01—Abstract
Summary
Summary of the 10-K filed February 18, 2026. Cited figures are marked; the original filing is the authoritative source.
Western Midstream Partners, LP (NYSE: WES) reported fiscal 2025 results in this Form 10-K filed February 18, 2026.
Total revenues and other were $3,843,403 thousanda in 2025 versus $3,605,223 thousand in 2024, and net income attributable to Western Midstream Partners, LP was $1,180,983 thousand versus $1,573,571 thousand. The 2024 result was boosted by $296,771 thousand of gains on divestiture and other, net, and 2025 included $120.5 million of acquisition-related G&A tied to the Aris Water Solutions acquisition, which closed October 15, 2025 for a transaction valued at $2.0 billion. Adjusted EBITDA rose to $2,480,782 thousand from $2,344,038 thousand, and Free Cash Flow rose to $1,526,025 thousand from $1,324,164 thousand.
The Aris acquisition substantially expanded the produced-water business, with produced-water throughput for the Delaware Basin reaching 1,608 MBbls/d in 2025 versus 1,147 MBbls/d in 2024. Fee-based service revenues were $3,453,052 thousandb, and the filing states that 97% of wellhead natural-gas volume and 100% of crude-oil and produced-water throughput (excluding equity investments) were served under fee-based contracts. Occidental remains the dominant counterparty: it owns the general partner and, as stated in the filing, provided 60% of total revenues and other on an excluding-equity-investments basis.
Subsequent to year-end, the company agreed to a unit redemption with Occidental for approximately 15.3 million common units on February 3, 2026, after which Occidental is stated to hold 38.3% of outstanding common units. Liquidity remained substantial. Cash and cash equivalents were $819,491 thousandc at December 31, 2025, the effective RCF borrowing capacity was $2.0 billion, and the working capital surplus was $420.5 million.
Total debt carrying value was $8.6 billiond. The board declared a fourth-quarter 2025 distribution of $0.910 per unit, unchanged from the prior quarter, and 2026 capital expenditures are expected to range from $850.0 million to $1.0 billion.
02—Key points
Key Highlights
- Revenue and other rose to $3,843,403 thousand in 2025 from $3,605,223 thousand in 2024, while net income attributable to the Partnership fell to $1,180,983 thousand from $1,573,571 thousand, reflecting the absence of 2024's $296,771 thousand divestiture gains and $120.5 million of Aris-related acquisition expenses in 2025.
- Adjusted EBITDA increased to $2,480,782 thousand from $2,344,038 thousand, and Free Cash Flow increased to $1,526,025 thousand from $1,324,164 thousand.
- The Aris acquisition, closed October 15, 2025 at a transaction valued at $2.0 billion, added approximately 830 miles of produced-water pipeline and 1,812 MBbls/d of produced-water handling capacity; Delaware Basin produced-water throughput rose 40% to 1,608 MBbls/d.
- Approximately 97% of wellhead natural-gas volume and 100% of crude-oil and produced-water throughput (excluding equity investments) were served under fee-based contracts in 2025.
- Occidental remains a concentrated counterparty, accounting for 60% of total revenues and other (excluding equity investments), and owns the general partner; a February 3, 2026 unit redemption is expected to reduce its common unit ownership to 38.3%.
- Liquidity at year-end included $819,491 thousand of cash, $2.0 billion of effective RCF borrowing capacity, and a $420.5 million working capital surplus, against $8.6 billion of total debt carrying value.
- The Board maintained the quarterly distribution at $0.910 per unit for the fourth quarter of 2025, and projects 2026 capital expenditures of $850.0 million to $1.0 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 18, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $3.84B$3.60B | +6.6% |
| Operating Expenses | $2.32B$2.04B | +13.4% |
| Operating Income | $1.60B$1.97B | −18.7% |
| Interest Expense | $390.49M$378.51M | +3.2% |
| Net Income | $1.18B$1.57B | −24.9% |
| EPS (Basic) | $2.99$4.04 | −26.0% |
| EPS (Diluted) | $2.98$4.02 | −25.9% |
05—Questions
Frequently Asked Questions
Why did net income fall in 2025 even though revenue grew?
Net income attributable to Western Midstream Partners, LP was $1,180,983 thousand in 2025 versus $1,573,571 thousand in 2024. The filing attributes the decline mainly to a $307.9 million decrease in gain (loss) on divestiture and other, net, since 2024 included gains of $296,771 thousand from the sales of several equity investments and the Marcellus Interest, and to a $273.0 million increase in total operating expenses, which included $120.5 million of Aris acquisition-related G&A and higher depreciation and amortization.
What did the Aris Water Solutions acquisition add to the business?
The Aris acquisition, closed October 15, 2025, added water infrastructure in Lea and Eddy Counties, New Mexico and West Texas, including approximately 830 miles of produced-water pipeline, 1,812 MBbls/d of produced-water handling capacity, 1,560 MBbls/d of water recycling capacity, and 625,000 dedicated acres. The filing states that Aris contributed $116.4 million of revenues in 2025 and that produced-water throughput rose 40% year over year.
How dependent is the Partnership on Occidental?
The filing states Occidental is the owner of the general partner and the Partnership's largest customer. For 2025, excluding equity investments, production owned or controlled by Occidental represented 60% of total revenues and other, 36% of natural-gas throughput, 91% of crude-oil and NGL throughput, and 61% of produced-water throughput. The filing also notes Occidental is not contractually obligated to maintain its dedicated production volumes.
Is the distribution at risk, and how much cash is required to pay it?
The Board declared a fourth-quarter 2025 distribution of $0.910 per unit, paid February 13, 2026, totaling $379.7 million. The filing states that paying $0.91000 per unit per quarter requires $1,518.8 million per year based on common units outstanding at February 2, 2026. The filing notes distributions depend on cash flow rather than GAAP profitability and that there is no assurance of sufficient available cash at currently announced levels.
What is the outlook for capital spending and debt?
For 2026, capital expenditures are expected to range from $850.0 million to $1.0 billion, including equity investments and excluding capitalized interest. At December 31, 2025, the carrying value of outstanding debt was $8.6 billion, and the 4.650% Senior Notes due 2026 were classified as short-term debt. The filing states WES Operating's RCF provides $2.0 billion of effective borrowing capacity, and the 2025 Purchase Program authorizes up to $250.0 million of unit repurchases through December 31, 2026, though no units were repurchased in 2025.
06—Continue