Western Midstream Reverses Second-Quarter EBITDA Gain

The Tip Desk · November 5, 2026 · 4 min read

Adjusted EBITDA was $708.3 million as Delaware Basin gas throughput hit a record 2.6 Bcf/d after a full quarter of Brazos Delaware.

Western Midstream Partners, LP (WES), the midstream partnership, reported third-quarter 2026 Adjusted EBITDA of $708.3 million, a 12-percent increase from the year-earlier period after a 19-percent year-over-year rise in the second quarter. The figure reversed the 8-percent sequential gain posted in the prior quarter, when Adjusted EBITDA reached a then-record $736.5 million. The company attributed the modest sequential decline primarily to lower crude-oil and NGLs pricing, decreased throughput in the DJ Basin, and slightly higher operation and maintenance expense, which it said is typical in the third quarter.

Net income attributable to limited partners was $324.8 million, or $0.78 a share diluted, compared with $394.9 million, or $0.99 a share, in the second quarter. Distributable Cash Flow was $512.3 million. Cash flows from operating activities were $567.5 million, and Free Cash Flow was $244.2 million after capital expenditures of $302.3 million and equity-investment contributions of $25.1 million. Free Cash Flow after distributions was negative $148.5 million.

The partnership held its per-unit distribution at $0.930, or $3.72 on an annualized basis, matching the second quarter. It reaffirmed 2026 guidance ranges of $2.750 billion to $2.950 billion for Adjusted EBITDA, $2.050 billion to $2.250 billion for Distributable Cash Flow, and $1.100 billion to $1.300 billion for Free Cash Flow, ranges it had raised in the second-quarter release. President and Chief Executive Officer Oscar K. Brown said the company anticipates full-year Adjusted EBITDA above the midpoint of that range, an increase of more than $250.0 million relative to the $2.600 billion midpoint of original February guidance, or more than $150.0 million above the midpoint excluding the Brazos acquisition.

Natural-gas volumes were the operating turn. Total natural-gas throughput attributable to WES averaged 5.7 Bcf/d, a 7-percent sequential increase after a 3-percent sequential increase in the second quarter. Including noncontrolling interests, throughput was a record 5.9 Bcf/d, up 8 percent sequentially. Delaware Basin natural-gas throughput reached a record 2.6 Bcf/d, a 20-percent sequential increase after a 5-percent sequential increase in the second quarter, mostly from a full quarter of the Brazos Delaware acquisition that closed in June 2026. Brown said the Brazos integration is progressing as expected and that the company anticipates tying those assets into its West Texas Complex by mid-December, enabling it to reduce offloads.

DJ Basin natural-gas throughput declined to 1,482 MMcf/d from a record 1,547 MMcf/d, a 4-percent sequential decrease after a 2-percent sequential increase in the second quarter. Powder River Basin operated natural-gas throughput was 400 MMcf/d. Crude-oil and NGLs throughput attributable to WES averaged 526 MBbls/d, a slight sequential increase. Produced-water throughput attributable to WES averaged 2,992 MBbls/d, a 2-percent sequential increase after a 5-percent sequential increase in the second quarter; Delaware Basin produced-water throughput was a record 3,047 MBbls/d.

Per-unit margins compressed across all three product lines. Natural-gas gross margin was $1.02 a Mcf and adjusted gross margin $1.25 a Mcf, down 10 percent and 7 percent sequentially. Crude-oil and NGLs gross margin was $2.10 a barrel and adjusted gross margin $2.93 a barrel. Produced-water gross margin was $0.73 a barrel and adjusted gross margin $0.89 a barrel. Adjusted Gross Margin was $1.040 billion, with crude-oil and NGLs Adjusted Gross Margin of $141.9 million and produced-water Adjusted Gross Margin of $244.8 million; natural-gas Adjusted Gross Margin was $662.7 million.

The partnership acquired a 7.5-percent equity interest in the Solitude Pipeline System joint venture operated by WhiteWater, consisting of two 48-inch natural-gas pipelines from the Permian Basin to Katy, Texas, with initial takeaway capacity of up to 2.25 Bcf/d in late 2029 and an incremental 2.25 Bcf/d in 2030. It expects 2026 capital expenditures to be slightly above the high end of its $850.0 million to $1.0 billion range, reflecting Solitude and accelerating producer activity. Brown said the company expects that momentum to carry into 2027, with incremental customer activity, a full year of Brazos contribution, start-up of the Pathfinder pipeline, North Loving II coming online, and new gathering and processing agreements in the Powder River Basin.