#United States #Houston #Delaware Basin #Western Midstream #Aris Water Solutions

Western Midstream Partners Reports Second-Quarter 2025 Results

On August 6, 2025, Western Midstream Partners, LP (NYSE WES) released its financial and operational results for the second quarter of 2025, signaling a strong performance that underscores the firm's commitment to growth and operational excellence. The company reported a net income attributable to limited partners of $333.8 million, representing approximately $0.87 per common unit (diluted). This is a notable achievement in light of the company's ongoing strategy to enhance value for its partners and stakeholders.

Key highlights of the report include:

• - An Adjusted EBITDA of $617.9 million, marking a record high for the second quarter.
• - Cash flows from operating activities totaled $564.0 million, and the Free Cash Flow for the quarter was reported at $388.4 million.
• - A consistent distribution of $0.910 per unit, which translates to an annualized rate of $3.64 per unit, aligning with previous distributions.

Growth Strategy and Acquisitions

Western Midstream is actively pursuing its growth strategy, which was underscored by the announcement of an agreement to acquire Aris Water Solutions, Inc. for an enterprise value of around $2.0 billion. This strategic move is expected to close in the fourth quarter of 2025 and aims to solidify Western Midstream's position in the midstream water services sector, particularly in the Delaware Basin.

Additionally, the company sanctioned a new 300 MMcf/d cryogenic natural gas processing train at the North Loving plant in the Delaware Basin, a project that is projected to commence operations by the second quarter of 2027. This expansion is poised to increase the processing capacity of the West Texas complex significantly, thus enhancing overall operational efficiency.

Oscar Brown, the President and CEO of Western Midstream, emphasized the successful quarter, noting, "We generated the highest quarterly Adjusted EBITDA in our partnership's history, reflecting increased throughput across our core operating basins and various product lines."

Operational Performance

The operational data from the second quarter demonstrated a commendable uptick across various segments:

• - Natural gas throughput reached a record 5.3 Bcf/d, a 3% increase from the previous quarter.
• - The Delaware Basin achieved record natural gas throughput of 2.1 Bcf/d, signifying a 7% sequential growth.
• - Crude oil and NGLs throughput also saw an increase to 532 MBbls/d, a rise of 6% from the last quarter.
• - Similarly, produced-water throughput averaged 1,217 MBbls/d, indicating a 4% rise sequentially.

The partnership dedicated $170.5 million towards capital expenditures during this quarter, reflecting the continued investment in infrastructure to support future growth and expansion efforts.

Financial Guidance

Despite an optimistic report, Western Midstream has decided not to update its 2025 financial guidance ranges, anticipating that the impact of the Aris acquisition will be incorporated in its 2026 projections. The reaffirmed financial guidance includes an Adjusted EBITDA range of $2.350 to $2.550 billion, with total capital expenditures expected to be between $625 million to $775 million and Free Cash Flow projected between $1.275 billion to $1.475 billion.

Upcoming Conference Call

A conference call is scheduled for August 7, 2025, at 9:00 A.M. Central Time to further discuss these results. Analysts and interested parties can access the call via the company’s investor relations page.

Conclusion

Western Midstream Partners’ robust second-quarter performance illustrates its operational efficiency and successful growth strategies. The acquisition of Aris Water Solutions and the ongoing projects in the Delaware Basin signal a commitment to enhancing its service offerings and competitiveness in the midstream sector. Stakeholders and partners can look forward to continued progress as the company navigates its growth trajectory towards 2026 and beyond.