01—Abstract
Summary
Summary of the 10-Q filed November 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Western Midstream Partners, LP (WES) reported solid financial results for the nine months ended September 30, 2026, demonstrating growth driven by strategic acquisitions and increased operational throughput across its midstream asset base.
Total revenues and other increased significantly year-over-year, reflecting strong fee-based service revenues and higher product sales, bolstered by the successful integration of the Brazos Delaware acquisition in June 2026 and the Aris Water Solutions acquisition in October 2025. Despite increased operating expenses and interest expense related to debt for acquisitions, the partnership maintained robust profitability, with net income attributable to Western Midstream Partners, LP showing a healthy increase. The company's liquidity remains strong, supported by operating cash flows and an undrawn revolving credit facility.
WES continues to focus on operational efficiency, system reliability, and environmental stewardship. Strategic capital allocation is evident through ongoing investments in expansion projects, particularly in the DBM water systems and West Texas complex, aiming to enhance capacity and service capabilities. The partnership also announced a subsequent event of acquiring another Delaware Basin produced-water gathering and disposal company and divesting its Southwest Wyoming assets, indicating proactive portfolio management.
02—Key points
Key Highlights
- Total revenues and other increased by 25.96% for the nine months ended September 30, 2026, compared to the same period in 2025, reaching $3.54 billion, driven by strong fee-based service revenues and product sales.
- The acquisition of Brazos Delaware II, LLC closed on June 11, 2026, for approximately $1.67 billion, significantly expanding the partnership's gathering and processing footprint in the Delaware Basin.
- Net income attributable to Western Midstream Partners, LP increased to $1.09 billion for the nine months ended September 30, 2026, up from $990.3 million in the prior year period.
- Operating cash flows remained strong, providing significant liquidity, though net cash provided by operating activities decreased by 5.57% to $1.57 billion for the nine months ended September 30, 2026, compared to the prior year.
- Capital expenditures increased by 59.86% to $808.4 million for the nine months ended September 30, 2026, primarily related to expansion projects at DBM water systems and the West Texas complex.
- The partnership maintained its quarterly per-unit distribution at $0.930 for the third quarter of 2026, consistent with the second quarter.
- Subsequent events include an agreement to acquire a Delaware Basin produced-water gathering and disposal company for approximately $98.0 million and an agreement to sell Southwest Wyoming assets for approximately $75.0 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 4, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.19B$952.30M | +25.4% |
| Operating Expenses | $745.64M$525.30M | +41.9% |
| Operating Income | $461.55M$441.56M | +4.5% |
| Interest Expense | $116.58M$92.35M | +26.2% |
| Net Income | $331.91M$339.62M | −2.3% |
| EPS (Basic) | $0.79$0.87 | −9.2% |
| EPS (Diluted) | $0.78$0.87 | −10.3% |
05—Questions
Frequently Asked Questions
What were the key drivers of revenue growth in the first nine months of 2026?
Revenue growth was primarily driven by an increase in service revenues – fee based, which rose by $389.1 million for the nine months ended September 30, 2026, compared to the same period in 2025. This was largely due to the acquisition of the Comanche complex (Brazos Delaware) and increased throughput at the DBM water systems following the Aris acquisition. Other revenues from customers also saw significant growth, increasing by $341.2 million, driven by higher volumes and prices related to the Aris acquisition and the West Texas complex.
How has the company's debt position changed, and what is its impact on financial results?
Total debt increased from $8.64 billion at December 31, 2025, to $9.15 billion at September 30, 2026. This increase is largely due to the financing of acquisitions, including the Brazos Delaware acquisition. Consequently, interest expense increased by $54.1 million for the nine months ended September 30, 2026, compared to the prior year period, reflecting the new debt issuances and higher interest rates on certain notes.
What is the outlook for the company's operations given market conditions?
The company's business is primarily driven by producer activity, which is influenced by commodity prices and operational challenges. WES expects its performance to be affected by fluctuations in crude oil, natural gas, and NGL prices. High inflation has increased operating and capital costs, and potential future tariffs could further impact expenses. The company aims to manage these risks by adjusting capital spending, maintaining liquidity, and seeking cost recovery where permitted by contracts. Despite these factors, WES has a high percentage of fee-based contracts, mitigating direct commodity price exposure for a significant portion of its volumes.
What are the significant capital expenditures and how are they expected to impact future operations?
Capital expenditures increased significantly by $302.6 million for the nine months ended September 30, 2026, totaling $808.4 million. These investments are primarily directed towards expansion projects, such as the Pathfinder pipeline and other water gathering systems at the DBM water systems, and construction costs at the West Texas complex. These investments are intended to enhance capacity and service capabilities, supporting future growth in throughput and revenue.
06—Continue