10-Q · May 6, 2026
Western Midstream Partners reported a robust Q1 2026 with total revenues of $1.12 billion and diluted EPS of $0.85, both exceeding consensus estimates. Adjusted EBITDA rose 15% YOY, driven by the recent Aris acquisition…
Earnings analysis · 10-Q
WES earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Western Midstream delivered Q3 revenue of $1.194 billion and diluted EPS of $0.78; revenue remained substantially above the prior year, but EPS declined both sequentially and year over year. The filing highlights strong…
Read full summary
Western Midstream delivered Q3 revenue of $1.194 billion and diluted EPS of $0.78; revenue remained substantially above the prior year, but EPS declined both sequentially and year over year. The filing highlights strong fee-based protection, with 96% of natural-gas volume and 100% of crude-oil and produced-water throughput under fee-based contracts. Management maintained its 2026 EBITDA, DCF, and FCF outlook, although capital expenditures are expected to exceed the prior range and the Brazos Delaware integration adds a new material execution risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.78
What stood out
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Revenue remained well above prior year
Third-quarter revenue was $1.194 billion, down approximately 2.1% from $1.22 billion in Q2 2026 but up approximately 25.4% from $952 million in Q3 2025.
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EPS declined sequentially and year over year
Diluted EPS was $0.78 versus $0.99 in Q2 2026 and $0.87 in Q3 2025, representing sequential and year-over-year declines of approximately 21.2% and 10.3%, respectively.
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High fee-based revenue protection
Fee-based exposure remained high: 96% of wellhead natural-gas volume and 100% of crude-oil and produced-water throughput were serviced under fee-based contracts for the nine months ended September 30, 2026.
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Limited direct commodity-price sensitivity
Management stated that a 10% increase or decrease in commodity prices would not have a material impact on operating income, financial condition, or cash flows over the next 12 months, excluding imbalances.
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No material control deficiencies reported
Disclosure controls and procedures were assessed as effective as of September 30, 2026, and management reported no material changes to internal control over financial reporting during the quarter.
What to watch
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Brazos Delaware integration risk
The newly added risk factor states that WES may fail to successfully combine Brazos Delaware with its business. The acquisition closed on June 11, 2026, and integration could involve unanticipated liabilities, costs, or failure to realize expected profitability and growth.
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Interest-rate and refinancing exposure
WES Operating had $266.0 million of commercial paper borrowings outstanding as of September 30, 2026. The filing states that future increases in the federal funds rate could increase financing costs, although a 10% benchmark-rate change would not materially affect current interest expense.
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Pending environmental litigation
A Solaris Water Midstream-related lawsuit alleges negligence, waste, trespass, and nuisance tied to saltwater injection operations, with trial scheduled for November 30, 2026. The company uses a $1.0 million threshold for certain environmental proceedings involving government authorities and potential monetary sanctions.
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Capital spending may exceed prior range
Full-year capital expenditures are expected to be slightly above the prior $850.0 million-$1.0 billion range, creating pressure on free cash flow despite reaffirmed 2026 Free Cash Flow guidance of $1.100 billion-$1.300 billion.
Management's outlook
2026 Adjusted EBITDA guidance was reaffirmed at $2.750 billion-$2.950 billion, Distributable Cash Flow guidance at $2.050 billion-$2.250 billion, and Free Cash Flow guidance at $1.100 billion-$1.300 billion. Full-year capital expenditures are expected to be slightly above the prior $850.0 million-$1.0 billion range.
Earlier filings 4
10-K · February 18, 2026
Western Midstream’s 2025 10-K highlights solid cash generation and growth from the Aris Water Solutions acquisition but also shows one-time acquisition costs, higher interest expense from assumed and newly issued debt,…
10-Q · November 6, 2024
Western Midstream reported Q3 (three months ended September 30, 2024) total revenues of $883,362,000 and diluted net income per common unit of $0.74. Revenue grew year-over-year driven by fee-based service revenue,…
10-Q · May 8, 2024
Western Midstream reported a strong Q1 with total revenues of $887,729,000 (up from $733,982,000 in Q1 2023) and diluted net income per common unit of $1.47 (up from $0.52). Operating income benefited from a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.