Track market-moving stories before they get noisy

Oil stocks remain in focus as crude prices stay elevated, with West Texas Intermediate (WTI) recently pushing back above $90 a barrel amid renewed geopolitical tensions and supply concerns surrounding the Strait of Hormuz.

Along with the potential upside from firm energy prices, income-generating oil stocks can be especially appealing for investors looking to collect dividends while maintaining sector exposure.

With that in mind, InPlay Oil CP (IPOOF - Free Report) ) and Western Midstream Partners (WES - Free Report) ) stand out entering September, as both stocks currently sport a Zacks Rank #1 (Strong Buy) and offer dividend yields above 5%.

Image Source: TradingView

INPLAY OIL CP – IPOOFStock Price: $13Based in Alberta, Canada, InPlay is a smaller exploration and production company (Upstream) primarily focused on light oil.

This gives InPlay more direct upside exposure to higher crude prices than many midstream energy companies that specialize in transporting, storing, and processing crude oil, natural gas, and related products between production sites and refineries or end markets.

Operational momentum has also been impressive. InPlay's Q2 production averaged 18,663 barrels of oil equivalent per day (boe/d), with light oil production climbing 6% sequentially to 9,382 barrels per day. Adjusted funds flow (AFF) jumped 48% from Q1 to a record $44.7 million, while free adjusted funds flow (FAFF) reached $28.4 million.

More importantly, InPlay recently closed a highly accretive $54.25 million acquisition of assets that added roughly 1,400 boe/d of production, 85% of which consists of light oil and natural gas liquids (NGLs). The acquired properties lift total corporate production to approximately 20,100 boe/d and add 50 identified drilling locations. Management expects the transaction to be 18% accretive to annualized adjusted funds flow and free adjusted funds flow per share.

Including the acquisition, InPlay is targeting 2026 AFF of $161-$169 million and FAFF of $79-$89 million, compared with $114.4 million and $62.4 million, respectively, in 2025.

Income investors get another bonus, as InPlay’s dividend translates to roughly $0.06 monthly, or $0.77 per share annually. With shares trading at $13, that equates to a yield of 5.79%.

Image Source: Zacks Investment Research

Notably, earnings estimates have also moved sharply higher in the last 30 days, helping IPOOF earn its Zacks Rank #1 (Strong Buy). Fiscal 2026 EPS is now expected at $0.21 compared to an adjusted loss of $0.08 last year.

Plus, FY27 EPS is projected to surge to $0.81, making InPlay’s stock an appealing growth story with IPOOF shares trading at a 52-week high and up more than 45% year to date.  

Image Source: Zacks Investment Research

Western Midstream Partners – WESStock Price: $48Western Midstream offers investors a somewhat different way to capitalize on strength in the energy market. Rather than directly producing oil and gas, WES owns midstream infrastructure that gathers, processes, and transports natural gas, crude oil, and NGLs while also handling produced water.

This business model provides more stable fee-supported cash flows, although elevated commodity prices and increased drilling activity can still boost throughput and certain processing economics.

Furthermore, the company posted an excellent Q2, with revenue surging 30% year over year to $1.22 billion and topping estimates of $1.13 billion. Meanwhile, Q2 EPS increased 14% to $0.99 and beat expectations of $0.90 by 10%.

Adjusted EBITDA reached a quarterly record of $736.5 million, rising 19% YoY, while distributable cash flow totaled $537.2 million.

Strong throughput and a recently completed acquisition of Brazos Delaware prompted management to raise its FY26 outlook. Western Midstream now expects adjusted EBITDA of $2.75-$2.95 billion, distributable cash flow of $2.05-$2.25 billion, and free cash flow of $1.1-$1.3 billion.

WES is also a compelling income play. Its latest quarterly distribution is $0.93 per share, or $3.72 annualized, equating to a yield of 7.59%. As a Master Limited Partnership (MLP), Western Midstream is structured to return a significant portion of its available cash to unitholders, helping explain its elevated 117% payout ratio.

Adding to the bullish picture, the Zacks Consensus calls for EPS and annual sales to rise over 20% this year, with high single-digit top-and bottom-line growth in the forecast for FY27.

Trading near a 52-week high, WES is up more than 20% YTD, and positive earnings estimate revisions following its strong Q2 report have helped Western Midstream earn a Zacks Rank #1 (Strong Buy) as well.

Image Source: Zacks Investment Research

Bottom LineWith crude prices remaining elevated, InPlay Oil CP and Western Midstream offer investors two distinctly attractive ways to gain energy exposure in September.

InPlay provides greater direct leverage to higher oil prices, rapidly growing light-oil production, and an appealing monthly dividend yielding nearly 6%. Western Midstream offers a more stable midstream business model, record cash flow, raised guidance, and a hefty distribution yield near 8%.

Most importantly, IPOOF and WES currently sport a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate revision trends that could support further upside as investors seek both energy exposure and attractive income.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in WES over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I do own common shares of OXY. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

A consortium of energy companies is moving forward with a massive new gas pipeline in Texas. The Solitude Pipeline System is a joint venture (JV) between privately held energy infrastructure developer WhiteWater, oil and gas producers Diamondback Energy (FANG +0.76%) and Devon Energy (DVN +2.77%), and midstream companies MPLX (MPLX +0.05%) and Western Midstream Partners (WES -0.45%). The two-phased pipeline system should start operations in late 2029.

Here's a look at the new pipeline project and how it will fuel years of growth for those four energy stocks.

Image source: Getty Images.

Introducing the Solitude Pipeline SystemWhiteWater and its JV partners recently announced that they reached a Final Investment Decision to build two new natural gas pipelines from the Permian Basin to Katy, Texas. The Solitude Pipeline System will have an initial capacity of around 2.25 billion cubic feet per day (Bcf/d) when the first phase enters commercial service in late 2029. The partners plan to bring the second phase online in 2030, adding another 2.25 Bcf/d of capacity. The JV can further expand the system to meet shipper demand. They've already secured substantial long-term firm transportation agreements with investment-grade shippers to back the large-scale pipeline system.

WhiteWater will own 50% of the JV, Devon 25%, MPLX 10%, and Diamondback Energy and Western Midstream Partners 7.5% each. The pipeline system will enable oil and gas producers to deliver more gas from the Permian Basin to demand centers along the U.S. Gulf Coast, including liquefied natural gas (LNG) export terminals.

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Helping unlock the value of Permian gasThe pipeline will help oil and gas producers like Devon Energy and Diamondback Energy to unlock the value of their associated gas production in the Permian. Devon Energy highlighted in a press release announcing its participation in the project that "Permian producers have long absorbed volatile and periodically negative pricing at the Waha hub, where takeaway capacity has repeatedly failed to keep pace with associated gas growth." The company noted that firm, long-haul capacity to the Gulf Coast changes the equation for producers, enabling them to get more gas out of the region and into markets where they can sell it at higher prices. Solitude is just one aspect of Devon's strategy to unlock value. It was also a founding equity owner of Matterhorn Express (which it sold last year) and secured shipping capacity to support two other large-scale gas pipeline projects (Blackcomb and Eiger). These initiatives will enable it to continue to profitably grow its production in the region.

Meanwhile, Diamondback has employed a similar strategy. It helped support the development of the Epic Crude pipeline by taking an equity stake and becoming an anchor shipper on the project. It sold that stake last year. That's one of several midstream-related investments it has made over the years to support infrastructure build-out, many of which it has since monetized. Its investment in Solitude will also help support its continued production growth.

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Adding another growth driverMaster limited partnerships (MLPs) MPLX and Western Midstream Partners are also participating in Solitude as minority investors. Additionally, Western Midstream has taken firm capacity on the pipelines, enabling it to provide enhanced flow assurance to its customers. Their investment will enable these MLPs to generate incremental cash flow when the pipelines enter service in 2029 and 2030.

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JVs like Solitude enable pipeline companies to work together on a larger-scale project that will have enhanced economics. These investments provide new sources of lower-risk growth. This particular investment also enhances their long-term growth visibility, putting both MLPs in a stronger position to continue growing their high-yielding distributions (7.3% for MPLX and 7.7% for WES) in the early part of the next decade. That makes them even more appealing long-term income investments.

A winning partnershipWhiteWater and its partners are moving forward with a new pipeline system to support additional gas volume growth in the Permian Basin. It will help oil and gas producers like Devon Energy and Diamondback Energy secure better pricing for their gas output, enabling them to continue growing. Meanwhile, it will enable MLPs MPLX and Western Midstream to invest in a project that will provide them with incremental cash flow to fuel future distribution growth. That makes it a winning partnership that should provide a boost for these energy stocks later this decade.

WES holds a 7.5% equity interest in the Solitude Pipeline System joint venture which has reached a positive Final Investment Decision to construct two 48-inch natural gas pipelines running from the Permian Basin to Katy, Texas. Solitude will deliver scalable, long-haul natural gas transportation, with initial capacity of approximately 2.25 Bcf/d expected in late 2029 and an additional 2.25 Bcf/d in 2030 with the ability to increase capacity thereafter to accommodate shipper demand. WES has taken firm transportation capacity on the pipelines, providing incremental residue takeaway and enhanced flow assurance for its Delaware Basin customers. , /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership"), announced its participation in the Solitude Pipeline System joint venture ("Solitude"), operated by WhiteWater. Through Solitude, in which WES holds a 7.5% equity interest, a positive Final Investment Decision ("FID") has been reached to construct two 48-inch natural gas pipelines, each running from the Permian Basin to Katy, Texas. The project has secured substantial long-term firm transportation agreements with predominantly investment-grade shippers to support the FID. Solitude will deliver scalable, long-haul natural gas transportation to support Permian Basin growth and expanding Gulf Coast markets.

The joint venture's pipeline system will feature a flexible, phased design that provides initial capacity of approximately 2.25 Bcf/d in late 2029, and an additional 2.25 Bcf/d in 2030, with the ability to increase capacity thereafter to accommodate shipper demand. Capacity commissioning can be accelerated or deferred to align with evolving market dynamics. Solitude is expected to enter service in the second half of 2029, subject to receipt of customary regulatory and other approvals.

"We are excited to partner with WhiteWater and the other owners of Solitude to build incremental natural-gas takeaway that supports continued Permian Basin growth and expanding Gulf Coast demand, including LNG exports," said Oscar K. Brown, President and Chief Executive Officer of WES. "Unlike our other long-haul joint ventures, WES has taken firm capacity on the Solitude pipelines, enabling enhanced flow assurance for our customers. We firmly believe that as the basin continues to be developed and gas-to-oil ratios rise, residue takeaway capacity will be critical to allow Permian Basin producers to maximize the value of their production, and this investment allows us to better serve current customers and compete for new volumes, all while meeting our required return thresholds."

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.

ABOUT WHITEWATER

WhiteWater is an Austin, Texas based infrastructure company and operator of multiple gas transmission assets. For more information about WhiteWater, visit www.wwdev.com.

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 close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; 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
[email protected]
866.512.3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

SOURCE Western Midstream Partners, LP

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Western Midstream (WES - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Western Midstream currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if WES is a promising momentum pick, let's examine some Momentum Style elements to see if this oil and gas transportation and storage company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For WES, shares are up 0.11% over the past week while the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is down 2.55% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.82% compares favorably with the industry's 3.41% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Western Midstream have increased 6.65% over the past quarter, and have gained 24.97% in the last year. In comparison, the S&P 500 has only moved 5.06% and 21.84%, respectively.

Investors should also take note of WES's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now WES is averaging 861,217 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with WES.

Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost WES's consensus estimate, increasing from $3.44 to $3.58 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that WES is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Western Midstream on your short list.

Western Midstream Partners, LP Common Units (WES) Discusses Second Quarter Performance Drivers and Updated Full-Year Guidance August 11, 2026 7:00 AM EDT

Company Participants

Daniel Jenkins - Director of Investor Relations - Western Midstream Holdings LLC
Kristen Shults - Senior VP & CFO - Western Midstream Holdings LLC

Presentation

Daniel Jenkins
Director of Investor Relations - Western Midstream Holdings LLC

Good morning, and welcome to Western Midstream's Second Quarter 2026 fireside chat with our Chief Financial Officer and Senior Vice President, Kristen Shults.

Question-and-Answer Session

Daniel Jenkins
Director of Investor Relations - Western Midstream Holdings LLC

Kristen, WES reported another quarter of record adjusted EBITDA. What are the drivers of this quarter's performance? And how does this position WES for the second half of the year?

Kristen Shults
Senior VP & CFO - Western Midstream Holdings LLC

Thanks, Daniel. Really great second quarter results for us. Adjusted EBITDA of $737 million, which is up 8% quarter-over-quarter. And if you look at the same second quarter in 2025, we're up 19% year-over-year. A few things behind that outperformance for the second quarter. First of all, water throughput up 5% quarter-over-quarter. So great performance on the water side. We saw some volumes that have been taken off for recycling come back on the system.

Also just where the producers are drilling and some of the water cuts in those areas got a little bit more water on the system. Delaware Basin gas was up 5% quarter-over-quarter. A bunch of that is really the Brazos acquisition that we just closed on in mid-June. So you have a little more than 2 weeks' worth of activity that's embedded in that adjusted EBITDA, and that's in that Delaware Basin gas throughput there.

And the DJ Basin has been doing a good job for the first half

, /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that tomorrow before the market open it will make available on its website at www.westernmidstream.com a post-earnings interview with Kristen Shults, Senior Vice President and Chief Financial Officer, that provides additional insights related to WES's second-quarter 2026 results.

WES intends to participate in the following investor conferences during the third quarter of 2026:

Citi's 2026 Natural Resources Conference in Las Vegas, Nevada on August 11 – 12, 2026 Daniel Energy Partners Executive Series in Pebble Beach, California on September 1 – 3, 2026 Institute of Private Investors Fall Investment Forum in Vancouver, Canada on September 16 – 18, 2026 NYSE Energy & Utilities Virtual Investor Access Day on September 24, 2026 Wolfe Utilities, Midstream & Clean Energy Conference in New York, New York on September 30, 2026 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. 

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations   
[email protected]
866-512-3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866-512-3523

SOURCE Western Midstream Partners, LP

Key Takeaways WES Q2 earnings rose 13.8% as revenues climbed 30%, both topping consensus estimates.Record Delaware throughput and the Brazos acquisition helped lift natural-gas volumes and margins.WES raised 2026 EBITDA guidance after quarterly adjusted EBITDA hit a record $736.5 million. Western Midstream Partners (WES - Free Report) reported second-quarter 2026 earnings of 99 cents per unit, up 13.8% from 87 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 90 cents by 10%.

Quarterly revenues of $1.22 billion increased 30% year over year and topped the Zacks Consensus Estimate of $1.13 billion by 8.3%. Results benefited from impressive Delaware Basin natural gas and produced-water throughput, the Brazos acquisition contribution and higher commodity pricing.

Other players in the midstream space that have already reported results are Enterprise Products Partners (EPD - Free Report) and Kinder Morgan (KMI - Free Report) . EPD and KMI beat the Zacks Consensus Estimate for earnings in the June quarter of this year. Both (EPD - Free Report) and (KMI - Free Report) have a strong presence in the midstream business, which is relatively more stable than upstream activities.

Western Midstream Posts Strong Throughput Gains

Natural-gas throughput attributable to WES averaged 5,343 million cubic feet per day (MMcf/D), up 3% sequentially. Delaware Basin natural-gas throughput reached a record 2,140 MMcf/D, increasing 5% from the first quarter, thanks to the contribution from the Brazos Delaware acquisition.

Produced-water throughput rose 5% sequentially to 2,939 MBbls/D, while crude-oil and NGL throughput edged up to 523 MBbls/D. DJ Basin natural-gas throughput also reached a record 1,547 MMcf/D, signifying a 2% sequential increase.

WES Records Margin Expansion Across Three Streams

Adjusted gross margin per Mcf for natural-gas assets increased to $1.35 from $1.32 in the first quarter. Higher commodity pricing on excess NGL volumes under fixed-recovery contracts and the partial-quarter Brazos contribution supported the increase.

Adjusted gross margin per barrel for crude oil and NGL assets rose to $3.21 from $3.07, mainly due to higher Delaware Basin deficiency fees. Produced-water adjusted gross margin improved to 96 cents per barrel from 90 cents, primarily reflecting higher throughput.

Western Midstream Faces Higher Operating Costs

Total operating expenses increased to $714.95 million from $524.06 million in the prior-year quarter. Operation and maintenance expenses climbed to $285.35 million from $224.63 million, while general and administrative expenses increased to $85.93 million from $66.15 million.

The cost of the product surged to $117.44 million from $42.68 million. Depreciation and amortization increased to $205.95 million from $172.11 million. Despite the higher expense base, operating income advanced to $526.7 million from $444.48 million a year earlier.

WES Generates Record Adjusted EBITDA

Adjusted EBITDA reached a quarterly record of $736.5 million, increasing 19% year over year and roughly 8% sequentially. Distributable cash flow totaled $537.2 million.

Operating cash flow was $534.7 million, while free cash flow totaled $263.6 million. Free cash flow after distributions was negative $111 million, reflecting organic growth capital spending. Second-quarter capital expenditures totaled $308.3 million.

Western Midstream Raises 2026 Outlook

Western Midstream raised its 2026 adjusted EBITDA guidance to $2.75 to $2.95 billion, with the $2.85 billion midpoint up $250 million from its original outlook. Distributable cash flow guidance increased to $2.05-$2.25 billion, while free cash flow expectations rose to $1.1-$1.3 billion.

The partnership maintained its $850 million-$1 billion capital expenditure range but now expects spending near the high end. WES also reiterated its target of at least $3.70 per unit in distributions paid during 2026. Currently, WES carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Western Midstream Partners, LP Common Units (WES) Q2 2026 Earnings Call Transcript

Reported second-quarter 2026 Net income attributable to limited partners of $394.9 million, generating record quarterly Adjusted EBITDA(1) of $736.5 million, which represents a 19-percent increase compared to the prior-year period, and second-quarter Distributable Cash Flow(1) of $537.2 million. Reported second-quarter 2026 Cash flows provided by operating activities of $534.7 million, generating second-quarter Free Cash Flow(1) of $263.6 million. Announced a second-quarter distribution of $0.930 per unit, which is consistent with the prior quarter's distribution, and reflects a distribution of $3.72 per unit on an annualized basis. Providing revised 2026 Adjusted EBITDA(2), Distributable Cash Flow(2), and Free Cash Flow(2) guidance ranges of $2.750 billion to $2.950 billion, $2.050 billion to $2.250 billion, and $1.100 billion to $1.300 billion, respectively. Reaffirming 2026 total capital expenditures(3) range of $850.0 million to $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. , /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced second-quarter 2026 financial and operating results. Net income (loss) attributable to limited partners for the second quarter of 2026 totaled $394.9 million, or $0.99 per common unit (diluted), with second-quarter 2026 Adjusted EBITDA(1) totaling $736.5 million and Distributable Cash Flow(1) totaling $537.2 million. Second-quarter 2026 Cash flows provided by operating activities totaled $534.7 million and second-quarter 2026 Free Cash Flow(1) totaled $263.6 million. Second-quarter 2026 capital expenditures(3) totaled $308.3 million.

RECENT HIGHLIGHTS

Generated record Adjusted EBITDA(1) of $736.5 million, an increase of approximately 8-percent sequentially, driven by record throughput from our produced-water business, a partial month contribution from the Brazos Delaware II, LLC ("Brazos Delaware") acquisition, and associated benefits from our fixed recovery natural-gas processing contracts at higher overall commodity pricing. 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 of senior notes due 2036 in order to refinance borrowings on our commercial paper program and revolving credit facility pertaining to the Brazos Delaware acquisition. 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 $0.930, or $3.72 on an annualized basis, which is consistent with the prior quarter's distribution. Second-quarter 2026 Free Cash Flow(1) after distributions totaled negative $111.0 million as a result of organic growth capital expenditures.

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 $736.5 million in the second quarter, an increase of 8-percent sequentially and 19-percent compared to the prior-year period, and based on the strength of our first-half results, the Brazos Delaware acquisition, and continued elevated commodity prices, we are raising the mid-points of our full-year 2026 Adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow guidance ranges by 10-percent, 10-percent, and 20-percent, respectively," commented Oscar K. Brown, President and Chief Executive Officer of WES. "Record produced-water throughput resulted in margin expansion, underscoring the growth of that business and the strategic importance of the Aris acquisition. Additionally, elevated commodity pricing increased the contribution from our fixed recovery natural-gas processing contracts across all of our core operating basins, while continued cost discipline further improved our operating leverage. Taken together, these results reflect the durable earnings power we have built into the portfolio."

"Looking to the remainder of the year, the higher commodity-price environment has incentivized many of our Delaware Basin producing customers to increase activity levels in the second half of 2026, which is expected to position WES for stronger Delaware Basin natural-gas and produced-water throughput growth in 2027. In the Powder River Basin, we recently executed new, long-term gathering and processing agreements with two of the basin's most active producers, adding approximately 270,000 dedicated acres to WES's footprint in the basin. Both agreements are backed by minimum-volume commitments and are expected to be meaningful contributors to 2027 throughput growth in the basin. Additionally, construction of the Pathfinder produced-water pipeline and the North Loving II natural-gas processing train remains on schedule and under budget, with both projects expected to be placed into service in the first and second quarters of 2027, respectively."

"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 Reeves County, Texas, was placed into service during the second quarter and is delivering approximately 1,000 barrels per day of reclaimed fresh water, or ten times the amount produced by JIP 1. JIP 2 is designed to refine operations and costs, evaluate reliability, and demonstrate consistent reclaimed freshwater production for fit-for-purpose applications, including industrial cooling, surface discharge, and non-consumptive agricultural irrigation, while helping reduce pressure on limited freshwater resources. We believe JIP 2 represents a critical step toward achieving FID for our first commercial-scale facility in the near future."

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 and $2.950 billion, implying a revised mid-point of $2.850 billion, which represents a $250 million, or 10-percent, increase relative to WES's original guidance at the mid-point, and a 15-percent increase compared to full-year 2025 Adjusted EBITDA. Total capital expenditures(3) between $850.0 million and $1.000 billion, with the expectation of being towards the high-end of the guidance range. Distributable Cash Flow(2) between $2.050 billion and $2.250 billion, or $4.94 to $5.42 per unit(6), implying a revised mid-point of $2.150 billion. This represents a $200 million, or 10-percent increase, relative to WES's original guidance at the mid-point. Free Cash Flow(2) between $1.100 billion and $1.300 billion, implying a revised mid-point of $1.200 billion. This represents a $200 million, or 20-percent increase, relative to WES's original guidance at the mid-point. Reiterating full-year distribution guidance of at least $3.70 per unit(7), which includes distributions to be paid in calendar-year 2026, and implies a current annualized run-rate of $3.72 per unit based on our prior quarter distribution of $0.93 per unit. "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 $850 million to $1.0 billion. Higher customer activity levels in the second half of this year will require incremental growth capital spending to support producer development plans as we exit 2026, and our new gathering and processing agreements in the Powder River Basin will require the construction of additional gathering capacity and compression facilities. With a strong balance sheet, ample liquidity, and robust growth profile, WES is positioned to continue executing on our organic growth objectives, pursuing strategic, bolt-on M&A, and sustaining our capital-return framework through commodity-price cycles."

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 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, 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 25% third-party interest in Chipeta.

(4)

One agreement executed subsequent to quarter-end.

(5)

Represents total throughput attributable to WES, which excludes (i) the 1.8% limited partner interest in WES Operating owned by an Occidental subsidiary as of June 30, 2026, and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.

(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 $3.70 per unit, which includes the February 2026 distribution of $0.910 per unit. Board action on any distribution increase will be requested on a quarterly basis and is subject to the Board's assessment of the needs of the business at that time.

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
[email protected]
866.512.3523

Rhianna Disch
Manager, Investor Relations
[email protected]
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,
and December 31, 2025, respectively)

4,253,799

4,016,606

General partner units (9,060,641 units issued and outstanding at June 30, 2026, and
December 31, 2025)

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
changes in assets and liabilities:

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

$ (1,342,223)

$   (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)

$ (1,740,738)

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
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)

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 25% third-party interest in Chipeta and (ii) the 1.8% and 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of June 30, 2026, and March 31, 2026, respectively,  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

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 25% third-party interest in Chipeta and (ii) the 1.8% and 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of June 30, 2026, and March 31, 2026, respectively, 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

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 25% third-party interest in Chipeta and (ii) the 1.8% and 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of June 30, 2026, and March 31, 2026, respectively, 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

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 1.8% and 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of June 30, 2026, and March 31, 2026, respectively, 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

June 30, 2026

March 31, 2026

Inc/
(Dec)

Throughput for natural-gas assets (MMcf/d)

Operated

Delaware Basin

2,140

2,035

5 %

DJ Basin

1,547

1,520

2 %

Powder River Basin

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

Delaware Basin

265

272

(3) %

DJ Basin

94

97

(3) %

Powder River Basin

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

Delaware Basin

2,993

2,848

5 %

Total operated throughput for produced-water assets

2,993

2,848

5 %

SOURCE Western Midstream Partners, LP

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Western Midstream?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Western Midstream (WES - Free Report) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.91 a share, just two days from its upcoming earnings release on August 5, 2026.

By taking the percentage difference between the $0.91 Most Accurate Estimate and the $0.9 Zacks Consensus Estimate, Western Midstream has an Earnings ESP of +0.33%. Investors should also know that WES is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

WES is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at Occidental Petroleum (OXY - Free Report) as well.

Occidental Petroleum is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 5, 2026. OXY's Most Accurate Estimate sits at $2.07 a share two days from its next earnings release.

The Zacks Consensus Estimate for Occidental Petroleum is $1.96, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +5.33%.

Because both stocks hold a positive Earnings ESP, WES and OXY could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Posted by Defense World Staff on Jul 26th, 2026

Western Midstream Partners, LP (NYSE:WES – Get Free Report)’s share price reached a new 52-week high during trading on Friday . The stock traded as high as $48.55 and last traded at $48.5470, with a volume of 81350 shares traded. The stock had previously closed at $47.93.

Analysts Set New Price Targets WES has been the subject of several recent research reports. US Capital Advisors upgraded shares of Western Midstream Partners from a “moderate buy” rating to a “strong-buy” rating in a report on Friday, May 29th. Stifel Nicolaus set a $46.00 price target on shares of Western Midstream Partners and gave the company a “buy” rating in a report on Thursday, May 7th. Morgan Stanley upgraded shares of Western Midstream Partners from an “underweight” rating to an “equal weight” rating and set a $51.00 price target on the stock in a research report on Wednesday, June 10th. JPMorgan Chase & Co. raised their price objective on shares of Western Midstream Partners from $46.00 to $47.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 14th. Finally, Wells Fargo & Company lifted their price objective on Western Midstream Partners from $41.00 to $43.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $46.25.

Read Our Latest Analysis on WES

Western Midstream Partners Trading Down 0.7% The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 2.34. The firm has a market cap of $18.74 billion, a price-to-earnings ratio of 15.55, a price-to-earnings-growth ratio of 1.98 and a beta of 0.68. The business has a 50 day moving average of $44.67 and a 200 day moving average of $42.68.

Western Midstream Partners (NYSE:WES – Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The pipeline company reported $0.85 EPS for the quarter, topping analysts’ consensus estimates of $0.74 by $0.11. Western Midstream Partners had a return on equity of 33.89% and a net margin of 29.98%.The firm had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same quarter last year, the business posted $0.79 EPS. The firm’s quarterly revenue was up 22.5% compared to the same quarter last year. On average, research analysts forecast that Western Midstream Partners, LP will post 3.49 earnings per share for the current fiscal year.

Western Midstream Partners Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.93 per share. The ex-dividend date is Friday, July 31st. This represents a $3.72 dividend on an annualized basis and a dividend yield of 7.8%. Western Midstream Partners’s payout ratio is 121.57%.

Hedge Funds Weigh In On Western Midstream Partners A number of institutional investors have recently modified their holdings of WES. Eagle Bay Advisors LLC purchased a new stake in Western Midstream Partners in the 4th quarter worth approximately $27,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Western Midstream Partners during the 4th quarter worth $27,000. Rothschild Investment LLC lifted its stake in shares of Western Midstream Partners by 76.2% during the 4th quarter. Rothschild Investment LLC now owns 793 shares of the pipeline company’s stock worth $31,000 after purchasing an additional 343 shares during the period. Garton & Associates Financial Advisors LLC purchased a new position in shares of Western Midstream Partners during the 4th quarter worth $32,000. Finally, Glen Eagle Advisors LLC boosted its holdings in shares of Western Midstream Partners by 843.0% during the fourth quarter. Glen Eagle Advisors LLC now owns 943 shares of the pipeline company’s stock worth $37,000 after purchasing an additional 843 shares during the last quarter. Institutional investors and hedge funds own 84.82% of the company’s stock.

Western Midstream Partners Company Profile (Get Free Report)

Western Midstream Partners, LP (NYSE: WES) is a midstream energy infrastructure company that owns, operates and develops an integrated network of crude oil, natural gas and produced water gathering, processing, transportation and storage assets in the United States. The partnership’s primary offerings include pipeline transportation, fractionation services, natural gas liquids (NGL) logistics and produced water handling. Through its fee-based and commodity-based contracts, Western Midstream provides its customers with essential services that support efficient energy production and distribution.

The company’s asset portfolio spans key onshore basins, including the Delaware Basin in West Texas and southeastern New Mexico, the San Juan Basin in New Mexico and Colorado, and the Denver-Julesburg Basin in Colorado.

See Also Five stocks we like better than Western Midstream Partners Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24 Receive News & Ratings for Western Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Western Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.

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With a more than 8% yield, Western Midstream Partners (WES +1.39%) should be hard to ignore. However, it doesn't have as much positive coverage on Wall Street as other master limited partnerships (MLPs). As a result, it's flying under the radar of most investors.

Here's a look at why you won't want to ignore this high-yielding MLP.

Image source: Getty Images.

Underfollowed and unloved Fourteen Wall Street analysts currently cover Western Midstream Partners. Only four have a "buy" rating on the MLP, while nine rate it a "hold" and one has a "sell" rating. For comparison, 21 analysts currently cover both Energy Transfer (ET 0.20%) and Enterprise Products Partners (EPD +1.52%). They're very bullish on Energy Transfer (five "strong buys" and 14 "buy" ratings) and moderately bullish on Enterprise Products Partners (two "strong buys" and eight "buys").

There are many reasons fewer analysts cover this MLP. It's not as big or as diversified as Energy Transfer or Enterprise Products Partners. Western Midstream also has significant ties to one company: Occidental Petroleum. The oil giant is its top unitholder (39.5% of its common units) and largest customer (55% of its revenue in 2025, falling to 47% in 2026). These and other factors are leading some Wall Street analysts to completely ignore the company.

Today's Change

(

1.39

%) $

0.64

Current Price

$

46.61

What Wall Street is missing For the most part, Wall Street analysts focus on growth over income. As a result, they tend to miss out on the total return potential of some higher-yielding stocks.

Western Midstream's base return comes from its high-yielding distribution. At over 8%, the MLP offers a higher cash yield than Enterprise Products Partners (5.8% current yield) and Energy Transfer (6.6%). That high-yielding payout is on a rock-solid foundation. It generates stable cash flows backed by long-term, fee-based contracts with Occidental Petroleum and third-party customers. The MLP currently expects to produce between $1.9 billion and $2.1 billion of distributable cash flow this year, easily covering its $1.5 billion annual distribution outlay. It also has a solid investment-grade balance sheet backed by a low 3.1 times leverage ratio.

That gives the MLP the financial flexibility to grow its operations through bolt-on acquisitions and organic growth capital projects. The company recently closed its $1.6 billion acquisition of Brazos Delaware, which strategically expands its operations in a core area, further diversifies its revenue away from Occidental, while immediately boosting its cash flow per unit. The MLP also has several organic expansion projects underway, including the Loving II gas processing plant and Pathfinder Pipeline, both of which will enter commercial service early next year. Western expects its growth drivers to fuel long-term adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of 4% to 5% per year. That should support continued annual distribution growth in the low-to-mid single-digits.

High-octane total return potential Western Midstream's high-yielding distribution provides an over 8% base cash return each year, which should grow at a low-to-mid single-digit rate. The company's earnings and distribution growth should support a steadily rising unit price. Add it up, and the MLP could deliver an annual total return of 12% to 14%. That's an attractive proposition for investors comfortable with receiving the Schedule K-1 Federal tax form the MLP sends each year.

Matt DiLallo has positions in Energy Transfer and Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners and Occidental Petroleum. The Motley Fool has a disclosure policy.

Western Midstream (WES - Free Report) ended the recent trading session at $46.61, demonstrating a +1.39% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Shares of the oil and gas transportation and storage company witnessed a gain of 7.01% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.6%, and the S&P 500's gain of 0.55%.

The upcoming earnings release of Western Midstream will be of great interest to investors. The company's upcoming EPS is projected at $0.86, signifying a 1.15% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.11 billion, indicating a 17.75% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $3.45 per share and a revenue of $4.45 billion, demonstrating changes of +15.77% and +15.76%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% upward. At present, Western Midstream boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Western Midstream is currently trading at a Forward P/E ratio of 13.33. This signifies no noticeable deviation in comparison to the average Forward P/E of 13.33 for its industry.

It is also worth noting that WES currently has a PEG ratio of 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 1.69 at yesterday's closing price.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

, /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution of $0.93 per unit for the second quarter of 2026, or $3.72 per unit on an annualized basis, which is in-line with the prior quarter's distribution. WES's second-quarter 2026 distribution is payable on August 14, 2026, to unitholders of record at the close of business on July 31, 2026.

The Partnership plans to report its second-quarter 2026 results after market close on Wednesday, August 5, 2026. Management will host a conference call on Thursday, August 6, 2026, at 9:00 a.m. Central (10:00 a.m. Eastern) to discuss the Partnership's quarterly results. Participants are encouraged to dial into the conference call ten to fifteen minutes before the scheduled start time to avoid any delays entering the call. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.

Second-Quarter 2026 Results
Thursday, August 6, 2026
9:00 a.m. Central (10:00 a.m. Eastern)
Dial-in number: 888-880-3330
International dial-in number: 646-357-8766

To participate in WES's scheduled second-quarter earnings call, please refer to the above-listed dial-in information. 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 replay of the conference call will also be available on the website following the call.

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 natural gas, 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.

This news release contains forward-looking statements. WES and its general partner believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been 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 distribution expectations and financial guidance; 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.

Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Sections 1.1446-4(b) and 1.1446(f)-4. Brokers and nominees should treat one hundred percent (100.0%) of Western Midstream Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. Furthermore, one hundred percent (100.0%) of Western Midstream Partners, LP's distributions to non-U.S. investors is in excess of cumulative net income for purposes of Treasury Regulation Section 1.1446(f)-4(c)(iii). Brokers and nominees are treated as withholding agents responsible for withholding on distributions received by them on behalf of non-U.S. investors. The CUSIP number of Western Midstream Partners, LP's common units is 958669 103.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
[email protected]
866-512-3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866-512-3523

SOURCE Western Midstream Partners, LP

126.74K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CCD, WES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

, /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that its 2025 Schedule K-3 reflecting items of international tax relevance is available online. Unitholders requiring this information may access their Schedule K-3 at www.taxpackagesupport.com/westernmidstream.

A limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. To the extent Schedule K-3 is applicable to your federal income tax return filing needs, we encourage you to review the information contained on this form and refer to the appropriate federal laws and guidance, or consult with your tax advisor.

To receive an electronic copy of your Schedule K-3 via email, unitholders may call Tax Package Support toll free at 833-618-2034.

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 and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, 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.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
[email protected]
866-512-3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866-512-3523

SOURCE Western Midstream Partners, LP

3.34K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

, /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced today that its subsidiary, Western Midstream Operating, LP ("WES Operating"), has priced an offering of $700 million in aggregate principal amount of 5.7% senior notes due 2036 at a price to the public of 99.705% of their face value (the "Senior Notes"). The offering of the Senior Notes is expected to close on June 25, 2026, subject to the satisfaction of customary closing conditions. Net proceeds from the offering are expected to be used to repay borrowings outstanding under WES Operating's revolving credit facility and commercial paper program (including borrowings incurred by WES to fund the cash consideration for the acquisition of Brazos Delaware II, LLC), and for general partnership purposes, including the funding of capital expenditures.

TD Securities (USA) LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and MUFG Securities Americas Inc. are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended, copies of which may be obtained from TD Securities (USA) LLC, One Vanderbilt Avenue, 11th Floor, New York, New York 10017 or by phone at 1-855-495-9846; Barclays Capital Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 or by phone at 1-888-603-5847, Citigroup Global Markets Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 or by phone at 1-800-831-9146, and MUFG Securities Americas Inc., 1221 Avenue of the Americas, 6th Floor, New York, New York 10020 or by phone at 1-877-649-6848. An electronic copy of the prospectus and the related prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offer is being made only through the prospectus as supplemented, which is part of a shelf registration statement that became effective on June 22, 2026.

ABOUT WESTERN MIDSTREAM

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, supplying 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.

This news release contains forward-looking statements. WES, WES Operating, and their general partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been 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, including WES Operating's ability to close successfully on the Senior Notes offering and to use the net proceeds as described herein. See "Risk Factors" in WES's and WES Operating's Annual Reports on Form 10-K for the year ended December 31, 2025, Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and other public filings and press releases. Except as required by law, neither WES nor WES Operating undertakes the obligation to publicly update or revise any forward-looking statements.

WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

SOURCE Western Midstream Partners, LP

The produced-water treatment pilot facility is a Joint Industry Project (JIP) between Western Midstream, Chevron, ConocoPhillips, Devon, and ExxonMobil. The facility is designed to produce approximately 1,000 barrels per day of reclaimed freshwater – ten times the amount of JIP 1. The facility's water output is expected to contribute to long-term water security in West Texas. , /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership"), alongside its Joint Industry Project (JIP) collaborators Chevron U.S.A. Inc. ("Chevron"), ConocoPhillips Company ("ConocoPhillips"), Devon Energy Corporation ("Devon"), and Exxon Mobil Corporation ("ExxonMobil"), announced the start-up of its second produced-water treatment pilot facility ("JIP 2") near Red Bluff Reservoir in Reeves County, Texas. The facility is designed to receive 2,000 barrels per day of produced water and produce approximately 1,000 barrels per day of reclaimed freshwater, or approximately ten times the amount produced by JIP 1. This new facility builds upon the success of JIP 1 (described below) which evaluated and field-tested multiple produced-water treatment technologies to select preferred, high-performing solutions for ongoing operations.

In 2023, WES and its collaborators created JIP 1, a small-scale pilot site in West Texas, to evaluate and measure technologies needed to commercialize beneficial use of produced water in the Permian Basin. During the 24-month project, technical experts at WES and its collaborators collected over 50,000 water quality data points to demonstrate a treatment process that can consistently produce water quality suitable for end-use applications that include industrial cooling, irrigation, and surface discharge.

The JIP 2 facility will also serve as a demonstration site, enabling continued optimization of operations while validating consistent reclaimed freshwater production for a range of end-use applications. Insights and data collected from JIP 2 will guide the next phase of commercial-scale desalination facilities. WES and its JIP collaborators will continue to work closely with regulators, local communities, and independent experts to further validate the treatment process and confirm water quality outcomes. These investments are aimed at reducing industry disposal volumes while developing a potential alternative water source benefiting industry and surrounding communities.

"The start-up of JIP 2 marks a pivotal milestone in our journey to transform a produced-water stream from a disposal challenge into a valuable resource for the Permian Basin and beyond," said Oscar K. Brown, President and Chief Executive Officer of WES. "Through our multi-barrier treatment approach, we are transforming that stream into highly treated reclaimed freshwater suitable for industrial cooling and irrigation applications, while helping reduce pressure on Texas' limited water resources. WES already handles approximately 3.0 million barrels per day of produced water using all of today's oil and gas flow-assurance solutions: water sourcing, recycling, gathering, long-haul transportation, and disposal, and we believe beneficial reuse will be the next major solution to the Permian Basin's water challenges. We are very proud of the progress our team and our JIP members have made together over the past two years, and we believe JIP 2 brings us meaningfully closer to WES's first commercial-scale facility."

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.

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 close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; 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.

JIP COLLABORATORS DISCLAIMER

The organizations participating in the Joint Industry Project are collaborating solely with respect to the Joint Industry Project described in this release. Such participation does not make any participant a party to, or responsible for, any other Western Midstream transactions, projects, investments, business activities, or statements referenced herein.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

SOURCE Western Midstream Partners, LP

Western Midstream Partners is upgraded to a 'strong buy' due to compelling valuation, low leverage, and robust yield. WES's $1.6B acquisition of Brazos Delaware expands processing capacity and is priced attractively at 8x EV/EBITDA, declining to 7.5x with synergies. Recent financials show consistent revenue, profit, and cash flow growth, with produced water throughput up 139.3% year-over-year in Q1.

In the latest trading session, Western Midstream (WES - Free Report) closed at $44.57, marking a +1.43% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.5%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.31%.

The oil and gas transportation and storage company's shares have seen a decrease of 4.21% over the last month, not keeping up with the Oils-Energy sector's loss of 2.9% and the S&P 500's loss of 0.23%.

The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.85, reflecting a 2.3% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 15.79% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.44 per share and revenue of $4.45 billion, indicating changes of +15.44% and +15.76%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.79% higher within the past month. As of now, Western Midstream holds a Zacks Rank of #3 (Hold).

With respect to valuation, Western Midstream is currently being traded at a Forward P/E ratio of 12.77. For comparison, its industry has an average Forward P/E of 12.77, which means Western Midstream is trading at no noticeable deviation to the group.

We can also see that WES currently has a PEG ratio of 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 1.62 at yesterday's closing price.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Expands WES's natural-gas and crude-oil and NGLs gathering and processing footprint across the core of the Delaware Basin. Adds approximately 470,000 dedicated acres and 460 MMcf/d of natural-gas processing capacity, increasing WES's total Delaware Basin dedicated acres by approximately 49-percent to more than 1.4 million acres and natural-gas processing capacity by approximately 20-percent to approximately 2.750 Bcf/d. Diversifies WES's customer base through long-term, fixed-fee contracts anchored by high-quality, investment grade counterparties with a portfolio-wide weighted average remaining contract life of over nine years. Purchase price of $1.6 billion represents an ~8.0x multiple on 2027 estimated EBITDA(1), declining to ~7.5x with the commercialization of available processing capacity and identified synergies. Expected to be immediately accretive to estimated 2026 Distributable Cash Flow per unit. Transaction consideration consists of 50-percent cash and 50-percent equity, enabling WES to maintain pro forma net leverage of approximately 3.0x throughout 2026. , /PRNewswire/ -- Western Midstream Partners, LP ("WES" or the "Partnership") (NYSE: WES) today announced that it has entered into a definitive agreement pursuant to which WES will acquire all of the outstanding equity interests of Brazos Delaware II, LLC ("Brazos"), in a transaction valued at approximately $1.6 billion. Under the terms of the agreement, WES will pay approximately $800 million in cash and issue approximately $800 million in WES common units at closing. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close late in the second quarter of 2026.

Brazos is one of the largest privately held gathering and processing platforms in the Texas Delaware Basin, with natural-gas and crude-oil assets spanning Reeves, Ward, Pecos, Winkler, Culberson, and Loving counties. Brazos's assets include approximately 900 miles of pipeline, 460 MMcf/d of nameplate natural-gas processing capacity at the Comanche processing complex, and approximately 470,000 dedicated acres under long-term, fixed-fee contracts with a weighted average remaining contract life of more than nine years. The Brazos business, which processed an average of 336 MMcf/d of natural gas and 25 MBbls/d of crude oil in full-year 2025, is supported by a diversified portfolio of investment grade and private-equity backed Permian Basin focused producers. Nearly all drilling locations on acreage dedicated to Brazos are within two miles of the low-pressure infrastructure, limiting future growth capital needs and increasing Free Cash Flow generation.

CEO COMMENTARY

"We are very pleased to announce the acquisition of Brazos – a highly complementary and strategically compelling bolt-on addition to our existing Delaware Basin platform," commented Oscar K. Brown, President and Chief Executive Officer of WES. "The Brazos acquisition 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. 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 the Brazos transaction is closed and integrated, and our organic growth projects, including the Pathfinder Pipeline and North Loving II, come online in the first and second quarters of 2027, respectively."

"Now that the Aris integration is complete, the combination of the Brazos and WES systems creates an even more integrated Delaware Basin network that is better positioned to compete for new business, provide enhanced flow assurance for our customers, and deliver incremental operational efficiencies across a broader footprint. With approximately 3,500 identified drilling locations at $65 per barrel, WES has line of sight to decades of new throughput. The addition of the Comanche processing complex also further strengthens our position as one of the largest natural-gas processors in the basin and provides meaningful capacity to support anticipated throughput growth from the Woodford and other high-return formations on the dedicated acreage."

"The Brazos acquisition is consistent with our disciplined approach to capital deployment, and our strong balance sheet and significant liquidity position has enabled us to take advantage of strategic M&A opportunities when they arise. Additionally, Brazos's strong Free Cash Flow conversion will support our goal of increasing distribution coverage while still delivering mid-to-low single digits annual distribution growth and maintaining our peer-leading leverage ratio," Mr. Brown concluded.

TERMS OF ACQUISITION

Under the terms of the agreement, WES will pay approximately $800 million in cash and issue approximately $800 million in WES common units at closing. WES expects to maintain pro forma net leverage of approximately 3.0x throughout 2026. For additional details on WES's acquisition of Brazos, please refer to the slide presentation available under the "Events and Presentations" tab at www.westernmidstream.com.

ADVISORS

Greenhill, a Mizuho affiliate, served as financial advisor and Troutman Pepper Locke LLP served as legal advisor to WES. Jefferies LLC served as financial advisor and Vinson & Elkins LLP served as legal advisor to Brazos.

ABOUT BRAZOS MIDSTREAM

Headquartered in Fort Worth, Texas, the Brazos Midstream entities ("Brazos Midstream") collectively represent the largest privately held midstream platform in the Permian Basin. On a combined basis, including both Brazos and Brazos Midland, Brazos Midstream's critical hydrocarbon infrastructure totals approximately 1,200 miles of natural-gas, natural-gas liquids and crude-oil gathering pipelines spanning the most prolific producing counties in the Midland and Delaware Basins; approximately 1.0 Bcf/d of total Permian-based processing capacity with expansion projects underway to expand to approximately 1.3 Bcf/d by year-end 2026; and 75,000 barrels of crude oil storage.

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)

This is a non-GAAP financial measure. Forecasted EBITDA is based on WES's projections for the business to be acquired. Forecasted EBITDA is not presented as an alternative to the nearest GAAP financial measure, net income, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We are unable to present the most directly comparable GAAP measure or a reconciliation of forecasted EBITDA to net income because certain elements of net income, including interest, depreciation and taxes, are not available without unreasonable effort.

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 close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; 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, except as required by applicable law.

WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

SOURCE Western Midstream Partners, LP

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, U.S. February 18, 2025. REUTERS/Eli Hartman/File Photo Purchase Licensing Rights, opens new tab

CompaniesMay 6 (Reuters) - Western Midstream Partners (WES.N), opens new tab ​said on Wednesday it would ‌acquire privately held Brazos Delaware II in a $1.6 billion deal, ​expanding its gathering and ​processing footprint in the core ⁠of the Permian Basin.

The ​company will pay about $800 million ​in cash and issue roughly $800 million in common units as part ​of the transaction, which ​is expected to close in the second ‌quarter.

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Brazos, ⁠one of the largest privately held gathering and processing platforms in the Texas ​Delaware Basin, ​has ⁠assets across the oil-rich region.

The assets include ​about 900 miles of ​pipeline, ⁠460 million cubic feet per day of nameplate natural-gas ⁠processing ​capacity at the ​Comanche processing complex.

Reporting by Sumit Saha in ​Bengaluru; Editing by Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Western Midstream Partners, LP Common Units (WES) Q1 2026 Earnings Call Transcript