It has been about a month since the last earnings report for Western Midstream (WES Quick QuoteWES - Free Report) . Shares have added about 4.8% 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 its latest earnings report in order to get a better handle on the important catalysts.

WES Q2 Earnings Beat Estimates on Record Throughput & Pricing

Western Midstream Partners reported second-quarter 2026 earnings of 99 cents per unit, up 13.8% from 87 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 90 cents by 10%.

Quarterly revenues of $1.22 billion increased 30% year over year and topped the Zacks Consensus Estimate of $1.13 billion by 8.3%. Results benefited from impressive Delaware Basin natural gas and produced-water throughput, the Brazos acquisition contribution and higher commodity pricing.

Western Midstream Posts Strong Throughput Gains

Natural-gas throughput attributable to WES averaged 5,343 million cubic feet per day (MMcf/D), up 3% sequentially. Delaware Basin natural-gas throughput reached a record 2,140 MMcf/D, increasing 5% from the first quarter, thanks to the contribution from the Brazos Delaware acquisition.

Produced-water throughput rose 5% sequentially to 2,939 MBbls/D, while crude-oil and NGL throughput edged up to 523 MBbls/D. DJ Basin natural-gas throughput also reached a record 1,547 MMcf/D, signifying a 2% sequential increase.

WES Records Margin Expansion Across Three Streams

Adjusted gross margin per Mcf for natural-gas assets increased to $1.35 from $1.32 in the first quarter. Higher commodity pricing on excess NGL volumes under fixed-recovery contracts and the partial-quarter Brazos contribution supported the increase.

Adjusted gross margin per barrel for crude oil and NGL assets rose to $3.21 from $3.07, mainly due to higher Delaware Basin deficiency fees. Produced-water adjusted gross margin improved to 96 cents per barrel from 90 cents, primarily reflecting higher throughput.

Western Midstream Faces Higher Operating Costs

Total operating expenses increased to $714.95 million from $524.06 million in the prior-year quarter. Operation and maintenance expenses climbed to $285.35 million from $224.63 million, while general and administrative expenses increased to $85.93 million from $66.15 million.

The cost of the product surged to $117.44 million from $42.68 million. Depreciation and amortization increased to $205.95 million from $172.11 million. Despite the higher expense base, operating income advanced to $526.7 million from $444.48 million a year earlier.

WES Generates Record Adjusted EBITDA

Adjusted EBITDA reached a quarterly record of $736.5 million, increasing 19% year over year and roughly 8% sequentially. Distributable cash flow totaled $537.2 million.

Operating cash flow was $534.7 million, while free cash flow totaled $263.6 million. Free cash flow after distributions was negative $111 million, reflecting organic growth capital spending. Second-quarter capital expenditures totaled $308.3 million.

Western Midstream Raises 2026 Outlook

Western Midstream raised its 2026 adjusted EBITDA guidance to $2.75 to $2.95 billion, with the $2.85 billion midpoint up $250 million from its original outlook. Distributable cash flow guidance increased to $2.05-$2.25 billion, while free cash flow expectations rose to $1.1-$1.3 billion.

The partnership maintained its $850 million-$1 billion capital expenditure range but now expects spending near the high end. WES also reiterated its target of at least $3.70 per unit in distributions paid during 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, Western Midstream has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Western Midstream has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Western Midstream belongs to the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry. Another stock from the same industry, Sunoco LP (SUN Quick QuoteSUN - Free Report) , has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Sunoco LP reported revenues of $14.26 billion in the last reported quarter, representing a year-over-year change of +164.5%. EPS of $0.94 for the same period compares with $0.33 a year ago.

For the current quarter, Sunoco LP is expected to post earnings of $2.82 per share, indicating a change of +340.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Sunoco LP has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.