Core Viewpoint - Western Midstream Partners, LP has renegotiated natural-gas gathering and processing contracts in the Delaware Basin with Occidental Petroleum, transitioning to a fixed-fee structure that enhances drilling economics and supports development in the region [1][4]. Contract Amendments - The legacy cost-of-service structure has been replaced with a simplified fixed-fee structure, supported by acreage dedication, which is expected to align interests and position WES as a standalone midstream enterprise [1][4]. - Approximately 9% of WES's total revenue will remain under cost-of-service rates, with 1% expiring in the late 2020s, while the remaining provisions extend into the mid-to-late 2030s [4]. Financial Implications - The conversion to a fixed-fee structure is not expected to reduce Adjusted EBITDA through 2027, with minimal impact anticipated until 2032 [3]. - Occidental will transfer 15.3 million WES common units to WES, valued at approximately $610 million, resulting in a decrease of Occidental's ownership from 42% to 40% [4][10]. Revenue Diversification - WES has entered into a new agreement with ConocoPhillips for natural-gas volumes, which will reduce related-party revenue by over 10% and further diversify WES's revenue streams [4]. - The new contracts with Occidental and ConocoPhillips will be effective from January 1, 2026, and February 1, 2026, respectively [10]. Management Commentary - The President and CEO of WES emphasized that the transition to a fixed-fee structure is timely and logical, enhancing alignment with producers and diversifying the customer base [5]. - The changes are expected to provide greater clarity and confidence in WES's long-term earnings potential, supporting sustainable returns for stakeholders [5].