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Why Is Western Midstream (WES) Up 4.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Western Midstream (WES - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Western Midstream due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
WES Q1 Earnings Beat on Higher Throughput Volume
Western Midstream 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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 10.34% due to these changes.
VGM Scores
Currently, Western Midstream has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Western Midstream has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Western Midstream (WES) Up 4.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Western Midstream (WES - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Western Midstream due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
WES Q1 Earnings Beat on Higher Throughput Volume
Western Midstream 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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 10.34% due to these changes.
VGM Scores
Currently, Western Midstream has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Western Midstream has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.