Western Midstream(WES) - 2025 Q3 - Quarterly Results

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]