Q4 2025 Western Midstream Partners LP Earnings Call Transcript
Key Points
- Western Midstream Partners LP (WES) achieved record adjusted EBITDA and free cash flow in 2025, driven by throughput growth across all products and basins.
- The Aris acquisition enhanced WES's asset base by expanding produced water solutions capabilities and establishing a stronger presence in New Mexico.
- WES successfully reduced capital expenditure expectations for 2026, aligning spending with revised producer activity levels.
- The company achieved $40 million in targeted cost synergies from the Aris acquisition, with 85% of savings expected by the end of Q1 2026.
- WES maintained a strong balance sheet with net leverage around 3x throughout 2025, even after financing the Aris acquisition.
- WES expects more moderate growth rates for overall throughput and adjusted EBITDA in 2026 due to reduced producer activity levels and lower commodity prices.
- Natural gas throughput in the Delaware Basin is expected to remain flat, while crude oil and NGL throughput are projected to decline by low to mid-single digits year-over-year.
- Waha Hub pricing remains a challenge, affecting producers and leading to throughput curtailments in the Delaware Basin.
- The DJ and Powder River Basins are expected to experience declining production, impacting overall throughput growth.
- WES's operation and maintenance expenses increased by 19% sequentially in Q4 2025, primarily due to the inclusion of Aris, although excluding Aris, expenses decreased by 12% compared to the prior year.
(audio in progress) At this time, I would like to welcome everyone to the Western Midstream Partners fourth-quarter 2025 earnings conference call. (Operator Instructions) I would now like to turn the conference over to Daniel Jenkins, Director of Investor Relations. Please go ahead.
Thank you. I'm glad you could join us today for Western Midstream's fourth-quarter 2025 conference call. I'd like to remind you that today's call, the accompanying slide deck and last night's earnings release contain important disclosures regarding forward-looking statements and non-GAAP reconciliations. Please reference Western Midstream's most recent Form 10-K and other public filings for a description of risk factors that could cause actual results to differ materially from what we discuss today. Relevant reference materials are posted on our website.
I'm pleased to inform you that the Western Midstream Partners K1 will be available via our website beginning Wednesday, March 11, Hard copies
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