Abstract

Western Midstream Operating, LP. will release its quarterly results on February 18, 2026 Post Market; this preview outlines market expectations for revenue, margins, net profit, and EPS alongside segment dynamics and institutional sentiment since January 1, 2026.

Market Forecast

Consensus points to Western Midstream Operating, LP.’s current-quarter revenue estimate of $1.05 billion with forecast year-over-year growth of 13.15%, EBIT of $464.91 million with forecast year-over-year growth of 7.90%, and adjusted EPS of $0.85 with forecast year-over-year growth of 0.46%; margin implications suggest stable operations, though the company has not provided explicit guidance on gross margin or net margin. The main business is concentrated in fee-based services, where revenue was $868.25 million last quarter, setting the tone for stable throughput and tariff-supported cash flows; product sales and product-based services were smaller contributors, and the outlook depends on volumes and contract mix. The most promising segment remains fee-based services due to its scale and resilience, anchored by $868.25 million in last quarter revenue and supported by contract structures that help maintain cash generation; the year-over-year trajectory will hinge on volume growth and new connections.

Last Quarter Review

Western Midstream Operating, LP.’s previous quarter delivered revenue of $952.48 million, a gross profit margin of 72.33%, GAAP net profit attributable to the parent company of $332.00 million, a net profit margin of 34.83%, and adjusted EPS of $0.87, with year-over-year adjusted EPS growth of 17.57%. A notable highlight was solid profitability with strong conversion of revenue to net income, complemented by disciplined cost controls supporting margins. Main business performance was led by fee-based services revenue of $868.25 million, followed by product sales of $50.13 million and product-based services revenue of $33.92 million, reinforcing the dominance of fee-based services; detailed YoY figures were not provided in the dataset.

Current Quarter Outlook

Fee-Based Services: Volume Stability, Contract Quality, and Margin Durability

The fee-based services segment, which contributed $868.25 million last quarter, remains the centerpiece of Western Midstream Operating, LP.’s revenue and earnings profile. With long-term, tariff-based contracts underpinning throughput volumes, the segment’s performance in the current quarter will likely hinge on sustained system utilization and modest volume growth in liquids and gas gathering, compression, and processing. The forecast revenue growth of 13.15% suggests an environment of healthy activity levels across the footprint, supported by prior-quarter margin strength at a 72.33% gross profit margin and a 34.83% net profit margin that indicates efficient cost structure and stable operating leverage. Pricing mechanisms and escalators embedded in contracts may provide modest uplift, while any incremental connections or expansions can bolster volumes. Investors will watch whether the company maintains this margin profile in the face of potential seasonal or maintenance-related throughput fluctuations, with EBIT forecast to grow by 7.90% to $464.91 million, indicating robust underlying profitability despite normal variability.

Product Sales and Product-Based Services: Modest Contributors, Operational Execution, and Revenue Mix

Product sales ($50.13 million) and product-based services ($33.92 million) constitute smaller slices of revenue, but they play a role in balancing the overall mix and absorbing operational variability. Execution against liftings, marketing arrangements, and product-related service contracts will determine incremental contributions in the current quarter. While these areas are less likely to drive headline growth, they can contribute to margin stability by utilizing existing infrastructure and offering ancillary services that leverage the company’s footprint. Upside risks to these segments include incremental volumes tied to customer activity or favorable commodity spreads that enable better marketing outcomes. Conversely, lower-than-expected volumes or tighter spreads could dampen segment revenues, but the overall impact on consolidated results is limited due to their proportion of total revenue. The forecast EPS of $0.85 implies that any mix shift away from these segments is unlikely to materially alter per-share outcomes, given the dominance of fee-based revenues and the operating leverage inherent in the core system.

Key Stock Price Drivers: Throughput Trends, Cost Discipline, and EPS Delivery

Stock performance around the report date will most likely be influenced by realized throughput trends and cost discipline relative to expectations, as these directly affect gross and net margins. The prior-quarter net profit of $332.00 million and net margin of 34.83% set a benchmark for profitability; investors will seek confirmation that similar conversion rates are achievable in the current quarter even as EBIT growth is forecast at 7.90% year over year. EPS delivery at $0.85 is guided by stable operating conditions; modest YoY EPS growth of 0.46% implies that per-share performance may be flattish relative to revenue growth, possibly reflecting timing of expenses, maintenance activities, or incremental depreciation associated with capital projects. Any positive surprise on EPS or EBIT would likely be tied to better-than-expected throughput or operating efficiencies, while downside risks include temporary volume softness, weather-related impacts, or higher operating costs. The balance of these forces will shape market reaction, with investors comparing realized results to the prior quarter’s strong margin metrics and the revenue base approaching $1.05 billion.

Analyst Opinions

Based on available institutional commentary in the period since January 1, 2026, the prevailing stance appears Neutral, with indications such as RBC Capital maintaining a Hold rating on Western Midstream Operating, LP., suggesting measured expectations for near-term upside. Hold-rated views typically reflect balanced risk-reward as the company enters an earnings period where core fee-based operations are expected to remain resilient but not deliver outsized surprises. The neutral bias aligns with forecast revenue growth of 13.15% and modest EPS expansion of 0.46%, a combination that supports stable cash generation without implying significant valuation catalysts in the immediate term. In this context, the bullish-to-bearish ratio skews toward neutral/hold commentary, and therefore the majority perspective presented is that institutional views are Neutral, focusing on consistent operations, contract-backed revenues, and an expectation for steady—but measured—execution around February 18, 2026.