AND PARTICIPATION IN UPCOMING INVESTOR CONFERENCES HOUSTON, Aug. 11, 2025 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that tomorrow before the market open it will make available on its website at www.westernmidstream.com a post-earnings interview with Kristen Shults, Senior Vice President and Chief Financial Officer, and Jon VandenBrand, Senior Vice President, Commercial, that provides additional insights related to WES's second-quarter 2025 result ...

Group 1 - Mr. Mavroudis is a professional portfolio manager with expertise in institutional and private portfolios, focusing on risk management and financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI, demonstrating resilience in investment strategies [1] - Mr. Mavroudis is the CEO of FAST FINANCE Investment Services, a registered Greek company, and holds multiple advanced degrees and certifications in finance and law [1] Group 2 - He engages with the investment community through writing on Seeking Alpha, aiming to share insights and learn from others [1]

Core Insights - Western Midstream Partners, LP (NYSE: WES) is identified as the midstream operator with the highest dividend yield, currently around 9% [1] - Management anticipates continuing to increase the dividend at a mid to low single-digit percentage rate [1] Company Overview - WES operates in the midstream sector, focusing on the transportation and storage of natural gas, natural gas liquids, and crude oil [1] - The company has a diverse operational background, which may contribute to its strategic investment decisions [1] Financial Performance - The current dividend yield of approximately 9% positions WES favorably compared to its peers in the midstream sector [1] - The expectation of dividend growth indicates a positive outlook on the company's financial health and operational performance [1]

Financial Data and Key Metrics Changes - The second quarter generated net income attributable to limited partners of $334 million and adjusted EBITDA of $618 million, with an adjusted gross margin increase of $18 million compared to the first quarter, primarily driven by increased throughput and improved gross margin contribution from the Delaware Basin [19][20] - The company maintained a top-tier net leverage ratio of 2.9 times at quarter end, with free cash flow of $388 million [21][23] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 3% sequentially, crude oil and NGLs throughput increased by 6%, and produced water throughput increased by 4%, primarily due to new wells coming online in the Delaware Basin [13][14] - Adjusted gross margin per Mcf for natural gas decreased by $0.02, while per barrel adjusted gross margin for crude oil and NGLs decreased by $0.15, reflecting changes in contract mix and distribution payments [14][15] Market Data and Key Metrics Changes - The Delaware Basin continued to be the primary growth engine, with expectations of modest year-over-year increases in average throughput across all product lines [16][17] - The company anticipates meaningful natural gas throughput growth from other assets, particularly in the Uinta Basin, driven by pipeline expansions [18] Company Strategy and Development Direction - The company announced an agreement to acquire Arris Water Solutions, which is expected to optimize the value of existing assets and enhance service offerings [6][9] - The sanctioning of a second train at the North Loving natural gas processing plant aims to increase capacity and prepare for anticipated growth in natural gas and produced water volumes [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook despite volatile market conditions, with no substantial changes in customers' expected production [26][27] - The company remains committed to generating strong returns for unitholders while sustaining and growing distributions over time [24][27] Other Important Information - The acquisition of Arris is valued at $2 billion, implying approximately 7.5 times 2026 consensus EBITDA, and is expected to be accretive to free cash flow per unit in 2026 [9][10] - The company has identified permanent annual run rate cost savings of approximately $50 million through operational efficiencies [22] Q&A Session Summary Question: Funding for ARRIS acquisition - Management explained the decision to finance the acquisition in a leverage-neutral way to preserve balance sheet capacity and position for future growth opportunities [31][33] Question: Water business percentage of EBITDA - Management indicated no specific target mix for the water business but expressed satisfaction with a range around 15% to 20% [34] Question: Opportunities for consolidation in New Mexico - Management noted that the ARRIS acquisition completes their system in the Delaware Basin and they are comfortable with the regulatory environment in New Mexico [36][38] Question: FID on North Loving II - Management acknowledged a more aggressive approach to FID, supported by strong underlying contracts and producer confidence [40][42] Question: Synergies from the ARRIS acquisition - Management clarified that the $40 million in synergies are primarily G&A savings and that they expect to realize these quickly post-acquisition [46][48] Question: Capital expenditures outlook - Management expects elevated capital expenditures in 2026 due to major projects, normalizing in 2027 [51][52] Question: Opportunities at McNeil Ranch - Management views McNeil Ranch as a long-term upside opportunity for water disposal and surface use [55][57] Question: Regulatory hurdles for ARRIS acquisition - Management does not foresee significant hurdles in the regulatory process and expects to close the transaction in the fourth quarter [60][62]

Financial Data and Key Metrics Changes - The company reported a net income attributable to limited partners of $334 million and adjusted EBITDA of $618 million for Q2 2025, with an increase in adjusted gross margin by $18 million compared to Q1 2025 [20][21] - The adjusted gross margin for natural gas decreased by $0.02 per Mcf, while the adjusted gross margin for crude oil and NGLs decreased by $0.15 per barrel, both in line with prior expectations [15][16] - Free cash flow for Q2 2025 was $388 million, with cash flow from operating activities totaling $564 million [21] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 3%, crude oil and NGLs throughput increased by 6%, and produced water throughput increased by 4% sequentially, primarily driven by new wells in the Delaware Basin [13][14] - The company expects portfolio-wide average throughput growth of mid-single digits for natural gas and produced water, and low-single digits for crude oil and NGLs for the remainder of 2025 [17][24] Market Data and Key Metrics Changes - The Delaware Basin continues to be the primary growth engine, with expectations of modest year-over-year increases in throughput across all product lines [17][18] - The company anticipates meaningful natural gas throughput growth from other assets, particularly in the Uinta Basin, starting in the second half of the year [19] Company Strategy and Development Direction - The company announced the acquisition of Arris Water Solutions, which is expected to enhance its footprint in the Delaware Basin and expand service offerings [6][9] - The sanctioning of a second train at the North Loving natural gas processing plant will increase capacity to 550 million cubic feet per day, supporting anticipated growth in natural gas and produced water volumes [11][12] - The company aims to maintain a disciplined capital allocation framework while focusing on organic growth and potential M&A opportunities [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook despite volatile market conditions, citing strong producer activity levels in the Delaware Basin [26][27] - The company remains committed to generating strong returns for unitholders and sustaining distribution growth, with a long-term distribution growth outlook in the mid-single digits [50][25] Other Important Information - The company has implemented initiatives to optimize operational processes, resulting in annual run rate cost savings of approximately $50 million [23] - The expected close date for the ARRIS acquisition is during Q4 2025, pending regulatory review and shareholder approval [22] Q&A Session Summary Question: Funding for ARRIS acquisition - Management explained the decision to finance the acquisition in a leverage-neutral manner to preserve balance sheet capacity and position for future growth opportunities [31][33] Question: Water business percentage of EBITDA - Management indicated that while water currently represents 16% of EBITDA, they are comfortable with a mix around 15-20% as the water business evolves into a clear midstream type of business [34] Question: Regulatory environment in New Mexico - Management expressed confidence in the regulatory environment in New Mexico and highlighted the benefits of moving water across state lines [38] Question: FID on North Loving II - Management noted that the decision to move forward with North Loving II was based on strong underlying contracts and expected volumes from producers [40][42] Question: Synergies from the ARRIS acquisition - Management stated that the $40 million in expected synergies are primarily related to G&A and typical public company consolidation synergies, with no revenue synergies counted yet [46][48] Question: Long-term plans for McNeil Ranch - Management views the McNeil Ranch as a long-term upside opportunity for pore space and surface use, with existing permits for water disposal already in place [56][58] Question: Capital allocation between organic growth and M&A - Management emphasized that organic growth opportunities are prioritized, but they remain open to M&A if it meets their strategic criteria [75][76]

Financial Performance - Western Midstream Partners (WES) achieved a record quarterly Adjusted EBITDA of $618 million, a 4% increase quarter-over-quarter[13] - Operating cash flow was $564 million in the second quarter of 2025[20] - Free cash flow for the second quarter of 2025 was $3884 million[20] - Cash distributions paid in the second quarter of 2025 were $35534 million[20] - Net income for the second quarter of 2025 was $334 million[21] Operational Performance - Total natural gas throughput was 54 Bcf/d, a 3% increase quarter-over-quarter[13] - Total crude oil and NGLs throughput was 543 MBbls/d, a 6% increase quarter-over-quarter[13] - Total produced water throughput was 1242 MBbls/d[13] Strategic Growth - WES sanctioned a new 300 MMcf/d cryogenic processing train at the North Loving plant in the Delaware Basin, expected to be in service by the second quarter of 2027[13, 17] - The company is constructing the Pathfinder Pipeline, an ~800 MBbls/d produced-water transportation pipeline, expected to be in service by the first quarter of 2027, with ~85% of the total project capex to be spent in 2026[17] Ownership Structure - Occidental owns 447% of Western Midstream Partners, LP, while public unitholders own 553%[8] - The market capitalization of Western Midstream Partners, LP is approximately $15 billion[8]

Core Insights - Western Midstream Partners LP (WES) reported Q2 2025 earnings of $0.87 per common unit, exceeding the Zacks Consensus Estimate of $0.82, but down from $0.97 in the same quarter last year [1][10] - Total revenues for the quarter reached $942.3 million, surpassing the Zacks Consensus Estimate of $941 million and increasing from $905.6 million in the prior year [1][10] Operational Performance - Natural gas throughput for WES was 5,251 million cubic feet per day (MMcf/d), a 5% increase from the prior-year quarter, driven by growth in the Delaware and Powder River Basins [3] - Crude oil and NGL throughput was 532 thousand barrels per day (MBbls/d), up from 515 MBbls/d in Q2 2024, attributed to higher volumes from the Delaware Basin and DJ-Basin [4] - Produced-water throughput increased to 1,217 MBbls/d from 1,080 MBbls/d in the year-ago quarter [4] Costs and Expenses - Total operating expenses for the quarter were $524.1 million, slightly higher than the previous year's $522.7 million, primarily due to increased general and administrative expenses and higher depreciation and amortization costs [5][10] Cash Flow - Net cash provided by operating activities was $564 million in Q2, down from $631.4 million in the same period of 2024 [6] - Free cash flow for the quarter totaled $388.4 million [6] Balance Sheet - As of June 30, 2025, WES had long-term debt of $6.92 billion and cash and cash equivalents of $129.7 million [7] Outlook - WES maintained its adjusted EBITDA guidance for full-year 2025 in the range of $2,350 million to $2,550 million, with total capital expenditures expected to be between $625 million and $775 million [8]

Group 1 - Western Midstream (WES.US) has agreed to acquire Aris Water Solutions (ARIS.US) for approximately $1.5 billion in cash and stock, aiming to expand its business into the growing water treatment sector in the Permian Basin [1] - Shareholders of Aris will receive either 0.625 shares of Western Midstream common stock or $25 in cash for each share of Aris, representing a 23% premium over Aris's closing price on Tuesday [1] - The maximum cash payment in the transaction could be adjusted, with a cap of $415 million [1] Group 2 - The wastewater treatment business is becoming an increasingly important component of oil production, as approximately five barrels of wastewater are generated for every barrel of crude oil produced in the Permian Basin [2] - According to industry consulting firm Enverus, the water treatment volume in the Permian Basin has increased more than sevenfold over the past 15 years [2] - Aris controls about 790 miles of wastewater pipelines in the Permian Basin, capable of processing 1.8 million barrels of wastewater daily [1]

Core Insights - Western Midstream reported revenue of $942.32 million for the quarter ended June 2025, reflecting a 4.1% increase year-over-year and a slight positive surprise of +0.09% over the Zacks Consensus Estimate of $941.48 million [1] - The company's EPS was $0.87, down from $0.97 in the same quarter last year, but exceeded the consensus estimate of $0.82 by +6.1% [1] Financial Performance - The revenue increase indicates a positive trend in the company's financial health, despite the decline in EPS [1][2] - Key metrics such as throughput for natural gas and crude oil assets showed mixed results compared to analyst estimates, with some metrics exceeding expectations while others fell short [4] Market Position - Shares of Western Midstream have returned +1.1% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change, although the stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to WESTERN MIDSTREAM PARTNERS, LP WESTERN MIDSTREAM OPERATING, LP (Exact name of registrant as specified in its charter) | | | State or other jurisdiction of | ...