Western Midstream Partners (WES) investor relations material

Executive summary

• Achieved record Q1 2026 adjusted EBITDA of $683.1 million, up 15% year-over-year and up to 7% sequentially, driven by the Aris acquisition, throughput growth, and cost reductions.

• Net income for Q1 2026 was $342.4 million, with distributable cash flow of $508.9 million.

• Announced $1.6 billion acquisition of Brazos Delaware II, expected to close by end of Q2 2026, projected to add $100 million incremental adjusted EBITDA in 2026 and diversify the customer base.

• Integration of Aris completed; Brazos integration expected to be straightforward and accretive to distributable cash flow per unit.

• Increased quarterly distribution to $0.930 per unit, up 2.2% from the prior quarter.

Financial highlights

• Total revenues for Q1 2026 were $1.12 billion, up 23% year-over-year.

• Adjusted gross margin increased by $56 million sequentially, with per-Mcf margin for natural gas at $1.32, crude oil/NGLs at $3.07/Bbl, and produced water at $0.90/Bbl.

• Free cash flow for Q1 2026 was $242.3 million; free cash flow after distributions was negative $137 million.

• Ended quarter with over $2.5 billion in liquidity and a trailing 12-month net leverage ratio of 3.1x.

• Retired $441 million of senior notes due 2026 in April.

Outlook and guidance

• Expect to be at the high end of 2026 adjusted EBITDA ($2.5B–$2.7B) and distributable cash flow ($1.85B–$2.05B) guidance, excluding Brazos impact.

• Free cash flow guidance remains $900M–$1.1B; capital expenditures expected at $850M–$1B for 2026.

• Distribution guidance of at least $3.70 per unit for 2026, with growth targeted below adjusted EBITDA growth to increase coverage.

• Guidance will be reevaluated after Brazos deal closes; anticipate improved 2027 outlook with increased producer activity and better Waha pricing.

• Produced water throughput projected to increase ~80% in 2026; natural gas throughput flat; crude oil & NGLs expected to decrease low-to-mid single digits.