01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Western Midstream Partners, LP and its operating subsidiary Western Midstream Operating, LP reported second-quarter 2025 results in this Form 10-Q.
For the three months ended June 30, 2025, total revenues and other were $942.3 milliona (versus $905.6 million in the prior-year quarter), and net income attributable to Western Midstream Partners, LP was $341.7 million, compared with $378.6 million a year earlier. For the six months ended June 30, 2025, net income attributable to the Partnership was $650.7 million, versus $951.5 million in 2024; the 2024 period included a $298.96 million gain on divestiture and other, net, largely from the sale of equity investments and the Marcellus Interest. Adjusted EBITDA was $617.9 million for the second quarter and $1.21 billion for the six months, and Free Cash Flow was $787.8 million for the six months, versus $649.8 million a year earlier.
The Partnership's cash and cash equivalents fell to $129.7 millionb at June 30, 2025, from $1.09 billion at December 31, 2024, after WES Operating retired the $1.0 billion of 3.100% and 3.950% Senior Notes due 2025 at par. Total debt carrying value was $6.9 billion, with no borrowings under the $2.0 billion revolving credit facility and no commercial paper outstanding. The Board declared a second-quarter 2025 distribution of $0.910 per unit, unchanged from the first quarter, totaling $355.3 million, and no common units were repurchased under the $250.0 million 2025 Purchase Program.
In a subsequent event dated August 6, 2025, the Partnership agreed to acquire Aris Water Solutions Inc. by merger in a transaction valued at $1.5 billionc in equity and cash, plus Aris's $500 million of senior notes. The filing states that the Partnership expects to issue approximately 26.6 million common units and pay approximately $415 million in cash, with closing expected in the fourth quarter of 2025, subject to regulatory approvals and Aris shareholder approval.
02—Key points
Key Highlights
- Q2 2025 total revenues and other of $942.3 million, up from $905.6 million in Q2 2024; net income attributable to Western Midstream Partners, LP of $341.7 million versus $378.6 million.
- Six-month net income attributable to the Partnership of $650.7 million, down from $951.5 million, primarily reflecting the 2024 divestiture gains that did not recur.
- Adjusted EBITDA of $617.9 million for Q2 2025 and $1.21 billion for the six months ended June 30, 2025, compared with $1.19 billion in the prior-year six-month period.
- Free Cash Flow of $787.8 million for the six months ended June 30, 2025, up from $649.8 million in the prior-year period.
- Cash and cash equivalents declined to $129.7 million at June 30, 2025, after the retirement of $1.0 billion of 2025 senior notes; the company reports $2.0 billion of effective RCF borrowing capacity and no commercial paper outstanding.
- Second-quarter 2025 distribution of $0.910 per unit, unchanged from Q1, totaling $355.3 million; no units repurchased under the $250.0 million 2025 Purchase Program.
- Subsequent event: agreement to acquire Aris Water Solutions Inc. for $1.5 billion in equity and cash plus $500 million of Aris senior notes, expected to close in Q4 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 6, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $942.14M$905.36M | +4.1% |
| Operating Expenses | $524.06M$522.65M | +0.3% |
| Operating Income | $444.48M$469.75M | −5.4% |
| Interest Expense | $95.17M$90.52M | +5.1% |
| Net Income | $341.68M$378.65M | −9.8% |
| EPS (Basic) | $0.88$0.97 | −9.3% |
| EPS (Diluted) | $0.87$0.97 | −10.3% |
05—Questions
Frequently Asked Questions
How did Western Midstream's second-quarter 2025 operating performance compare with the prior-year quarter?
Total revenues and other rose to $942.3 million from $905.6 million, and service revenues – fee based increased to $851.4 million from $793.8 million. Net income attributable to Western Midstream Partners, LP was $341.7 million, compared with $378.6 million in Q2 2024, which included a $59.3 million gain on divestiture and other, net.
Why did net income decline for the six-month period?
The filing states that net income decreased by $306.5 million for the six months ended June 30, 2025, primarily due to a $304.5 million decrease in gain on divestiture and other, net, a $43.7 million increase in total operating expenses, and a $12.7 million decrease in equity income, partly offset by a $66.1 million increase in total revenues and other. The 2024 period included gains from the sales of several equity investments and the Marcellus Interest.
What is the status of the company's debt and liquidity?
Carrying value of outstanding debt was $6.9 billion at June 30, 2025. WES Operating repaid the 3.100% Senior Notes due 2025 ($663.8 million) and the 3.950% Senior Notes due 2025 ($336.8 million) with cash on hand. The company reports no borrowings due within the next year, $2.0 billion of effective RCF borrowing capacity, and a $210.2 million working capital surplus.
What is the proposed Aris Water Solutions acquisition?
On August 6, 2025, the Partnership agreed to acquire Aris Water Solutions Inc. by merger. Aris shareholders may elect 0.625 common units, $25.00 in cash, or a combination for each share, with cash capped at $415 million. The Partnership expects to issue approximately 26.6 million common units and pay about $415 million in cash, and to fund the non-equity portion with cash on hand, RCF borrowings, and/or commercial paper. The filing says the deal is expected to close in the fourth quarter of 2025, subject to closing conditions, regulatory approvals, and Aris shareholder approval.
Is the quarterly distribution changing, and is the company repurchasing units?
The Board declared a second-quarter 2025 distribution of $0.910 per unit, the same as the first quarter, totaling $355.3 million, payable August 14, 2025. Under the 2025 Purchase Program, authorized up to $250.0 million through December 31, 2026, the Partnership repurchased no common units during the six months ended June 30, 2025, and $250.0 million remained available.
06—Continue