Western Midstream Posts Record $2.481B EBITDA, Guides $2.5–2.7B for 2026
Western Midstream reported a record $2.481 billion in full-year 2025 Adjusted EBITDA, a 6% increase year-over-year, with fourth-quarter Adjusted EBITDA of $635.6 million and $1.526 billion in free cash flow, both exceeding guidance. The company set 2026 guidance of $2.5–2.7 billion in Adjusted EBITDA, $850 million–$1 billion in capex, and a $0.02 per unit distribution increase.
1. 2025 Financial Results
Western Midstream generated fourth-quarter net income attributable to limited partners of $187.2 million, or $0.47 per unit, and full-year net income of $1.154 billion, or $2.98 per unit. Fourth-quarter Adjusted EBITDA totaled $635.6 million, while full-year Adjusted EBITDA reached $2.481 billion. Operating cash flow for 2025 was $2.223 billion, producing $1.526 billion in free cash flow, and fourth-quarter free cash flow was $340.8 million.
2. 2026 Financial Guidance
The partnership provided 2026 guidance for Adjusted EBITDA of $2.5 billion to $2.7 billion and distributable cash flow of $1.85 billion to $2.05 billion (or $4.59–$5.08 per unit). It forecast total capital expenditures of $850 million to $1.0 billion and plans to recommend a $0.02 per unit quarterly distribution increase to $0.93, representing a 2.2% rise.
3. Operational Highlights and Cost Discipline
Record annual throughput included 5.2 Bcf/d of natural gas (up 4%), 514 MBbls/d of crude oil and NGLs (up 1%), and 1,578 MBbls/d of produced water (up 40% including Aris acquisition). Excluding Aris volumes, produced-water throughput rose 7%, while cost reduction initiatives drove a 12% year-over-year decrease in fourth-quarter operation and maintenance expenses excluding acquisition effects.