Western Midstream Partners, LP

Western Midstream reported Q1 2026 net income attributable to limited partners of $342 million, adjusted EBITDA of $683 million, and distributable cash flow of $509 million. Adjusted EBITDA increased 7% sequentially and 15% versus the prior-year period; crude oil and NGL throughput reached a record 272,000 barrels per day, up 4% sequentially and 6% year over year, and produced water throughput reached approximately 2.8 million barrels per day, up 4% sequentially. The company said first-quarter adjusted gross margin rose by $56 million sequentially, while cash flow from operating activities was $470 million, free cash flow was $242 million, and trailing-12-month net leverage was approximately 3.1x. Guidance: management expects 2026 adjusted EBITDA to come in toward the high end of the previously announced $2.5 billion to $2.7 billion range and DCF toward the high end of the $1.85 billion to $2.05 billion range before Brazos. It still expects 2026 free cash flow of $900 million to $1.1 billion, capital expenditures of $850 million to $1 billion, and annual distribution of at least $3.70 per unit; it also expects the Q2 distribution of $0.93 per unit to be paid May 15.

Oscar Brown framed the quarter as evidence that the company’s strategy is working: strong core basin assets, disciplined bolt-on M&A, and high-return organic projects. He emphasized that Aris is fully integrated, Brazos should be simpler to integrate, and the company remains measured about pace while still pursuing programmatic deals. His tone was confident and expansionary, especially on the Delaware Basin, where he said WES is building scale and sees multiple pathways to grow.

Kristen Shults focused on the quarter’s financial strength and the drivers behind the higher outlook. She cited Q1 net income of $342 million, adjusted EBITDA of $683 million, DCF of $509 million, operating cash flow of $470 million, and liquidity of more than $2.5 billion. She said O&M rose about 5% sequentially due to Aris, but still should only rise about 10% to 15% for 2026 on a combined basis, and she reiterated 2026 capex of $850 million to $1 billion and free cash flow of $900 million to $1.1 billion.

Analysts pressed on whether WES can keep doing deals while digesting Aris and Brazos; management said it has completed Aris integration and expects Brazos to be a simpler asset-level integration, but it will be measured about pacing future M&A. Questions also focused on the new ventures pipeline, and Oscar said beneficial reuse is the nearest-term opportunity, with the desal pilot being upsized and moving toward commercial operations, while CO2 and behind-the-meter power are longer-term. On Brazos, management said the $100 million EBITDA contribution reflects the base asset and that synergies and utilization of unused processing capacity should build over time; they also said the deal should be immediately accretive to 2026 DCF per unit.