Should Record Q3 Earnings and Aris Acquisition Prompt a Closer Look at Western Midstream (WES)?

• Western Midstream Partners reported record third-quarter 2025 results, achieving net income of US$331.7 million and Adjusted EBITDA of US$633.8 million, along with year-over-year revenue growth and the completion of the Aris Water Solutions acquisition.
• With throughput gains in natural gas but a decline in crude oil and NGLs, the company anticipates being toward the higher end of its 2025 Adjusted EBITDA and Free Cash Flow guidance, driven by operational efficiencies and growth initiatives.
• To understand how these record quarterly earnings and successful acquisition could shape Western Midstream's outlook, we'll assess their impact on the investment narrative.

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Western Midstream Partners Investment Narrative Recap

To be a shareholder of Western Midstream Partners, you need to believe in ongoing strength in US energy markets and the continued expansion of throughput in key basins. The company’s record third-quarter 2025 earnings and guidance updates support the short-term catalyst of growing natural gas volumes, but the biggest immediate risk, capital commitments to major projects amid fluctuating producer activity, remains largely unchanged after this report.

The company’s recent acquisition of Aris Water Solutions stands out as a key announcement tied to its growth strategies. By expanding its water management capabilities in the Delaware Basin, Western Midstream is bolstering its ability to capture additional revenue from producers, reinforcing its case for higher near-term EBITDA and cash flow targets as highlighted in the latest earnings.

However, despite these operational wins, investors should be aware that if producer drilling activity slows or new customer contracts fail to materialize...

Read the full narrative on Western Midstream Partners (it's free!)

Western Midstream Partners is projected to generate $4.5 billion in revenue and $1.7 billion in earnings by 2028. This outlook assumes a 7.1% annual revenue growth rate and reflects a $0.5 billion increase in earnings from the current $1.2 billion.

Uncover how Western Midstream Partners' forecasts yield a $40.83 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Five individual fair value estimates from the Simply Wall St Community range from US$10 to US$109, showing significant divergence. While many see upside tied to throughput growth, you should also consider how capital project risks may shape the company’s actual performance, there’s a lot to learn from alternative viewpoints.

Explore 5 other fair value estimates on Western Midstream Partners - why the stock might be worth less than half the current price!

Build Your Own Western Midstream Partners Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Western Midstream Partners research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Western Midstream Partners research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Western Midstream Partners' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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