throughput attributable to WES, which excludes (i) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523

Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com 
866.512.3523

Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended  March 31,
thousands except per-unit amounts		2026		2025
Revenues and other
Service revenues – fee based		$    933,302		$    823,197
Service revenues – product based		88,767		59,252
Product sales		99,616		34,469
Other		1,894		198
Total revenues and other		1,123,579		917,116
Equity income, net – related parties		14,776		20,435
Operating expenses
Cost of product		102,884		41,492
Operation and maintenance		264,241		226,514
General and administrative		75,150		66,786
Property and other taxes		19,486		17,826
Depreciation and amortization		200,426		170,460
Long-lived asset and other impairments		608		3
Total operating expenses		662,795		523,081
Gain (loss) on divestiture and other, net		(6,367)		(4,667)
Operating income (loss)		469,193		409,803
Interest expense		(113,390)		(97,293)
Other income (expense), net		6,730		7,477
Income (loss) before income taxes		362,533		319,987
Income tax expense (benefit)		3,501		3,435
Net income (loss)		359,032		316,552
Net income (loss) attributable to noncontrolling interests		8,756		7,545
Net income (loss) attributable to Western Midstream Partners, LP		$    350,276		$    309,007
Limited partners' interest in net income (loss):
Net income (loss) attributable to Western Midstream Partners, LP		$    350,276		$    309,007
General partner interest in net (income) loss		(7,886)		(7,170)
Limited partners' interest in net income (loss)		$    342,390		$    301,837
Net income (loss) per common unit – basic		$        0.86		$        0.79
Net income (loss) per common unit – diluted		$        0.85		$        0.79
Weighted-average common units outstanding – basic		399,095		380,986
Weighted-average common units outstanding – diluted		400,569		382,494

 

Western Midstream Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS  (Unaudited)
thousands except number of units		March 31, 2026		December 31, 2025
Total current assets		$     1,539,407		$     1,656,941
Net property, plant, and equipment		11,294,693		11,220,908
Other assets		2,090,402		2,120,571
Total assets		$   14,924,502		$   14,998,420
Total current liabilities		$     1,407,157		$     1,236,484
Long-term debt		8,194,171		8,195,170
Asset retirement obligations		443,152		427,858
Other liabilities		1,373,032		975,786
Total liabilities		11,417,512		10,835,298
Equity and partners' capital
Common units (393,775,833 and 408,141,366 units issued and outstanding at March 31,    2026, and December 31, 2025, respectively)		3,361,526		4,016,606
General partner units (9,060,641 units issued and outstanding at March 31, 2026, and    December 31, 2025)		4,265		4,624
Noncontrolling interests		141,199		141,892
Total liabilities, equity, and partners' capital		$   14,924,502		$   14,998,420

 

Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Three Months Ended  March 31,
thousands		2026		2025
Cash flows from operating activities
Net income (loss)		$     359,032		$     316,552
Adjustments to reconcile net income (loss) to net cash provided by operating activities and    changes in assets and liabilities:
Depreciation and amortization		200,426		170,460
Long-lived asset and other impairments		608		3
(Gain) loss on divestiture and other, net		6,367		4,667
Change in other items, net		(96,530)		39,111
Net cash provided by operating activities		$     469,903		$     530,793
Cash flows from investing activities
Capital expenditures		$   (235,726)		$   (142,402)
Contributions to equity investments - related parties		(1,768)		—
Distributions from equity investments in excess of cumulative earnings – related parties		9,889		11,007
Proceeds from the sale of assets to third parties		—		19
(Increase) decrease in materials and supplies inventory and other		(7,272)		(9,414)
Net cash used in investing activities		$   (234,877)		$   (140,790)
Cash flows from financing activities
Borrowings, net of debt issuance costs		$        (132)		$           —
Repayments of debt		—		(663,831)
Increase (decrease) in outstanding checks		13,461		(113)
Distributions to Partnership unitholders		(379,675)		(340,996)
Distributions to Chipeta noncontrolling interest owner		(2,117)		—
Distributions to noncontrolling interest owner of WES Operating		(7,332)		(6,949)
Other		(31,227)		(20,131)
Net cash used in financing activities		$   (407,022)		$ (1,032,020)
Net increase (decrease) in cash and cash equivalents		$   (171,996)		$   (642,017)
Cash and cash equivalents at beginning of period		819,491		1,090,464
Cash and cash equivalents at end of period		$     647,495		$     448,447

 

Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES

WES defines Adjusted Gross Margin attributable to Western Midstream Partners, LP ("Adjusted Gross Margin") as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owners' proportionate share of revenues and cost of product.

WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA") as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) income tax benefit, (v) other income, (vi) other items impacting comparability with WES's core operating performance, and (vii) the noncontrolling interest owners' proportionate share of revenues and expenses.

WES defines Distributable Cash Flow as Adjusted EBITDA, less Total revenues and other recognized in Adjusted EBITDA in excess of (less than) customer billings; net cash paid for (i) interest expense (net of interest income recorded in other income (expense) and non-cash capitalized interest), (ii) maintenance capital expenditures, (iii) income taxes; and Distributable Cash Flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.

WES defines Free Cash Flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings.

Adjusted Gross Margin, Adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow are not defined in GAAP. The GAAP measure that is most directly comparable to Adjusted Gross Margin is gross margin. Net income (loss) and net cash provided by operating activities are the GAAP measures that are most directly comparable to Adjusted EBITDA. The GAAP measure that is most directly comparable to Distributable Cash Flow is net income (loss). The GAAP measure that is most directly comparable to Free Cash Flow is net cash provided by operating activities. Our non-GAAP financial measures (i) should not be considered as alternatives to the comparable GAAP measures or any other measure of financial performance presented in accordance with GAAP, (ii) have important limitations as analytical tools because they exclude some, but not all, items that affect the comparable GAAP measures, (iii) should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, and (iv) may not be comparable to similarly titled measures of other companies in our industry, thereby diminishing their utility as comparative measures.

Management compensates for the limitations of our non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences, and incorporating this knowledge into its decision-making processes. We believe that investors benefit from having access to the same financial measures that our management considers in evaluating our operating results.

The following tables present reconciliations of the GAAP measures to our non-GAAP measures:

Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited)
Adjusted Gross Margin
		Three Months Ended
thousands		March 31, 2026		December 31, 2025
Reconciliation of Gross margin to Adjusted Gross Margin
Total revenues and other		$     1,123,579		$     1,031,481
Less:
Cost of product		102,884		71,618
Depreciation and amortization		200,426		197,882
Gross margin		820,269		761,981
Add:
Distributions from equity investments		25,652		27,147
Depreciation and amortization		200,426		197,882
Less:
Reimbursed electricity-related charges recorded as revenues		33,488		31,488
Adjusted Gross Margin attributable to noncontrolling interests (1)		22,204		20,719
Adjusted Gross Margin		$       990,655		$       934,803
Gross margin
Gross margin for natural-gas assets (2)		$       533,518		$       506,811
Gross margin for crude-oil and NGLs assets (2)		106,212		91,220
Gross margin for produced-water assets (2)		187,779		170,747
Adjusted Gross Margin
Adjusted Gross Margin for natural-gas assets (3)		$       618,809		$       599,775
Adjusted Gross Margin for crude-oil and NGLs assets (3)		144,193		129,395
Adjusted Gross Margin for produced-water assets (3)		227,190		205,633

(1)	Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025,  which collectively represent WES's noncontrolling interests.
(2)	Excludes corporate-level depreciation and amortization.
(3)	Excludes certain corporate-level items.

 

Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited)
Adjusted EBITDA
		Three Months Ended
thousands		March 31, 2026		December 31, 2025
Reconciliation of Net income (loss) to Adjusted EBITDA
Net income (loss)		$       359,032		$       196,269
Add:
Distributions from equity investments		25,652		27,147
Non-cash equity-based compensation expense		10,854		21,386
Interest expense		113,390		105,674
Income tax expense		3,501		7,323
Depreciation and amortization		200,426		197,882
Long-lived asset and other impairments		608		2,509
Other expense		—		17
Less:
Gain (loss) on divestiture and other, net		(6,367)		(3,065)
Equity income, net – related parties		14,776		21,378
Other income		6,734		3,706
Items impacting comparability
Acquisition-related expenses and other, net		(119)		(113,188)
Adjusted EBITDA attributable to noncontrolling interests (1)		15,302		13,794
Adjusted EBITDA		$       683,137		$       635,582
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities		$       469,903		$       557,645
Interest (income) expense, net		113,390		105,674
Accretion and amortization of long-term obligations, net		(882)		(815)
Current income tax expense (benefit)		2,880		5,615
Other (income) expense, net		(6,730)		(3,706)
Distributions from equity investments in excess of cumulative earnings – related parties		9,889		5,391
Changes in assets and liabilities:
Accounts receivable, net		50,226		(16,853)
Accounts and imbalance payables and accrued liabilities, net		28,316		(52,513)
Other items, net		31,328		(64,250)
Acquisition-related expenses		119		113,188
Adjusted EBITDA attributable to noncontrolling interests (1)		(15,302)		(13,794)
Adjusted EBITDA		$       683,137		$       635,582
Cash flow information
Net cash provided by operating activities		$       469,903		$       557,645
Net cash used in investing activities		(234,877)		(608,914)
Net cash provided by (used in) financing activities		(407,022)		693,472

(1)	Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES's noncontrolling interests.

 

Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited)
Distributable Cash Flow
		Three Months Ended
thousands		March 31, 2026		December 31, 2025
Reconciliation of Net income (loss) to Distributable Cash Flow
Net income (loss)		$        359,032		$        196,269
Add:
Distributions from equity investments		25,652		27,147
Non-cash equity-based compensation expense		10,854		21,386
Income tax expense		3,501		7,323
Depreciation and amortization		200,426		197,882
Long-lived asset and other impairments		608		2,509
Other expense		—		17
Less:
Recognized service revenues - fee based (less than) in excess of customer billings		35,508		(31,627)
Gain (loss) on divestiture and other, net		(6,367)		(3,065)
Equity income, net – related parties		14,776		21,378
Items impacting comparability		(119)		(113,188)
Cash paid for maintenance capital expenditures		27,704		36,276
Capitalized interest		4,306		3,518
Cash paid for (reimbursement of) income taxes		3,449		806
Other income (net of interest income)		(86)		87
Distributable cash flow attributable to noncontrolling interests (1)		11,978		11,715
Distributable cash flow		$        508,924		$        526,633
Reconciliation of Adjusted EBITDA to Distributable Cash Flow
Adjusted EBITDA		$        683,137		$        635,582
Less:
Recognized service revenues - fee based (less than) in excess of customer billings		35,508		(31,627)
Capitalized interest		4,306		3,518
Cash paid for maintenance capital expenditures		27,704		36,276
Cash paid for (reimbursement of) income taxes		3,449		806
Interest expense (net of interest income)		106,570		102,055
Distributable cash flow attributable to noncontrolling interests (1)		(3,324)		(2,079)
Distributable cash flow		$        508,924		$        526,633
Weighted-average common units outstanding		399,095		400,491
Weighted-average general partner units		9,061		9,061

(1)	Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES's noncontrolling interests.

 

Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited)
Free Cash Flow
		Three Months Ended
thousands		March 31, 2026		December 31, 2025
Reconciliation of Net cash provided by operating activities to Free Cash Flow
Net cash provided by operating activities		$       469,903		$       557,645
Less:
Capital expenditures		235,726		222,208
Contributions to equity investments – related parties		1,768		—
Add:
Distributions from equity investments in excess of cumulative earnings – related parties		9,889		5,391
Free Cash Flow		$       242,298		$       340,828
Cash flow information
Net cash provided by operating activities		$       469,903		$       557,645
Net cash used in investing activities		(234,877)		(608,914)
Net cash provided by (used in) financing activities		(407,022)		693,472

 

Western Midstream Partners, LP OPERATING STATISTICS (Unaudited)
		Three Months Ended
		March 31, 2026		December 31, 2025		Inc/(Dec)
Throughput for natural-gas assets (MMcf/d)
Gathering, treating, and transportation		430		381		13 %
Processing		4,499		4,437		1 %
Equity investments (1)		464		525		(12) %
Total throughput		5,393		5,343		1 %
Throughput attributable to noncontrolling interests (2)		184		181		2 %
Total throughput attributable to WES for natural-gas assets		5,209		5,162		1 %
Throughput for crude-oil and NGLs assets (MBbls/d)
Gathering, treating, and transportation		429		419		2 %
Equity investments (1)		102		99		3 %
Total throughput		531		518		3 %
Throughput attributable to noncontrolling interests (2)		10		10		— %
Total throughput attributable to WES for crude-oil and NGLs assets		521		508		3 %
Throughput for produced-water assets (MBbls/d)
Gathering and disposal		2,848		2,744		4 %
Throughput attributable to noncontrolling interests (2)		53		51		4 %
Total throughput attributable to WES for produced-water assets		2,795		2,693		4 %
Per-Mcf Gross margin for natural-gas assets (3)		$           1.10		$           1.03		7 %
Per-Bbl Gross margin for crude-oil and NGLs assets (3)		2.22		1.91		16 %
Per-Bbl Gross margin for produced-water assets (3)		0.73		0.68		7 %
Per-Mcf Adjusted Gross Margin for natural-gas assets (4)		$           1.32		$           1.26		5 %
Per-Bbl Adjusted Gross Margin for crude-oil and NGLs assets (4)		3.07		2.77		11 %
Per-Bbl Adjusted Gross Margin for produced-water assets (4)		0.90		0.83		8 %

(1)	Represents our share of average throughput for investments accounted for under the equity method of accounting.
(2)	Includes (i) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, and (ii) for natural-gas assets, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.
(3)	Average for period. Calculated as Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.
(4)	Average for period. Calculated as Adjusted Gross Margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) attributable to WES for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.

 

Western Midstream Partners, LP OPERATING STATISTICS (CONTINUED) (Unaudited)
		Three Months Ended
		March 31, 2026		December 31, 2025		Inc/(Dec)
Throughput for natural-gas assets (MMcf/d)
Operated
Delaware Basin		2,035		1,974		3 %
DJ Basin		1,520		1,530		(1) %
Powder River Basin		396		383		3 %
Other		932		931		— %
Total operated throughput for natural-gas assets		4,883		4,818		1 %
Non-operated
Equity investments		464		525		(12) %
Other		46		—		— %
Total non-operated throughput for natural-gas assets		510		525		(3) %
Total throughput for natural-gas assets		5,393		5,343		1 %
Throughput for crude-oil and NGLs assets (MBbls/d)
Operated
Delaware Basin		272		261		4 %
DJ Basin		97		95		2 %
Powder River Basin		25		26		(4) %
Other		35		37		(5) %
Total operated throughput for crude-oil and NGLs assets		429		419		2 %
Non-operated
Equity investments		102		99		3 %
Total non-operated throughput for crude-oil and NGLs assets		102		99		3 %
Total throughput for crude-oil and NGLs assets		531		518		3 %
Throughput for produced-water assets (MBbls/d)
Operated
Delaware Basin		2,848		2,744		4 %
Total operated throughput for produced-water assets		2,848		2,744		4 %

 

 

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SOURCE Western Midstream Partners, LP

FAQ

What were Western Midstream (WES) Q1 2026 Adjusted EBITDA and net income?

Adjusted EBITDA was $683.1M and net income attributable to limited partners was $342.4M. According to the company, Adjusted EBITDA rose 15% year-over-year and represented a record first-quarter result driven by acquisitions and throughput growth.

How much is WES paying for the Brazos Delaware II acquisition and when will it close?

The Brazos purchase price is approximately $1.6B, comprised of $800M cash and $800M in WES common units. According to the company, the transaction is expected to close by the end of Q2 2026 and add about $100M Adjusted EBITDA in 2026.

What distribution did WES declare for Q1 2026 and when is it payable?

WES declared a Q1 2026 distribution of $0.930 per unit, payable on May 15, 2026. According to the company, this represents 2.2% growth versus the prior quarter and equals $3.72 on an annualized basis.

Where does WES expect 2026 Adjusted EBITDA and distributable cash flow to land?

WES expects to be toward the high end of its 2026 guidance: $2.50B–$2.70B Adjusted EBITDA and $1.85B–$2.05B DCF. According to the company, this outlook assumes the current crude and NGL pricing environment continues.

How did the Aris acquisition affect WES's Q1 2026 results and operations?

Aris contributed a full quarter of results, helping drive record Adjusted EBITDA and higher skim oil recoveries. According to the company, Aris added acreage-dedicated, fee-based cash flows and materially increased produced-water and NGL/crude throughput.