Western Midstream Partners Reports Exceptional Third Quarter 2025 Financial Performance

Western Midstream Partners Reports Record Third Quarter Results for 2025

On November 4, 2025, Western Midstream Partners, LP (NYSE: WES) announced outstanding financial results for the third quarter of 2025. The partnership reported a net income of $331.7 million attributable to its limited partners, translating to $0.87 per common unit (diluted). This achievement is marked by a record-setting Adjusted EBITDA of $633.8 million, reflecting the company's robust operational performance and efficiency improvements.

Strong Operating Cash Flow

Western Midstream's operational activities generated cash flows of $570.2 million during the third quarter, leading to a commendable Free Cash Flow of $397.4 million. The partnership also announced a consistent distribution of $0.910 per unit for the quarter, equating to an annualized distribution of $3.64 per unit, aligning with its distribution model from the previous quarter.

Strategic Acquisition of Aris Water Solutions

One of the pivotal highlights for Western Midstream this quarter was the completion of its acquisition of Aris Water Solutions, Inc. This strategic move positions the partnership among the top three-stream midstream service providers within the Delaware Basin. The transaction involved the issuance of approximately 26.6 million common units, payment of $415 million in cash before transaction costs, and the assumption of around $500 million in debt. This acquisition is anticipated to drive an estimated $40 million in targeted cost synergies, significantly enhancing the company's competitive advantage.

Increased Throughput and Operational Efficiency

In terms of throughput, Western Midstream reported a record natural-gas throughput of 5.5 Bcf/d, marking a 2% increase from the previous quarter. Although there was a 4% decline in crude oil and natural gas liquids throughput to an average of 510 MBbls/d, produced-water throughput remained stable at an average of 1,217 MBbls/d.

President and CEO Oscar Brown expressed his delight in the results, attributing the record Adjusted EBITDA achievements to lower operational costs and the company’s diligent focus on cost management and resource optimization. He emphasized that these efficiency initiatives have significantly boosted productivity and positioned the partnership favorably as it integrates Aris Water Solutions and embarks on its growth plans for the future.

Enhancing Growth Prospects

Following the acquisition, the partnership also executed an agreement for additional disposal capacity to support the Pathfinder pipeline project in the Delaware Basin. This strategic agreement will allow Western Midstream to optimize its pipeline routing, ultimately improving the overall returns from their projects.

Looking ahead, Western Midstream anticipates ending the year towards the upper range of its 2025 Adjusted EBITDA and Free Cash Flow guidance—the latter projected between $1,275 million and $1,475 million. These developments indicate positive momentum as the partnership prepares to plan for 2026, with a strong focus on successfully integrating Aris, capturing the projected cost synergies, and executing several organic projects aimed at future profitability.

In summary, Western Midstream's third-quarter 2025 results illustrate its effective operational strategies, successful acquisition tactics, and solid financial foundations, positioning the partnership well for sustained growth in the future. The continued execution of its growth initiatives and operational excellence promises to create incremental value for its unitholders moving forward.

Upcoming Conference Call

To discuss these results in further detail, Western Midstream will host a conference call on November 5, 2025, at 8:00 AM Central Time. Participants can access the live audio webcast via the investor relations section of the partnership's website. Analysts and investors are encouraged to call in early to join the conversation.

About Western Midstream

Western Midstream Partners, LP is a master limited partnership engaged in the development and operation of midstream assets across several states, including Texas, New Mexico, Colorado, Utah, and Wyoming. Its operations encompass gathering, treating, and transporting natural gas, crude oil, and produced water, with financial relationships fortified through fee-based contracts designed to shield against direct commodity pricing volatility. For further information, visit www.westernmidstream.com.