How did Western Midstream's first-quarter 2025 earnings compare with the prior-year quarter?

Net income attributable to limited partners was $301.8 million in Q1 2025, compared with $559.5 million in Q1 2024. Operating income fell to $409.8 million from $679.4 million, largely because the prior-year quarter included a $239.6 million gain on divestiture and other, net, while the current quarter reflected a $4.7 million loss. Total revenues and other rose to $917.1 million from $887.7 million.

Is the distribution expected to change?

The Partnership announced a first-quarter 2025 distribution of $0.910 per unit, or $3.64 annualized, which is 4% higher than the prior quarter's distribution. It is payable on May 15, 2025. Free Cash Flow after distributions for the quarter was $58.4 million.

What did management say about 2025 guidance and capital spending?

Management said 2025 guidance remains unchanged and that it has not observed significant near-term forecast changes from customers. Capital expenditures are expected to range from $625 million to $775 million, mainly for completing North Loving, ongoing Pathfinder project expenses, and expansion in the Powder River Basin and at the Chipeta plant. If market conditions weaken and customers reduce activity, management said it could lower capital spending by canceling or deferring growth projects.

What drove the increase in Adjusted EBITDA?

Management attributed the sequential increase in Adjusted EBITDA primarily to increased NGLs recoveries combined with higher commodity pricing, record natural-gas throughput, higher margin contribution from the Delaware Basin, and lower operating expenses. The filing also notes that the Partnership's contract structures provide more predictable cash flows during commodity price volatility.

What is the company's balance sheet and liquidity position?

Management reported investment-grade credit ratings, net leverage below 3.0 times, and $2.4 billion in liquidity. During January 2025 the Partnership retired $664 million of senior notes using cash on hand. Cash and cash equivalents were $448.4 million at March 31, 2025, and long-term debt was $6.93 billion.

WES 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Western Midstream Partners, LP (NYSE: WES) filed this Form 8-K on May 7, 2025 to furnish its press release announcing first-quarter 2025 results (Exhibit 99.1).

The Partnership reported first-quarter 2025 net income attributable to limited partners of $301.8 million^a, or $0.79 per common unit (diluted), and Adjusted EBITDA of $593.6 million. Cash flows provided by operating activities were $530.8 million, and Free Cash Flow was $399.4 million, of which $58.4 million remained after distributions. Total revenues and other were $917.1 million, compared with $887.7 million in the prior-year quarter, while net income attributable to limited partners declined from $559.5 million, a decline driven largely by the prior-year $239.6 million gain on divestiture.

Operationally, the company gathered record natural-gas throughput in the Delaware Basin of 2.0 Bcf/d and completed the North Loving natural-gas processing plant in late February, raising operated nameplate processing capacity by 250 MMcf/d to approximately 2.2 Bcf/d. Total throughput attributable to WES was 5.1 Bcf/d for natural gas (down 2% sequentially), 503 MBbls/d for crude oil and NGLs (down 6%), and 1,166 MBbls/d for produced water (down 2%). Management stated that 2025 guidance is unchanged and that capital expenditures are expected to range between $625 million^b and $775 million.

The first-quarter distribution of $0.910^c per unit, up 4% from the prior quarter, is payable May 15, 2025. Management cited investment-grade credit ratings, net leverage below 3.0 times, and $2.4 billion in liquidity. The filing also notes that $664 million of senior notes were retired in January 2025 using cash on hand, and that the company placed orders for Pathfinder Pipeline steel from a domestic mill to limit exposure to tariffs.

A conference call is scheduled for May 8, 2025 at 9:00 a.m. Central Time.

02—Key points

Key Highlights

Net income attributable to limited partners of $301.8 million ($0.79 per diluted unit) in Q1 2025, versus $559.5 million in Q1 2024.
Adjusted EBITDA of $593.6 million and Free Cash Flow of $399.4 million; Free Cash Flow after distributions was $58.4 million.
Record Delaware Basin natural-gas throughput of 2.0 Bcf/d; North Loving plant started up in late February, lifting operated processing capacity to about 2.2 Bcf/d.
Total throughput attributable to WES: 5.1 Bcf/d natural gas (down 2% sequentially), 503 MBbls/d crude oil and NGLs (down 6%), 1,166 MBbls/d produced water (down 2%).
First-quarter distribution of $0.910 per unit ($3.64 annualized), 4% above the prior quarter, payable May 15, 2025.
2025 guidance unchanged; capital expenditures expected between $625 million and $775 million.
Retired $664 million of senior notes in January 2025 with cash on hand; liquidity of $2.4 billion and net leverage below 3.0 times.

03—Questions

Frequently Asked Questions

How did Western Midstream's first-quarter 2025 earnings compare with the prior-year quarter?
Net income attributable to limited partners was $301.8 million in Q1 2025, compared with $559.5 million in Q1 2024. Operating income fell to $409.8 million from $679.4 million, largely because the prior-year quarter included a $239.6 million gain on divestiture and other, net, while the current quarter reflected a $4.7 million loss. Total revenues and other rose to $917.1 million from $887.7 million.
Is the distribution expected to change?
The Partnership announced a first-quarter 2025 distribution of $0.910 per unit, or $3.64 annualized, which is 4% higher than the prior quarter's distribution. It is payable on May 15, 2025. Free Cash Flow after distributions for the quarter was $58.4 million.
What did management say about 2025 guidance and capital spending?
Management said 2025 guidance remains unchanged and that it has not observed significant near-term forecast changes from customers. Capital expenditures are expected to range from $625 million to $775 million, mainly for completing North Loving, ongoing Pathfinder project expenses, and expansion in the Powder River Basin and at the Chipeta plant. If market conditions weaken and customers reduce activity, management said it could lower capital spending by canceling or deferring growth projects.
What drove the increase in Adjusted EBITDA?
Management attributed the sequential increase in Adjusted EBITDA primarily to increased NGLs recoveries combined with higher commodity pricing, record natural-gas throughput, higher margin contribution from the Delaware Basin, and lower operating expenses. The filing also notes that the Partnership's contract structures provide more predictable cash flows during commodity price volatility.
What is the company's balance sheet and liquidity position?
Management reported investment-grade credit ratings, net leverage below 3.0 times, and $2.4 billion in liquidity. During January 2025 the Partnership retired $664 million of senior notes using cash on hand. Cash and cash equivalents were $448.4 million at March 31, 2025, and long-term debt was $6.93 billion.

04—Continue

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