Western Midstream Sets Gas Gathering Record, Closes Aris Water Deal
Western Midstream set a gas gathering record at 5.5 billion cubic feet per day, posted record Q3 adjusted EBITDA, and closed its Aris Water Solutions acquisition to expand Delaware Basin water services.
HOUSTON (P&GJ) — Western Midstream Partners LP reported record third-quarter adjusted EBITDA and a new high in natural-gas gathering volumes, while closing its acquisition of Aris Water Solutions to expand produced-water capabilities in the Delaware Basin.
WES posted Q3 2025 net income attributable to limited partners of $331.7 million and record third-quarter adjusted EBITDA of $633.8 million. Cash from operations was $570.2 million and free cash flow was $397.4 million. The partnership declared a third-quarter distribution of $0.910 per unit ($3.64 annualized).
Natural-gas throughput averaged 5.5 billion cubic feet per day in the quarter, up 2% sequentially, while crude-oil and NGL throughput averaged 510,000 bbl/d, down 4% sequentially. Produced-water throughput averaged 1.217 million bbl/d, flat quarter over quarter.
On Oct. 15, WES closed the previously announced acquisition of Aris Water Solutions, issuing approximately 26.6 million common units, paying $415 million in cash (before transaction costs), and assuming about $500 million of debt. The company reiterated a target of $40 million in cost synergies from the deal and said it recently executed additional disposal capacity to support the Pathfinder pipeline project in the Delaware Basin.
“I am pleased to report another strong operational and financial quarter for WES as we generated our second consecutive quarter of record Adjusted EBITDA,” said Oscar Brown, president and CEO. “Lower operational costs, inclusive of efficiency improvements and cost management efforts, drove a sequential-quarter increase in Adjusted EBITDA, even though volumes remained relatively in line with the second-quarter.”
“The successful closing of the Aris acquisition marks a major milestone for WES, and we are well on our way to capturing the $40.0 million of targeted cost synergies,” Brown said. “Additionally, subsequent to quarter end, we signed an agreement to expand access to strategic pore space along the Pathfinder pipeline route that enables us to optimize the pipeline's route, both of which should result in improved returns for the project.”
WES said it expects to finish toward the high end of its 2025 adjusted EBITDA guidance range of $2.35–$2.55 billion and total capital expenditures of $625–$775 million, and now anticipates free cash flow above the high end of its $1.275–$1.475 billion outlook.