Western Midstream(US:WES)2026-02-24 13:02Summary of Western Midstream Partners Fireside Chat - February 24, 2026 Company Overview - Company: Western Midstream Partners (NYSE: WES) - Event: Fourth Quarter 2025 Fireside Chat - Date: February 24, 2026 Key Financial Performance - Q4 2025 Adjusted EBITDA: $636 million, adjusted to approximately $665 million without negative revenue recognition adjustments of $30 million [1] - Full Year 2025 Adjusted EBITDA: $2.48 billion, above the midpoint of guidance [1] - Capital Expenditures (CapEx): $722 million, in line with guidance [2] - Free Cash Flow: $1.53 billion, above the high end of guidance [2] - Throughput Performance: Increased across all three product categories; notable performance in the DJ and Delaware Basin [2] Cost Management and Efficiency Initiatives - Cost-Cutting Program: Implemented in Q2 2025, focusing on zero-basing activities to reduce operational and administrative costs [4] - Operational and Maintenance Costs (O&M): Decreased by 8% year-over-year in Q3 2025 and 12% in Q4 2025 compared to the previous year, excluding Aris [5] - General and Administrative Costs (G&A): Remained flat in 2025 compared to 2024, with expectations to maintain this in 2026 [6] Growth Strategies - Growth Projects: Sanctioned Pathfinder and North Loving II in 2025; completed acquisition of Aris, enhancing water solution capabilities in the Delaware Basin [3] - 2026 Guidance: Adjusted EBITDA expected to be in the range of $2.5 billion to $2.7 billion, reflecting a growth of approximately 5% at the midpoint [8] - Capital Expenditures for 2026: Revised midpoint from $1.1 billion to $925 million to manage Free Cash Flow amid a volatile environment [9] Distribution and Cash Flow - Distribution Guidance: Expected at least $3.70 per unit, with an increase of $0.91 to $0.93 per unit recommended for Q1 [9] - Distribution Increase: Approximately 2%, aligning with mid to low single-digit growth expectations [10] - Distributable Cash Flow (DCF): Free Cash Flow remains a critical metric, projected between $900 million and $1.1 billion for 2026 [13] Strategic Outlook - No Change in Strategy: The company plans to continue its growth strategy despite anticipated declines in producer activity in the Powder River and DJ basins [11] - Resilience in Downturn: Prepared to navigate expected downturns in 2026 without altering strategic direction [12] - Focus on Cost Discipline: Continued emphasis on organic and inorganic growth, alongside cost management strategies [15] Additional Insights - Integration of Aris: The acquisition is expected to enhance operational efficiency and market position in water solutions [3] - Market Conditions: Noted pullback in producer forecasts impacting throughput expectations for 2026 [8] This summary encapsulates the key points discussed during the fireside chat, highlighting Western Midstream's financial performance, strategic initiatives, and outlook for the upcoming year.