Western Midstream Announces Second-Quarter 2026 Results and Revised Full-year Guidance
Rhea-AI Summary
Western Midstream Partners (NYSE: WES) reported second-quarter 2026 net income attributable to limited partners of $394.9 million, or $0.99 per diluted common unit, record Adjusted EBITDA of $736.5 million (up 19% year over year), and Distributable Cash Flow of $537.2 million. Operating cash flow was $534.7 million and Free Cash Flow was $263.6 million, with capital expenditures of $308.3 million.
The Board declared a second-quarter distribution of $0.930 per unit, or $3.72 annualized. WES revised 2026 guidance to Adjusted EBITDA of $2.75–$2.95 billion, Distributable Cash Flow of $2.05–$2.25 billion, and Free Cash Flow of $1.10–$1.30 billion, raising the midpoints by 10%, 10%, and 20%, respectively, while reaffirming capital expenditure guidance of $850 million–$1.0 billion.
The partnership completed the Brazos Delaware II acquisition, adding ~460 MMcf/d of gas processing capacity, issued $700 million of senior notes due 2036 to refinance related borrowings, and executed two new long-term gathering and processing agreements in the Powder River Basin, adding about 270,000 dedicated acres.
Positive
- Record Adjusted EBITDA of $736.5 million, up 19% year over year and 8% sequentially
- Strong Distributable Cash Flow of $537.2 million and operating cash flow of $534.7 million in Q2 2026
- Raised 2026 guidance: Adjusted EBITDA midpoint +10%, DCF midpoint +10%, FCF midpoint +20% versus original
- Stable cash returns with $0.930 per-unit Q2 2026 distribution, $3.72 annualized, reiterating at least $3.70 for 2026
- Brazos Delaware acquisition completed, adding ~460 MMcf/d of gas processing capacity and contributing to record Delaware Basin throughput
- New Powder River Basin contracts with two large producers, backed by minimum-volume commitments and ~270,000 dedicated acres
Negative
- Free Cash Flow after distributions was negative $111.0 million in Q2 2026 due to organic growth capital spending
- 2026 capital expenditures expected toward the high end of $850 million–$1.0 billion guidance range
- $700 million senior notes due 2036 issued to refinance Brazos Delaware-related borrowings, increasing long-term debt obligations
News Explained
Growth commitments are executed, but second-quarter cash flow after distributions was negative 111 million dollars and 2026 capital spending is expected near its high end.
Western Midstream Partners has reported its second-quarter results and says two Powder River Basin agreements are executed; those agreements add acreage and include minimum-volume commitments, while related development has not yet begun.
The contracts are long-term gathering and processing agreements backed by acreage dedications and minimum-volume commitments, with development scheduled to begin in the
Free cash flow after distributions was negative
Management expects full-year capital spending toward the high end of its
Specific checkpoints are the scheduled
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Reported second-quarter 2026 Net income attributable to limited partners of
$394.9 million $736.5 million $537.2 million
- Reported second-quarter 2026 Cash flows provided by operating activities of
$534.7 million $263.6 million
- Announced a second-quarter distribution of
$0.930 $3.72
- Providing revised 2026 Adjusted EBITDA(2), Distributable Cash Flow(2), and Free Cash Flow(2) guidance ranges of
$2.750 billion $2.950 billion $2.050 billion $2.250 billion $1.100 billion $1.300 billion
- Reaffirming 2026 total capital expenditures(3) range of
$850.0 million $1.0 billion
- Executed two new gathering and processing agreements in the Powder River Basin, adding approximately 270,000 dedicated acres to WES's basin footprint, and supporting 2027 natural-gas throughput growth in the basin.
RECENT HIGHLIGHTS
- Generated record Adjusted EBITDA(1) of
$736.5 million
- Gathered record natural-gas throughput in the
Delaware Basin of 2,140 MMcf/d, representing a 5-percent sequential-quarter increase, mostly due to two-and-a-half weeks' contribution from the Brazos Delaware acquisition.
- Gathered record produced-water throughput in the
Delaware Basin of 2,993 MBbls/d, representing a 5-percent sequential-quarter increase.
- Achieved record natural-gas throughput of 1,547 MMcf/d in the DJ Basin, representing a 2-percent sequential-quarter increase.
- Excluding the Aris acquisition, reduced operation and maintenance expense by 2-percent, compared to the second-quarter of 2025, despite year-over-year growth of 1.5-percent and 10-percent for natural-gas and produced-water throughput, respectively.
- As previously announced, completed the acquisition of Brazos Delaware in mid-June, expanding WES's footprint across the core of the
Delaware Basin and adding approximately 460 MMcf/d of natural-gas processing capacity.
- Issued
$700 million
- Executed new long-term gathering and processing agreements with two large producers in the Powder River Basin, each backed by substantial acreage dedications and minimum-volume commitments, with development beginning in the second half of 2026(4).
On August 14, 2026, WES will pay its second-quarter 2026 per-unit distribution of
Second-quarter 2026 natural-gas throughput(5) averaged 5.3 Bcf/d, representing a 3-percent sequential-quarter increase. Second-quarter 2026 crude-oil and NGLs throughput(5) averaged 523 MBbls/d, a slight sequential-quarter increase. Second-quarter 2026 produced-water throughput(5) averaged 2,939 MBbls/d, representing a 5-percent sequential-quarter increase.
"WES delivered record Adjusted EBITDA of
"Looking to the remainder of the year, the higher commodity-price environment has incentivized many of our
"These results reflect the strength of our three-stream strategy of capturing the revenue from natural-gas, crude-oil and NGLs, and produced-water molecules that move across our acreage while providing customers the flow assurance they need to support their development plans. Our strong second-quarter results demonstrate the continued growth potential of the produced-water business, and we believe that beneficial reuse provides an additional path for future growth and margin expansion."
"Finally, our recently announced JIP 2 produced-water treatment demonstration facility near the Red Bluff Reservoir in
REVISED 2026 GUIDANCE
Reflecting the contribution from the Brazos Delaware acquisition and the most recent production forecasts from our customers, WES is revising its full-year 2026 guidance as follows:
- Adjusted EBITDA(2) between
$2.750 billion $2.950 billion $2.850 billion $250 million
- Total capital expenditures(3) between
$850.0 million $1.000 billion
- Distributable Cash Flow(2) between
$2.050 billion $2.250 billion $4.94 $5.42 $2.150 billion $200 million
- Free Cash Flow(2) between
$1.100 billion $1.300 billion $1.200 billion $200 million
- Reiterating full-year distribution guidance of at least
$3.70 $3.72 $0.93
"An exceptionally strong first half of the year and the completed Brazos Delaware acquisition give us the confidence to raise our full-year 2026 Adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow guidance ranges," commented Kristen Shults, Senior Vice President and Chief Financial Officer. "With the inclusion of Brazos Delaware and throughput outperformance across the portfolio, we now expect natural-gas throughput to increase by mid-single digits average year-over-year in 2026. This incremental throughput reinforces our confidence in generating strong Distributable Cash Flow and better positions WES to advance its 2027 growth objectives while continuing to return capital to unitholders."
"We now expect 2026 capital expenditures to be toward the high end of our guidance range of
CONFERENCE CALL TOMORROW AT 9:00 A.M. CT
WES will host a conference call on Thursday, August 6, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its second-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.
AVAILABILITY OF STATE K-1s
2025 State Schedule K-1s reflecting items of state tax relevance are available online. Unitholders requiring this information may access their State Schedule K-1s at www.taxpackagesupport.com/westernmidstream.
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
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, the Distributable Cash Flow range, and the Free 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), a reconciliation of the Distributable Cash Flow range to net income (loss), and a reconciliation of the Free Cash Flow range to net cash provided by operating activities, 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, Distributable Cash Flow, or Free Cash Flow ranges. |
(3) | Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the |
(4) | One agreement executed subsequent to quarter-end. |
(5) | Represents total throughput attributable to WES, which excludes (i) the |
(6) | Based on expected weighted average common and general partner units outstanding during full-year 2026. |
(7) | Full-year 2026 distribution (paid in 2026) of at least |
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 and Form 10-Q 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 June 30, | ||||
thousands except per-unit amounts | 2026 | 2025 | ||
Revenues and other | ||||
Service revenues – fee based | $ 980,096 | $ 851,419 | ||
Service revenues – product based | 112,641 | 50,442 | ||
Product sales | 124,763 | 40,280 | ||
Other | 7,219 | 181 | ||
Total revenues and other | 1,224,719 | 942,322 | ||
Equity income, net – related parties | 21,536 | 27,128 | ||
Operating expenses | ||||
Cost of product | 117,440 | 42,681 | ||
Operation and maintenance | 285,353 | 224,629 | ||
General and administrative | 85,929 | 66,146 | ||
Property and other taxes | 19,736 | 17,805 | ||
Depreciation and amortization | 205,945 | 172,113 | ||
Long-lived asset and other impairments | 551 | 686 | ||
Total operating expenses | 714,954 | 524,060 | ||
Gain (loss) on divestiture and other, net | (4,598) | (911) | ||
Operating income (loss) | 526,703 | 444,479 | ||
Interest expense | (108,984) | (95,170) | ||
Gain (loss) on early extinguishment of debt | (150) | — | ||
Other income (expense), net | 2,834 | 3,692 | ||
Income (loss) before income taxes | 420,403 | 353,001 | ||
Income tax expense (benefit) | 5,152 | 2,239 | ||
Net income (loss) | 415,251 | 350,762 | ||
Net income (loss) attributable to noncontrolling interests | 11,699 | 9,082 | ||
Net income (loss) attributable to Western Midstream Partners, LP | $ 403,552 | $ 341,680 | ||
Limited partners' interest in net income (loss): | ||||
Net income (loss) attributable to Western Midstream Partners, LP | $ 403,552 | $ 341,680 | ||
General partner interest in net (income) loss | (8,668) | (7,930) | ||
Limited partners' interest in net income (loss) | $ 394,884 | $ 333,750 | ||
Net income (loss) per common unit – basic | $ 0.99 | $ 0.88 | ||
Net income (loss) per common unit – diluted | $ 0.99 | $ 0.87 | ||
Weighted-average common units outstanding – basic | 398,043 | 381,328 | ||
Weighted-average common units outstanding – diluted | 399,381 | 382,326 | ||
Western Midstream Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
| ||||
thousands except number of units | June 30, 2026 | December 31, 2025 | ||
Total current assets | $ 1,138,574 | $ 1,656,941 | ||
Net property, plant, and equipment | 12,542,083 | 11,220,908 | ||
Other assets | 2,637,150 | 2,120,571 | ||
Total assets | $ 16,317,807 | $ 14,998,420 | ||
Total current liabilities | $ 1,249,150 | $ 1,236,484 | ||
Long-term debt | 8,884,977 | 8,195,170 | ||
Asset retirement obligations | 471,748 | 427,858 | ||
Other liabilities | 1,309,782 | 975,786 | ||
Total liabilities | 11,915,657 | 10,835,298 | ||
Equity and partners' capital | ||||
Common units (413,172,388 and 408,141,366 units issued and outstanding at June 30, 2026, | 4,253,799 | 4,016,606 | ||
General partner units (9,060,641 units issued and outstanding at June 30, 2026, and | 4,507 | 4,624 | ||
Noncontrolling interests | 143,844 | 141,892 | ||
Total liabilities, equity, and partners' capital | $ 16,317,807 | $ 14,998,420 | ||
Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||
Six Months Ended June 30, | ||||
thousands | 2026 | 2025 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 774,283 | $ 667,314 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and | ||||
Depreciation and amortization | 406,371 | 342,573 | ||
Long-lived asset and other impairments | 1,159 | 689 | ||
(Gain) loss on divestiture and other, net | 10,965 | 5,578 | ||
(Gain) loss on early extinguishment of debt | 150 | — | ||
Change in other items, net | (188,289) | 78,616 | ||
Net cash provided by operating activities | $ 1,004,639 | $ 1,094,770 | ||
Cash flows from investing activities | ||||
Capital expenditures | $ (506,065) | $ (321,025) | ||
Acquisitions from third parties | (818,723) | — | ||
Contributions to equity investments - related parties | (2,578) | — | ||
Distributions from equity investments in excess of cumulative earnings – related parties | 9,907 | 14,047 | ||
Proceeds from the sale of assets to third parties | — | 34 | ||
(Increase) decrease in materials and supplies inventory and other | (24,764) | (7,820) | ||
Net cash used in investing activities | $ (314,764) | |||
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | $ 1,052,642 | $ (1,171) | ||
Repayments of debt | (800,505) | (1,000,589) | ||
Commercial paper borrowings (repayments), net | 162,905 | — | ||
Increase (decrease) in outstanding checks | 14,858 | (7,656) | ||
Distributions to Partnership unitholders | (754,318) | (696,249) | ||
Distributions to Chipeta noncontrolling interest owner | (3,998) | — | ||
Distributions to noncontrolling interest owner of WES Operating | (14,505) | (14,217) | ||
Other | (34,220) | (20,856) | ||
Net cash used in financing activities | $ (377,141) | |||
Net increase (decrease) in cash and cash equivalents | $ (714,725) | $ (960,732) | ||
Cash and cash equivalents at beginning of period | 819,491 | 1,090,464 | ||
Cash and cash equivalents at end of period | $ 104,766 | $ 129,732 | ||
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 Adjusted Gross Margin | ||||
Three Months Ended | ||||
thousands | June 30, 2026 | March 31, 2026 | ||
Reconciliation of Gross margin to Adjusted Gross Margin | ||||
Total revenues and other | $ 1,224,719 | $ 1,123,579 | ||
Less: | ||||
Cost of product | 117,440 | 102,884 | ||
Depreciation and amortization | 205,945 | 200,426 | ||
Gross margin | 901,334 | 820,269 | ||
Add: | ||||
Distributions from equity investments | 24,630 | 25,652 | ||
Depreciation and amortization | 205,945 | 200,426 | ||
Less: | ||||
Reimbursed electricity-related charges recorded as revenues | 33,410 | 33,488 | ||
Adjusted Gross Margin attributable to noncontrolling interests (1) | 23,978 | 22,204 | ||
Adjusted Gross Margin | $ 1,074,521 | $ 990,655 | ||
Gross margin | ||||
Gross margin for natural-gas assets (2) | $ 567,265 | $ 533,518 | ||
Gross margin for crude-oil and NGLs assets (2) | 116,084 | 106,212 | ||
Gross margin for produced-water assets (2) | 216,927 | 187,779 | ||
Adjusted Gross Margin | ||||
Adjusted Gross Margin for natural-gas assets (3) | $ 658,322 | $ 618,809 | ||
Adjusted Gross Margin for crude-oil and NGLs assets (3) | 153,071 | 144,193 | ||
Adjusted Gross Margin for produced-water assets (3) | 257,257 | 227,190 | ||
(1) | Includes (i) the |
(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 | June 30, 2026 | March 31, 2026 | ||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||
Net income (loss) | $ 415,251 | $ 359,032 | ||
Add: | ||||
Distributions from equity investments | 24,630 | 25,652 | ||
Non-cash equity-based compensation expense | 13,507 | 10,854 | ||
Interest expense | 108,984 | 113,390 | ||
Income tax expense | 5,152 | 3,501 | ||
Depreciation and amortization | 205,945 | 200,426 | ||
Long-lived asset and other impairments | 551 | 608 | ||
Other expense | 329 | — | ||
Less: | ||||
Gain (loss) on divestiture and other, net | (4,598) | (6,367) | ||
Gain (loss) on early extinguishment of debt | (150) | — | ||
Equity income, net – related parties | 21,536 | 14,776 | ||
Other income | 2,834 | 6,734 | ||
Items impacting comparability | ||||
Acquisition-related expenses and other, net | 476 | (119) | ||
Adjusted EBITDA attributable to noncontrolling interests (1) | 17,719 | 15,302 | ||
Adjusted EBITDA | $ 736,532 | $ 683,137 | ||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA | ||||
Net cash provided by operating activities | $ 534,736 | $ 469,903 | ||
Interest (income) expense, net | 108,984 | 113,390 | ||
Accretion and amortization of long-term obligations, net | (734) | (882) | ||
Current income tax expense (benefit) | 3,515 | 2,880 | ||
Other (income) expense, net | (2,834) | (6,730) | ||
Distributions from equity investments in excess of cumulative earnings – related parties | 18 | 9,889 | ||
Changes in assets and liabilities: | ||||
Accounts receivable, net | 47,756 | 50,226 | ||
Accounts and imbalance payables and accrued liabilities, net | (6,425) | 28,316 | ||
Other items, net | 69,711 | 31,328 | ||
Acquisition-related expenses | (476) | 119 | ||
Adjusted EBITDA attributable to noncontrolling interests (1) | (17,719) | (15,302) | ||
Adjusted EBITDA | $ 736,532 | $ 683,137 | ||
Cash flow information | ||||
Net cash provided by operating activities | $ 534,736 | $ 469,903 | ||
Net cash used in investing activities | (1,107,346) | (234,877) | ||
Net cash provided by (used in) financing activities | 29,881 | (407,022) | ||
(1) | Includes (i) the |
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited) Distributable Cash Flow | ||||
Three Months Ended | ||||
thousands | June 30, 2026 | March 31, 2026 | ||
Reconciliation of Net income (loss) to Distributable Cash Flow | ||||
Net income (loss) | $ 415,251 | $ 359,032 | ||
Add: | ||||
Distributions from equity investments | 24,630 | 25,652 | ||
Non-cash equity-based compensation expense | 13,507 | 10,854 | ||
Income tax expense | 5,152 | 3,501 | ||
Depreciation and amortization | 205,945 | 200,426 | ||
Long-lived asset and other impairments | 551 | 608 | ||
Other expense | 329 | — | ||
Less: | ||||
Recognized service revenues - fee based in excess of (less than) customer billings | 52,810 | 48,081 | ||
Gain (loss) on divestiture and other, net | (4,598) | (6,367) | ||
Gain (loss) on early extinguishment of debt | (150) | — | ||
Equity income, net – related parties | 21,536 | 14,776 | ||
Items impacting comparability | 476 | (119) | ||
Cash paid for maintenance capital expenditures | 26,681 | 27,704 | ||
Capitalized interest | 6,713 | 4,306 | ||
Cash paid for (reimbursement of) income taxes | 10,169 | 3,449 | ||
Other income (net of interest income) | 495 | (86) | ||
Distributable cash flow attributable to noncontrolling interests (1) | 14,076 | 11,744 | ||
Distributable cash flow | $ 537,157 | $ 496,585 | ||
Reconciliation of Adjusted EBITDA to Distributable Cash Flow | ||||
Adjusted EBITDA | $ 736,532 | $ 683,137 | ||
Less: | ||||
Recognized service revenues - fee based in excess of (less than) customer billings | 52,810 | 48,081 | ||
Capitalized interest | 6,713 | 4,306 | ||
Cash paid for maintenance capital expenditures | 26,681 | 27,704 | ||
Cash paid for (reimbursement of) income taxes | 10,169 | 3,449 | ||
Interest expense (net of interest income) | 106,645 | 106,570 | ||
Distributable cash flow attributable to noncontrolling interests (1) | (3,643) | (3,558) | ||
Distributable cash flow | $ 537,157 | $ 496,585 | ||
Weighted-average common units outstanding | 398,043 | 399,095 | ||
Weighted-average general partner units | 9,061 | 9,061 | ||
(1) | Includes (i) the |
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited) Free Cash Flow | ||||
Three Months Ended | ||||
thousands | June 30, 2026 | March 31, 2026 | ||
Reconciliation of Net cash provided by operating activities to Free Cash Flow | ||||
Net cash provided by operating activities | $ 534,736 | $ 469,903 | ||
Less: | ||||
Capital expenditures | 270,339 | 235,726 | ||
Contributions to equity investments – related parties | 810 | 1,768 | ||
Add: | ||||
Distributions from equity investments in excess of cumulative earnings – related parties | 18 | 9,889 | ||
Free Cash Flow | $ 263,605 | $ 242,298 | ||
Cash flow information | ||||
Net cash provided by operating activities | $ 534,736 | $ 469,903 | ||
Net cash used in investing activities | (1,107,346) | (234,877) | ||
Net cash provided by (used in) financing activities | 29,881 | (407,022) | ||
Western Midstream Partners, LP OPERATING STATISTICS (Unaudited) | ||||||
Three Months Ended | ||||||
June 30, 2026 | March 31, 2026 | Inc/ (Dec) | ||||
Throughput for natural-gas assets (MMcf/d) | ||||||
Gathering, treating, and transportation | 427 | 430 | (1) % | |||
Processing | 4,597 | 4,499 | 2 % | |||
Equity investments (1) | 494 | 464 | 6 % | |||
Total throughput | 5,518 | 5,393 | 2 % | |||
Throughput attributable to noncontrolling interests (2) | 175 | 184 | (5) % | |||
Total throughput attributable to WES for natural-gas assets | 5,343 | 5,209 | 3 % | |||
Throughput for crude-oil and NGLs assets (MBbls/d) | ||||||
Gathering, treating, and transportation | 425 | 429 | (1) % | |||
Equity investments (1) | 108 | 102 | 6 % | |||
Total throughput | 533 | 531 | — % | |||
Throughput attributable to noncontrolling interests (2) | 10 | 10 | — % | |||
Total throughput attributable to WES for crude-oil and NGLs assets | 523 | 521 | — % | |||
Throughput for produced-water assets (MBbls/d) | ||||||
Gathering and disposal | 2,993 | 2,848 | 5 % | |||
Throughput attributable to noncontrolling interests (2) | 54 | 53 | 2 % | |||
Total throughput attributable to WES for produced-water assets | 2,939 | 2,795 | 5 % | |||
Per-Mcf Gross margin for natural-gas assets (3) | $ 1.13 | $ 1.10 | 3 % | |||
Per-Bbl Gross margin for crude-oil and NGLs assets (3) | 2.39 | 2.22 | 8 % | |||
Per-Bbl Gross margin for produced-water assets (3) | 0.80 | 0.73 | 10 % | |||
Per-Mcf Adjusted Gross Margin for natural-gas assets (4) | $ 1.35 | $ 1.32 | 2 % | |||
Per-Bbl Adjusted Gross Margin for crude-oil and NGLs assets (4) | 3.21 | 3.07 | 5 % | |||
Per-Bbl Adjusted Gross Margin for produced-water assets (4) | 0.96 | 0.90 | 7 % | |||
(1) | Represents our share of average throughput for investments accounted for under the equity method of accounting. |
(2) | Includes (i) the |
(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 | ||||||
June 30, 2026 | March 31, 2026 | Inc/ | ||||
Throughput for natural-gas assets (MMcf/d) | ||||||
Operated | ||||||
2,140 | 2,035 | 5 % | ||||
DJ Basin | 1,547 | 1,520 | 2 % | |||
398 | 396 | 1 % | ||||
Other | 895 | 932 | (4) % | |||
Total operated throughput for natural-gas assets | 4,980 | 4,883 | 2 % | |||
Non-operated | ||||||
Equity investments | 494 | 464 | 6 % | |||
Other | 44 | 46 | (4) % | |||
Total non-operated throughput for natural-gas assets | 538 | 510 | 5 % | |||
Total throughput for natural-gas assets | 5,518 | 5,393 | 2 % | |||
Throughput for crude-oil and NGLs assets (MBbls/d) | ||||||
Operated | ||||||
265 | 272 | (3) % | ||||
DJ Basin | 94 | 97 | (3) % | |||
27 | 25 | 8 % | ||||
Other | 39 | 35 | 11 % | |||
Total operated throughput for crude-oil and NGLs assets | 425 | 429 | (1) % | |||
Non-operated | ||||||
Equity investments | 108 | 102 | 6 % | |||
Total non-operated throughput for crude-oil and NGLs assets | 108 | 102 | 6 % | |||
Total throughput for crude-oil and NGLs assets | 533 | 531 | — % | |||
Throughput for produced-water assets (MBbls/d) | ||||||
Operated | ||||||
2,993 | 2,848 | 5 % | ||||
Total operated throughput for produced-water assets | 2,993 | 2,848 | 5 % | |||
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SOURCE Western Midstream Partners, LP