Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q1 2026 Earnings Presentation
45 slides from Western Midstream Partners, Lp's earnings presentation, May 7, 2026
Slide 1: First-Quarter 2026 Review
First-Quarter 2026 Review May 6, 2026
Slide 2: Forward-Looking Statements and Ownership Structure
Forward-Looking Statements and Ownership Structure WES OWNERSHIP STRUCTURE This presentation contains forward-looking statements. Western Midstream Partners, LP (“WES”) believes that its expectations are based on reasonable assumptions. No assurance, Occidental Public Unitholders however, can be giv
Slide 3: Recent Highlights
Western Midstream Recent Highlights
Slide 4: WES's Compelling Investment Thesis
WES’s Compelling Investment Thesis Supported by midstream-leading ~12 – 14% equity return potential1 Growth Strategy – Multiple Ways to Win • Grew Adj. EBITDA 13% in 2024, 6% in 2025, and targeting 5–9% in 20262 • Strategic bolt-on acquisitions and strong organic growth projects (Pathfinder and Nort
Slide 5: 1Q'26 Highlights
1Q'26 Highlights Operational & Financial Accomplishments 1Q'26 Delaware Basin Accomplished record quarterly Adjusted EBITDA1 Adjusted EBITDA Natural-gas Throughput Achieved sequential per day throughput growth across all three products $683 MM 2,035 MBbls/d Gathered record crude-oil and NGLs and 15%
Slide 6: Brazos Delaware Acquisition
Brazos Delaware Acquisition
Slide 7: Brazos Delaware Acquisition Strategic Rationale
Brazos Delaware Acquisition Strategic Rationale Expands WES's Texas Delaware Basin natural-gas and crude-oil gathering footprint, extending across the core of the basin. Adds approximately 470,000 dedicated acres and 460 MMcf/d of natural-gas processing capacity, immediately increasing WES's total D
Slide 8: Brazos Delaware Asset Overview
Brazos Delaware Asset Overview Premier natural-gas and crude-oil gathering platform in the core of the Delaware Basin • ~470,000 dedicated acres in the Delaware Combined Asset Map Basin, contiguous with WES’s existing system • 460 MMcf/d processing capacity at Comanche complex with ~125 MMcf/d of un
Slide 9: Brazos Delaware Acquisition Financial Highlights
Brazos Delaware Acquisition Financial Highlights Financial Highlights of the Transaction Continued Customer Diversification1 Accretive M&A Transaction is immediately accretive to 2026E Distributable Cash Flow per unit Attractive Valuation Full-year 2025 Purchase price represents an ~8.0x multiple on
Slide 10: First-Quarter Performance
Western Midstream’ First-Quarter Performance
Slide 11: First-Quarter Operational Performance
First-Quarter Operational Performance 4Q 2025 1Q 2026 Actuals Actuals Natural-Gas Throughput (MMcf/d) 5,162 5,209 Adjusted Gross Margin for Natural-Gas Assets ($/Mcf) $1.26 $1.32 Crude-Oil and NGLs Throughput (MBbls/d) 508 521 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/Bbl) $2.77 $3.07 P
Slide 12: First-Quarter Financial Performance
First-Quarter Financial Performance 4Q 2025 1Q 2026 $342 ($ in millions) Actuals Actuals million Operating Cash Flow $557.6 $469.9 1Q'26 Net Income5 Cash Capital Investments1 $216.8 $227.6 $683 Free Cash Flow2 $340.8 $242.3 million 1Q'26 Cash Distributions Paid $379.53 $379.74 Adjusted EBITDA2 Free
Slide 13: Financial Outlook & Guidance
Financial Outlook & Guidance
Slide 14: WES's Strategic Organic Growth Plans
WES’s Strategic Organic Growth Plans Accretive organic projects support WES’s multi-year growth outlook Pathfinder Pipeline North Loving II • ~800 MBbls/d of 30-inch poly-lined • 300 MMcf/d cryogenic steel produced-water processing train at North transportation pipeline Loving plant • Supported by 2
Slide 15: WES's Capital Allocation Priorities
WES's Capital Allocation Priorities With net leverage1 at or near 3.0x – primary focus will be on expansion opportunities Net Leverage Reduction1 and Future Capital Allocation Priorities Adjusted EBITDA2 Growth Continue Executing Expansion Opportunities Targeting organic capital projects that meet o
Slide 16: 2026 Financial & Operational Outlook
2026 Financial & Operational Outlook 2026 Financial Guidance 2026 Estimated Throughput Growth Rates4 Crude Oil & NGLs low-to-mid single digits decrease ($ in millions) Natural Gas flat Adjusted EBITDA1 $2,500 – $2,700 Produced Water ~80% increase 2026 Commodity Price Sensitivities5 Total Capital Exp
Slide 17: 2026 Adjusted EBITDA Guidance
2026 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION1 26% DJ Basin 62% Delaware Basin 88% Gas 53% Gas 12% Oil $2,500 Million 15% Oil to 32% Water $2,700 Million 4% Powder River Basin 4% Equity Investments 4% Other2 Note: Excludes the Brazos Delaware acquisition. 17 1) Excludes G&A.
Slide 18: 2026 Capital Expenditures Guidance
2026 Capital Expenditures Guidance 1% Equity Investments & Other 6% Equity Investments 8% Powder River & Other Basin 5% DJ Basin 10% Well Connect 74% Gas 26% Oil 10% Maintenance $850 Million & Regulatory1 to $1.0 Billion 86% Delaware Basin 40% Gas 74% Expansion 4% Oil 56% Water 18 Note: Accrual-base
Slide 19: Significant Return of Capital to Unitholders
Significant Return of Capital to Unitholders Targeting sustainable annual distribution growth Future WES’s Distribution History1 Distribution Growth 184% Distribution per Unit Growth 2021 – 2025 Targeting Mid-to-Low Single-Digits Annual Distribution Growth Rate 2 WES has a consistent history of incr
Slide 20: Summary
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Slide 21: Differentiated & Attractive Investment Opportunity
Differentiated & Attractive Investment Opportunity WES has been a leader in generating strong unitholder returns Total Capital Return Yield9,10 GROWING MAINTAINING Throughput & Profitability Capital Discipline 57% natural-gas growth in Delaware ROA of ~17% compared to peer Basin since 20201 average
Slide 22: Comparative Valuation Metrics
Comparative Valuation Metrics Highlighting midstream’s compelling investment opportunity Russell 3000 and Midstream Investment Grade Russell 3000 Companies Companies with ≥ 7.0% yield1 Credit Profile with ≥ 7.0% yield2 Company Yield Industry Investment Grade High Yield Pfizer Inc. 12.3% Pharmaceutic
Slide 23: WES – A Superior, Tax-Deferred Yield Opportunity
WES – A Superior, Tax-Deferred Yield Opportunity WES provides an attractive income opportunity relative to midstream and the S&P 5001 Dividend / Distribution Yield by Sector2 Midstream Dividend / Distribution Yield1,2 WES continues to maintain one of the most lucrative distribution yields 2 relative
Slide 24: Comparative Valuation Metrics
Comparative Valuation Metrics Strong track-record of returning capital to unitholders Total Capital Return Yield1 Total Capital Return Yield1 WES continues to be a market leader in total capital return yield relative to major energy indices, the S&P 500, and various publicly-traded midstream compani
Slide 25: Comparative Valuation Metrics (continued)
Comparative Valuation Metrics (continued) Leading returns on capital and redeployment of capital to stakeholders Total Capital Return as a Percentage of Return on Capital Employed2 Enterprise Value since 20201 WES 4Q'25 EBIT impacted by $120 million of Aris acquisition transaction costs. WES continu
Slide 26: Well Positioned for Growth and Capital Return
Well Positioned for Growth and Capital Return Increasing Producer Volumes Supporting domestic energy growth Customers Three-Stream Service Provider Offering services for gas, oil, and water Opportunistic Capital Deployment Organic growth, accretive M&A, and leading total capital return Stakeholders
Slide 27: Appendix
¢ Western Midstream Appendix
Slide 28: WES Liquidity Profile
WES Liquidity Profile Liquidity ($ in millions) Cash $647 Effective RCF $2,000 Capacity1 Senior Note Maturities ($ in millions) 2026 – 20272 $441 2028 $679 2029+ $7,557 Note: As of March 31, 2026. Excludes the Brazos Delaware acquisition. 1) Net of applicable commercial paper borrowings. 28 2) $441
Slide 29: Diversified Asset Portfolio in Active Producing Basins
Diversified Asset Portfolio in Active Producing Basins Value-Focused Portfolio2 16 GATHERING SYSTEMS1 › Revenue: 58% Delaware Basin, 29% DJ Basin › Total Capital: 70% Delaware Basin, 12% DJ Basin PROCESSING & 77 TREATING FACILITIES1 Direct Commodity Exposure Protection3 PRODUCED WATER 8 GATHERING, T
Slide 30: Delaware Basin Asset Overview
Delaware Basin Asset Overview Leading midstream provider in the core of the Texas Delaware Basin • Premier Texas Delaware Basin Location • Large asset base in the most prolific part of the basin • Almost all of basin rig count within 5 miles of assets • Top Five in Natural-Gas Processing Capacity1 •
Slide 31: Delaware Basin Asset Overview (continued)
Delaware Basin Asset Overview (continued) Expansive multi-product infrastructure Customer Base Percentage of Related-Party Product Volumes1 Gas 43% Oil 99% Water2 38% Long-Term Contract Support Product Weighted-Average Remaining Life3 Gas ~8 Years Oil >12 Years Water >9 Years Note: Includes the impa
Slide 32: Evolution of Permian Basin Produced-Water Contracts
Evolution of Permian Basin Produced-Water Contracts Produced water has moved from an oilfield waste product to a midstream infrastructure asset • Midstream companies • E&P companies handle • Shale revolution requires • Produced-water handle integrated their own produced water more water for fracking
Slide 33: Future of Produced Water in the Delaware Basin
Future of Produced Water in the Delaware Basin The Delaware Basin has the highest WORs of any shale play in the U.S. • An average water-to-oil ratio (WOR) of 4.5x – 5.5x1 results in more than 18 MMBbls/d of produced water Delaware Basin Produced Water Forecast2 that needs to be moved to provide flow
Slide 34: Extending the Produced-Water Value Chain
Extending the Produced-Water Value Chain Combination establishes WES as an integrated water-solutions midstream leader Expanded Produced Water Assets Full-cycle Water Management Customer Production From Completes New Existing Wells Wells Produced Water Gathered on Pipelines Water Recycling Handling
Slide 35: Pathfinder Pipeline & Water System Expansion
Pathfinder Pipeline & Water System Expansion Innovative midstream solution for produced-water disposal in the Delaware Basin • Pathfinder Pipeline Overview • ~42-mile, 30-inch poly-lined steel transportation pipeline • >800 MBbls/d of initial throughput capacity • Enables access to high-quality pore
Slide 36: DJ Basin Asset Overview
DJ Basin Asset Overview A core position in the heart of the DJ Basin • 2,139 miles of natural-gas gathering pipelines and 1,750 MMcf/d of processing capacity COLORADO • Low-emission, centralized facility providing 155 MBbls/d of crude-oil and NGLs stabilization LATHAM • 57% of ~360K compression hors
Slide 37: DJ Basin Asset Overview (continued)
DJ Basin Asset Overview (continued) Customer Base Product Percentage of Related-Party Volumes1 Gas 56% Oil 98% Long-Term Contract Support Product Weighted-Average Remaining Life2 Gas ~91% = ~4 Years ~9% = Life of Lease Oil ~4 Years 1) Percentage of production from Occidental as of year-end 2025. 37
Slide 38: Powder River Basin Asset Overview
Powder River Basin Asset Overview Largest G&P provider in the Powder River Basin • 2,685 miles of high & low-pressure natural-gas gathering pipelines WYOMING • 440 MMcf/d of natural-gas processing capacity with CAMPBELL ~180 MMcf/d of CO2 treating capacity 50 BUTTES • ~8-years of rich gas remaining
Slide 39: Other Operated Assets Overview
Other Operated Assets Overview Strong portfolio of assets forecasted to provide incremental throughput growth Utah Southwest Wyoming South Texas • Chipeta facility provides 790 MMcf/d • Granger and Red Desert • Brasada provides 230 MMcf/d of of cryogenic and refridge natural- complexes provide natur
Slide 40: Equity Investment Overview
Equity Investment Overview WES Equity Investment Ownership Location Description Operator Mi Vida 50% Ward County, TX 200 MMcf/d gas-processing plant Energy Transfer Red Bluff Express 30% Reeves County, TX to Waha, TX 1.5 Bcf/d natural-gas pipeline Energy Transfer Front Range Pipeline 33.33% DJ Basin
Slide 41: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP (“Adjusted EBITDA”) as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax
Slide 42: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP (“Adjusted EBITDA”) as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax
Slide 43: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Distributable Cash Flow” WES defines Distributable Cash Flow (“DCF”) as Adjusted EBITDA, less total revenues and other recognized in Adjusted EBITDA in excess of (less than) customer billings; net cash paid for (i) interest expense (net of interest income recorded in oth
Slide 44: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Free Cash Flow” WES defines Free Cash Flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings. Three Months Ended March 31, Dece
Slide 45: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted Gross Margin” WES defines Adjusted Gross Margin attributable to Western Midstream Partners, LP (“Adjusted Gross Margin”) as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributi
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