Western Midstream Partners Posts Record Q2 EBITDA, Eyes Aris Water Solutions Acquisition

Western Midstream Partners, LP achieved a record adjusted EBITDA in Q2 and announced a $2 billion acquisition of Aris Water Solutions to boost water disposal capabilities. Analysts' price targets suggest a modest upside potential of 3.58% to $39.91. The consensus rating is 2.8, indicating a "Hold" status. GuruFocus projects a GF Value of $36.72, suggesting a potential downside of 4.7% from the current price of $38.53.

Western Midstream Partners, LP (WES) has reported its second-quarter 2025 results, highlighting a record adjusted EBITDA and a significant strategic acquisition. The company's adjusted EBITDA for the quarter reached $617.9 million, marking a new high for the partnership. Additionally, WES announced the acquisition of Aris Water Solutions, Inc. for approximately $2 billion, aimed at bolstering its water disposal capabilities.

In the second quarter, WES reported net income attributable to limited partners of $333.8 million, or $0.87 per common unit (diluted). The company also reported cash flows provided by operating activities of $564.0 million, generating a free cash flow of $388.4 million. Capital expenditures totaled $170.5 million during the quarter.

The company achieved sequential throughput growth across all products, including natural gas, crude oil and NGLs, and produced water, with record Delaware Basin throughputs of 2.1 Bcf/d for natural gas, 269 MBbls/d for crude oil and NGLs, and 1,242 MBbls/d for produced water. WES also announced the sanctioning of a new 300 MMcf/d cryogenic natural-gas processing train at the North Loving plant in the Delaware Basin, expected to be in-service by early 2027.

The acquisition of Aris Water Solutions, Inc. is expected to close during the fourth quarter of 2025 and is projected to be accretive to 2026 Free Cash Flow per unit. The transaction aims to establish a differentiated, produced-water system across West Texas and southern New Mexico, supported by highly-economic, long-term dedications from investment-grade customers.

Analysts' price targets suggest a modest upside potential of 3.58% to $39.91, while the consensus rating is 2.8, indicating a "Hold" status. GuruFocus projects a GF Value of $36.72, suggesting a potential downside of 4.7% from the current price of $38.53.

WES remains focused on executing its growth strategy, with the Aris acquisition, North Loving Train II, and other organic expansion projects supporting its growth outlook in 2026, 2027, and beyond. The company's long-term contract portfolio, strong balance sheet, and investment-grade credit ratings provide the financial flexibility needed to support its expansion plans.

The company will host a conference call on Thursday, August 7, 2025, at 9:00 a.m. Central Time to discuss its second-quarter results. For more details, visit the investor relations section of WES's website at www.westernmidstream.com.

References:
[1] https://investors.westernmidstream.com/2025-08-06-WESTERN-MIDSTREAM-ANNOUNCES-SECOND-QUARTER-2025-RESULTS