third quarter 2026
Filed Nov 4, 2026Western Midstream Announces Third-Quarter 2026 Results
Record natural-gas and Delaware Basin throughput supported $708.3 million of Adjusted EBITDA, up 12-percent from the prior-year period, while the partnership reaffirmed its 2026 Adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow ranges. Sequential Adjusted EBITDA and Distributable Cash Flow declined, and capital expenditures are now expected to be slightly above the high end of the $850.0 million to $1.0 billion range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues and other, three months ended September 30GAAP | $1.19B | – | – |
| Service revenues – fee based, three months ended September 30GAAP | $1.02B | – | – |
| Service revenues – product based, three months ended September 30GAAP | $88.16M | – | – |
| Product sales, three months ended September 30GAAP | $95.71M | – | – |
| Equity income, net – related parties, three months ended September 30GAAP | $18.80M | – | – |
| Total operating expenses, three months ended September 30GAAP | $745.6M | – | – |
| Operation and maintenance, three months ended September 30GAAP | $291.5M | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $223.8M | – | – |
| Operating income (loss), three months ended September 30GAAP | $461.5M | – | – |
| Net income (loss), three months ended September 30GAAP | $339.0M | – | – |
| Net income (loss) attributable to limited partners, three months ended September 30GAAP | $324.8M | – | – |
| Net income (loss) per common unit – diluted, three months ended September 30GAAP | $0.78 | – | – |
| Gross margin, three months ended September 30GAAP | $848.8M | – | – |
| Adjusted Gross Margin, three months ended September 30non-GAAP | $1.04B | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $708.3M | – | 12-percent increase compared to the prior-year period |
| Distributable Cash Flow, three months ended September 30non-GAAP | $512.3M | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $567.5M | – | – |
| Net cash provided by (used in) investing activities, three months ended September 30GAAP | −$317.8M | – | – |
| Net cash provided by (used in) financing activities, three months ended September 30GAAP | −$310.0M | – | – |
| Free Cash Flow, three months ended September 30non-GAAP | $244.2M | – | – |
| Free Cash Flow after distributions, third quarter 2026non-GAAP | negative $148.5 million | – | – |
| Capital expenditures, third quarter 2026other | $303.4M | – | – |
| Capital expenditures, three months ended September 30GAAP | $302.3M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $1.57B | – | – |
| Capital expenditures, nine months ended September 30GAAP | −$808.4M | – | – |
| Cash and cash equivalents at end of periodGAAP | $44.5M | – | – |
| Long-term debt, September 30, 2026GAAP | $8.88B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Natural-gas assets throughputRecord natural-gas throughput; increased throughput from legacy assets and a full quarter of contribution from the Brazos Delaware acquisition. | 5,936 MMcf/d | 8 % | – |
| Delaware Basin natural-gas throughputMostly driven by the acquisition of Brazos Delaware in June 2026. | 2,562 MMcf/d | 20 % | – |
| Crude-oil and NGLs assets throughputManagement cited lower crude-oil and NGLs pricing as a factor in the modest sequential decline in Adjusted EBITDA. | 535 MBbls/d | — % | – |
| Produced-water assets throughputRecord Delaware Basin produced-water throughput. | 3,047 MBbls/d | 2 % | – |
year ending December 31, 2026 outlook
- NoteAdjusted EBITDA of $2.750 billion to $2.950 billion
- NoteDistributable Cash Flow of $2.050 billion to $2.250 billion
- NoteFree Cash Flow of $1.100 billion to $1.300 billion
- Note2026 total capital expenditures expected to be slightly above the high end of the $850.0 million to $1.0 billion guidance range
- NoteFull-year Adjusted EBITDA anticipated above the midpoint of the $2.750 billion to $2.950 billion guidance range
Capital returns
- Third-quarter distribution of $0.930 per unit.
- Distribution of $3.72 per unit on an annualized basis.
- WES will pay its third-quarter 2026 per-unit distribution of $0.930 on November 13, 2026.
- Distributions to Partnership unitholders were $(1,146,997) thousand for the nine months ended September 30, 2026.
- Third-quarter 2026 Free Cash Flow after distributions totaled negative $148.5 million.
What drove it
- Record partnership-wide natural-gas throughput of 5.9 Bcf/d.
- Record Delaware Basin natural-gas throughput of 2.6 Bcf/d, mostly driven by the Brazos Delaware acquisition.
- Record Delaware Basin produced-water throughput of 3,047 MBbls/d.
- WES acquired a 7.5-percent equity interest in the Solitude Pipeline System joint venture, which is expected to provide initial takeaway capacity of up to 2.25 Bcf/d in late 2029 and an incremental 2.25 Bcf/d in 2030.
- Management expects a greater number of wells to come online relative to the third quarter.
Concerns
- Management cited lower crude-oil and NGLs pricing, decreased throughput in the DJ Basin, and slightly higher operation and maintenance expense as drivers of a modest sequential decline in third-quarter Adjusted EBITDA.
- Per-Mcf Adjusted Gross Margin for natural-gas assets was $1.25, down (7) % sequentially.
- Per-Bbl Adjusted Gross Margin for crude-oil and NGLs assets was $2.93, down (9) % sequentially.
- Per-Bbl Adjusted Gross Margin for produced-water assets was $0.89, down (7) % sequentially.
- 2026 total capital expenditures are expected to be slightly above the high end of the $850.0 million to $1.0 billion guidance range.
What to watch
- Integration of Brazos Delaware into the West Texas Complex by mid-December.
- Fourth-quarter results as management expects a greater number of wells to come online relative to the third quarter.
- Capital needs related to accelerating producer activity and WES's investment in the Solitude Pipeline System.
- Start-up of the Pathfinder pipeline, North Loving II coming online, and new gathering and processing agreements in the Powder River Basin.
- 2027 capital expenditures, which management expects to be relatively in line with 2026, with approximately 80-percent directed to the Delaware Basin.
Balance sheet and cash flow
- Cash and cash equivalents at end of period were $44,500 thousand at September 30, 2026, compared with $819,491 thousand at the beginning of the nine-month period.
- Long-term debt was $8,883,595 thousand at September 30, 2026, compared with $8,195,170 thousand at December 31, 2025.
- Total assets were $16,433,959 thousand at September 30, 2026, compared with $14,998,420 thousand at December 31, 2025.
- Net cash provided by operating activities was $1,572,149 thousand for the nine months ended September 30, 2026, compared with $1,664,980 thousand for the prior-year period.
- Acquisitions from third parties were $(818,723) thousand for the nine months ended September 30, 2026.
- Borrowings, net of debt issuance costs were $1,050,464 thousand and repayments of debt were $(800,505) thousand for the nine months ended September 30, 2026.
Analysis
Western Midstream reported third-quarter net income attributable to limited partners of $324.8 million, or $0.78 per diluted common unit. Total revenues and other were $1,194,217 thousand, including $1,018,558 thousand of fee-based service revenues. Adjusted EBITDA was $708.3 million, representing a 12-percent increase compared to the prior-year period. The release identifies fee-based contracts as protecting a substantial majority of cash flows from direct commodity-price volatility.
Operating momentum was led by record natural-gas volumes. Total natural-gas throughput reached 5,936 MMcf/d, up 8 % sequentially, while Delaware Basin natural-gas throughput was 2,562 MMcf/d, up 20 %. Management attributed the Delaware increase mostly to the Brazos Delaware acquisition and reported increased throughput from legacy assets. Produced-water throughput was also a record in the Delaware Basin at 3,047 MBbls/d, up 2 % sequentially.
Sequential financial performance moderated. Adjusted EBITDA was $708,348 thousand versus $736,532 thousand in the prior quarter, and Distributable Cash Flow was $512,305 thousand versus $537,157 thousand. Management attributed the modest sequential Adjusted EBITDA decline primarily to lower crude-oil and NGLs pricing, decreased DJ Basin throughput, and slightly higher operation and maintenance expense. Per-unit adjusted gross margin metrics also declined sequentially across natural gas, crude-oil and NGLs, and produced water.
Cash generation funded substantial growth investment. Third-quarter operating cash flow was $567,510 thousand and Free Cash Flow was $244,159 thousand, while Free Cash Flow after distributions was negative $148.5 million as a result of organic growth capital expenditures. The partnership reaffirmed its 2026 Adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow guidance ranges, but expects total capital expenditures to be slightly above the high end of the $850.0 million to $1.0 billion range. Management cited accelerating producer activity and the Solitude investment, while also outlining expected 2027 growth from Brazos, Pathfinder, North Loving II, and Powder River Basin agreements.
Management, verbatim
WES achieved record natural-gas throughput, partnership-wide and in the Delaware Basin, driven by increased throughput from our legacy assets and a full quarter of contribution from the Brazos Delaware acquisition that closed in June.
Oscar K. Brown, President and Chief Executive Officer of WES
With a greater number of wells expected to come online relative to the third quarter, we expect strong fourth-quarter results and anticipate full-year Adjusted EBITDA above the midpoint of our guidance range of $2.750 billion to $2.950 billion.
Oscar K. Brown, President and Chief Executive Officer of WES
We expect this momentum to carry into 2027, with incremental customer activity, a full year of contribution from Brazos, the start-up of the Pathfinder pipeline, North Loving II coming online, and new gathering and processing agreements in the Powder River Basin positioning us for throughput growth across all three product lines again next year.
Oscar K. Brown, President and Chief Executive Officer of WES
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparisons are available.
- Revenue guidance was not provided.
- Gross margin guidance was not provided.
- Operating expense guidance was not provided.
- Tax-rate guidance was not provided.
- A quarterly cash and cash equivalents balance was not provided.
- Share repurchases or repurchase authorization were not reported.
- A forward-looking GAAP reconciliation for Adjusted EBITDA, Distributable Cash Flow, or Free Cash Flow guidance was not provided because the necessary items were not reasonably estimable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.