Western Midstream Partners, LP (NYSE: WES) has announced its record fourth-quarter and full-year 2025 financial and operating results, along with its 2026 financial guidance.
In the fourth quarter of 2025, the net income attributable to limited partners was $187.2 million, while the adjusted EBITDA reached a record high of $635.6 million. This represents a significant increase compared to the previous period. The full-year 2025 net income attributable to limited partners was $1.154 billion, with a record full-year adjusted EBITDA of $2.481 billion, marking a 6-percent year-over-year increase.
The company reported fourth-quarter 2025 cash flows provided by operating activities of $557.6 million, generating fourth-quarter free cash flow of $340.8 million. For the full year 2025, cash flows provided by operating activities were $2.223 billion, generating full-year free cash flow of $1.526 billion, indicating a 15-percent year-over-year increase.
The distribution for the fourth quarter of 2025 was $0.910 per unit, consistent with the prior quarter’s distribution, or $3.64 per unit on an annualized basis. The company plans to recommend a distribution increase of $0.02 per unit to $0.93 per unit, or $3.72 per unit on an annualized basis, starting in the first quarter of 2026, representing a 2.2-percent increase over the prior quarter’s distribution.
Looking ahead to 2026, the company is providing adjusted EBITDA guidance in the range of $2.500 billion to $2.700 billion, representing an approximate 5-percent increase at the mid-point relative to 2025. Additionally, the total capital expenditure guidance range for 2026 is $850.0 million to $1.000 billion, implying a mid-point of $925 million, which is significantly below previous expectations of at least $1.1 billion of total capital expenditures. The distributable cash flow guidance range for 2026 is $1.850 billion to $2.050 billion, or $4.59 to $5.08 per unit.
In terms of operational highlights, the company achieved record annual natural-gas throughput of 5.2 Bcf/d, representing a 4-percent year-over-year increase, and gathered record annual produced-water throughput of 1,578 Mbbls/d, representing a 40-percent year-over-year increase. Moreover, the company sanctioned strategic projects, including the Pathfinder pipeline and the expansion of natural-gas processing capacity in the Delaware Basin.
The company's president and chief executive officer, Oscar K. Brown, highlighted the successful year, delivering record adjusted EBITDA and free cash flow due to steady throughput growth across all products, as well as advancements in growth strategy with the acquisition of Aris Water Solutions.
As the company looks forward to 2026, Kristen Shults, senior vice president and chief financial officer, noted the expectation of continued throughput growth in the Delaware Basin and anticipated cost efficiencies despite a more challenging commodity price environment.
Following these announcements, the company's shares moved -0.14%, and are now trading at a price of $41.61. For the full picture, make sure to review Western Midstream's 8-K report.
