We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WES Targets $1.1B Capex in 2026 to Drive Delaware Basin Growth
Read MoreHide Full Article
Key Takeaways
WES targets $1.1B+ 2026 capex to expand Delaware Basin operations and infrastructure.
$2B Aris acquisition will raise water disposal capacity and diversify long-term contracts.
New North Loving train to lift processing capacity to 2.5 Bcf/d by early Q2 2027.
Western Midstream Partners, LP (WES - Free Report) is positioning itself for significant growth in the Delaware Basin with plans to invest at least $1.1 billion in 2026 capital expenditures. The company’s strategy is anchored by the $2 billion acquisition of Aris Water Solutions and the sanctioning of a second natural gas processing train at its North Loving plant.
Aris Deal to Enhance Water Infrastructure
Expected to be closed in the fourth quarter of 2025, the Aris acquisition should lift WES’ produced water disposal capacity to more than 3.8 million barrels per day. The deal should also diversify the customer base with additional long-term contracts and acreage dedications from major producers. WES plans to fund the transaction with 28% cash and 72% units while maintaining a net leverage ratio of about 3x.
North Loving Expansion to Lift Processing Capability
The newly sanctioned 300 million cubic feet per day train at the North Loving facility will increase total West Texas complex processing capacity to roughly 2.5 billion cubic feet per day by early second-quarter 2027, reinforcing the Delaware Basin’s role as WES’ primary growth driver.
Steady Throughput Growth Expected
For the remainder of 2025, WES expects mid-single-digit year-over-year growth in natural gas and produced water throughput and low single-digit growth in crude oil and NGLs across its portfolio. The company anticipates continued growth in all three product lines in 2026, even before factoring in contributions from the Aris acquisition.
Long-Term Value Creation
With its infrastructure expansions, customer diversification, and disciplined balance sheet management, WES is aiming to deliver sustained throughput growth and operational scale in the Delaware Basin while maintaining financial strength and stable distributions.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.
AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. In the oil and gas sector, Flotek serves major and independent energy producers and oilfield service companies, both domestic and international.
Flotek’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.2%. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 94% year-over-year growth.
Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment.
ENB’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
WES Targets $1.1B Capex in 2026 to Drive Delaware Basin Growth
Key Takeaways
Western Midstream Partners, LP (WES - Free Report) is positioning itself for significant growth in the Delaware Basin with plans to invest at least $1.1 billion in 2026 capital expenditures. The company’s strategy is anchored by the $2 billion acquisition of Aris Water Solutions and the sanctioning of a second natural gas processing train at its North Loving plant.
Aris Deal to Enhance Water Infrastructure
Expected to be closed in the fourth quarter of 2025, the Aris acquisition should lift WES’ produced water disposal capacity to more than 3.8 million barrels per day. The deal should also diversify the customer base with additional long-term contracts and acreage dedications from major producers. WES plans to fund the transaction with 28% cash and 72% units while maintaining a net leverage ratio of about 3x.
North Loving Expansion to Lift Processing Capability
The newly sanctioned 300 million cubic feet per day train at the North Loving facility will increase total West Texas complex processing capacity to roughly 2.5 billion cubic feet per day by early second-quarter 2027, reinforcing the Delaware Basin’s role as WES’ primary growth driver.
Steady Throughput Growth Expected
For the remainder of 2025, WES expects mid-single-digit year-over-year growth in natural gas and produced water throughput and low single-digit growth in crude oil and NGLs across its portfolio. The company anticipates continued growth in all three product lines in 2026, even before factoring in contributions from the Aris acquisition.
Long-Term Value Creation
With its infrastructure expansions, customer diversification, and disciplined balance sheet management, WES is aiming to deliver sustained throughput growth and operational scale in the Delaware Basin while maintaining financial strength and stable distributions.
WES’ Zacks Rank and Key Picks
WES currently carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM - Free Report) , Flotek Industries, Inc. (FTK - Free Report) and Enbridge Inc. (ENB - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.
AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. In the oil and gas sector, Flotek serves major and independent energy producers and oilfield service companies, both domestic and international.
Flotek’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.2%. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 94% year-over-year growth.
Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment.
ENB’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%.