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WES Q4 Earnings Miss on Lower Throughput & Higher Expenses
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Key Takeaways
WES posted Q4 earnings of 47 cents, missing estimates and falling from 85 cents a year ago.
Revenues increased to $1.03B but missed estimates as gas and NGL throughputs declined.
Operating costs jumped to $744.2M, driven by higher G&A expenses despite a solid cash flow.
Western Midstream Partners LP (WES - Free Report) reported fourth-quarter 2025 earnings of 47 cents per common unit, which missed the Zacks Consensus Estimate of 91 cents. The bottom line declined from the year-ago quarter’s 85 cents.
Total quarterly revenues of $1.03 billion missed the Zacks Consensus Estimate of $1.11 billion. The top line increased from the prior-year level of $928.5 million.
The weak quarterly results can be primarily attributed to lower throughputs across its natural gas, crude oil and NGL assets. An increase in total operating expenses adds to the negatives.
Western Midstream Partners, LP Price, Consensus and EPS Surprise
The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,162 million cubic feet per day (MMcf/d), down 1% from the prior-year quarter. The decrease can be primarily attributed to lower volume from the Delaware Basin, the Powder River Basin and Other assets. However, volume growth from the DJ Basin slightly offset the negatives.
Total throughput for crude oil and NGL assets was 508 thousand barrels per day (MBbls/d) compared with 534 MBbls/d in the fourth quarter of 2024. The decrease can be attributed to lower throughputs from the partnership’s DJ Basin assets, the Powder River Basin and Other assets, with volume growth from the Delaware Basin slightly offsetting the negatives. Total operated throughput for crude oil and NGLs assets was 419 MBbls/d compared with 423 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,693 MBbls/d, up from 1,191 MBbls/d in the year-ago quarter.
WES’ Costs & Expenses
Total operating expenses for the quarter stood at $744.2 million, higher than the prior-year reported figure of $528.3 million. The increase was driven primarily by a rise in general and administrative expenses.
Cash Flow of WES
Net cash provided by operating activities totaled $557.6 million in the fourth quarter, up from $554.4 million in the corresponding period of 2024. The partnership’s free cash flow for the quarter totaled $340.8 million.
Balance Sheet of WES
As of Dec. 31, 2025, the partnership’s long-term debt totaled $8.20 billion. Its cash and cash equivalents at the end of the 12 months totaled $819.5 million.
WES’ Outlook
WES reiterated its 2026 adjusted EBITDA guidance of $2,500-$2,700 million. The total capital expenditure for the year is anticipated between $850 million and $1000 million, and the distributable cash flow is expected to be $1,850-$2,050 million. WES increased its quarterly distribution to 93 cents per unit, effective with the May distribution.
Some other stocks from the energy sector that have also reported results are Kinder Morgan, Inc. (KMI - Free Report) , MPLX LP (MPLX - Free Report) and Enbridge Inc. (ENB - Free Report) , each carrying a Zacks Rank #3 as well.
Kinder Morgan reported adjusted earnings of 39 cents per share for the fourth quarter of 2025, beating the Zacks Consensus Estimate of 37 cents. The bottom line surpassed the year-ago quarter’s 32 cents.
As of Dec. 31, 2025, KMI had cash and cash equivalents worth $63 million, along with a long-term debt of $30.597 billion.
MPLX reported fourth-quarter 2025 earnings of $1.17 per unit, which beat the Zacks Consensus Estimate of $1.08 and increased from $1.07 in the year-ago quarter.
As of Dec. 31, 2025, MPLX’s cash and cash equivalents amounted to $2.14 billion, and the total debt was $25.65 billion.
Enbridgereported fourth-quarter 2025 adjusted earnings per share of 63 cents, which beat the Zacks Consensus Estimate of 60 cents. The bottom line improved from the year-ago quarter’s 53 cents.
At the end of the fourth quarter, ENB reported a long-term debt of C$98.96 billion, and cash and cash equivalents of C$1.09 billion.
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WES Q4 Earnings Miss on Lower Throughput & Higher Expenses
Key Takeaways
Western Midstream Partners LP (WES - Free Report) reported fourth-quarter 2025 earnings of 47 cents per common unit, which missed the Zacks Consensus Estimate of 91 cents. The bottom line declined from the year-ago quarter’s 85 cents.
Total quarterly revenues of $1.03 billion missed the Zacks Consensus Estimate of $1.11 billion. The top line increased from the prior-year level of $928.5 million.
The weak quarterly results can be primarily attributed to lower throughputs across its natural gas, crude oil and NGL assets. An increase in total operating expenses adds to the negatives.
Western Midstream Partners, LP Price, Consensus and EPS Surprise
Western Midstream Partners, LP price-consensus-eps-surprise-chart | Western Midstream Partners, LP Quote
Operational Performance of WES
The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,162 million cubic feet per day (MMcf/d), down 1% from the prior-year quarter. The decrease can be primarily attributed to lower volume from the Delaware Basin, the Powder River Basin and Other assets. However, volume growth from the DJ Basin slightly offset the negatives.
Total throughput for crude oil and NGL assets was 508 thousand barrels per day (MBbls/d) compared with 534 MBbls/d in the fourth quarter of 2024. The decrease can be attributed to lower throughputs from the partnership’s DJ Basin assets, the Powder River Basin and Other assets, with volume growth from the Delaware Basin slightly offsetting the negatives. Total operated throughput for crude oil and NGLs assets was 419 MBbls/d compared with 423 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,693 MBbls/d, up from 1,191 MBbls/d in the year-ago quarter.
WES’ Costs & Expenses
Total operating expenses for the quarter stood at $744.2 million, higher than the prior-year reported figure of $528.3 million. The increase was driven primarily by a rise in general and administrative expenses.
Cash Flow of WES
Net cash provided by operating activities totaled $557.6 million in the fourth quarter, up from $554.4 million in the corresponding period of 2024. The partnership’s free cash flow for the quarter totaled $340.8 million.
Balance Sheet of WES
As of Dec. 31, 2025, the partnership’s long-term debt totaled $8.20 billion. Its cash and cash equivalents at the end of the 12 months totaled $819.5 million.
WES’ Outlook
WES reiterated its 2026 adjusted EBITDA guidance of $2,500-$2,700 million. The total capital expenditure for the year is anticipated between $850 million and $1000 million, and the distributable cash flow is expected to be $1,850-$2,050 million. WES increased its quarterly distribution to 93 cents per unit, effective with the May distribution.
WES’ Zacks Rank & Peer Performance
Currently, WES carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Some other stocks from the energy sector that have also reported results are Kinder Morgan, Inc. (KMI - Free Report) , MPLX LP (MPLX - Free Report) and Enbridge Inc. (ENB - Free Report) , each carrying a Zacks Rank #3 as well.
Kinder Morgan reported adjusted earnings of 39 cents per share for the fourth quarter of 2025, beating the Zacks Consensus Estimate of 37 cents. The bottom line surpassed the year-ago quarter’s 32 cents.
As of Dec. 31, 2025, KMI had cash and cash equivalents worth $63 million, along with a long-term debt of $30.597 billion.
MPLX reported fourth-quarter 2025 earnings of $1.17 per unit, which beat the Zacks Consensus Estimate of $1.08 and increased from $1.07 in the year-ago quarter.
As of Dec. 31, 2025, MPLX’s cash and cash equivalents amounted to $2.14 billion, and the total debt was $25.65 billion.
Enbridgereported fourth-quarter 2025 adjusted earnings per share of 63 cents, which beat the Zacks Consensus Estimate of 60 cents. The bottom line improved from the year-ago quarter’s 53 cents.
At the end of the fourth quarter, ENB reported a long-term debt of C$98.96 billion, and cash and cash equivalents of C$1.09 billion.