Western Midstream Announces Third-Quarter 2026 Results

WES posts strong Q3 results, raises full-year outlook, and signals continued growth.

What the company is saying

Western Midstream Partners, LP highlights a robust third quarter with net income attributable to limited partners of $324.8 million and Adjusted EBITDA of $708.3 million, up 12% year-over-year. The company emphasizes record operational throughput, including 5.9 Bcf/d of natural gas and 3,047 MBbls/d of produced water in the Delaware Basin, attributing much of the growth to the Brazos Delaware II acquisition. Management, led by President and CEO Oscar K. Brown, frames the narrative around successful integration of acquisitions, ongoing capital investments, and reaffirmed or improved 2026 guidance. The announcement stresses confidence in exceeding the high end of prior Adjusted EBITDA guidance ($2.750–$2.950 billion) and signals continued capital spending above the $1.0 billion prior cap, driven by producer activity and the Solitude Pipeline investment. Forward-looking statements project further momentum into 2027, with new projects and agreements expected to drive throughput. The tone is confident, with explanations for sequential EBITDA softness tied to lower commodity prices and higher maintenance costs, but the overall message is one of operational and financial strength.

What the data suggests

The disclosed results show Western Midstream Partners, LP delivered $324.8 million in net income attributable to limited partners and $708.3 million in Adjusted EBITDA for Q3 2026, a 12% increase over the prior year. Distributable Cash Flow reached $512.3 million, and Free Cash Flow was $244.2 million, with cash from operating activities at $567.5 million. Capital expenditures for the quarter totaled $303.4 million, and Free Cash Flow after distributions was negative $148.5 million due to organic growth investments. The company set new records in natural gas throughput (5.9 Bcf/d, up 8% sequentially) and Delaware Basin throughput (2.6 Bcf/d, up 20%), reflecting the impact of the Brazos Delaware II acquisition. WES reaffirmed full-year 2026 guidance for Adjusted EBITDA ($2.750–$2.950 billion), Distributable Cash Flow ($2.050–$2.250 billion), and Free Cash Flow ($1.100–$1.300 billion), and expects to exceed the high end of capital expenditure guidance ($850.0 million–$1.0 billion). The company’s balance sheet shows $16.43 billion in assets and $8.88 billion in long-term debt as of September 30, 2026. The data supports management’s claims of operational growth, though forward-looking statements about 2027 and beyond remain projections without signed contracts or quantified commitments.

Analysis

The announcement from Western Midstream Partners, LP is highly factual and supported by comprehensive financial and operational disclosures. Key profitability metrics (net income, Adjusted EBITDA, distributable cash flow, free cash flow) are reported alongside operational throughput and capital expenditure figures, satisfying the requirements for a strong_positive signal. While there are some forward-looking statements regarding 2027 projects and anticipated momentum, the majority of the release focuses on realised third-quarter 2026 results and reaffirmed guidance for the current year. The tone is positive but proportionate to the measurable progress, with no exaggerated claims about long-term benefits or unsubstantiated projections. Capital intensity is discussed transparently, with current expenditures and investments clearly linked to operational growth and recent acquisitions. There is no evidence of narrative inflation or overstatement relative to the disclosed data.

Risk flags

• ●Capital expenditure risk is elevated, as WES expects to exceed the high end of its 2026 guidance range ($850.0 million–$1.0 billion), driven by increased producer activity and investments such as the Solitude Pipeline. Persistent overspending could pressure Free Cash Flow and distributions if not matched by earnings growth.
• ●Integration risk exists with the Brazos Delaware II acquisition, as successful operational and financial integration is required to realize projected synergies. While management anticipates tying these assets into the West Texas Complex by mid-December, delays or cost overruns could impact throughput and margins.
• ●Long-term project execution risk is present, particularly for the Solitude Pipeline System and other 2027+ initiatives. The Solitude project’s initial capacity is not expected until late 2029, and any delays, regulatory hurdles, or cost inflation could defer or diminish anticipated returns.
• ●Commodity price risk remains, as management attributes a modest sequential decline in Adjusted EBITDA to lower crude oil and NGL prices and decreased throughput in the DJ Basin. Continued price volatility could impact future earnings and cash flow.
• ●Leverage risk is notable, with $8.88 billion in long-term debt against $16.43 billion in assets. While the company claims a solid liquidity position and investment grade balance sheet, no liquidity ratios or credit rating details are disclosed to substantiate this assertion.

Bottom line

Western Midstream Partners, LP delivered strong Q3 2026 financial and operational results, with record throughput and a 12% year-over-year increase in Adjusted EBITDA. The company is on track to exceed its full-year guidance and continues to invest heavily in growth, particularly in the Delaware Basin and through the Solitude Pipeline joint venture. While immediate performance is robust, investors should monitor capital discipline as spending is set to surpass prior guidance, and Free Cash Flow after distributions turned negative this quarter due to growth investments. Integration of the Brazos Delaware II assets and execution on long-dated projects like Solitude are key to sustaining momentum. The company’s high leverage and exposure to commodity price swings add further risk. The most important takeaway is that WES is delivering on near-term growth, but long-term returns depend on disciplined execution of capital projects and integration of recent acquisitions.

Announcement summary

(NYSE:WES) Western Midstream Partners, LP reported third-quarter 2026 net income attributable to limited partners of $324.8 million, or $0.78 per common unit (diluted). Third-quarter 2026 Adjusted EBITDA was $708.3 million, up 12% from the prior-year period, and Distributable Cash Flow was $512.3 million. Cash flows provided by operating activities for the quarter totaled $567.5 million, and Free Cash Flow was $244.2 million. Third-quarter 2026 capital expenditures were $303.4 million. The company announced a third-quarter distribution of $0.930 per unit, consistent with the prior quarter, equating to $3.72 per unit on an annualized basis. WES reaffirmed its 2026 guidance ranges: Adjusted EBITDA of $2.750 billion to $2.950 billion, Distributable Cash Flow of $2.050 billion to $2.250 billion, and Free Cash Flow of $1.100 billion to $1.300 billion. The company expects to be slightly above the high end of its 2026 total capital expenditures guidance range of $850.0 million to $1.0 billion, due to increased producer activity and investment in the Solitude Pipeline System. WES gathered record natural-gas throughput of 5.9 Bcf/d in the quarter, an 8% sequential increase, and record Delaware Basin natural-gas throughput of 2.6 Bcf/d, a 20% sequential increase, largely from the acquisition of Brazos Delaware II, LLC in June 2026. Produced-water throughput in the Delaware Basin reached a record 3,047 MBbls/d, up 2% sequentially. The company acquired a 7.5% equity interest in the Solitude Pipeline System joint venture, operated by WhiteWater, which will provide initial takeaway capacity of up to 2.25 Bcf/d in late 2029 and an incremental 2.25 Bcf/d in 2030. Third-quarter 2026 Free Cash Flow after distributions was negative $148.5 million, attributed to organic growth capital expenditures. Third-quarter 2026 natural-gas throughput averaged 5.7 Bcf/d, up 7% sequentially, while crude-oil and NGLs throughput averaged 526 MBbls/d, and produced-water throughput averaged 2,992 MBbls/d, both showing slight or 2% sequential increases. Oscar K. Brown, President and CEO, stated that the Brazos integration is progressing as expected and assets are anticipated to be tied into the West Texas Complex by mid-December. WES expects strong fourth-quarter results and full-year Adjusted EBITDA above the midpoint of its guidance range, representing an increase of more than $250.0 million over the original $2.600 billion midpoint, or more than $150.0 million excluding the Brazos acquisition. The company expects 2026 capital expenditures to be slightly above the $1.0 billion high end of guidance, reflecting investment in Solitude and increased producer activity. WES anticipates momentum to continue into 2027, with incremental customer activity, a full year of Brazos contribution, the start-up of the Pathfinder pipeline, North Loving II coming online, and new Powder River Basin agreements. 2027 capital expenditures are expected to be in line with 2026, with about 80% directed to the Delaware Basin, including Solitude and North Loving II, and most of the remainder to the Powder River Basin. WES maintains a solid liquidity position and investment grade balance sheet to fund growth, return capital to unitholders, and pursue strategic acquisitions. As of September 30, 2026, total assets were $16,433,959,000 and long-term debt was $8,883,595,000. The company will host a conference call on November 5, 2026, at 9:00 a.m. Central Time to discuss results.

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