Western Gas Partners Lp Stock Earnings Reports

Western Midstream reported record first-quarter adjusted EBITDA of $683 million (up 7% sequentially and 15% YoY), driven by the full-quarter contribution from the Aris acquisition, throughput growth across natural gas, crude/NGLs and produced water, favorable commodity pricing in March (boosting skim oil and excess NGL economics), and ongoing cost-reduction efforts. The company announced the $1.6 billion Brazos Delaware II acquisition (approximately $800M cash / $800M equity), which is contiguous with WES's West Texas footprint and immediately increases dedicated acreage by ~49% and gas processing capacity by ~20%, including ~125 MMcf/d unused Comanche capacity. Management expects Brazos to contribute roughly $100 million of incremental adjusted EBITDA in 2026, to be accretive to distributable cash flow per unit, and to be purchased at ~8x 2027 estimated EBITDA (falling to ~7.5x with commercialization and synergies). WES expects to maintain pro forma net leverage of ~3x in 2026. Guidance: management now expects to be toward the high end of prior 2026 adjusted EBITDA ($2.5B–$2.7B) and distributable cash flow ($1.85B–$2.05B) ranges (before Brazos), free cash flow of $900M–$1.1B, and 2026 capex of $850M–$1.0B (about half directed to Pathfinder produced water pipeline and North Loving II). The quarterly distribution was declared at $0.93/unit (2.2% increase), keeping full-year distribution guidance of at least $3.70/unit intact. Operationally, Delaware Basin volumes were strong (record crude/NGL and produced water throughput), though Waha natural gas pricing volatility and basin curtailments persist and could affect near-term throughput; management expects Waha to be volatile into Q2 and improve as additional takeaway comes online later in the year. Key growth drivers include Brazos integration, two organic projects (Pathfinder and North Loving II), produced-water beneficial reuse commercialization, potential behind-the-meter power and CO2-related services, and continued programmatic M&A. Risks/near-term items: Brazos closing expected end of Q2 (pending integration), producer drilling plan updates not yet received (management will reassess guidance at Q2), Waha volatility and localized curtailments, and timing of commercial wins for water reuse and pipeline fill-up.