Core Insights - Western Midstream Partners, LP (NYSE:WES) is recognized as one of the 15 Extreme Dividend Stocks to Buy According to Hedge Funds [1] - Stifel analyst raised the price target for WES from $41 to $43 following strong Q3 results and the successful integration of Aris Water Solutions [2] - The company reported record natural gas throughput in the Delaware Basin and projected $40 million in annual synergy savings from the Aris acquisition [3] Financial Performance - WES expects to reach the upper end of its previously guided 2025 adjusted EBITDA range of $2.35 billion to $2.55 billion, with an estimated contribution of $45 million to $50 million from Aris in Q4 [4] - The revised price target reflects the firm's 2026 outlook, factoring in the Aris acquisition [2] Strategic Developments - The completion of the Aris Water Solutions acquisition is seen as a key step in strengthening WES's position as a leading three-stream midstream provider [3] - Integration of Aris is progressing well, contributing positively to the company's operational capabilities [3]

Core Insights - The article discusses extreme dividend stocks, focusing on high-yield and dividend growth categories, highlighting the potential risks and benefits associated with high dividend yields [2][4]. Dividend Stock Categories - Dividend-focused indices are categorized into dividend growth and high yield, with high-yield stocks attracting income-seeking investors but facing reinvestment challenges [2]. - S&P 500 Dividend Aristocrats, which have increased dividends for at least 25 consecutive years, show steady growth in payouts even during market downturns, offering stronger yield-on-cost over time [3]. Performance of High Yield Dividend Stocks - The S&P Sector-Neutral High Yield Dividend Aristocrats (HYDA) index balances dividend growth with higher yields, achieving better risk-adjusted returns and reducing maximum drawdown by about 5% from January 2005 to July 2023 [4]. Methodology for Stock Selection - The stock screener selected dividend stocks with yields between 6% and 14% as of November 11, focusing on companies with stable dividend histories, although many have inconsistent records due to high yields [6]. - The final list includes companies favored by hedge fund investors, ranked in ascending order based on popularity [6][7]. Company Highlights - **Sunoco LP (NYSE:SUN)**: - Dividend yield of 7.34% as of November 11, with a recent $9 billion acquisition of Parkland Corporation, creating the largest independent fuel distributor in the Americas [9][10]. - Reported Q3 2025 revenue of $6.03 billion, a nearly 5% increase year-over-year, and raised its quarterly distribution by 1.25% [11][12]. - **Western Midstream Partners, LP (NYSE:WES)**: - Dividend yield of 9.18% as of November 11, with a recent price target increase from $41 to $43 by Stifel [13][14]. - Q3 2025 results exceeded expectations, with a projected adjusted EBITDA range of $2.35 billion to $2.55 billion for 2025, including contributions from the Aris acquisition [15][16]. - **Barings BDC, Inc. (NYSE:BBDC)**: - Dividend yield of 11.66% as of November 11, with a recent price target cut to $9.50 while maintaining a Market Perform rating [17]. - Reported total investment income of $72.4 million and net investment income of $33.6 million for Q3 2025, with a quarterly dividend of $0.26 per share [18][19].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Summaries Vitesse Energy Inc (NYSE:VTS) - Dividend Yield: 10.41% - Evercore ISI Group analyst Chris Baker maintained an In-Line rating and reduced the price target from $22 to $20 on October 6, 2025, with an accuracy rate of 69% [7] - Roth MKM analyst John White maintained a Buy rating and increased the price target from $30.5 to $33 on April 2, 2025, with an accuracy rate of 63% [7] - Recent News: Mixed quarterly results reported on November 3 [7] Western Midstream Partners LP (NYSE:WES) - Dividend Yield: 9.18% - Citigroup analyst Spiro Dounis reinstated a Neutral rating with a price target of $39 on October 20, 2025, with an accuracy rate of 75% [7] - Mizuho analyst Gabriel Moreen maintained an Outperform rating and raised the price target from $44 to $46 on August 29, 2025, with an accuracy rate of 68% [7] - Recent News: Weak quarterly results reported on November 4 [7] Plains All American Pipeline LP (NASDAQ:PAA) - Dividend Yield: 9.09% - Raymond James analyst Justin Jenkins reiterated a Strong Buy rating and cut the price target from $24 to $22 on October 24, 2025, with an accuracy rate of 78% [7] - Barclays analyst Theresa Chen maintained an Underweight rating and reduced the price target from $18 to $17 on October 7, 2025, with an accuracy rate of 75% [7] - Recent News: Announced the pricing of a public offering of $750 million of senior notes on November 10 [7]

Financial Data and Key Metrics Changes - The company generated net income attributable to limited partners of $332 million and adjusted EBITDA of $634 million in Q3 2025, with adjusted gross margin remaining relatively flat compared to the previous quarter [17][20] - Operating and maintenance expenses decreased by 5%, or $12 million quarter-over-quarter, due to reduced asset maintenance and repair expenses [17][18] - Cash flow from operating activities totaled $570 million, generating free cash flow of $397 million [19] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 2% sequentially, driven by higher throughput from the Chipeta plant in Utah and increased volumes in South Texas [7] - Crude oil and NGLs throughput decreased by 4% sequentially, primarily due to decreased throughput from the Delaware Basin [8] - Produced water throughput remained flat sequentially, with expectations for a 40% year-over-year increase in Q4 2025 due to the Aris acquisition [10][19] Market Data and Key Metrics Changes - The Delaware Basin throughput was in line with expectations, with low double-digit year-over-year growth anticipated for natural gas and low to mid-single digits for crude oil and NGLs [10][12] - The DJ Basin is expected to see flat year-over-year throughput growth for natural gas and low to mid-single digits for crude oil and NGLs [12] - The Powder River Basin is projected to have flat throughput growth for both natural gas and crude oil and NGLs [12] Company Strategy and Development Direction - The acquisition of Aris Water Solutions positions the company as a leader in produced water midstream solutions in the Delaware Basin, enhancing its commercial capabilities [4][24] - The company aims to capture $40 million in annual run rate synergies from the Aris acquisition and is focused on organic growth alongside potential inorganic opportunities [4][15][67] - The company is maintaining a disciplined capital allocation framework while planning for significant capital expenditures in 2026 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to address produced water challenges in the Delaware Basin and highlighted the importance of regulatory engagement [4][24] - The company anticipates continued throughput growth in the Delaware Basin, driven by the Aris acquisition and ongoing projects [10][15] - Management acknowledged potential commodity price weakness impacting certain basins but remains optimistic about overall growth prospects [12][58] Other Important Information - The company expects to be at the high end of its previously announced 2025 adjusted EBITDA guidance range of $2.35 billion to $2.55 billion, including contributions from Aris [20] - The company declared a quarterly distribution of $0.91 per unit, consistent with the prior quarter [19] Q&A Session Summary Question: Discussion on O&M expense sustainability - Management confirmed that the reduction in O&M expenses is sustainable and ongoing cost management initiatives are expected to yield further improvements [30][34] Question: Potential for distribution step-ups with major projects - Management indicated that distribution step-ups are possible with major projects or acquisitions, but will be balanced against market conditions and yield considerations [35][37] Question: Update on the Pathfinder project and pore space agreement - Management noted that the pore space agreement enhances project efficiency and flexibility, with positive implications for returns [40][41] Question: Plans for expanding gas and oil infrastructure in New Mexico - Management plans to pursue both organic and inorganic growth opportunities in New Mexico, leveraging the Aris footprint [45][46] Question: Outlook for 2026 and potential portfolio gaps - Management expects overall product growth across all three product lines in 2026, with a focus on the Delaware Basin and cost-cutting initiatives [56][58] Question: Synergies from the Aris acquisition - Management is confident in achieving the $40 million in synergies and anticipates additional operational synergies to emerge in the near term [64][67]

Financial Data and Key Metrics Changes - The company reported net income attributable to limited partners of $332 million and adjusted EBITDA of $634 million for Q3 2025, with adjusted gross margin remaining relatively flat compared to the previous quarter [17][20] - Operating and maintenance expenses decreased by 5%, or $12 million, quarter over quarter, attributed to reduced asset maintenance and repair expenses [17][18] - Cash flow from operating activities totaled $570 million, generating free cash flow of $397 million [19] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 2% sequentially, driven by higher volumes from the Chepeta plant in Utah and the DJ Basin [7][10] - Crude oil and NGLs throughput decreased by 4% sequentially, primarily due to reduced throughput in the Delaware Basin [8] - Produced water throughput remained flat sequentially, with expectations for a 40% year-over-year increase in Q4 2025 due to the Aris acquisition [10][12] Market Data and Key Metrics Changes - The Delaware Basin throughput was in line with expectations, with low double-digit year-over-year growth anticipated for natural gas and low to mid-single digits for crude oil and NGLs [10][11] - The DJ Basin is expected to see flat growth for natural gas and low to mid-single digits for crude oil and NGLs [12] - The Powder River Basin is projected to have flat throughput growth for both natural gas and crude oil and NGLs [12] Company Strategy and Development Direction - The acquisition of Aris Water Solutions positions the company as a leader in produced water midstream solutions in the Delaware Basin, enhancing its commercial capabilities [4][24] - The company aims to capture $40 million in annual run rate synergies from the Aris acquisition and is focused on organic growth alongside potential inorganic opportunities [4][15][67] - The company plans to maintain a disciplined capital allocation framework while pursuing growth opportunities in both Texas and New Mexico [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to address produced water challenges in the Delaware Basin and highlighted the importance of regulatory engagement [4][24] - The company anticipates continued throughput growth in the Delaware Basin, driven by the Aris acquisition and ongoing projects like the Pathfinder pipeline [10][14] - Management acknowledged potential commodity price weakness impacting certain basins but remains optimistic about overall growth prospects [12][58] Other Important Information - The company expects capital expenditures to be at least $1.1 billion in 2026, with a focus on supporting throughput growth across all product lines [22] - The company declared a quarterly distribution of $0.91 per unit, consistent with the prior quarter [19] Q&A Session Summary Question: Discussion on O&M expense sustainability - Management indicated that the reduction in O&M expenses is sustainable and that further improvements are expected [30][34] Question: Potential for distribution step-ups with major projects - Management confirmed that distribution step-ups are possible with successful project completions or acquisitions, while being mindful of yield levels [35][37] Question: Update on the Pathfinder project and pore space agreement - Management noted that the pore space agreement enhances project efficiency and allows for better growth potential in New Mexico [40][41] Question: Plans for expanding gas and oil infrastructure in New Mexico - Management plans to pursue both organic and inorganic growth opportunities in New Mexico, leveraging the Aris acquisition [45][46] Question: Insights on synergies from the Aris acquisition - Management expressed confidence in achieving the $40 million synergy target and anticipates additional operational synergies [64][67]

Financial Data and Key Metrics Changes - The company generated net income attributable to limited partners of $332 million and adjusted EBITDA of $634 million during Q3 2025, with adjusted gross margin remaining relatively flat compared to the previous quarter [16][19] - Operating and maintenance expenses decreased by 5%, or $12 million, quarter over quarter, attributed to reduced asset maintenance and repair expenses [16][18] - Cash flow from operating activities totaled $570 million, generating free cash flow of $397 million [18] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 2% sequentially, driven by higher volumes from the Chepeta plant in Utah and the DJ Basin [6][10] - Crude oil and NGLs throughput decreased by 4% sequentially, primarily due to reduced throughput in the Delaware Basin [8][10] - Produced water throughput remained flat sequentially, with expectations for a 40% year-over-year increase in Q4 2025 due to the Aris acquisition [10][12] Market Data and Key Metrics Changes - The Delaware Basin achieved record natural gas throughput, while the DJ Basin showed strong sequential growth [3][6] - The Powder River Basin experienced decreased throughput due to previously unloaded volumes subsiding [7][12] - The company expects low double-digit year-over-year throughput growth for natural gas in the Delaware Basin and low to mid-single digits for crude oil and NGLs [10][12] Company Strategy and Development Direction - The acquisition of Aris Water Solutions positions the company as a leader in produced water midstream solutions in the Delaware Basin, enhancing commercial capabilities [4][22] - The company aims to capture $40 million in annual run rate synergies from the Aris acquisition and is focused on organic growth alongside potential inorganic opportunities [4][14][67] - The company plans to maintain a disciplined capital allocation framework while pursuing growth opportunities in both Texas and New Mexico [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to address produced water challenges in the Delaware Basin and highlighted the importance of regulatory engagement [4][22] - The company anticipates continued throughput growth in 2026, particularly in the Delaware Basin, despite potential declines in the Powder River Basin due to commodity price weakness [14][57] - Management emphasized the successful execution of cost reduction initiatives, which are expected to continue benefiting the company in 2026 [17][58] Other Important Information - The company expects capital expenditures to be at least $1.1 billion in 2026, with budgeting processes already underway [20] - The company declared a quarterly distribution of $0.91 per unit, consistent with the prior quarter [18] Q&A Session Summary Question: Discussion on O&M expense sustainability - Management indicated that the reduction in O&M expenses is sustainable and that further improvements are expected [28][29][33] Question: Potential for distribution step-ups with major projects - Management confirmed that distribution step-ups are possible with the completion of major projects or acquisitions, while maintaining a cautious approach to yield management [34][36] Question: Update on the Pathfinder project and pore space agreement - Management noted that the pore space agreement enhances project efficiency and allows for better growth potential in New Mexico [40][41][42] Question: Plans for expanding gas and oil infrastructure in New Mexico - Management stated that both organic and inorganic growth strategies will be pursued to expand infrastructure in New Mexico [44][46] Question: Outlook for 2026 and potential portfolio gaps - Management expects overall product growth across all three product lines in 2026, with a focus on leveraging the Aris acquisition for growth [55][57]

Financial Performance - Western Midstream achieved a record total natural-gas throughput of 55 billion cubic feet per day[13] - The company reported record Adjusted EBITDA of $634 million in Q3 2025, a 3% quarter-over-quarter increase[13] - Operating cash flow increased to $5702 million in Q3 2025 from $564 million in Q2 2025[34] - Free cash flow increased to $3974 million in Q3 2025 from $3884 million in Q2 2025[34] - The company's net income for Q3 2025 was $332 million[36] Strategic Growth & Capital Allocation - The company is targeting organic capital projects that meet or exceed mid-teens, unlevered rates of return[40] - The company anticipates free cash flow to be in the range of $1275 billion to $1475 billion for 2025[44] - The company is targeting mid-to-low single-digit annual distribution increases[41] - The company's estimated throughput growth rate for produced water is approximately 40% for 2025[47] Assets and Operations - The North Loving II project, a 300 million cubic feet per day cryogenic processing train, is expected to be in service in Q2 2027[18] - The Pathfinder Pipeline, with a capacity of approximately 800 thousand barrels per day, is expected to be in service in Q1 2027[18] - The company's market capitalization is approximately $153 billion[8]

Operational Performance - As of September 30, 2025, the company operates 18 wholly owned gathering systems, 43 treating facilities, and 27 processing plants, with total gas processing capacity increased to 2,190 MMcf/d after the North Loving plant start-up[120] - Total throughput for natural-gas assets increased by 2% from the previous quarter to 5,549 MMcf/d, with a 12% year-over-year increase from 5,170 MMcf/d[121] - The Delaware Basin's natural gas throughput was 2,113 MMcf/d, showing no significant change from the previous quarter and a 12% increase year-over-year[121] - Total throughput for natural-gas assets increased by 107 MMcf/d for the three months ended September 30, 2025, primarily due to higher volumes at the Brasada complex and Springfield gas-gathering system[135] - Total throughput attributable to WES for crude-oil and NGLs assets decreased by 22 MBbls/d for the three months ended September 30, 2025, primarily due to lower volumes at the DBM oil system[138] - Total throughput attributable to WES for produced-water assets increased by 99 MBbls/d for the nine months ended September 30, 2025, due to higher production[140] - 98% 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, 2025[216] Financial Performance - Total revenues for the three months ended September 30, 2025, were $952,484 thousand, a 1.2% increase from $942,322 thousand for the previous quarter, and a 5.0% increase from $2,676,720 thousand for the nine months ended September 30, 2024[132] - Operating income for the three months ended September 30, 2025, was $441,560 thousand, a slight decrease of 0.2% from $444,479 thousand in the previous quarter, and a decrease of 9.4% from $1,544,989 thousand for the nine months ended September 30, 2024[132] - Net income attributable to Western Midstream for the three months ended September 30, 2025, was $339,615 thousand, a decrease from $341,680 thousand in the previous quarter[132] - Net income for the nine months ended September 30, 2025, decreased by $253,500 thousand to $1,016,186 thousand, primarily due to a $307,500 thousand decrease in gain on divestiture[173] - Total revenues and other for the nine months ended September 30, 2025, were $2,811.9 million, an increase from $2,676.7 million in the prior year[166] - Adjusted Gross Margin for the nine months ended September 30, 2025, was $2,614.8 million, compared to $2,508.4 million for the same period in 2024[166] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,845,200 thousand, up 5% from $1,753,339 thousand in the same period of 2024[176] - Free Cash Flow for the nine months ended September 30, 2025, was $1,185,197 thousand, representing a 17% increase from $1,014,887 thousand in the prior year[176] Expenses and Costs - Total cost of product and operation and maintenance expenses for the three months ended September 30, 2025, was $263,572 thousand, a 1% decrease from $267,310 thousand in the previous quarter[148] - Natural-gas purchases increased by 39% to $7,210 thousand for the three months ended September 30, 2025, compared to $5,180 thousand in the previous quarter[148] - Operation and maintenance expense increased by $14.2 million for the nine months ended September 30, 2025, driven by a $15.5 million increase in utility expenses[154] - Depreciation and amortization expense increased by $25.5 million for the nine months ended September 30, 2025, due to capital projects being placed into service at the West Texas complex[156] - Interest expense increased by $5.6 million for the nine months ended September 30, 2025, primarily due to $28.2 million of interest incurred on the 5.450% Senior Notes issued during the third quarter of 2024[159] - Income tax expense decreased by $9.9 million for the nine months ended September 30, 2025, primarily due to a revaluation increasing the deferred tax liability balance in 2024[160] - Other operating expenses increased by 6% for the nine months ended September 30, 2025, totaling $773.6 million compared to $733.1 million in the prior year[155] Capital and Financing - The company retired the total principal amount of 3.100% and 3.950% Senior Notes due 2025 at par value during the first and second quarters of 2025, respectively[120] - The company retired $1 billion in Senior Notes due 2025 during the nine months ended September 30, 2025[201] - The carrying value of outstanding debt as of September 30, 2025, was $6.9 billion, with $440.5 million classified as long-term debt[200] - As of September 30, 2025, the company had a working capital surplus of $276.6 million and $2.0 billion in effective borrowing capacity under the RCF[192] - WES net cash used in financing activities was $(2,101,864) thousand for the nine months ended September 30, 2025, compared to $(921,617) thousand in 2024, indicating a significant increase in cash outflows[208] Market Conditions and Expectations - The average price of West Texas Intermediate crude oil ranged from a low of $57.13 per barrel to a high of $80.04 per barrel during the nine months ended September 30, 2025[124] - The company expects to adjust capital spending plans in response to fluctuating commodity prices and maintain financial flexibility[124] - High inflation has raised operating costs, impacting steel products, labor, and materials, which could negatively affect financial results[126] - A 10% change in commodity prices is not expected to materially impact operating income or cash flows for the next 12 months[216] - Future increases in the federal funds rate may lead to higher financing costs for WES Operating[217] - A 10% change in the applicable benchmark interest rate would not materially impact interest expense on outstanding borrowings as of September 30, 2025[217] - Additional short-term or variable-rate debt may be issued in the future under the RCF or other financing sources[218] Distributions - The company maintained a per-unit distribution of $0.910 for the third quarter of 2025, unchanged from the second quarter[120] - The Board declared a cash distribution to unitholders for Q3 2025 of $0.910 per unit, totaling $379.5 million[189] - Distributions to WES unitholders amounted to $1,051,503 thousand for the nine months ended September 30, 2025, up from $905,155 thousand in 2024, marking an increase of 16.1%[208]

Financial Performance - Net income attributable to limited partners for Q3 2025 was $331.7 million, or $0.87 per common unit (diluted) [3] - Adjusted EBITDA for Q3 2025 reached a record $633.8 million, marking the second consecutive quarter of record performance [4] - Cash flows from operating activities for Q3 2025 totaled $570.2 million, resulting in Free Cash Flow of $397.4 million [5] - Net income for the nine months ended September 30, 2025, was $1,016,186 thousand, down from $1,269,672 thousand for the same period in 2024, a decrease of about 20% [20] - Adjusted Gross Margin for the three months ended September 30, 2025, was $874,903 thousand, compared to $879,068 thousand for the previous quarter, reflecting a slight decrease of 0.2% [26] - Adjusted EBITDA for the three months ended September 30, 2025, was $633,752 thousand, an increase from $617,876 thousand in the prior quarter, showing a growth of approximately 2.8% [27] - Free Cash Flow for the three months ended September 30, 2025, was $397,405 thousand, compared to $388,394 thousand for the previous quarter, indicating an increase of about 2.6% [28] Distribution and Guidance - The partnership announced a distribution of $0.910 per unit for Q3 2025, consistent with the prior quarter, equating to an annualized distribution of $3.64 per unit [5] - WES anticipates being towards the high end of its 2025 Adjusted EBITDA guidance range of $2,350 million to $2,550 million [5] Acquisition and Synergies - The acquisition of Aris Water Solutions, Inc. was completed on October 15, 2025, positioning WES among the largest three-stream midstream providers in the Delaware Basin [5] - The partnership aims to capture $40 million in targeted cost synergies from the Aris acquisition [7] Throughput and Operational Metrics - Natural gas throughput averaged 5.4 Bcf/d in Q3 2025, representing a 2% sequential increase [6] - Crude oil and NGLs throughput averaged 510 MBbls/d in Q3 2025, reflecting a 4% sequential decrease [6] - Total throughput for natural-gas assets increased by 2% to 5,549 MMcf/d compared to 5,433 MMcf/d in the previous quarter [31] - Total throughput for crude-oil and NGLs assets decreased by 4% to 520 MBbls/d from 543 MBbls/d in the prior quarter [31] - Operated throughput for natural-gas assets rose by 3% to 4,996 MMcf/d, with notable increases in the DJ Basin (3%) and Other regions (16%) while the Powder River Basin saw an 11% decline [33] - Total throughput for produced-water assets remained stable at 1,242 MBbls/d, with no change from the previous quarter [33] Asset and Financial Position - Total current assets decreased from $1,847,190 thousand as of December 31, 2024, to $917,051 thousand as of September 30, 2025, representing a decline of approximately 50.4% [19] - Total liabilities decreased from $9,769,615 thousand as of December 31, 2024, to $8,796,716 thousand as of September 30, 2025, a reduction of approximately 9.9% [19] - Cash and cash equivalents at the end of the period were $177,288 thousand, down from $1,124,737 thousand at the end of the previous period, a decline of about 84.2% [20] - Capital expenditures for the nine months ended September 30, 2025, were $505,783 thousand, compared to $595,087 thousand for the same period in 2024, a decrease of approximately 15% [20] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,664,980 thousand, an increase from $1,582,414 thousand for the same period in 2024, reflecting a growth of about 5.2% [20] - Long-term debt remained relatively stable, with a slight decrease from $6,926,647 thousand as of December 31, 2024, to $6,924,291 thousand as of September 30, 2025 [19] Margins and Pricing - Per-Mcf gross margin for natural-gas assets decreased by 3% to $1.06, while per-Bbl gross margin for crude-oil and NGLs assets increased by 4% to $2.25 [31] - Adjusted gross margin for natural-gas assets decreased by 4% to $1.27 per Mcf, while adjusted gross margin for crude-oil and NGLs assets increased by 3% to $3.10 per Bbl [31] - Total throughput attributable to WES for natural-gas assets was 5,358 MMcf/d, reflecting a 2% increase from 5,251 MMcf/d [31] - Total operated throughput for crude-oil and NGLs assets decreased by 3% to 418 MBbls/d, with the Delaware Basin experiencing a 9% decline [33] - Non-operated throughput for natural-gas assets decreased by 4% to 553 MMcf/d, down from 575 MMcf/d in the prior quarter [33] - The company reported a total throughput attributable to noncontrolling interests of 191 MMcf/d for natural-gas assets, marking a 5% increase from 182 MMcf/d [31] Operational Efficiency - System operability increased to 99.6% year-over-year, enhancing throughput and profitability across the asset base [7]

Core Insights - Western Midstream Partners, LP (WES) reported a strong financial performance for the third quarter of 2025, with net income attributable to limited partners reaching $331.7 million, or $0.87 per common unit (diluted), and Adjusted EBITDA totaling $633.8 million [1][6][7] - The company achieved a Free Cash Flow of $397.4 million for the quarter, with cash flows from operating activities amounting to $570.2 million [1][6][7] - WES announced a third-quarter distribution of $0.910 per unit, consistent with the previous quarter, translating to an annualized distribution of $3.64 per unit [3][6] Financial Performance - Third-quarter 2025 revenues totaled $952.5 million, compared to $883.4 million in the same quarter of 2024, reflecting a year-over-year increase [19] - Operating expenses for the third quarter were $525.3 million, up from $511.9 million in the prior year [19] - The company reported a record operational performance with system operability increasing to 99.6% year-over-year [7] Operational Highlights - Natural gas throughput averaged 5.4 Bcf/d, marking a 2% increase from the previous quarter, while crude oil and NGLs throughput averaged 510 MBbls/d, a 4% decrease [4][7] - The successful acquisition of Aris Water Solutions, Inc. was completed on October 15, 2025, positioning WES as one of the largest three-stream midstream providers in the Delaware Basin [6][7] - WES is targeting $40 million in cost synergies from the Aris acquisition, enhancing its competitive position in produced-water management [5][6] Future Outlook - The company anticipates being at the high end of its 2025 Adjusted EBITDA guidance range of $2.35 billion to $2.55 billion and expects Free Cash Flow to exceed the high end of its guidance range of $1.275 billion to $1.475 billion [6][8] - WES is focused on integrating Aris and executing growth initiatives, including the Pathfinder pipeline project, which is expected to improve project returns [5][8]