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Western Midstream Q1 Earnings Beat on Higher Throughput Volume
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Key Takeaways
Western Midstream produced-water throughput surged 140% in Q1 2026 following the Aris acquisition.
WES reported higher natural gas and crude oil throughput across the DJ Basin and the DBM oil system.
WES maintained 2026 EBITDA & DCF guidance. It also raised its quarterly distribution to 93 cents per unit.
Western Midstream Partners LP (WES - Free Report) reported first-quarter 2026 earnings of 85 cents per unit, up 7.6% from 79 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 74 cents by 14.9%.
Total quarterly revenues of $1.1 billion topped the Zacks Consensus Estimate of $944.1 million. The top line increased 22.5% from the prior-year level of $917.1 million.
The strong quarterly results can be primarily attributed to higher throughputs across its natural gas, crude oil and natural gas liquid (NGL) assets. An increase in total operating expenses partially offset the positives.
Western Midstream Partners, LP Price, Consensus and EPS Surprise
Western Midstream Sees Broad-Based Throughput Gains
Operationally, Western Midstream logged sequential gains across its three core product lines. The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,209 million cubic feet per day (MMcf/d), up 2% from the prior-year quarter’s figure of 5,110 MMcf/d and up 1% sequentially. The increase was primarily driven by higher volume from the DJ Basin and Chipeta complexes. The commissioning of a new Red Bluff Express receipt point in fourth-quarter 2025 further enhanced throughput volume. However, volume growth from the Powder River Basin and the Mi Vida plant slightly offset the positives.
Total throughput for crude oil and NGL assets was 521 thousand barrels per day (MBbls/d) compared with 503 MBbls/d in the first quarter of 2025. The 3% year-over-year increase is due to higher volumes from the partnership’s DBM oil system. Crude oil and NGL throughput increased 3% sequentially, driven by higher volumes from the DBM oil system and the FRP pipeline.
Total operated throughput for crude oil and NGLs assets was 429 MBbls/d compared with 411 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,795 MBbls/d, up 140% from 1,166 MBbls/d in the year-ago quarter. The increase was driven by expanded capacity at DBM water systems following the acquisition of Aris.
Per management, Delaware Basin growth occurred despite curtailments linked to weak and volatile Waha natural-gas pricing, which it expects to persist through the second quarter amid downstream maintenance.
WES Keeps Tight Grip on Operating Costs
Cost discipline was another key support for the quarter. Total operating expenses for the quarter stood at $662.5 million, higher than the prior-year reported figure of $523.1 million, reflecting higher cost of product, operation and maintenance, and depreciation and amortization alongside the expanded asset base. Operation and maintenance expenses were $264.2 million, up from $226.5 million in the year-ago quarter, while general and administrative expenses were $75.2 million compared with $66.8 million last year.
Cash Flow of WES
Net cash provided by operating activities totaled $444.5 million in the first quarter of 2026, down from $511.5 million in the corresponding period of 2025. The partnership’s free cash flow for the quarter was $242.3 million.
Balance Sheet of WES
As of March 31, 2026, the partnership’s long-term debt was $8.2 billion. Its cash and cash equivalents stood at $647.5 million. WES reported trailing 12-month net leverage of about 3.1X and more than $2.5 billion of total liquidity at quarter end.
For 2026, WES kept its prior guidance intact. The partnership reiterated Adjusted EBITDA guidance of $2.5-$2.7 billion and Distributable Cash Flow (DCF) guidance of $1.85-$2.05 billion, while maintaining total capital expenditure expectations of $850 million to $1 billion.
WES increased its quarterly distribution to 93 cents per unit, payable May 15, 2026. Management plans to revisit 2026 guidance ranges alongside second-quarter results, after the anticipated closing of the Brazos transaction.
YPF reported first-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 83 cents by 24.1%. The bottom line surpassed the year-ago quarter’s 32 cents.
As of March 31, 2026, YPF had cash and cash equivalents worth $1.7 billion and net debt of $8.4 billion.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.
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Western Midstream Q1 Earnings Beat on Higher Throughput Volume
Key Takeaways
Western Midstream Partners LP (WES - Free Report) reported first-quarter 2026 earnings of 85 cents per unit, up 7.6% from 79 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 74 cents by 14.9%.
Total quarterly revenues of $1.1 billion topped the Zacks Consensus Estimate of $944.1 million. The top line increased 22.5% from the prior-year level of $917.1 million.
The strong quarterly results can be primarily attributed to higher throughputs across its natural gas, crude oil and natural gas liquid (NGL) assets. An increase in total operating expenses partially offset the positives.
Western Midstream Partners, LP Price, Consensus and EPS Surprise
Western Midstream Partners, LP price-consensus-eps-surprise-chart | Western Midstream Partners, LP Quote
Western Midstream Sees Broad-Based Throughput Gains
Operationally, Western Midstream logged sequential gains across its three core product lines. The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,209 million cubic feet per day (MMcf/d), up 2% from the prior-year quarter’s figure of 5,110 MMcf/d and up 1% sequentially. The increase was primarily driven by higher volume from the DJ Basin and Chipeta complexes. The commissioning of a new Red Bluff Express receipt point in fourth-quarter 2025 further enhanced throughput volume. However, volume growth from the Powder River Basin and the Mi Vida plant slightly offset the positives.
Total throughput for crude oil and NGL assets was 521 thousand barrels per day (MBbls/d) compared with 503 MBbls/d in the first quarter of 2025. The 3% year-over-year increase is due to higher volumes from the partnership’s DBM oil system. Crude oil and NGL throughput increased 3% sequentially, driven by higher volumes from the DBM oil system and the FRP pipeline.
Total operated throughput for crude oil and NGLs assets was 429 MBbls/d compared with 411 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,795 MBbls/d, up 140% from 1,166 MBbls/d in the year-ago quarter. The increase was driven by expanded capacity at DBM water systems following the acquisition of Aris.
Per management, Delaware Basin growth occurred despite curtailments linked to weak and volatile Waha natural-gas pricing, which it expects to persist through the second quarter amid downstream maintenance.
WES Keeps Tight Grip on Operating Costs
Cost discipline was another key support for the quarter. Total operating expenses for the quarter stood at $662.5 million, higher than the prior-year reported figure of $523.1 million, reflecting higher cost of product, operation and maintenance, and depreciation and amortization alongside the expanded asset base. Operation and maintenance expenses were $264.2 million, up from $226.5 million in the year-ago quarter, while general and administrative expenses were $75.2 million compared with $66.8 million last year.
Cash Flow of WES
Net cash provided by operating activities totaled $444.5 million in the first quarter of 2026, down from $511.5 million in the corresponding period of 2025. The partnership’s free cash flow for the quarter was $242.3 million.
Balance Sheet of WES
As of March 31, 2026, the partnership’s long-term debt was $8.2 billion. Its cash and cash equivalents stood at $647.5 million. WES reported trailing 12-month net leverage of about 3.1X and more than $2.5 billion of total liquidity at quarter end.
WES Maintains 2026 Guidance, Lifts Quarterly Payout
For 2026, WES kept its prior guidance intact. The partnership reiterated Adjusted EBITDA guidance of $2.5-$2.7 billion and Distributable Cash Flow (DCF) guidance of $1.85-$2.05 billion, while maintaining total capital expenditure expectations of $850 million to $1 billion.
WES increased its quarterly distribution to 93 cents per unit, payable May 15, 2026. Management plans to revisit 2026 guidance ranges alongside second-quarter results, after the anticipated closing of the Brazos transaction.
WES’ Zacks Rank & Key Picks
Currently, WES carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector that have also reported results are YPF Sociedad Anónima (YPF - Free Report) , Chevron Corporation (CVX - Free Report) and Eni S.p.A. (E - Free Report) .YPF, CVX and E each currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
YPF reported first-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 83 cents by 24.1%. The bottom line surpassed the year-ago quarter’s 32 cents.
As of March 31, 2026, YPF had cash and cash equivalents worth $1.7 billion and net debt of $8.4 billion.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.