Western Midstream Partners, LP delivers essential energy infrastructure services including gathering, processing, and transportation across North America's major oil and gas basins.
WES offers an attractive yield profile with consistent cash flow generation that supports a reliable dividend payout in the current energy transition landscape. The company's strategic location in the Permian Basin provides a long-term growth runway as upstream production continues to expand, ensuring steady volume growth for its infrastructure assets. Strong balance sheet management and cost discipline position the partnership well to weather commodity cycles while delivering shareholder returns.
The significant drop in net income from $1.61B in 2024 to $1.21B in 2025 highlights vulnerability to volume declines or margin compression in a softer price environment. High levels of interest expense at $390.5M could erode profitability further if debt costs rise or if the company needs to refinance maturing obligations under less favorable terms. Dependence on the health of upstream producers means that any major oil patch decline would disproportionately impact WES's revenue streams.
Western Midstream Partners, LP (WES) is a master limited partnership providing midstream energy infrastructure services across North America. The company focuses on gathering, treating, processing, transporting, and marketing crude oil, natural gas, and natural gas liquids for upstream producers in the Permian Basin and other key basins. With a diversified portfolio of assets, WES delivers reliable cash flows to shareholders through its extensive network of pipelines and processing facilities.
Recent financial performance shows revenue growth to $3.84B in 2025, reflecting increased throughput volumes and favorable pricing dynamics despite a moderation in net income to $1.21B. The company generated robust operating cash flow of $2.22B, though significant capital outflows for debt issuance and investments were offset by strong operational earnings. Management successfully navigated market headwinds while maintaining dividend sustainability, evidenced by the substantial common share dividends paid of $1.43B.
The midstream energy sector serves as the critical backbone connecting upstream extraction with downstream refining, facilitating the flow of crude oil and natural gas across North America. Industry participants face ongoing pressure to balance infrastructure expansion needs with environmental regulations while adapting to a shifting global energy demand landscape. Consolidation trends are reshaping the competitive landscape as larger players seek economies of scale through acquisitions and operational efficiencies.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.25B | $3.11B | $3.61B | $3.84B |
| Cost of Revenue | $420.9M | $164.6M | $172.3M | $207.0M |
| Gross Profit | $2.83B | $2.94B | $3.43B | $3.64B |
| Operating Expenses | $1.24B | $1.56B | $1.46B | $2.04B |
| Operating Income | $1.59B | $1.38B | $1.97B | $1.60B |
| G&A | $194.0M | $232.6M | $271.5M | $398.9M |
| Stock-Based Comp | $27.8M | $32.0M | $38.0M | $50.8M |
| D&A | $582.4M | $600.7M | $650.4M | $710.8M |
| Amortization | $31.7M | $31.7M | $31.7M | $34.8M |
| Other OpEx | $1.05B | $1.33B | $1.19B | $1.64B |
| Non-Operating Income | $-332.2M | $-327.2M | $-341.4M | $-373.9M |
| Interest Expense | $333.9M | $348.2M | $378.5M | $390.5M |
| Pre-Tax Income | $1.26B | $1.05B | $1.63B | $1.23B |
| Income Tax | $4.2M | $4.4M | $18.1M | $15.1M |
| Continuing Ops | $1.25B | $1.05B | $1.61B | $1.21B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.25B | $1.05B | $1.61B | $1.21B |
| Minority Interest | $34.4M | $25.8M | $37.7M | $31.5M |
| Net to Common | $1.22B | $1.02B | $1.57B | $1.18B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $900.4M | $992.4M | $1.85B | $1.66B |
| Cash & Equivalents | $286.7M | $272.8M | $1.09B | $819.5M |
| Accounts Receivable | $548.9M | $665.9M | $701.2M | $759.2M |
| Other Current Assets | $64.9M | $53.7M | $55.5M | $78.3M |
| Long-Term Assets | $10.37B | $11.48B | $11.30B | $13.34B |
| PP&E (Net) | $8.54B | $9.66B | $9.71B | $11.22B |
| Intangibles | $713.1M | $681.4M | $649.7M | $913.8M |
| Goodwill | $4.8M | $4.8M | $4.8M | $353.3M |
| Operating Leases | $67.1M | $84.3M | $219.5M | $187.9M |
| Other LT Assets | $100.0M | $149.2M | $167.5M | $160.8M |
| Total Assets | $11.27B | $12.47B | $13.14B | $15.00B |
| Current Liabilities | $903.9M | $1.30B | $1.69B | $1.24B |
| Current Leases | $10.3M | $11.3M | $58.9M | $65.3M |
| Deferred Revenue | $20.9M | $16.9M | $11.1M | $22.9M |
| Other Current Liab | $618.0M | $1.01B | $1.29B | $739.9M |
| Long-Term Liabilities | $7.26B | $8.14B | $8.08B | $9.60B |
| LT Operating Leases | $33.3M | $48.5M | $143.8M | $110.1M |
| Other LT Liab | $6.88B | $7.66B | $7.33B | $8.74B |
| Total Liabilities | $8.16B | $9.44B | $9.77B | $10.84B |
| Shareholders' Equity | $3.11B | $3.03B | $3.38B | $4.16B |
| Total L&E | $11.27B | $12.47B | $13.14B | $15.00B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.25B | $1.05B | $1.61B | $1.21B |
| Non-Cash Adjustments | $365.8M | $633.9M | $531.5M | $1.21B |
| Working Capital Changes | $84.2M | $-20.6M | $-5.8M | $-197.7M |
| Cash from Operations | $1.70B | $1.66B | $2.14B | $2.22B |
| Cash from Investing | $-218.2M | $-1.61B | $-39.2M | $-1.09B |
| Debt Issuances | $1.39B | $2.45B | $789.0M | $1.18B |
| Debt Repayments | $1.52B | $1.97B | $143.9M | $1.08B |
| Share Buybacks | $487.6M | $134.6M | $0 | $0 |
| Dividends Paid | $735.8M | $978.4M | $1.25B | $1.43B |
| Cash from Financing | $-1.40B | $-67.9M | $-1.28B | $-1.41B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $84.7M | $-13.9M | $817.7M | $-271.0M |
| Beginning Cash | $202.0M | $286.7M | $272.8M | $1.09B |
| Ending Cash | $286.7M | $272.8M | $1.09B | $819.5M |
The company operates primarily in crude oil gathering and processing, natural gas gathering and processing, and midstream transportation services. Revenue is generated from volume-based fees paid by producers for transporting liquids and gases, as well as capacity reservation fees for pipeline infrastructure. Additional streams include processing fees for separating hydrocarbon components and marketing margins from selling products to downstream refiners.
Investors face exposure to volatile oil and gas commodity prices which directly impact contract volumes and pricing terms. Regulatory changes regarding environmental compliance and permitting can affect operational timelines and costs in key production areas. A potential decline in upstream capital expenditure by producers could lead to reduced demand for midstream services. Interest rate sensitivity remains a concern given the company's significant long-term debt obligations relative to equity.
Western Midstream Partners maintains a low-cost operating profile driven by its large-scale asset footprint in the Permian Basin, which offers superior access to production hubs. The company benefits from strong customer relationships with major upstream producers, providing high retention rates for its transportation and processing capacity. Its diversified infrastructure portfolio across multiple basins reduces reliance on any single commodity price or geographic region.
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