Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q4 2025 Earnings Presentation
45 slides from Western Midstream Partners, Lp's earnings presentation, Feb 18, 2026
Slide 1: Fourth-Quarter 2025 Review
Fourth-Quarter 2025 Review February 18, 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: 4Q'25 Highlights
4Q'25 Highlights Operational & Financial Accomplishments Delaware Basin DJ Basin Generated our third consecutive quarter of Crude-oil and NGLs Natural gas record Adjusted EBITDA Throughput Throughput Achieved record crude-oil and NGLs throughput 261 MBbls/d 1.53 Bcf/d in the Delaware Basin and natur
Slide 5: 2025 Highlights
2025 Highlights Operational & Financial Accomplishments Generated record Adjusted EBITDA and Free Total Total Cash Flow Natural-Gas Crude-oil and NGLs Throughput Throughput Achieved another year of record throughput across all three products in the Delaware Basin 5.2 Bcf/d 514 MBbls/d Decreased O&M
Slide 6: Focused on Efficiency Improvement and Cost Reduction
Focused on Efficiency Improvement and Cost Reduction Achieved cost reductions while focusing on growth Cost Reduction Progress Operation & Maintenance Expense1 • Reduced operation and maintenance expense (“O&M”) $200 6,500 by 8% in 3Q’25 vs. 3Q’24, and 12% in 4Q’25 vs. 4Q’24 26% total operated natur
Slide 7: Delaware Basin Natural-Gas Contract Renegotiation
Delaware Basin Natural-Gas Contract Renegotiation New agreements replace cost-of-service (“CoS”) with fixed-fee rate structure Contract Terms and Benefits Estimated 2026 Cash Flow Impact $180 Contract Strength Remains in Place $160 $15 • Gathering MVCs through original CoS term $140 • Processing MVC
Slide 8: Fourth-Quarter Performance
Fourth-Quarter Performance
Slide 9: Fourth-Quarter Operational Performance
Fourth-Quarter Operational Performance 3Q 2025 4Q 2025 Actuals Actuals Natural-Gas Throughput (MMcf/d) 5,358 5,162 Adjusted Gross Margin for Natural-Gas Assets ($/Mcf) $1.27 $1.26 Crude-Oil and NGLs Throughput (MBbls/d) 510 508 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/Bbl) $3.10 $2.77
Slide 10: Fourth-Quarter Financial Performance
Fourth-Quarter Financial Performance 3Q 2025 4Q 2025 ($ in millions) Actuals Actuals $187 Operating Cash Flow $570.2 $557.6 million Cash Capital Investments1 $172.8 $216.8 4Q'25 Net Income5 Free Cash Flow2 $397.4 $340.8 $355.33 $379.54 $636 Cash Distributions Paid million Free Cash Flow After Distri
Slide 11: Full-Year Performance
Western Midstream’ Full-Year Performance
Slide 12: Full-Year Operational Performance
Full-Year Operational Performance FY 2024 FY 2025 Actuals Actuals Natural-Gas Throughput (MMcf/d)1 5,052 5,226 Adjusted Gross Margin for Natural-Gas Assets ($/Mcf)1 $1.30 $1.30 Crude-Oil and NGLs Throughput (MBbls/d)2 530 514 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/Bbl)2 $2.94 $3.01 P
Slide 13: 2025 Financial Scorecard
2025 Financial Scorecard PAID 2025 2025 Guidance Actuals (millions, except where otherwise noted) $1,431 Adjusted EBITDA1 $2,350 – $2,550 $2,481 million Total Distributions4 Total Capital Expenditures 2 $625 – $775 $722 ACHIEVED Free Cash Flow1 $1,275 – $1,475 $1,526 3.18x Per-Unit Cash Distribution
Slide 14: Financial Outlook & Guidance
Financial Outlook & Guidance
Slide 15: WES's Strategic Organic Growth Plans
WES’s Strategic Organic Growth Plans Accretive organic projects support WES’s multi-year growth outlook Pathfinder Pipeline North Loving II • ~800 MBbls/d of 30-inch poly-lined • 300 MMcf/d cryogenic steel produced-water processing train at North transportation pipeline Loving plant • Supported by 2
Slide 16: WES's Capital Allocation Priorities
WES's Capital Allocation Priorities With net leverage1 at or near 3.0x – primary focus will be on expansion opportunities Net Leverage Reduction1 and Future Capital Allocation Priorities Adjusted EBITDA2 Growth Continue Executing Expansion Opportunities Targeting organic capital projects that meet o
Slide 17: 2026 Financial & Operational Outlook
2026 Financial & Operational Outlook 2026 Financial Guidance 2026 Estimated Throughput Growth Rates4 Crude Oil & NGLs low-to-mid single digits decrease ($ in millions) Natural Gas flat Adjusted EBITDA1 $2,500 – $2,700 Produced Water ~80% increase 2026 Commodity Price Sensitivities5 Total Capital Exp
Slide 18: 2026 Adjusted EBITDA Guidance
2026 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION1 26% DJ Basin 62% Delaware Basin 89% Gas 53% Gas 11% Oil $2,500 Million 15% Oil to 32% Water $2,700 Million 4% Powder River Basin 4% Equity Investments 4% Other2 18 1) Excludes G&A. Represents asset-level cash contribution to EBI
Slide 19: 2026 Capital Expenditures Guidance
2026 Capital Expenditures Guidance 1% Equity Investments & Other 5% Equity Investments 8% Powder River & Other Basin 5% DJ Basin 9% Well Connect 74% Gas 26% Oil 10% Maintenance $850 Million & Regulatory1 to $1.0 Billion 86% Delaware Basin 37% Gas 76% Expansion 4% Oil 59% Water 19 Note: Accrual-based
Slide 20: 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 WES has a consistent history of increa
Slide 21: Summary
h Western Midstream’ le = Summary
Slide 22: 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 52% natural-gas growth in Delaware ROA of ~20% compared to peer Basin since 20201 average
Slide 23: 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 LyondellBasell Industries N.V.
Slide 24: 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 500 1 Dividend / Distribution Yield by Sector2 Midstream Dividend / Distribution Yield1,2 WES continues to maintain one of the most lucrative distribution yields 2 relativ
Slide 25: Comparative Valuation Metrics (continued)
Comparative Valuation Metrics (continued) 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 midst
Slide 26: 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 continues to be a market leader in returning capital to stakeholders through a balance
Slide 27: Well Positioned for Growth and Capital Return
Well Positioned for Growth and Capital Return Well-Positioned Asset Base Situated within core of most attractive basins Operations Operational Excellence Increased efficiencies and competitive cost structure Increasing Producer Volumes Supporting domestic energy growth Customers Three-Stream Service
Slide 28: Appendix
7 Western Midstream’ Appendix
Slide 29: WES Liquidity Profile
WES Liquidity Profile Liquidity ($ in millions) Cash $819 Effective RCF $2,000 Capacity1 Senior Note Maturities ($ in millions) 2026 – 2027 $441 2028 $679 2029+ $7,557 Note: As of December 31, 2025. 29 1) Net of applicable commercial paper borrowings.
Slide 30: 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 31: 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 32: 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% Water 61% Long-Term Contract Support Weighted-Average Product Remaining Life2 Gas ~8 Years Oil >12 Years Water >9 Years 1) Percentage of product
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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. 38
Slide 39: 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 40: 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 41: 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 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 “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 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 Year Ended Dec
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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