Western Midstream Partners, LP Q3 2026 Earnings Recap

WES shares fell 6.3% after earnings, despite higher year-over-year EBITDA, as investors likely focused on modest sequential EBITDA decline and management’s explanation of weaker West Texas contract mix and pricing, lower DJ Basin throughput, and lower NGL and skim oil volumes and prices. Management expects a strong fourth quarter, but the quarter’s sequential softness tempers the upbeat full-year outlook.

Key Takeaways

• Third-quarter adjusted EBITDA was $708 million, up 12% year over year but modestly lower sequentially.
• Partnership-wide and Delaware Basin natural gas and produced water throughput reached records; Delaware Basin natural gas throughput rose 20% sequentially, with roughly two-thirds of that growth from a full quarter of Brazos contribution.
• Sequential EBITDA was pressured by West Texas contract mix and pricing, lower DJ Basin throughput, reduced excess NGL and skim oil volumes and prices, and seasonally higher O&M expense; a full quarter of Brazos contribution partly offset these factors.
• Management expects 2026 adjusted EBITDA to exceed the midpoint of its revised guidance range and anticipates strong fourth-quarter results, citing more wells expected online than in the third quarter.
• WES reported more than $125 million in permanent O&M and G&A savings from the legacy business, excluding Aris, Brazos, and mostly reimbursable utility costs.