01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Western Midstream Partners, LP (WES) reported first-quarter 2026 total revenues and other of $1,123,579 thousanda ($1.12 billion), up from $917,116 thousand in the first quarter of 2025, with net income of $359,032 thousand versus $316,552 thousand a year earlier.
Net income attributable to Western Midstream Partners, LP was $350,276 thousandb, and diluted net income per common unit was $0.85 compared with $0.79. Adjusted EBITDA was $683,137 thousand compared with $593,572 thousand in the prior-year quarter, and Distributable Cash Flow was $508,924 thousand compared with $513,757 thousand. Results reflect the Aris Water Solutions acquisition, completed October 15, 2025, which drove much of the growth in produced-water volumes and revenues.
Free Cash Flow fell to $242,298 thousandc from $399,398 thousand a year earlier, as capital expenditures rose to $235,726 thousand from $142,402 thousand and net cash provided by operating activities declined to $469,903 thousand from $530,793 thousand. The Partnership declared a first-quarter 2026 distribution of $0.930 per unit, up from $0.910, payable May 15, 2026. Cash and cash equivalents were $647,495 thousand at March 31, 2026, and total long-term debt carrying value was $8,194,171 thousand, with $2.0 billion of effective borrowing capacity under the revolving credit facility.
A significant subsequent event is the May 6, 2026 agreement to acquire Brazos Delaware II, LLC in an equity-and-cash transaction valued at $1.6 billiond, consisting of approximately $800.0 million in common units and approximately $800.0 million in cash, with closing expected in the second quarter of 2026 subject to customary conditions and regulatory approvals. Occidental, which holds a significant interest in the Partnership, completed a unit redemption of approximately 15.3 million common units valued at $610.0 million in connection with a gathering agreement amendment with a subsidiary of Occidental.
02—Key points
Key Highlights
- Total revenues and other rose to $1,123,579 thousand from $917,116 thousand, and Adjusted EBITDA rose to $683,137 thousand from $593,572 thousand year over year.
- Net income attributable to Western Midstream Partners, LP was $350,276 thousand, or $0.85 per diluted common unit, compared with $309,007 thousand, or $0.79 per unit, in the first quarter of 2025.
- Distributable Cash Flow was $508,924 thousand versus $513,757 thousand a year earlier, and Free Cash Flow declined to $242,298 thousand from $399,398 thousand, driven by higher capital expenditures.
- The first-quarter 2026 per-unit distribution was $0.930, up from $0.910 in the fourth quarter of 2025, totaling $374.6 million in the aggregate.
- Produced-water throughput in the Delaware Basin reached 2,848 MBbls/d versus 1,190 MBbls/d a year earlier, reflecting the Aris acquisition.
- Subsequent to quarter-end, the Partnership agreed to acquire Brazos Delaware II, LLC for $1.6 billion, funded with approximately $800.0 million in common units and approximately $800.0 million in cash.
- Occidental's unit redemption of approximately 15.3 million common units valued at $610.0 million was completed in connection with a West Texas gathering agreement amendment that replaced cost-of-service fees with fixed fees.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.12B$916.92M | +22.3% |
| Operating Expenses | $662.79M$523.08M | +26.7% |
| Operating Income | $469.19M$409.80M | +14.5% |
| Interest Expense | $113.39M$97.29M | +16.5% |
| Net Income | $350.28M$309.01M | +13.4% |
| EPS (Basic) | $0.86$0.79 | +8.9% |
| EPS (Diluted) | $0.85$0.79 | +7.6% |
05—Questions
Frequently Asked Questions
How did WES's core earnings and cash generation trend in the first quarter of 2026?
Adjusted EBITDA increased to $683,137 thousand from $593,572 thousand, but Distributable Cash Flow decreased slightly to $508,924 thousand from $513,757 thousand, and Free Cash Flow fell to $242,298 thousand from $399,398 thousand. The filing attributes the Free Cash Flow decline to a $93.3 million increase in capital expenditures and a $60.9 million decrease in net cash provided by operating activities.
What is the Brazos Delaware acquisition and how will it be financed?
On May 6, 2026, the Partnership agreed to acquire all outstanding equity interests of Brazos Delaware II, LLC in an equity-and-cash transaction valued at $1.6 billion. The Partnership will issue approximately $800.0 million in common units and pay approximately $800.0 million in cash, which it expects to fund with cash on hand, borrowings under the RCF, and/or commercial paper. Closing is expected in the second quarter of 2026, subject to customary conditions and regulatory approvals.
Did the Partnership change its distribution or repurchase its units?
The Board declared a first-quarter 2026 distribution of $0.930 per unit, an increase from $0.910 per unit, payable May 15, 2026. The Partnership repurchased no common units during the first quarter of 2026, leaving $250.0 million authorized under the 2025 Purchase Program through December 31, 2026.
What drove the increase in revenues and net income?
Total revenues and other increased by $206.5 million compared with the first quarter of 2025. The filing attributes the increase largely to the DBM water systems, including the Aris acquisition, which contributed $103.6 million of the increase in fee-based service revenues, along with higher other revenues from customers at the West Texas complex. Net income rose to $359,032 thousand from $316,552 thousand.
How did Occidental's ownership change, and what are the related-party implications?
Occidental's units were reduced through a unit redemption of approximately 15.3 million common units valued at $610.0 million, tied to a West Texas gathering agreement amendment. Following the redemption, Occidental indirectly holds 38.2% of the Partnership's outstanding common units. Occidental remains the only customer exceeding 10% of consolidated revenues, and the filing notes ongoing discussions with Occidental on DJ Basin oil-gathering cost-of-service rate calculations that could adversely affect results if resolved unfavorably.
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