Western Midstream Partners, LP Q2 FY26 Results

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. 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.

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. 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.