Financial Performance - Western Midstream reported revenue of $917.12 million for the quarter ended March 2025, a year-over-year increase of 3.3% [1] - The EPS for the same period was $0.79, down from $1.47 a year ago, indicating a decline [1] - The reported revenue fell short of the Zacks Consensus Estimate of $945.11 million, resulting in a surprise of -2.96% [1] - The company experienced an EPS surprise of -4.82%, with the consensus EPS estimate being $0.83 [1] Key Metrics - Shares of Western Midstream returned +1.9% over the past month, compared to the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Throughput Analysis - Natural gas assets throughput attributable to noncontrolling interest was 181 million cubic feet per day, slightly below the average estimate of 183.9 million cubic feet [4] - Total natural gas throughput was 5,291 million cubic feet per day, compared to the average estimate of 5,394.61 million cubic feet [4] - Total throughput attributable to WES for natural gas assets was 5,110 million cubic feet, below the average estimate of 5,210.71 million cubic feet [4] - Delaware Basin natural gas throughput was 1,975 million cubic feet, compared to the average estimate of 1,988 million cubic feet [4] - Produced-water assets throughput in the Delaware Basin was 1,190 million barrels of oil, slightly above the average estimate of 1,189.3 million barrels [4] - Crude oil and NGLs throughput in the Delaware Basin was 256 million barrels, below the average estimate of 265.83 million barrels [4] - Other revenues reported were $0.20 million, significantly lower than the estimated $15.40 million, representing a -54.5% change compared to the year-ago quarter [4]

[PART I: FINANCIAL INFORMATION (UNAUDITED)](index=6&type=section&id=PART%20I%20FINANCIAL%20INFORMATION%20%28UNAUDITED%29) This section provides the unaudited consolidated financial statements, management's discussion and analysis of financial condition, and disclosures on market risk and internal controls [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Western Midstream Partners, LP and its subsidiary, including statements of operations, balance sheets, and cash flows, followed by detailed notes [Western Midstream Partners, LP Financial Statements](index=6&type=section&id=Western%20Midstream%20Partners%2C%20LP%20Financial%20Statements) Western Midstream Partners, LP reported a net income of $309.0 million for Q1 2025, a decrease from $572.8 million in Q1 2024 due to a non-recurring divestiture gain, while total revenues and operating cash flow increased WES Consolidated Statement of Operations Highlights (Q1 2025 vs Q1 2024) | thousands except per-unit amounts | Three Months Ended March 31, 2025 (thousands) | Three Months Ended March 31, 2024 (thousands) | | :--- | :--- | :--- | | **Total revenues and other** | **$917,116** | **$887,729** | | Service revenues – fee based | $823,197 | $781,262 | | Gain (loss) on divestiture and other, net | $(4,667) | $239,617 | | Operating income (loss) | $409,803 | $679,374 | | **Net income (loss) attributable to WES, LP** | **$309,007** | **$572,830** | | Net income (loss) per common unit – diluted | $0.79 | $1.47 | WES Consolidated Balance Sheet Highlights | thousands | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $448,447 | $1,090,464 | | Total current assets | $1,189,894 | $1,847,190 | | Net property, plant, and equipment | $9,727,094 | $9,714,609 | | **Total assets** | **$12,456,877** | **$13,144,785** | | Short-term debt | $350,597 | $1,011,032 | | Long-term debt | $6,925,033 | $6,926,647 | | **Total liabilities** | **$9,123,306** | **$9,769,615** | | Total equity and partners' capital | $3,333,571 | $3,375,170 | WES Consolidated Statement of Cash Flows Highlights (Q1 2025 vs Q1 2024) | thousands | Three Months Ended March 31, 2025 (thousands) | Three Months Ended March 31, 2024 (thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$530,793** | **$399,708** | | Net cash provided by (used in) investing activities | $(140,790) | $396,849 | | Net cash provided by (used in) financing activities | $(1,032,020) | $(774,098) | | Net increase (decrease) in cash and cash equivalents | $(642,017) | $22,459 | [Western Midstream Operating, LP Financial Statements](index=10&type=section&id=Western%20Midstream%20Operating%2C%20LP%20Financial%20Statements) Western Midstream Operating, LP reported Q1 2025 net income of $315.1 million, a decrease from $584.8 million in Q1 2024 primarily due to a prior-year divestiture gain, with total debt at $7.3 billion WES Operating Consolidated Statement of Operations Highlights (Q1 2025 vs Q1 2024) | thousands | Three Months Ended March 31, 2025 (thousands) | Three Months Ended March 31, 2024 (thousands) | | :--- | :--- | :--- | | **Total revenues and other** | **$917,116** | **$887,729** | | Operating income (loss) | $409,615 | $679,734 | | **Net income (loss) attributable to WES Operating, LP** | **$315,076** | **$584,831** | WES Operating Consolidated Balance Sheet Highlights | thousands | March 31, 2025 (thousands) | December 31, 2024 (thousands) | | :--- | :--- | :--- | | **Total assets** | **$12,483,406** | **$13,134,410** | | Short-term debt | $350,597 | $1,011,032 | | Long-term debt | $6,925,033 | $6,926,647 | | **Total liabilities** | **$9,080,174** | **$9,708,284** | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the Partnership's business, revenue, transactions, capital structure, and segment reporting, including related-party transactions, 2024 divestitures, distribution policies, and outstanding debt - The Partnership is a midstream energy company engaged in gathering, processing, and transporting natural gas, NGLs, crude oil, and produced water, with assets primarily in Texas, New Mexico, and the Rocky Mountains[42](index=42&type=chunk) - In Q1 2024, the Partnership sold its interests in Mont Belvieu JV, Whitethorn LLC, Panola, and Saddlehorn for combined proceeds of **$588.6 million**, resulting in a net gain of **$239.7 million**[59](index=59&type=chunk) - The Board declared a cash distribution of **$0.910 per unit** for Q1 2025, payable in May 2025, an increase from **$0.875 per unit** in prior quarters[61](index=61&type=chunk) - As of March 31, 2025, total outstanding debt was approximately **$7.3 billion**, with WES Operating retiring **$663.8 million** principal of its 3.100% Senior Notes due 2025 during Q1 2025[86](index=86&type=chunk)[87](index=87&type=chunk) - The Partnership operates as a single reportable segment, with Adjusted EBITDA used as the primary performance measure by its Chief Operating Decision Maker (CODM)[98](index=98&type=chunk)[99](index=99&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's financial performance, operational results, and liquidity, covering key events, throughput volumes, revenue/expense analysis, and non-GAAP reconciliations, highlighting divestiture impacts, stable throughput, and strong liquidity [Executive Summary](index=31&type=section&id=Executive%20Summary) The executive summary highlights Q1 2025 events, including senior note retirement, increased quarterly distribution to $0.910 per unit, North Loving plant start-up, and key throughput data showing increases in natural gas and produced-water volumes - Completed the start-up of the North Loving plant in late-February 2025, adding **250 MMcf/d** of gas processing capacity to the West Texas complex[112](index=112&type=chunk) - Increased the first-quarter 2025 per-unit distribution to **$0.910**, up from **$0.875** in the previous quarter[112](index=112&type=chunk) Throughput YoY Change (Q1 2025 vs Q1 2024) | Asset Type | Q1 2025 Throughput | YoY Change | | :--- | :--- | :--- | | Natural-gas assets (MMcf/d) | 5,291 | +2% | | Crude-oil and NGLs assets (MBbls/d) | 514 | -11% | | Produced-water assets (MBbls/d) | 1,190 | +4% | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) This section compares Q1 2025 operating results, showing a decrease in net income to $309.0 million due to the absence of a 2024 divestiture gain, while fee-based service revenues increased by 5% and operation and maintenance expenses rose by 16% - Total natural-gas throughput increased by **120 MMcf/d** year-over-year, driven by higher production in the West Texas, DJ Basin, and Powder River Basin complexes[129](index=129&type=chunk) - Crude-oil and NGLs throughput decreased by **62 MBbls/d** year-over-year, primarily due to the divestiture of Whitethorn LLC and Saddlehorn in Q1 2024[131](index=131&type=chunk) - Fee-based service revenue increased by **$41.9 million** year-over-year, led by a **$31.1 million** increase at the West Texas complex due to higher throughput[137](index=137&type=chunk) - Operation and maintenance expense increased by **$31.6 million** year-over-year, driven by higher costs for equipment, materials, utilities, and labor[146](index=146&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=40&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP measures, reporting Q1 2025 Adjusted Gross Margin at $860.8 million, Adjusted EBITDA at $593.6 million (down 2% YoY), and Free Cash Flow at $399.4 million (up 78% YoY) due to lower capital expenditures Non-GAAP Financial Measures (Q1 2025 vs Q1 2024) | thousands | Three Months Ended March 31, 2025 (thousands) | Three Months Ended March 31, 2024 (thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Adjusted Gross Margin | $860,783 | $845,052 | +2% | | Adjusted EBITDA | $593,572 | $608,409 | -2% | | Free Cash Flow | $399,398 | $224,952 | +78% | [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity from operations, a **$2.0 billion** revolving credit facility, and capital markets access, reporting a **$179.0 million** working capital surplus and **$142.4 million** in Q1 2025 capital expenditures, while retiring **$663.8 million** in senior notes - Primary sources of liquidity include cash from operations, the **$2.0 billion** RCF, and potential debt/equity issuances[189](index=189&type=chunk) - In February 2025, the Board authorized a new **$250.0 million** common unit buyback program, effective through December 31, 2026[191](index=191&type=chunk) - Capital expenditures decreased by **$51.4 million** year-over-year to **$142.4 million** for Q1 2025, mainly due to the completion of the North Loving plant[194](index=194&type=chunk) - During Q1 2025, WES Operating retired the 3.100% Senior Notes due 2025, paying off the **$663.8 million** principal amount[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk disclosure highlights mitigated commodity price exposure, with **96%** of natural gas and **100%** of crude oil/produced water volumes under fee-based contracts, and minimal interest rate risk due to no outstanding variable-rate borrowings - For Q1 2025, **96%** of wellhead natural-gas volume and **100%** of crude-oil and produced-water throughput were serviced under fee-based contracts, limiting direct commodity price exposure[217](index=217&type=chunk) - A **10%** change in commodity prices would not materially impact operating income, financial condition, or cash flows for the next 12 months[217](index=217&type=chunk) - As of March 31, 2025, there were no outstanding borrowings under the RCF or commercial paper program, minimizing immediate exposure to variable interest rates[218](index=218&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[220](index=220&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[221](index=221&type=chunk) [PART II: OTHER INFORMATION](index=52&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides disclosures on legal proceedings, risk factors, unregistered sales of equity securities, other information including director appointments, and a comprehensive list of exhibits filed with the report [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material legal proceedings outside the ordinary course of business that would adversely affect its financial condition or operations - The company is not party to any legal proceedings that are expected to have a material adverse effect on its business or financial condition[224](index=224&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) This section refers investors to the detailed risk factors in the 2024 Annual Report on Form 10-K, indicating no material changes during the quarter - Investors are directed to the risk factors previously disclosed in the 2024 Form 10-K[225](index=225&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no common units were repurchased under its **$250.0 million** buyback program during Q1 2025, with the full authorized amount remaining available through December 31, 2026 - No common units were repurchased during the first quarter of 2025[226](index=226&type=chunk) - As of March 31, 2025, the entire **$250.0 million** authorized amount remains available under the current unit repurchase program[226](index=226&type=chunk) [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) This section discloses no Rule 10b5-1 trading plan adoptions or terminations by directors or executive officers, and reports the appointment of Robert G. Phillips as an independent director on May 4, 2025 - On May 4, 2025, Robert G. Phillips was appointed as an independent member of the Board of Directors[229](index=229&type=chunk) - No executive officers or directors adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2025[227](index=227&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with or incorporated by reference into the Form 10-Q report, including various agreements, indentures, and SEC-required certifications - Lists exhibits filed with the report, including a Retirement Agreement for Robert W. Bourne and an amended Executive Severance Plan[236](index=236&type=chunk) - Includes required CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002[236](index=236&type=chunk)[237](index=237&type=chunk)

EXHIBIT 99.1 WESTERN MIDSTREAM ANNOUNCES FIRST-QUARTER 2025 RESULTS HOUSTON—(PR NEWSWIRE)—May 7, 2025 – Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced first-quarter financial and operating results. Net income (loss) attributable to limited partners for the first quarter of 2025 totaled $301.8 million, or $0.79 per common unit (diluted), with first-quarter 2025 Adjusted EBITDA totaling $593.6 million. First-quarter 2025 Cash flows provided by operating activities tota ...

Core Insights - Western Midstream Partners, LP reported a net income attributable to limited partners of $301.8 million for Q1 2025, translating to $0.79 per common unit diluted, with Adjusted EBITDA of $593.6 million [1][6] - The company announced a quarterly distribution of $0.910 per unit, reflecting a 4% increase from the previous quarter [3][6] - Despite a sequential decrease in throughput across natural gas, crude oil, and produced water, the company remains optimistic about growth driven by operations in the Delaware Basin and ongoing projects [4][5] Financial Performance - Q1 2025 Cash flows from operating activities totaled $530.8 million, with Free Cash Flow amounting to $399.4 million [1][6] - Capital expenditures for the quarter were reported at $163.6 million, with full-year guidance for capital expenditures expected to range between $625 million and $775 million [1][5] - The company retired $664 million of senior notes in January 2025, enhancing its financial position [7] Operational Highlights - Natural gas throughput averaged 5.1 Bcf/d, a 2% decrease from the previous quarter, while crude oil and NGLs throughput averaged 503 MBbls/d, reflecting a 6% decrease [4][26] - The North Loving natural gas processing plant commenced operations ahead of schedule, increasing processing capacity by 250 MMcf/d [5][7] - Record natural gas throughput in the Delaware Basin reached 2.0 Bcf/d, indicating a modest sequential increase [7] Strategic Outlook - The company maintains its 2025 guidance, expecting throughput growth across all products, primarily driven by the Delaware Basin and the Altamont pipeline tie-in [5] - WES emphasizes its commitment to operational excellence and financial flexibility, with a net leverage ratio below 3.0 times and $2.4 billion in liquidity [5] - The investment thesis remains strong, supported by a compelling tax-deferred distribution yield and a disciplined approach to capital allocation [5]

Analysts on Wall Street project that Western Midstream (WES) will announce quarterly earnings of $0.83 per share in its forthcoming report, representing a decline of 43.5% year over year. Revenues are projected to reach $945.11 million, increasing 6.5% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's ...

Core Viewpoint - Western Midstream Partners, LP has appointed Robert G. Phillips as an independent member of its general partner's board of directors, bringing extensive experience in the midstream industry to the company [1][4]. Group 1: Appointment and Experience - Robert G. Phillips has over 47 years of experience in the midstream industry and recently retired as the Founder, Chairman, and CEO of Crestwood Equity Partners LP after its merger with Energy Transfer LP in November 2023 [1][2]. - Phillips founded Crestwood in 2010, leading its growth to an enterprise value exceeding $7.1 billion through organic growth and M&A activities, including mergers with Oasis Midstream Partners LP and Inergy Midstream L.P. [2]. - Prior to Crestwood, Phillips held leadership positions at Enterprise Products Partners L.P., GulfTerra Energy Partners, L.P., and Eastex Energy, Inc. [2]. Group 2: Current Roles and Contributions - Currently, Phillips serves as an independent director of South Bow Corporation and Enstor Inc., the largest privately owned natural gas storage company in the U.S. [3]. - He has been involved with the Energy Infrastructure Council since its inception in 2019 and co-chaired the ESG Committee focused on developing industry-wide Sustainability Standards [3]. Group 3: Company Strategy and Board Composition - The CEO of WES expressed confidence that Phillips' expertise will be instrumental in executing the company's strategy of capital-efficient growth and creating long-term value for stakeholders [4]. - With Phillips' addition, the board of directors of WES's general partner will consist of eight members, four of whom are independent [4]. Group 4: Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [5]. - The company engages in gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, crude oil, and produced water [5]. - A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts [5].

Group 1 - Warren Buffett emphasizes the value of toll bridges for their pricing power and limited alternatives [1] - The concept of high dividend opportunities is highlighted as a strategy for generating income without selling assets [3] - The Income Method is presented as a way to achieve strong returns, targeting a yield of 9-10% [3]

Core Points - Western Midstream Partners, LP (WES) announced a quarterly cash distribution of $0.910 per unit for Q1 2025, representing a 4% increase from the previous quarter's distribution, aligning with prior expectations [1] - The distribution is payable on May 15, 2025, to unitholders of record as of May 2, 2025 [1] - WES plans to report its Q1 2025 results after market close on May 7, 2025, followed by a conference call on May 8, 2025, at 9:00 a.m. Central [2][3] Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [4] - The company engages in gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, crude oil, and produced water [4] - A significant portion of WES's cash flows is secured through fee-based contracts, minimizing direct exposure to commodity price volatility [4]

Company Performance - Western Midstream's stock closed at $38.13, reflecting a +1.98% increase, outperforming the S&P 500's gain of 0.13% on the same day [1] - The stock has experienced a decline of 10.64% over the past month, which is worse than the Oils-Energy sector's loss of 9.42% and the S&P 500's loss of 6.3% [1] Financial Projections - The upcoming earnings per share (EPS) for Western Midstream is projected to be $0.83, indicating a significant decrease of 43.54% from the same quarter last year [2] - Revenue is expected to reach $945.11 million, showing a growth of 6.46% compared to the corresponding quarter of the previous year [2] Annual Estimates - For the entire year, the Zacks Consensus Estimates forecast earnings of $3.42 per share and revenue of $3.79 billion, reflecting changes of -14.93% and +5.21% respectively from the previous year [3] - Recent analyst estimate revisions suggest a positive outlook for the company's business performance and profit potential [3] Valuation Metrics - Western Midstream's Forward P/E ratio stands at 10.94, which is below the industry average Forward P/E of 19.1, indicating a valuation discount [6] - The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, to which Western Midstream belongs, has a Zacks Industry Rank of 52, placing it in the top 21% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Western Midstream at 3 (Hold) [5] - The Zacks Consensus EPS estimate has increased by 0.24% in the past month, reflecting a slight positive sentiment among analysts [5]

Group 1 - Western Midstream Partners (NYSE: WES) has experienced a significant valuation drawdown recently, presenting a new opportunity for dividend investors to establish a position in this leading midstream platform [1] - The article emphasizes that Western Midstream Partners should not be overlooked by investors seeking dividend opportunities [1] Group 2 - The article does not provide any additional relevant content regarding the industry or company beyond the key points mentioned above [2]