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WES Raises 2026 Guidance as Brazos Adds Scale and Throughput Growth
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Key Takeaways
Western Midstream posted record second-quarter EBITDA of $736.5 million, up 19% year over year.
Brazos lifted Delaware Basin gas throughput to a record 2,140 MMcf/d and added growth potential.
Western Midstream raised 2026 EBITDA guidance to $2.75-$2.95 billion and free cash flow to $1.1-$1.3 billion.
Western Midstream Partners, LP (WES - Free Report) raised its 2026 financial outlook after a second quarter that produced record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), higher throughput and the first contribution from Brazos Delaware. The stronger results point to a higher earnings base as the acquired assets are integrated.
The question is whether that momentum can outweigh rising expenses, elevated capital spending and commodity-linked variability through the rest of the year.
WES Delivers Record Second-Quarter EBITDA
Second-quarter adjusted EBITDA increased 19% to a quarterly record of $736.5 million. The performance reflected record Delaware Basin natural-gas and produced-water throughput, roughly two-and-a-half weeks of Brazos contribution and benefits from fixed-recovery processing contracts at higher commodity prices.
Revenues increased 30% to $1.22 billion from $942.3 million a year earlier. Earnings reached 99 cents per unit. Both revenues and earnings exceeded the Zacks Consensus Estimate, reinforcing the strength of the quarter.
WES Gets an Early Lift From Brazos Delaware
The June 2026 Brazos Delaware acquisition helped push Delaware Basin natural-gas throughput to a record 2,140 MMcf/d, up 5% sequentially. Brazos added about 460 MMcf/d of processing capacity and expanded WES' dedicated acreage in the basin to more than 1.4 million acres.
Management expects Brazos to contribute approximately $100 million of adjusted EBITDA in the second half of 2026. WES also sees $15-$20 million of potential cost synergies as it connects the Brazos system with its legacy network and reduces general, administrative, operating and maintenance costs.
WES Organic Projects Extend Its Growth Runway
WES is advancing two major organic projects that could support additional Delaware Basin growth into 2027. North Loving II is expected to add 300 MMcf/d of cryogenic processing capacity, lifting WES’ total Delaware Basin processing capacity to about 3.1 Bcf/d when it enters service in early second-quarter 2027. The Pathfinder Pipeline, expected online in the first quarter of 2027, is designed to transport roughly 800 MBbls/d of produced water and is supported by firm gathering, transportation and disposal commitments from Occidental. With Pathfinder’s project cost estimated at $300-$350 million, these investments add processing and water-handling capacity that can complement the earnings contribution from Brazos and support WES’ multi-year growth outlook.
Image Source: Zacks Investment Research
WES Raises Its 2026 Cash-Flow Outlook
WES lifted its 2026 Adjusted EBITDA guidance to $2.75-$2.95 billion. The $2.85 billion midpoint is $250 million above the original outlook and represents a 15% increase from full-year 2025 Adjusted EBITDA.
Distributable cash flow guidance increased to $2.05-$2.25 billion, while free cash flow guidance rose to $1.1-$1.3 billion. Each midpoint increased by $200 million, reflecting Brazos, first-half commodity strength and higher expected customer activity in the Delaware and Powder River basins.
Image Source: Zacks Investment Research
WES Earnings Estimates Signal Continued Growth
The Zacks Consensus Estimate for WES’ 2026 earnings is pegged at $3.58 per unit, implying 20.1% growth from $2.98 in 2025. For the third quarter, the consensus estimate stands at 87 cents per unit, unchanged from the year-ago period, while the most recent consensus is higher at 89 cents. Fourth-quarter earnings are expected at 86 cents per unit, up 83% from 47 cents a year earlier, with the most recent consensus also at 89 cents. The estimate range of 80-92 cents for the third quarter and 79-92 cents for the fourth quarter indicates some uncertainty around the pace of near-term earnings improvement. Looking into 2027, the Zacks Consensus Estimate calls for earnings of $3.79 per unit, representing another 6% increase from the 2026 estimate. These projections support the raised outlook while leaving execution, commodity conditions and Brazos integration as key factors in determining whether WES can sustain its earnings momentum.
Image Source: Zacks Investment Research
WES Still Faces Costs and Commodity Risks
The higher outlook comes with a heavier cost base. Second-quarter total operating expenses rose to $714.95 million from $524.06 million a year earlier, while operation and maintenance expense increased to $285.35 million from $224.63 million. WES also expects 2026 capital spending near the high end of its $850 million-$1 billion range.
Commodity-linked processing economics remain another variable. Negative Waha natural-gas pricing caused some customer curtailments during the quarter, although those curtailments had ended by quarter-end. Lower commodity prices could reduce fixed-recovery processing benefits, while delays or cost overruns on the Brazos integration, Pathfinder pipeline or North Loving II project could limit upside.
Permian activity is also attracting capital from peers. Enterprise Products Partners L.P. (EPD - Free Report) reported a 14% increase in Permian natural-gas processing inlet volumes in the second quarter. MPLX LP (MPLX - Free Report) is investing in Permian sour-gas treating and natural-gas and NGL infrastructure, underscoring continued competition for basin growth.
WES Momentum Supports the Raised Outlook
WES' raised guidance is supported by record operating performance, early Brazos contributions and higher expected second-half customer activity. The main test is whether those gains can offset the larger expense base and sustain cash-flow growth as commodity conditions normalize.
It has a Momentum Score of A. The Zacks Consensus Estimate for current-year earnings has moved 3.8% higher over the past four weeks, consistent with positive estimate revisions. A Growth Score of D and VGM Score of D temper that momentum, while a Value Score of C is more neutral. The mix favors near-term earnings momentum, but sustained fundamental improvement still depends on execution and cash-flow delivery.
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WES Raises 2026 Guidance as Brazos Adds Scale and Throughput Growth
Key Takeaways
Western Midstream Partners, LP (WES - Free Report) raised its 2026 financial outlook after a second quarter that produced record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), higher throughput and the first contribution from Brazos Delaware. The stronger results point to a higher earnings base as the acquired assets are integrated.
The question is whether that momentum can outweigh rising expenses, elevated capital spending and commodity-linked variability through the rest of the year.
WES Delivers Record Second-Quarter EBITDA
Second-quarter adjusted EBITDA increased 19% to a quarterly record of $736.5 million. The performance reflected record Delaware Basin natural-gas and produced-water throughput, roughly two-and-a-half weeks of Brazos contribution and benefits from fixed-recovery processing contracts at higher commodity prices.
Revenues increased 30% to $1.22 billion from $942.3 million a year earlier. Earnings reached 99 cents per unit. Both revenues and earnings exceeded the Zacks Consensus Estimate, reinforcing the strength of the quarter.
WES Gets an Early Lift From Brazos Delaware
The June 2026 Brazos Delaware acquisition helped push Delaware Basin natural-gas throughput to a record 2,140 MMcf/d, up 5% sequentially. Brazos added about 460 MMcf/d of processing capacity and expanded WES' dedicated acreage in the basin to more than 1.4 million acres.
Management expects Brazos to contribute approximately $100 million of adjusted EBITDA in the second half of 2026. WES also sees $15-$20 million of potential cost synergies as it connects the Brazos system with its legacy network and reduces general, administrative, operating and maintenance costs.
WES Organic Projects Extend Its Growth Runway
WES is advancing two major organic projects that could support additional Delaware Basin growth into 2027. North Loving II is expected to add 300 MMcf/d of cryogenic processing capacity, lifting WES’ total Delaware Basin processing capacity to about 3.1 Bcf/d when it enters service in early second-quarter 2027. The Pathfinder Pipeline, expected online in the first quarter of 2027, is designed to transport roughly 800 MBbls/d of produced water and is supported by firm gathering, transportation and disposal commitments from Occidental. With Pathfinder’s project cost estimated at $300-$350 million, these investments add processing and water-handling capacity that can complement the earnings contribution from Brazos and support WES’ multi-year growth outlook.
WES Raises Its 2026 Cash-Flow Outlook
WES lifted its 2026 Adjusted EBITDA guidance to $2.75-$2.95 billion. The $2.85 billion midpoint is $250 million above the original outlook and represents a 15% increase from full-year 2025 Adjusted EBITDA.
Distributable cash flow guidance increased to $2.05-$2.25 billion, while free cash flow guidance rose to $1.1-$1.3 billion. Each midpoint increased by $200 million, reflecting Brazos, first-half commodity strength and higher expected customer activity in the Delaware and Powder River basins.
WES Earnings Estimates Signal Continued Growth
The Zacks Consensus Estimate for WES’ 2026 earnings is pegged at $3.58 per unit, implying 20.1% growth from $2.98 in 2025. For the third quarter, the consensus estimate stands at 87 cents per unit, unchanged from the year-ago period, while the most recent consensus is higher at 89 cents. Fourth-quarter earnings are expected at 86 cents per unit, up 83% from 47 cents a year earlier, with the most recent consensus also at 89 cents. The estimate range of 80-92 cents for the third quarter and 79-92 cents for the fourth quarter indicates some uncertainty around the pace of near-term earnings improvement. Looking into 2027, the Zacks Consensus Estimate calls for earnings of $3.79 per unit, representing another 6% increase from the 2026 estimate. These projections support the raised outlook while leaving execution, commodity conditions and Brazos integration as key factors in determining whether WES can sustain its earnings momentum.
Image Source: Zacks Investment Research
WES Still Faces Costs and Commodity Risks
The higher outlook comes with a heavier cost base. Second-quarter total operating expenses rose to $714.95 million from $524.06 million a year earlier, while operation and maintenance expense increased to $285.35 million from $224.63 million. WES also expects 2026 capital spending near the high end of its $850 million-$1 billion range.
Commodity-linked processing economics remain another variable. Negative Waha natural-gas pricing caused some customer curtailments during the quarter, although those curtailments had ended by quarter-end. Lower commodity prices could reduce fixed-recovery processing benefits, while delays or cost overruns on the Brazos integration, Pathfinder pipeline or North Loving II project could limit upside.
Permian activity is also attracting capital from peers. Enterprise Products Partners L.P. (EPD - Free Report) reported a 14% increase in Permian natural-gas processing inlet volumes in the second quarter. MPLX LP (MPLX - Free Report) is investing in Permian sour-gas treating and natural-gas and NGL infrastructure, underscoring continued competition for basin growth.
WES Momentum Supports the Raised Outlook
WES' raised guidance is supported by record operating performance, early Brazos contributions and higher expected second-half customer activity. The main test is whether those gains can offset the larger expense base and sustain cash-flow growth as commodity conditions normalize.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a Momentum Score of A. The Zacks Consensus Estimate for current-year earnings has moved 3.8% higher over the past four weeks, consistent with positive estimate revisions. A Growth Score of D and VGM Score of D temper that momentum, while a Value Score of C is more neutral. The mix favors near-term earnings momentum, but sustained fundamental improvement still depends on execution and cash-flow delivery.