01—Abstract
Summary
Summary of the 10-Q filed November 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Western Midstream Partners, LP (WES) reported third-quarter 2025 results in its Form 10-Q filed November 4, 2025.
Total revenues and other were $952.5 milliona for the three months ended September 30, 2025, versus $883.4 million a year earlier, and net income attributable to Western Midstream Partners, LP was $339.6 million, compared with $288.5 million. For the nine months, net income attributable to the Partnership was $990.3 million, down from $1.24 billion, primarily because of a $299.4 million gain on divestiture in the prior-year period. Adjusted EBITDA was $633.8 million for the quarter and $1.85 billion for the nine months, compared with $1.75 billion a year earlier.
Free Cash Flow was $1.19 billionb for the nine months, versus $1.01 billion in the prior-year period, and the Partnership repurchased no common units under its $250.0 million 2025 Purchase Program. The balance sheet shows cash and cash equivalents of $177.3 million at September 30, 2025, down from $1.09 billion at year-end 2024, after the retirement of $1.0 billion of 2025 senior notes. Short-term debt fell to $13.1 million, and long-term debt was $6.92 billion.
The Board declared a third-quarter distribution of $0.910c per unit, unchanged from the second quarter, totaling $379.5 million, payable November 14, 2025. The filing also discloses a subsequent event: the October 15, 2025 acquisition of Aris Water Solutions, Inc. for $1.5 billion in equity and cash plus about $500 million of assumed senior notes, funded with roughly 26.6 million common units and $415.0 million in cash borrowed under the commercial paper program. Initial purchase accounting was not complete at filing.
The Partnership's $2.0 billiond revolving credit facility was undrawn at quarter-end, and it had $2.0 billion of effective borrowing capacity. Occidental remains the only customer exceeding 10% of revenues and holds a 42.4% limited partner interest. The filing also flags an ongoing discussion with Occidental about cost-of-service rate calculations on the DJ Basin oil-gathering system that could affect rates if resolved adversely.
02—Key points
Key Highlights
- Total revenues and other of $952.5 million for Q3 2025, up from $883.4 million in Q3 2024; net income attributable to Western Midstream Partners, LP of $339.6 million, versus $288.5 million
- Adjusted EBITDA of $633.8 million for Q3 2025 and $1.85 billion for the nine months, compared with $1.75 billion for the nine months of 2024
- Free Cash Flow of $1.19 billion for the nine months ended September 30, 2025, up from $1.01 billion; capital expenditures were $505.8 million, down from $595.1 million
- Q3 2025 distribution of $0.910 per unit (unchanged from Q2), totaling $379.5 million, payable November 14, 2025
- Subsequent event: acquisition of Aris Water Solutions, Inc. closed October 15, 2025, for $1.5 billion in equity and cash plus about $500 million of assumed senior notes, including approximately 26.6 million common units issued and $415.0 million in cash
- Cash fell to $177.3 million from $1.09 billion at year-end 2024 after repaying $1.0 billion of 2025 senior notes; the $2.0 billion revolver was undrawn with $2.0 billion of effective borrowing capacity
- No common units were repurchased in the nine months under the $250.0 million 2025 Purchase Program; Occidental is the only customer over 10% of revenues
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 4, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $952.30M$883.11M | +7.8% |
| Operating Expenses | $525.30M$511.94M | +2.6% |
| Operating Income | $441.56M$395.87M | +11.5% |
| Interest Expense | $92.35M$94.15M | −1.9% |
| Net Income | $339.62M$288.48M | +17.7% |
| EPS (Basic) | $0.87$0.74 | +17.6% |
| EPS (Diluted) | $0.87$0.74 | +17.6% |
05—Questions
Frequently Asked Questions
How did Western Midstream's profitability change in the third quarter of 2025?
Total revenues and other rose to $952.5 million from $883.4 million, and net income attributable to Western Midstream Partners, LP rose to $339.6 million from $288.5 million. Adjusted EBITDA was $633.8 million for the quarter, and the filing attributes the Q3 increase mainly to lower operation and maintenance expenses and higher total revenues and other.
Why did nine-month net income decline year over year?
Net income attributable to the Partnership was $990.3 million, compared with $1.24 billion. The filing states that the prior-year period included a $299.4 million gain on divestiture and other, net, which was not repeated in 2025.
What is the Aris acquisition and how was it funded?
The Partnership closed its acquisition of Aris Water Solutions, Inc. on October 15, 2025, in an equity-and-cash transaction valued at $1.5 billion, plus about $500 million of Aris senior notes. It issued approximately 26.6 million common units and paid $415.0 million in cash funded through the commercial paper program. The initial purchase price accounting was not complete at filing.
How is Western Midstream's liquidity and debt position?
Cash and cash equivalents were $177.3 million at September 30, 2025, and short-term debt was $13.1 million. Long-term debt was $6.92 billion. The $2.0 billion revolving credit facility had no outstanding borrowings and $2.0 billion of effective borrowing capacity, and the commercial paper program had no borrowings at quarter-end.
What distributions and buybacks did the Partnership make or authorize?
The Board declared a third-quarter 2025 distribution of $0.910 per unit, totaling $379.5 million, payable November 14, 2025. Under the $250.0 million 2025 Purchase Program, the Partnership repurchased no common units during the nine months, leaving $250.0 million available.
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