WESNYSENatural Gas TransmissionUS GAAP · USD

Western Midstream Partners, LP

Western Midstream Partners, LP is a U.S.-based midstream energy partnership that gathers, compresses, treats, processes, and transports natural gas and also handles condensate, NGLs, crude oil, and produced water. Its asset base is concentrated in Texas, New Mexico, and the Rocky Mountains, with a mix of wholly owned systems, operated interests, and equity investments.

Revenue3,843m USD
+6.6 %y/y
Operating profit (EBIT)1,601m USD
−18.7 %y/y
EBIT margin41.7%
−13.0 ppy/y
Net income1,181m USD
−24.9 %y/y
Free cash flow1,495m USD
+14.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01,0002,0003,0004,000m USD2020: 2,773 m USD2020: EBIT 879 m USD20202021: 2,877 m USD2021: EBIT 1,336 m USD20212022: 3,252 m USD2022: EBIT 1,588 m USD20222023: 3,106 m USD2023: EBIT 1,380 m USD20232024: 3,605 m USD2024: EBIT 1,971 m USD20242025: 3,843 m USD2025: EBIT 1,601 m USD20253,8431,601
RevenueOperating profit (EBIT)

Business

Share of revenue
Natural gas services45 %

Gathering, compressing, treating, processing, and transporting natural gas.

Liquids services25 %

Gathering, stabilizing, and transporting condensate, NGLs, and crude oil.

Produced-water services20 %

Collecting, recycling, treating, supplying, and disposing of produced water.

Commodity handling and other revenues10 %

Buying and selling residue, NGLs, and condensate under certain contracts.

Products

Reported · share of revenue
89.9%FY2025100 %
  • Service Fee Based89.9 %
  • Products5.1 %
  • Service Product Based5.0 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company serves upstream oil and gas producers that need takeaway, processing, and water-handling infrastructure to move production to market. Occidental is the key contracting counterparty and a major source of volumes, while other working-interest owners and producers also use certain systems and facilities. Customers buy these services to secure reliable midstream capacity, meet dedication and minimum-volume commitments, and reduce operational complexity in producing basins.

Occidental and affiliates

Primary contracting counterparty for gathering, processing, transportation, and disposal volumes across multiple systems.

Other working-interest owners

Additional volumes moving through Occidental-dedicated infrastructure and related facilities.

Upstream oil and gas producers

Buy midstream services to gather, process, transport, and dispose of production.

Water-handling customers

Use produced-water gathering, treatment, recycling, and disposal systems.

Strategy

The company’s strategy centers on operating reliable fee-based midstream systems, expanding and optimizing basin infrastructure, and maintaining high utilization across its network. It also emphasizes capital discipline, operational efficiency, and integration of acquired assets to broaden its water and hydrocarbon service footprint.

Expand and optimize midstream infrastructureMedium term

Higher utilization and new connections support throughput growth and network relevance.

Integrate acquired assetsShort term

Acquisitions can broaden the service offering and increase basin scale if integration succeeds.

Preserve fee-based contract structureLong term

Contracted volumes and minimum commitments support more stable midstream economics.

Geography

Western Midstream’s operations are concentrated in U.S. producing basins, especially Texas and New Mexico, with additional assets in the Rocky Mountains region including Colorado, Utah, and Wyoming. The company’s footprint is tied to shale and basin infrastructure, so geography matters because throughput depends on local drilling activity, producer dedications, and basin-specific takeaway needs.

Risks

The business is exposed to customer concentration, especially Occidental, so counterparty performance and volume commitments are important to cash generation. It also faces execution risk on acquisitions and new construction, along with regulatory, environmental, and security risks that are common in midstream infrastructure businesses.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration and counterparty credit risk1Acquisition integration risk2Construction and permitting risk3Cybersecurity and operational disruption4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer concentration and counterparty credit riskImpact: HighLikelihood: Medium

    A large share of revenues and throughput is tied to Occidental and related affiliates.

    ExposureOccidental-related gatheringProcessingTransportationDisposal agreements
  2. Acquisition integration riskImpact: HighLikelihood: Medium

    Combining acquired assets can create operational, regulatory, and liability issues.

    Exposure: Aris acquisition and related integration activities

  3. Construction and permitting riskImpact: MediumLikelihood: Medium

    New midstream assets depend on regulatory approvals, downstream connectivity, and local conditions.

    Exposure: Expansion projects and new basin infrastructure

  4. Cybersecurity and operational disruptionImpact: MediumLikelihood: Medium

    Pipeline and processing networks rely on control systems and continuous operations.

    ExposureGatheringProcessingWater-handling systems

Accounting

Judgemental items
Business combination fair value accounting

Acquired assets and liabilities are recorded at estimated fair value, which can change during the measurement period.

Impact: Affects purchase accounting, goodwill/intangibles, and future depreciation or amortization

Long-lived asset and equity investment impairment

Management tests assets for declines in value and may record impairment charges when assumptions weaken.

Impact: Can materially reduce reported earnings and asset carrying values

Asset retirement obligations

Pipeline and facility retirement estimates depend on future dismantling costs and timing assumptions.

Impact: Affects liabilities, accretion expense, and capitalized asset balances

Revenue from fee-based contracts and deficiency payments

Throughput, minimum-volume commitments, and contract redeterminations can change recognized revenue.

Impact: Can create quarter-to-quarter variability in service revenues

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026