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Western Midstream Partners LP WES reported first-quarter 2025 earnings of 79 cents per common unit, which missed the Zacks Consensus Estimate of 83 cents. The bottom line also declined from the year-ago quarter’s level of $1.47.
Total quarterly revenues of $917 million lagged the Zacks Consensus Estimate of $945 million. However, the top line increased from the prior-year level of $888 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The weak quarterly earnings can be primarily attributed to lower crude oil and NGLs throughput and higher total operating expenses. However, increased contributions from the partnership’s natural gas assets partially offset the negatives.
Western Midstream Partners, LP Price, Consensus and EPS Surprise
Western Midstream Partners, LP price-consensus-eps-surprise-chart | Western Midstream Partners, LP Quote
Operational Performance of WES
The throughput attributable to the WES’ natural gas assets totaled 5,110 million cubic feet per day (MMcf/d), up 2.4% from the prior-year quarter. The increase can be primarily attributed to volume growth from the DJ-Basin and the Delaware Basin. Increased contributions from the partnership’s other assets, particularly in South Texas and Utah, also aided the segment.
Total throughput for crude oil and NGL assets came in at 503 thousand barrels per day (MBbls/d) compared to 565 MBbls/d in the first quarter of 2024. The decline can be attributed to reduced throughputs from the partnership’s equity investments. However, total operated throughput for crude oil and NGLs assets increased to 411 MBbls/d from 374 MBbls/d in the prior-year quarter, mainly due to increased throughput from the Delaware Basin and DJ Basin assets.
Total throughput attributable to WES for produced-water assets was reported at 1,166 MBbls/d, up from 1,126 MBbls/D in the year-ago quarter.
WES’ Costs and Expenses
Total operating expenses for the quarter stood at $523 million, up 9% from the prior-year reported figure of $481 million. The increase was primarily due to a rise in operation and maintenance expenses, and higher depreciation and amortization costs.
Cash Flow of WES
Net cash provided by operating activities totaled $531 million in the first quarter, up from $400 million reported in the corresponding period of 2024. The partnership’s free cash flow for the quarter totaled $399.4 million.
Distribution Hike by WES
WES announced its first-quarter 2025 distribution of 91 cents per unit ($3.94 on an annualized basis), payable on May 15, 2025, to unitholders of record on May 2, 2025. This represents a 4% increase compared to the prior quarter.