Overview

• U.S. midstream asset operator's Q4 Adjusted EBITDA reached $635.6 mln, despite non-cash revenue adjustments

• Full-year 2025 Adjusted EBITDA rose 6% yr/yr, exceeding guidance midpoint

• Company forecasts 2026 Adjusted EBITDA to grow 5% at midpoint of guidance

Outlook

• Western Midstream projects 2026 Adjusted EBITDA between $2.5 bln and $2.7 bln

• Company expects 2026 capital expenditures between $850 mln and $1 bln

• Western Midstream anticipates 2026 Distributable Cash Flow between $1.85 bln and $2.05 bln

Result Drivers

• DELAWARE BASIN THROUGHPUT - Increased throughput in the Delaware Basin was a primary driver of record Adjusted EBITDA in 2025

• COST REDUCTION - Cost reduction initiatives led to an 8% reduction in operation and maintenance expenses in Q3 and 12% in Q4 2025

• ARIS ACQUISITION - Acquisition of Aris Water Solutions significantly expanded produced-water throughput, contributing to a 40% year-over-year increase

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the integrated oil & gas peer group is "buy."

• Wall Street's median 12-month price target for Western Midstream Partners LP is $41.00, about 6.2% below its February 17 closing price of $43.73

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPnbFHzrza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)