WES earnings analysis
What we found in WES's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Western Midstream Partners reported a robust Q1 2026 with total revenues of $1.12 billion and diluted EPS of $0.85, both exceeding consensus estimates. Adjusted EBITDA rose 15% YOY, driven by the recent Aris acquisition and increased throughput across key segments, but free cash flow fell by 29%. Management anticipates favorable operating conditions and remains positioned for strong Adjusted EBITDA and distributions ahead.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Increases Sharply
- Total revenues reached $1.12 billion, up 9.1% from $1.03 billion in Q4 2025 and a 22.5% increase from $917 million in Q1 2025.
- EPS Exceeds Estimates
- Diluted EPS reported at $0.85, beating the consensus estimate of $0.77 and an improvement from $0.45 in Q4 2025.
- Strong Adjusted EBITDA Growth
- Adjusted EBITDA rose to $683.1 million, a 15% increase year-over-year from $593.6 million in Q1 2025.
- Increased Water Asset Throughput
- Produced water throughput surged 139% YOY to approximately 2,848 MBbls/d due to the Aris acquisition.
- Higher Gross Margins
- Adjusted Gross Margin increased by 6% from Q4 2025 to $990.7 million, contributing to improved overall financial performance.
- Increased Cash Distribution
- Quarterly distribution per unit increased to $0.930, up from $0.910 in Q4 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- High Capital Expenditures
- Capital expenditures rose to $235.7 million in Q1 2026, up 65% YOY, affecting cash flow.
- Debt Level Concerns
- Total debt as of March 31, 2026, stood at $8.6 billion, limiting financial flexibility.
- Interest Rate Volatility
- Increased interest expense of $113.4 million, up 17% from Q1 2025, due to rising interest rates affecting financing costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.85
- Segment
- Natural Gas
- Segment
- Crude Oil
- Segment
- NGLs
- Segment
- Produced Water
What they said about what is next.
Management expects to be towards the high end of prior guidance ranges for Adjusted EBITDA and Distributable Cash Flow due to favorable commodity pricing.
The filing reads better than the one before it.
What came before.
- 10-K · February 18, 2026
- Western Midstream’s 2025 10-K highlights solid cash generation and growth from the Aris Water Solutions acquisition but also shows one-time acquisition costs, higher interest expense from assumed and newly issued debt,…
- 10-Q · November 6, 2024
- Western Midstream reported Q3 (three months ended September 30, 2024) total revenues of $883,362,000 and diluted net income per common unit of $0.74. Revenue grew year-over-year driven by fee-based service revenue,…
- 10-Q · May 8, 2024
- Western Midstream reported a strong Q1 with total revenues of $887,729,000 (up from $733,982,000 in Q1 2023) and diluted net income per common unit of $1.47 (up from $0.52). Operating income benefited from a…
- 10-Q · August 8, 2023
- Western Midstream reported Q2 total revenues of $738,273,000 and diluted net income per common unit of $0.64, both below prior-year quarter levels. Operating income remained healthy at $336,672,000 (45.6% operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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