# Western Midstream Partners, LP > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Western Midstream Partners, LP). ## Overview 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. ## Products & services • Natural gas gathering, compression, treating, and processing • Natural gas and NGL transportation • Condensate and crude oil gathering and transport • Produced-water gathering, recycling, treatment, and disposal • Fee-based midstream services and commodity handling under select contracts - **Natural gas services** (45%) — Gathering, compressing, treating, processing, and transporting natural gas. - **Liquids services** (25%) — Gathering, stabilizing, and transporting condensate, NGLs, and crude oil. - **Produced-water services** (20%) — Collecting, recycling, treating, supplying, and disposing of produced water. - **Commodity handling and other revenues** (10%) — Buying and selling residue, NGLs, and condensate under certain contracts. - Natural gas gathering, compression, treating, and processing - Natural gas and NGL transportation - Condensate and crude oil gathering and transport - Produced-water gathering, recycling, treatment, and disposal - Fee-based midstream services and commodity handling under select contracts ## 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) — Primary contracting counterparty for gathering, processing, transportation, and disposal volumes across multiple systems. - **Other working-interest owners** (secondary) — Additional volumes moving through Occidental-dedicated infrastructure and related facilities. - **Upstream oil and gas producers** (secondary) — Buy midstream services to gather, process, transport, and dispose of production. - **Water-handling customers** (secondary) — Use produced-water gathering, treatment, recycling, and disposal systems. - Occidental and its affiliates, which anchor large portions of throughput - Other working-interest owners tied to Occidental-operated systems - Upstream producers needing gas processing and takeaway capacity - Producers requiring produced-water disposal and recycling services - Shippers using fee-based contracts with minimum-volume commitments ## 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. - **Texas** (45%) — Core operating basin and major asset concentration - **New Mexico** (20%) — Important operating area for gathering and processing - **Rocky Mountains** (35%) — Includes Colorado, Utah, and Wyoming - Texas is a core operating area, including West Texas systems - New Mexico supports natural gas, liquids, and water infrastructure - Rocky Mountains assets span Colorado, Utah, and Wyoming - Operations are basin-based and depend on local producer activity - Asset mix includes gathering, processing, pipelines, and water 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 infrastructure** (medium-term) — Higher utilization and new connections support throughput growth and network relevance. - **Integrate acquired assets** (short-term) — Acquisitions can broaden the service offering and increase basin scale if integration succeeds. - **Preserve fee-based contract structure** (long-term) — Contracted volumes and minimum commitments support more stable midstream economics. - Grow through basin infrastructure additions and system expansions - Maximize throughput and utilization across existing assets - Maintain fee-based, contract-backed cash flows - Integrate acquired water and midstream assets into the network - Control operating and maintenance costs and capital spending ## 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 risk** [high] — A large share of revenues and throughput is tied to Occidental and related affiliates. - **Acquisition integration risk** [high] — Combining acquired assets can create operational, regulatory, and liability issues. - **Construction and permitting risk** [medium] — New midstream assets depend on regulatory approvals, downstream connectivity, and local conditions. - **Cybersecurity and operational disruption** [medium] — Pipeline and processing networks rely on control systems and continuous operations. - High customer concentration increases dependence on Occidental volumes - Acquisition integration may not deliver expected operational benefits - New construction can face permitting, environmental, and legal delays - Cybersecurity and physical security are important for pipeline operations - Commodity-linked activity can affect recoveries and some contract economics ## Accounting Reported results depend heavily on estimates for fair value, impairments, asset retirement obligations, litigation, and environmental liabilities. Because the company uses fee-based and cost-of-service style contracts, revenue can also be affected by throughput, deficiency payments, and contract terms, while commodity handling and product recoveries can add variability. - **Business combination fair value accounting** — Affects purchase accounting, goodwill/intangibles, and future depreciation or amortization - **Long-lived asset and equity investment impairment** — Can materially reduce reported earnings and asset carrying values - **Asset retirement obligations** — Affects liabilities, accretion expense, and capitalized asset balances - **Revenue from fee-based contracts and deficiency payments** — Can create quarter-to-quarter variability in service revenues - Fair value estimates matter in acquisitions and business combinations - Long-lived asset and equity investment impairments can affect earnings - Asset retirement obligations rely on judgmental cost and timing estimates - Fee-based contracts can include deficiency payments and catch-up adjustments - Commodity recoveries and imbalance accounting can create period variability --- *Last updated: 2026-04-29T05:10:15.925426+00:00*