Western Midstream Exceeds 2025 Guidance, Boosts Distribution, and Projects 5% EBITDA Growth in 2026

summarizeSummary

Western Midstream Partners reported strong fourth-quarter and full-year 2025 results, exceeding financial guidance, and announced a distribution increase along with positive 2026 financial guidance.

check_boxKey Events

• Exceeded 2025 Financial Guidance

  Reported record full-year 2025 Adjusted EBITDA of $2.481 billion, exceeding the midpoint of guidance, and Free Cash Flow of $1.526 billion, exceeding the high end of guidance.

• Strong 2026 Financial Guidance

  Provided 2026 Adjusted EBITDA guidance of $2.500 billion to $2.700 billion, representing an approximate 5% increase at the midpoint, and Distributable Cash Flow of $1.850 billion to $2.050 billion.

• Increased Distribution Planned

  Plans to recommend a distribution increase of $0.02 per unit to $0.93 per unit quarterly, or $3.72 per unit on an annualized basis, starting in the first quarter of 2026.

• Reduced 2026 Capital Expenditures

  Announced 2026 total capital expenditure guidance of $850.0 million to $1.000 billion, with the midpoint significantly below previous expectations of at least $1.1 billion.

auto_awesomeAnalysis

Western Midstream Partners delivered robust financial performance in 2025, surpassing its own guidance for both Adjusted EBITDA and Free Cash Flow, driven by increased Delaware Basin throughput and effective cost reduction strategies. The company's 2026 guidance projects continued growth in Adjusted EBITDA and Distributable Cash Flow, alongside a notable reduction in capital expenditures, signaling efficient capital management and a commitment to shareholder returns. The planned distribution increase further underscores management's confidence in the partnership's financial health and future cash-generating capabilities. Strategic initiatives, including the Aris Water Solutions acquisition and the transition to fixed-fee contracts with major customers, are expected to enhance revenue stability and expand the operational footprint, positioning the company for sustainable growth despite a challenging commodity price environment.