Western Midstream Partners Reports Record Q1 2026 Earnings Driven by Acquisitions and Cost Reductions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy WES?
Source: seekingalpha
- Record Performance: Western Midstream reported an adjusted EBITDA of $683 million for Q1 2026, a 15% year-over-year increase, driven by the full contribution from the Aris acquisition, throughput growth across all product lines, and ongoing cost reductions, highlighting the company's robust market position.
- Gas and Oil Production Growth: Despite WAHA-driven constraints, natural gas throughput increased by 3%, while crude oil and NGL throughput reached a record 272,000 barrels per day, indicating strong momentum and sustained market demand in the Delaware Basin.
- Strategic Acquisition Plans: The company announced the $1.6 billion acquisition of Brazos Delaware II, adding approximately 470,000 dedicated acres, which increases total dedicated acreage in the Delaware Basin by nearly 50%, while also enhancing natural gas processing capacity by 460 million cubic feet per day, further strengthening its competitive edge.
- Distribution Policy and Future Outlook: The first-quarter distribution was $0.93 per unit, up 2.2% sequentially, with expectations for annual distributions to reach at least $3.70, demonstrating a commitment to aligning distribution strategy with EBITDA growth while maintaining capital discipline for long-term financial health.
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Analyst Views on WES
Wall Street analysts forecast WES stock price to fall
4 Analyst Rating
0 Buy
4 Hold
0 Sell
Hold
Current: 45.390
Low
39.00
Averages
40.50
High
42.00
Current: 45.390
Low
39.00
Averages
40.50
High
42.00
About WES
Western Midstream Partners, LP acquires, owns, develops and operates midstream assets. It is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas, gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil, and gathering and disposing of produced water. Its core assets provide services for customers in the Delaware Basin in West Texas and New Mexico, and the DJ Basin in northeastern Colorado, and the Powder River Basin in Northeast Wyoming. Additional assets and investments are in South Texas, Utah, and Southwest Wyoming. In its capacity as a natural gas processor, the Company also buys and sells natural gas, NGLs, and condensate on its behalf and its customers under certain gas processing contracts. Its subsidiaries include Western Midstream Operating GP, LLC, Western Midstream Services, LLC, Western Midstream Services Holdings, LLC, Western Midstream Operating, LP, and Aris Water Solutions, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Western Midstream Partners Reports Record Q1 2026 Earnings Driven by Acquisitions and Cost Reductions
- Record Performance: Western Midstream reported an adjusted EBITDA of $683 million for Q1 2026, a 15% year-over-year increase, driven by the full contribution from the Aris acquisition, throughput growth across all product lines, and ongoing cost reductions, highlighting the company's robust market position.
- Gas and Oil Production Growth: Despite WAHA-driven constraints, natural gas throughput increased by 3%, while crude oil and NGL throughput reached a record 272,000 barrels per day, indicating strong momentum and sustained market demand in the Delaware Basin.
- Strategic Acquisition Plans: The company announced the $1.6 billion acquisition of Brazos Delaware II, adding approximately 470,000 dedicated acres, which increases total dedicated acreage in the Delaware Basin by nearly 50%, while also enhancing natural gas processing capacity by 460 million cubic feet per day, further strengthening its competitive edge.
- Distribution Policy and Future Outlook: The first-quarter distribution was $0.93 per unit, up 2.2% sequentially, with expectations for annual distributions to reach at least $3.70, demonstrating a commitment to aligning distribution strategy with EBITDA growth while maintaining capital discipline for long-term financial health.
See More
Western Midstream Partners Announces Earnings Insights and Upcoming Investor Conferences
- Earnings Insights: Western Midstream Partners will release a post-earnings interview before market open, featuring CEO Oscar K. Brown and VP Jon Greenberg, who will provide additional insights on Q1 2026 results and the acquisition of Brazos Delaware II, LLC, which is expected to bolster investor confidence in future growth.
- Investor Conference Participation: The company plans to participate in several investor conferences during the second and third quarters of 2026, providing opportunities for direct communication with investors and enhancing market understanding of its business strategy and financial health.
- Midstream Asset Overview: Western Midstream focuses on developing and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming, engaging in various activities including gathering, processing, and transporting natural gas, which solidifies its significant position in the energy market.
- Cash Flow Protection Strategy: A substantial majority of the company's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts, a strategy that will help maintain financial stability in uncertain market conditions.
See More
Western Midstream Partners Announces Upcoming Investor Conferences
- Post-Earnings Interview: Western Midstream Partners will release a post-earnings interview before market open, featuring insights from CEO Oscar K. Brown and VP Jon Greenberg regarding the acquisition of Brazos Delaware II, LLC, which is expected to bolster investor confidence in the company's future growth.
- Investor Conference Schedule: The company plans to participate in several investor conferences, including TPH & Co. Hotter 'N Hell 2026 in Houston on May 13 and the 23rd Annual Energy Infrastructure CEO & Investor Conference in Florida on May 19-20, aiming to enhance market visibility and attract potential investors.
- Midstream Asset Operations: Western Midstream focuses on developing, acquiring, and operating midstream assets, with operations including gathering, compressing, treating, and transporting natural gas, ensuring that a substantial majority of its cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
- Market Positioning Advantage: With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, the company leverages its diversified service offerings and stable cash flows to maintain a favorable market position within the industry.
See More
Western Midstream Partners Upgraded to Buy by Stifel with $46 Target
- Rating Upgrade: Stifel upgraded Western Midstream Partners from Hold to Buy with a price target increase from $42 to $46, reflecting optimism about the company's future performance following stronger-than-expected Q1 earnings.
- Earnings Outlook: While the company did not raise guidance, it is expected to achieve the high end of its adjusted EBITDA guidance range of $2.5B to $2.7B, demonstrating resilience and profitability in the current market environment.
- Acquisition Impact: The $1.6B Brazos acquisition is projected to contribute $100M to EBITDA in 2026 and at least $200M in 2027, further strengthening the company's financial performance and market position.
- Production Activity Discussions: The company is in discussions with producers about increasing activity, which is expected to positively impact performance in the second half of 2026 or more significantly in 2027, particularly with a producer in the Powder River Basin accelerating activity to bring on volumes in 2027.
See More
WESTERN MIDSTREAM PARTNERS LP: STIFEL UPGRADES TO BUY FROM HOLD; INCREASES TARGET PRICE TO $46 FROM $42
Stifel's Acquisition: Stifel has raised its target price for Western Midstream Partners to $46 from $42 as part of its strategy to buy from the company.
Market Response: The increase in target price reflects a positive outlook on Western Midstream Partners' performance and potential growth in the market.
See More
Western Midstream Partners Acquires Brazos Delaware II for $1.6 Billion
- Acquisition Scale: Western Midstream Partners announced the acquisition of Brazos Delaware II for approximately $1.6 billion, comprising about $800 million in cash and $800 million in common units, demonstrating the company's commitment to expansion in the Texas Delaware Basin.
- Asset Overview: Brazos boasts around 900 miles of pipeline and 460M cf/day of natural gas processing capacity, processing an average of 336M cf/day of natural gas and 25K bbl/day of crude oil in FY 2025, enhancing Western Midstream's asset portfolio and market competitiveness.
- EBITDA Expectations: It is anticipated that over 60% of Western Midstream's adjusted EBITDA will come from the Delaware Basin by 2026, with this proportion expected to grow further as the acquisition is completed and integrated, indicating significant future growth potential for the company.
- Strategic Growth Projects: The company also plans to launch the Pathfinder Pipeline and North Loving II projects in the first and second quarters of 2027, respectively, further driving revenue growth and solidifying its position in the midstream market.
See More
Western Midstream Partners Reports Record Q1 2026 Earnings Driven by Acquisitions and Cost Reductions
- Record Performance: Western Midstream reported an adjusted EBITDA of $683 million for Q1 2026, a 15% year-over-year increase, driven by the full contribution from the Aris acquisition, throughput growth across all product lines, and ongoing cost reductions, highlighting the company's robust market position.
- Gas and Oil Production Growth: Despite WAHA-driven constraints, natural gas throughput increased by 3%, while crude oil and NGL throughput reached a record 272,000 barrels per day, indicating strong momentum and sustained market demand in the Delaware Basin.
- Strategic Acquisition Plans: The company announced the $1.6 billion acquisition of Brazos Delaware II, adding approximately 470,000 dedicated acres, which increases total dedicated acreage in the Delaware Basin by nearly 50%, while also enhancing natural gas processing capacity by 460 million cubic feet per day, further strengthening its competitive edge.
- Distribution Policy and Future Outlook: The first-quarter distribution was $0.93 per unit, up 2.2% sequentially, with expectations for annual distributions to reach at least $3.70, demonstrating a commitment to aligning distribution strategy with EBITDA growth while maintaining capital discipline for long-term financial health.
See More
Western Midstream Partners Announces Earnings Insights and Upcoming Investor Conferences
- Earnings Insights: Western Midstream Partners will release a post-earnings interview before market open, featuring CEO Oscar K. Brown and VP Jon Greenberg, who will provide additional insights on Q1 2026 results and the acquisition of Brazos Delaware II, LLC, which is expected to bolster investor confidence in future growth.
- Investor Conference Participation: The company plans to participate in several investor conferences during the second and third quarters of 2026, providing opportunities for direct communication with investors and enhancing market understanding of its business strategy and financial health.
- Midstream Asset Overview: Western Midstream focuses on developing and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming, engaging in various activities including gathering, processing, and transporting natural gas, which solidifies its significant position in the energy market.
- Cash Flow Protection Strategy: A substantial majority of the company's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts, a strategy that will help maintain financial stability in uncertain market conditions.
See More
Western Midstream Partners Announces Upcoming Investor Conferences
- Post-Earnings Interview: Western Midstream Partners will release a post-earnings interview before market open, featuring insights from CEO Oscar K. Brown and VP Jon Greenberg regarding the acquisition of Brazos Delaware II, LLC, which is expected to bolster investor confidence in the company's future growth.
- Investor Conference Schedule: The company plans to participate in several investor conferences, including TPH & Co. Hotter 'N Hell 2026 in Houston on May 13 and the 23rd Annual Energy Infrastructure CEO & Investor Conference in Florida on May 19-20, aiming to enhance market visibility and attract potential investors.
- Midstream Asset Operations: Western Midstream focuses on developing, acquiring, and operating midstream assets, with operations including gathering, compressing, treating, and transporting natural gas, ensuring that a substantial majority of its cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
- Market Positioning Advantage: With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, the company leverages its diversified service offerings and stable cash flows to maintain a favorable market position within the industry.
See More
Western Midstream Partners Upgraded to Buy by Stifel with $46 Target
- Rating Upgrade: Stifel upgraded Western Midstream Partners from Hold to Buy with a price target increase from $42 to $46, reflecting optimism about the company's future performance following stronger-than-expected Q1 earnings.
- Earnings Outlook: While the company did not raise guidance, it is expected to achieve the high end of its adjusted EBITDA guidance range of $2.5B to $2.7B, demonstrating resilience and profitability in the current market environment.
- Acquisition Impact: The $1.6B Brazos acquisition is projected to contribute $100M to EBITDA in 2026 and at least $200M in 2027, further strengthening the company's financial performance and market position.
- Production Activity Discussions: The company is in discussions with producers about increasing activity, which is expected to positively impact performance in the second half of 2026 or more significantly in 2027, particularly with a producer in the Powder River Basin accelerating activity to bring on volumes in 2027.
See More
WESTERN MIDSTREAM PARTNERS LP: STIFEL UPGRADES TO BUY FROM HOLD; INCREASES TARGET PRICE TO $46 FROM $42
Stifel's Acquisition: Stifel has raised its target price for Western Midstream Partners to $46 from $42 as part of its strategy to buy from the company.
Market Response: The increase in target price reflects a positive outlook on Western Midstream Partners' performance and potential growth in the market.
See More
Western Midstream Partners Acquires Brazos Delaware II for $1.6 Billion
- Acquisition Scale: Western Midstream Partners announced the acquisition of Brazos Delaware II for approximately $1.6 billion, comprising about $800 million in cash and $800 million in common units, demonstrating the company's commitment to expansion in the Texas Delaware Basin.
- Asset Overview: Brazos boasts around 900 miles of pipeline and 460M cf/day of natural gas processing capacity, processing an average of 336M cf/day of natural gas and 25K bbl/day of crude oil in FY 2025, enhancing Western Midstream's asset portfolio and market competitiveness.
- EBITDA Expectations: It is anticipated that over 60% of Western Midstream's adjusted EBITDA will come from the Delaware Basin by 2026, with this proportion expected to grow further as the acquisition is completed and integrated, indicating significant future growth potential for the company.
- Strategic Growth Projects: The company also plans to launch the Pathfinder Pipeline and North Loving II projects in the first and second quarters of 2027, respectively, further driving revenue growth and solidifying its position in the midstream market.
See More
