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Western Midstream 2025 Q1 Earnings Misses Targets as Net Income Plummets 46%
Generated by AI AgentAinvest Earnings Report Digest
Thursday, May 8, 2025 3:05 am ET1min read
Western Midstream (WES) reported its fiscal 2025 Q1 earnings on May 7th, 2025. The company's results fell short of expectations due to a significant decline in net income and earnings per share (EPS). Despite increased revenue, Western Midstream's net income dropped sharply by 46.0%, resulting in a 46.3% decrease in EPS. The company maintained its 2025 guidance while emphasizing its strategic investments in infrastructure and continued focus on operational excellence amid market volatility.
Revenue
Earnings/Net Income
Western Midstream's EPS declined 46.3% to $0.79 in 2025 Q1 from $1.47 in 2024 Q1. Meanwhile, the company's net income declined to $316.55 million in 2025 Q1, down 46.0% from $586.22 million reported in 2024 Q1. This significant decline in EPS reflects the challenging market conditions faced by the company.
Price Action
Post-Earnings Price Action Review
The strategy of buying (WES) shares after a revenue increase quarter-over-quarter and holding for 30 days yielded moderate returns but was accompanied by considerable volatility and risk. The strategy's compound annual growth rate (CAGR) was 12.29%, lagging the benchmark by 6.00 percentage points. With a maximum drawdown of -16.35% and a Sharpe ratio of 0.72, the strategy presented a challenging risk-return profile. This underlines the importance of effective risk management in navigating such a volatile environment, especially given the inherent uncertainties in the energy sector.
CEO Commentary
Guidance
Additional News
In recent weeks, Western Midstream has announced the appointment of Robert G. Phillips as an independent director, effective May 5, 2025, signaling a strategic move to strengthen its leadership team. Additionally, the company declared a 4% increase in its quarterly distribution to $0.910 per unit, reflecting confidence in its cash generation capabilities. Furthermore, Western Midstream has completed the start-up of the North Loving natural-gas processing plant ahead of schedule and under budget, enhancing its processing capacity in the Delaware Basin. These developments highlight the company's ongoing commitment to operational excellence and strategic growth initiatives.
Revenue
Earnings/Net Income
Western Midstream's EPS declined 46.3% to $0.79 in 2025 Q1 from $1.47 in 2024 Q1. Meanwhile, the company's net income declined to $316.55 million in 2025 Q1, down 46.0% from $586.22 million reported in 2024 Q1. This significant decline in EPS reflects the challenging market conditions faced by the company.
Price Action
Post-Earnings Price Action Review
The strategy of buying (WES) shares after a revenue increase quarter-over-quarter and holding for 30 days yielded moderate returns but was accompanied by considerable volatility and risk. The strategy's compound annual growth rate (CAGR) was 12.29%, lagging the benchmark by 6.00 percentage points. With a maximum drawdown of -16.35% and a Sharpe ratio of 0.72, the strategy presented a challenging risk-return profile. This underlines the importance of effective risk management in navigating such a volatile environment, especially given the inherent uncertainties in the energy sector.
CEO Commentary
Guidance
Additional News
In recent weeks, Western Midstream has announced the appointment of Robert G. Phillips as an independent director, effective May 5, 2025, signaling a strategic move to strengthen its leadership team. Additionally, the company declared a 4% increase in its quarterly distribution to $0.910 per unit, reflecting confidence in its cash generation capabilities. Furthermore, Western Midstream has completed the start-up of the North Loving natural-gas processing plant ahead of schedule and under budget, enhancing its processing capacity in the Delaware Basin. These developments highlight the company's ongoing commitment to operational excellence and strategic growth initiatives.
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