Western Midstream Boosts 2026 Guidance on Record EBITDA and Strategic Basin Expansions
Event summary
- Western Midstream reported Q2 2026 record Adjusted EBITDA of $736.5M, up 19% YoY and 8% sequentially.
- Revised full-year 2026 guidance raised by 10-20%, with Adjusted EBITDA now projected at $2.75B-$2.95B.
- Completed Brazos Delaware acquisition in mid-June, adding 460 MMcf/d of natural-gas processing capacity.
- Executed new gathering and processing agreements in Powder River Basin, securing 270K dedicated acres.
The big picture
Western Midstream's strong Q2 performance and strategic basin expansions reflect the midstream sector's focus on fee-based contracts and infrastructure consolidation. The company's ability to grow produced-water throughput while maintaining cost discipline highlights the value of its Aris acquisition. As commodity prices remain volatile, WES's fixed-recovery processing model provides a competitive advantage in capturing margin expansion opportunities.
What we're watching
- Execution Risk
- Whether WES can deliver on its aggressive 2027 throughput growth projections in the Delaware and Powder River Basins.
- Commodity Pricing
- How sustained elevated commodity prices will impact fixed-recovery natural-gas processing contracts.
- Capital Allocation
- The pace at which WES will deploy capital towards organic growth projects and potential bolt-on acquisitions.
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