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.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueGathering, compressing, treating, processing, and transporting natural gas.
Gathering, stabilizing, and transporting condensate, NGLs, and crude oil.
Collecting, recycling, treating, supplying, and disposing of produced water.
Buying and selling residue, NGLs, and condensate under certain contracts.
Products
Reported · share of revenue- 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.
Primary contracting counterparty for gathering, processing, transportation, and disposal volumes across multiple systems.
Additional volumes moving through Occidental-dedicated infrastructure and related facilities.
Buy midstream services to gather, process, transport, and dispose of production.
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.
Higher utilization and new connections support throughput growth and network relevance.
Acquisitions can broaden the service offering and increase basin scale if integration succeeds.
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.
- Customer concentration and counterparty credit riskImpact: HighLikelihood: Medium
A large share of revenues and throughput is tied to Occidental and related affiliates.
Exposure - Acquisition integration riskImpact: HighLikelihood: Medium
Combining acquired assets can create operational, regulatory, and liability issues.
Exposure: Aris acquisition and related integration activities
- 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
- Cybersecurity and operational disruptionImpact: MediumLikelihood: Medium
Pipeline and processing networks rely on control systems and continuous operations.
Exposure
Accounting
Judgemental itemsAcquired 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
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
Pipeline and facility retirement estimates depend on future dismantling costs and timing assumptions.
Impact: Affects liabilities, accretion expense, and capitalized asset balances
Throughput, minimum-volume commitments, and contract redeterminations can change recognized revenue.
Impact: Can create quarter-to-quarter variability in service revenues
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Last updated: 24/09/2026