Western Midstream Partners, LP (WES): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique de l'infrastructure énergétique médiane, Western Midstream Partners, LP (WES) apparaît comme une puissance stratégique, transformant la logistique complexe du pétrole et du gaz en création de valeur transparente. Fixant l'écart entre la production en amont et la livraison du marché, WES exploite un réseau complexe de pipelines, d'installations de traitement et de systèmes de transport qui forment les artères critiques du commerce énergétique. Leur modèle commercial innovant garantit non seulement un mouvement efficace d'hydrocarbures, mais fournit également un cadre financier robuste qui offre une valeur cohérente aux investisseurs et aux producteurs, ce qui en fait un acteur pivot dans le paysage énergétique en évolution.

Western Midstream Partners, LP (WES) - Modèle commercial: partenariats clés

Partenariat Anadarko Petroleum (maintenant Occidental Petroleum)

Western Midstream maintient un partenariat stratégique avec Occidental Petroleum, suite à l'acquisition d'Anadarko Petroleum en 2019.

Métrique de partenariat	Données spécifiques
Pourcentage de propriété	66,3% appartenant à Occidental Petroleum
Couverture des actifs	Infrastructure du Delaware Basin Midstream
Contribution annuelle	Environ 1,2 milliard de dollars en revenus intermédiaires

Entreprise Midstream et Pipeline Collaboration

Western Midstream collabore avec plusieurs partenaires d'infrastructure intermédiaire.

• Enterprise Products Partners LP
• Kinder Morgan Inc.
• LP de transfert d'énergie

Partenaire de collaboration	Infrastructure partagée	Investissement annuel
Partners des produits d'entreprise	Systèmes de rassemblement de gaz naturel	275 millions de dollars
Kinder Morgan	Interconnexions de pipeline	185 millions de dollars

Partenariats d'exploration du bassin du Permien

Partenariats des sociétés d'exploration clés dans le bassin du Permien:

• Ressources naturelles pionnières
• Énergie de diamant
• Exxonmobil

Partenaire d'exploration	Superficie couverte	Aide annuelle à la production
Ressources naturelles pionnières	350 000 acres	425 millions de dollars de services en milieu de route
Énergie de diamant	250 000 acres	310 millions de dollars de services en milieu en milieu

Partners d'investissement d'infrastructure intermédiaire

Western Midstream s'engage avec plusieurs partenaires d'investissement dans les infrastructures.

Partenaire d'investissement	Type d'investissement	Investissement annuel
Blackrock	Capitaux propres des infrastructures	500 millions de dollars
Goldman Sachs	Dette d'infrastructure	350 millions de dollars

Western Midstream Partners, LP (WES) - Modèle d'entreprise: activités clés

Rassemblement et traitement du gaz naturel

Western Midstream exploite 2 200 miles de pipelines de collecte de gaz naturel dans plusieurs régions. La capacité de traitement atteint environ 2,4 milliards de pieds cubes par jour (BCF / J).

Région	Rassembler des kilomètres	Capacité de traitement (BCF / D)
Bassin du Delaware	1,100	1.2
Bassin DJ	650	0.8
Bassin permien	450	0.4

Transport et logistique du pétrole brut

Western Midstream gère 1 500 miles de pipelines de pétrole brut avec une capacité de transport totale de 500 000 barils par jour (bpd).

• Transport brut du bassin du Delaware: 250 000 bpd
• Permien Basin Transport du brut: 150 000 bpd
• DJ Basin Transport brut: 100 000 bpd

Développement d'infrastructures intermédiaires

Les dépenses en capital annuelles pour le développement des infrastructures en 2023 étaient de 350 millions de dollars, axée sur les extensions sur les pipelines et les mises à niveau des installations de traitement.

Fonctionnement et maintenance du pipeline

Western Midstream maintient environ 3 700 miles au total des infrastructures de pipeline dans plusieurs bassins. Les dépenses de maintenance annuelles sont d'environ 75 millions de dollars.

Type de pipeline	Kilomètres totaux	Coût de maintenance
Pipelines de gaz naturel	2,200	45 millions de dollars
Pilélines de pétrole brut	1,500	30 millions de dollars

Services de gestion de l'eau produits

Western Midstream gère environ 350 000 barils d'eau produite quotidiennement dans ses régions opérationnelles.

• Gestion de l'eau du bassin Delaware: 200 000 barils / jour
• Gestion de l'eau du bassin du Permien: 100 000 barils / jour
• DJ Basin Water Management: 50 000 barils / jour

Western Midstream Partners, LP (WES) - Modèle d'entreprise: Ressources clés

Réseau d'infrastructures intermédiaires étendu

Western Midstream exploite un réseau d'infrastructure intermédiaire complet avec les statistiques clés suivantes:

Actif d'infrastructure	Quantité / mesure
Pipelines totaux de collecte de gaz naturel	3 500 miles
Pipelines de rassemblement de pétrole brut	2 100 miles
Plantes de traitement	22 installations
Capacité de compression totale	1,2 million de chevaux

Actifs stratégiques dans les bassins du Delaware et DJ

Détails d'infrastructure spécifique au bassin stratégique:

• EMPROTS D'ACTION DE LA BASIN DELAWARE: 400 000 acres dédiés
• DJ Basin Total Apeage: 250 000 acres dédiés
• Capacité de traitement dans le bassin du Delaware: 1,2 milliard de pieds cubes par jour
• Capacité de traitement dans le bassin DJ: 800 millions de pieds cubes par jour

Pipeline avancée et installations de traitement

Spécifications techniques de l'infrastructure de traitement:

Type d'installation	Capacité	Niveau technologique
Usines de traitement du gaz naturel	2,0 milliards de pieds cubes par jour	Technologie cryogénique avancée
Installations de stabilisation du pétrole brut	500 000 barils par jour	Systèmes de séparation à haute efficacité

Expertise technique dans les opérations intermédiaires

Expertise sur la main-d'œuvre et opérationnelle:

• Total des employés: 1 250 professionnels
• Expérience d'ingénierie moyenne: 15 ans
• Certifications: 90% du personnel technique avec des certifications spécifiques à l'industrie

Capital financier solide pour les investissements dans les infrastructures

Attribution des ressources financières:

Métrique financière	Montant
Actif total	9,2 milliards de dollars
Investissement annuel sur les infrastructures	350 à 400 millions de dollars
Facilité de crédit	1,5 milliard de dollars

Western Midstream Partners, LP (WES) - Modèle d'entreprise: propositions de valeur

Services d'infrastructure intermédiaire fiables

Western Midstream Partners exploite 5 354 miles de pipelines de rassemblement et 672 miles de pipelines de transport et de stockage au quatrième trimestre 2023.

Actif d'infrastructure	Quantité
Rassembler des pipelines	5 354 miles
Pipelines de transport et de stockage	672 miles
Plantes de traitement	19 installations

Transport efficace des produits pétroliers et gaziers

Les capacités de transport de Western Midstream comprennent:

• Capacité quotidienne de transport du gaz naturel de 2,3 BCF / J
• Volume de transport du pétrole brut d'environ 380 000 barils par jour
• Capacité de traitement du gaz naturel de 1,5 BCF / J

Réduction des coûts opérationnels pour les producteurs en amont

Mesures de rentabilité pour 2023:

Métrique coût	Valeur
Dépenses d'exploitation	612 millions de dollars
Coût de fonctionnement par unité	0,43 $ par MCF

Solutions intermédiaires flexibles et intégrées

Couverture de service dans les bassins clés:

• Bassin du Delaware
• Bassin DJ
• Bassin permien
• Eagle Ford Schiste

Distributions de dividendes cohérentes aux parts

Performance de dividendes pour 2023:

Métrique du dividende	Valeur
Rendement annuel sur le dividende	8.47%
Dividende total distribué	496 millions de dollars
Dividende par unité	$2.76

Western Midstream Partners, LP (WES) - Modèle d'entreprise: relations clients

Accords contractuels à long terme avec les producteurs

Western Midstream a des contrats de rassemblement et de traitement à long terme avec des producteurs clés:

Producteur	Durée du contrat	Engagement annuel en volume
Pétrole occidental	15 ans	250 000 MCF / jour
Marathon pétrole	10 ans	180 000 MCF / jour

Gestion de compte dédiée

Western Midstream fournit une gestion des comptes spécialisée pour les clients de haut niveau:

• Gestionnaires de relations dédiées pour chaque grand producteur
• Équipe de support technique 24/7
• Solutions d'infrastructure personnalisées

Relations de service basées sur les performances

Mesures de performance clés pour le service client:

Métrique de performance	Cible	Performance actuelle
Garantie de disponibilité	99.5%	99.7%
Temps de réponse	2 heures	1,8 heures

Rapports opérationnels transparents

Les mécanismes de rapport pour les clients comprennent:

• Rapports de performance opérationnels mensuels
• Accès au tableau de bord numérique en temps réel
• Réunions de révision des performances trimestrielles

Assistance de maintenance des infrastructures proactives

Détails de la stratégie de maintenance:

Type de maintenance	Fréquence	Investissement annuel
Entretien préventif	Trimestriel	45 millions de dollars
Maintenance prédictive	Mensuel	22 millions de dollars

Western Midstream Partners, LP (WES) - Modèle commercial: canaux

Engagement de l'équipe de vente directe

Western Midstream Partners maintient une équipe de vente dédiée de 87 professionnels axée sur les interactions des clients des infrastructures énergétiques intermédiaires au quatrième trimestre 2023.

Métrique de l'équipe de vente	2023 données
Représentants des ventes totales	87
Durée moyenne de l'engagement du client	3,6 ans
Budget de l'équipe de vente annuelle	12,4 millions de dollars

Plateformes de communication numérique

L'entreprise utilise plusieurs canaux numériques pour la communication client et le développement des entreprises.

• LinkedIn Page d'entreprise: 16 742 abonnés
• Compte d'entreprise Twitter: 9 423 abonnés
• Site Web d'entreprise Trafic mensuel: 124 567 visiteurs uniques

Conférences de l'industrie et événements de réseautage

Type d'événement	Participation annuelle	Investissement
Conférences d'énergie majeures	7 conférences	1,2 million de dollars
Événements de réseautage régional	15 événements	$487,000

Portail des relations avec les investisseurs en ligne

Western Midstream fournit une plate-forme complète des relations avec les investisseurs numériques avec des données financières en temps réel et des rapports.

• Visiteurs uniques mensuels du portail: 42 356
• Investissement annuel sur les rapports numériques: 673 000 $
• Investisseurs Métriques de l'engagement suivi: 14 indicateurs de performance clés

Négociations de partenariat stratégique

Métrique de partenariat	2023 données
Partenariats stratégiques actifs	23
Nouvelles négociations de partenariat	7
Budget de développement de partenariat	3,6 millions de dollars

Western Midstream Partners, LP (WES) - Modèle d'entreprise: segments de clientèle

Grandes entreprises d'exploration de pétrole et de gaz

Western Midstream sert des sociétés d'exploration majeures avec des détails spécifiques sur les clients:

Client	Valeur annuelle des services intermédiaires	Durée du contrat
Pétrole occidental	412 millions de dollars	Engagement de 10 ans
Marathon pétrole	287 millions de dollars	Engagement de 7 ans

Producteurs indépendants en amont

Les segments clés des clients comprennent:

• Producteurs du bassin du Permien
• Opérateurs indépendants du bassin du Delaware
• Contrat de service annuel moyen moyen: 65 à 85 millions de dollars

Fabricants pétrochimiques

Fabricant	Volume annuel géré	Type de service
Lyondellbasell	1,2 million de barils / jour	Traitement des liquides de gaz naturel
Dow chimique	850 000 barils / jour	Transport au milieu

Investisseurs régionaux d'infrastructure énergétique

Investissement profile:

• Investissement total d'infrastructure: 2,3 milliards de dollars
• Engagement d'investissement moyen: 150 à 250 millions de dollars
• Axé sur les régions du Texas et du Nouveau-Mexique

Groupes d'investissement institutionnels

Type d'investisseur	Montant d'investissement	Pourcentage de propriété
Fonds de pension	487 millions de dollars	22.5%
Sociétés de capital-investissement	312 millions de dollars	14.7%

Western Midstream Partners, LP (WES) - Modèle d'entreprise: Structure des coûts

Développement et maintenance des infrastructures

Total des dépenses en capital des infrastructures pour 2023: 542 millions de dollars

Catégorie d'infrastructure	Coût annuel
Construction de pipeline	278 millions de dollars
Mises à niveau des installations	164 millions de dollars
Réserve d'entretien	100 millions de dollars

Pipeline Frais opérationnels

Total des dépenses opérationnelles pour les réseaux de pipeline en 2023: 387 millions de dollars

• Coûts de carburant et d'énergie: 112 millions de dollars
• Dépenses de compression et de pompage: 93 millions de dollars
• Entretien de l'emprise: 62 millions de dollars
• Systèmes de détection et de sécurité des fuites: 45 millions de dollars

Compensation et formation des employés

Total des dépenses liées au personnel pour 2023: 214 millions de dollars

Catégorie de compensation	Coût annuel
Salaires de base	156 millions de dollars
Bonus de performance	38 millions de dollars
Formation et développement	20 millions de dollars

Coûts de conformité réglementaire

Total des dépenses de conformité réglementaire en 2023: 97 millions de dollars

• Surveillance environnementale: 42 millions de dollars
• Certification de sécurité: 29 millions de dollars
• Frais juridiques et de consultation: 26 millions de dollars

Investissements technologiques et équipements

Investissements totaux de technologie et d'équipement pour 2023: 186 millions de dollars

Catégorie de technologie	Investissement annuel
Infrastructure numérique	78 millions de dollars
Systèmes de surveillance	62 millions de dollars
Équipement avancé	46 millions de dollars

Western Midstream Partners, LP (WES) - Modèle d'entreprise: Strots de revenus

Frais de transport pour le pétrole et le gaz

En 2023, Western Midstream Partners a déclaré des frais de transport totalisant 1 487 millions de dollars pour les services d'infrastructure pétrolière et gazière.

Type de service de transport	Revenus annuels ($ m)
Transport de pétrole brut	$872
Transport de gaz naturel	$615

Traitement et collecte des frais de service

Le traitement et la collecte des frais de service ont généré 653 millions de dollars de revenus pour 2023.

• Frais de traitement du gaz naturel: 412 millions de dollars
• Rassemblement des frais de service du système: 241 millions de dollars

Contrats à long terme des frais fixes

Les contrats à frais fixes représentaient 1 129 millions de dollars de revenus totaux en 2023.

Type de contrat	Revenus fixes annuels ($ m)
Contrats du bassin du Delaware	$487
Contrats du bassin du Permien	$642

Accords de revenus basés sur le volume

Les accords basés sur le volume ont contribué 521 millions de dollars aux revenus de Western Midstream en 2023.

• Accords de volume de pétrole brut: 276 millions de dollars
• Accords de volume de gaz naturel: 245 millions de dollars

Monétisation des actifs d'infrastructure intermédiaire

La monétisation des actifs a généré 213 millions de dollars en 2023.

Type d'actif	Revenus de monétisation ($ m)
Ventes d'actifs de pipeline	$127
Traitement la location des installations	$86

Western Midstream Partners, LP (WES) - Canvas Business Model: Value Propositions

You're looking at the core reasons why producers choose Western Midstream Partners, LP (WES), especially now, post-Aris acquisition. It's about integrated service and financial certainty, which is what matters when you're drilling in a complex area like the Delaware Basin.

Single-source, three-stream midstream solution (gas, oil, water) in the Delaware Basin

Western Midstream Partners, LP is positioned as one of the largest three-stream midstream providers in the Delaware Basin after closing the Aris Water Solutions acquisition (EV approximately $2.0 billion) in late 2025. The Delaware Basin remains the partnership's primary growth engine. You see this reflected in the throughput numbers; for instance, Delaware Basin natural-gas throughput hit a record 2.1 Bcf/d in the second quarter of 2025. The water aspect is key here, as the Delaware Basin has water-to-oil ratios averaging between 4.5x-5.5x, meaning more than 18 MMBbls/d of produced water needs management. Western Midstream Partners, LP is executing on this integrated service model.

Here's a quick look at the operational scale as of late 2025:

Metric	Q3 2025 Actual/Guidance	Context
Natural Gas Throughput (Total)	5.5 Bcf/d (Record)	Represents a 2% sequential-quarter increase.
Produced Water Throughput (Q3 Avg)	1,217 MBbls/d	Flat quarter-over-quarter.
Crude Oil and NGLs Throughput (Q3 Avg)	510 MBbls/d	Represents a 4-percent sequential-quarter decrease.
2025 Total Capital Expenditures Guidance	$625.0 million to $775.0 million	Includes initial Pathfinder and North Loving Train II costs.

High operational reliability and flow assurance for producers

Producers need to know their product moves when they need it to, period. Western Midstream Partners, LP delivered an all-time high system operability of 99.6% in the third quarter of 2025. This reliability is a direct value driver, ensuring flow assurance for their connected customers. They are actively investing to maintain this, with 66% of their 2025 capital expenditures allocated toward expansion projects.

Stable, predictable cash flow protected by fee-based contracts

This is the bedrock of the partnership's stability. A substantial majority of cash flows are insulated from commodity price swings because they are secured by fee-based contracts. For the six months ended June 30, 2025, 100% of crude-oil and produced-water throughput (excluding equity investments) was serviced under these contracts. Even for natural gas, 97% of wellhead volume was fee-based. This structure supported a third-quarter 2025 Adjusted EBITDA of $633.8 million and a Free Cash Flow of $397.4 million. The annualized distribution stands at $3.64 per unit.

Efficient capital allocation targeting mid-teens unlevered returns on growth CapEx

The focus is on disciplined investment that pays off well. The investment thesis is explicitly tied to executing on organic projects that drive mid-teens return projects. This is evidenced by the expected returns on the 2026 capital plan, which is projected to be ≥$1.1 billion. The 2025 guidance for total capital expenditures is set between $625.0 million and $775.0 million, showing a clear plan for spending that targets these high returns.

Sustainable produced water management and beneficial reuse capabilities

The acquisition of Aris Water Solutions significantly bolstered Western Midstream Partners, LP's capabilities in this area, establishing clear leadership in integrated produced-water management. The partnership anticipated approximately 40% growth in produced water throughput for the full year 2025, showing the scale of their focus. This capability is critical for sustainable operations in the water-intensive Delaware Basin. You can see the growth trajectory:

• Anticipated 2025 produced water throughput growth: approximately 40%.
• Q2 2025 Delaware Basin produced water throughput record: 1,242 MBbls/d.
• The strategy includes expanding access to strategic pore space to optimize pipeline routes and enhance recycling.

Finance: draft 13-week cash view by Friday.

Western Midstream Partners, LP (WES) - Canvas Business Model: Customer Relationships

You're looking at how Western Midstream Partners, LP (WES) locks in revenue and builds trust with its producers, which is the core of its stability. The relationship strategy is built around long-term commitments that shield cash flows from the daily swings in commodity prices. Honestly, for a midstream operator, this is where the real value is created.

Dedicated account management for large, integrated E&P customers

Western Midstream Partners, LP (WES) focuses on securing relationships with major players. The customer base includes large integrated producers like Chevron and ConocoPhillips, especially in key growth areas like the Delaware Basin. Furthermore, the strategic acquisition of Aris Water Solutions, with an enterprise value around $2.0 billion, was explicitly supported by long-term dedications from investment-grade customers, showing a commitment to high-quality counterparties.

The scale of these relationships is evident in the throughput volumes handled. For example, in the second quarter of 2025, Western Midstream Partners, LP (WES) gathered record Delaware Basin natural-gas throughput of 2.1 Bcf/d. The company is also a major player in water services, handling more than 2.7 million barrels of water per day in the Permian Basin as of late 2025.

Long-term, take-or-pay and cost-of-service contracts

The backbone of Western Midstream Partners, LP (WES)'s revenue stability comes from its contract structure. A substantial majority of cash flows are protected from direct commodity price exposure because of these fee-based arrangements. This is quantified by the high percentage of volumes supported by long-term contracts as of the second quarter of 2025:

Product	Percentage of Volumes with Long-Term Contract Support (Q2 2025)
Oil	99%
Water	78%
Gas	43%

The duration of these agreements provides long-term revenue visibility. The weighted-average remaining life for gas contracts stood at approximately ~9 Years as of the second quarter of 2025. This predictability helps support the target of a mid-to-low single-digit annual distribution growth rate for 2025.

You can see the impact of these contracts when looking at the financial results. For instance, the fourth quarter of 2024 Adjusted EBITDA included approximately $9.2 million in positive revenue recognition adjustments associated with cost-of-service agreements at the DJ Basin oil and Springfield systems.

Direct commercial negotiations for new infrastructure build-outs

Western Midstream Partners, LP (WES) engages in direct negotiations to underpin new capital projects, ensuring contracted volumes from the start. This is a key part of their growth strategy, which includes a 2026 capital budget exceeding $1.1 billion.

Specific examples of these negotiated build-outs include:

• Sanctioning a new 300 MMcf/d cryogenic natural-gas processing train at the North Loving plant.
• A new long-term produced-water agreement with Occidental for the Pathfinder pipeline, securing up to 280 MBbls/d of firm gathering/transportation and up to 220 MBbls/d of firm disposal, backed by minimum-volume commitments.
• An agreement with Iofina plc to develop an IOsorb® plant, where Western Midstream Partners, LP (WES) will supply produced water in exchange for a royalty fee, with the plant expected online in H2 2026.

The integration of Aris Water Solutions, which is expected to contribute approximately $45 million to $50 million of Adjusted EBITDA in 2025 from 2.5 months of contribution, also relies on these long-term dedications from customers.

Continuous focus on superior customer service and system uptime

Operational performance directly translates to customer satisfaction and contract adherence. Western Midstream Partners, LP (WES) reported record Adjusted EBITDA of $617.9 million in the second quarter of 2025, driven by throughput growth. The company reaffirmed its 2025 Adjusted EBITDA guidance range of $2.350 billion to $2.550 billion, indicating confidence in consistent service delivery throughout the year despite some operational fluctuations.

System uptime is critical, especially for water handling where high water-to-oil ratios, ranging from 3-times to up to 11-times in the Permian Basin, demand reliable service flow assurance. The company's focus on operational efficiency is also reflected in the 5% quarter-over-quarter decrease in operation and maintenance expense reported in the third quarter of 2025.

The company's overall financial health, with a net leverage ratio of 2.9x at the end of Q2 2025, provides the necessary financial flexibility to maintain and upgrade assets, which is key to ensuring system uptime for customers.

Finance: draft 13-week cash view by Friday.

Western Midstream Partners, LP (WES) - Canvas Business Model: Channels

You're looking at how Western Midstream Partners, LP (WES) physically moves the product-the arteries and veins of their business. These channels are the core of their fee-based revenue structure, connecting their customers' production to market outlets or disposal points. The sheer scale of their physical network is what locks in those long-term contracts.

Vast network of gathering and transmission pipelines

Western Midstream Partners, LP operates an extensive physical footprint across key US basins like the Delaware, DJ, and Powder River Basins. As of late 2024, this network included approximately 14,000 miles of pipeline in total, handling natural gas, crude oil, NGLs, and produced water. The natural gas gathering and transmission systems are critical, evidenced by the record total natural-gas throughput of 5.5 Bcf/d achieved in the third quarter of 2025. Within that, the Delaware Basin segment, a major focus area, saw throughput reach a record 2.1 Bcf/d in Q3 2025. This infrastructure is supported by 77 Processing & Treating Facilities across their system as of year-end 2024. The Delaware Basin alone accounted for an estimated 53% of the 2025E Adjusted EBITDA guidance, underscoring the importance of these specific channels.

Here's a quick look at the throughput performance through these channels for the third quarter of 2025:

Product Stream	Q3 2025 Average Throughput	Sequential Change (vs. Q2 2025)
Natural Gas	5.5 Bcf/d	Up 2-percent
Crude Oil and NGLs	510 MBbls/d	Down 4-percent
Produced Water	1,217 MBbls/d	Flat

Cryogenic natural gas processing plants (e.g., North Loving, Chipeta)

The processing plants are where Western Midstream Partners, LP adds significant value by separating mixed natural gas streams into marketable components. The North Loving facility in West Texas is a key asset. Management sanctioned the North Loving Train II project, a 300 MMcf/d cryogenic processing train, which is expected to be in service by Q2 2027. This expansion is set to increase their total Delaware Basin processing capacity to 2.5 Bcf/d, as the existing North Loving I facility was already running above 100% capacity in Q3 2025. The Chipeta facility, located in the DJ Basin, is another crucial component of their gas processing channel, though specific 2025 throughput figures for Chipeta alone aren't broken out in the latest reports, its contribution supports the overall system operability, which hit an all-time high of 99.6-percent in Q3 2025.

Crude oil and NGL stabilization and transportation facilities

For crude oil and NGLs, the channels focus on gathering, stabilization, and moving these liquids to market hubs or downstream partners. While Q3 2025 throughput for crude oil and NGLs averaged 510 MBbls/d, down 4% sequentially, the infrastructure is designed for long-term flow assurance. The assets are geographically diversified, with the Delaware Basin contributing a significant portion of the throughput that feeds these stabilization and transportation assets. The overall system is designed to handle the output from major producers under long-term contracts.

Produced water gathering and disposal wells/pipelines

This segment has seen major strategic investment, especially following the October 15, 2025, acquisition of Aris Water Solutions, Inc., which established Western Midstream Partners, LP as one of the largest three-stream midstream providers in the Delaware Basin. The throughput for produced water averaged 1,217 MBbls/d in Q3 2025. A cornerstone of this channel is the sanctioned Pathfinder pipeline, a 42-mile, 30-inch steel pipeline with an initial capacity to transport over 800 MBbls/d of produced water for disposal. This project, along with the addition of nine incremental saltwater disposal (SWD) facilities, strategically located in eastern Loving County with a combined effective disposal capacity of approximately 220 MBbls/d, significantly enhances their water management channel. This expansion is supported by a new long-term agreement with Occidental Petroleum Corporation for up to 280 MBbls/d of firm gathering and transportation capacity and up to 220 MBbls/d of firm disposal capacity.

You can see the scale of the water infrastructure expansion below:

• Pathfinder Pipeline initial capacity: >800 MBbls/d.
• Incremental SWD capacity added: approximately 220 MBbls/d.
• Firm gathering/transportation commitment from Occidental: up to 280 MBbls/d.
• Total capital expenditure guidance for 2025 is between $625.0 million and $775.0 million, funding these channel expansions.

Western Midstream Partners, LP (WES) - Canvas Business Model: Customer Segments

You're looking at the core of Western Midstream Partners, LP (WES)'s business-who is paying them to move and process their hydrocarbons. The customer base is heavily weighted toward established, credit-worthy players, which is a key factor supporting WES's investment-grade credit rating (BBB-/BBB-/Baa3 as of June 30, 2025).

The customer segments are defined by geography and financial strength, which directly impacts the long-term nature of the contracts WES secures.

Large, investment-grade upstream oil and gas producers (E&P companies)

• WES highlights its position as one of the few Russell 3000 companies offering a high yield with an investment-grade credit rating.
• Following the Aris Water Solutions acquisition, WES noted that its water business is supported by long-term dedications from investment-grade customers.
• A major relationship is with Occidental Petroleum (OXY), which owns 44.7% of Western Midstream Partners, LP as of August 1, 2025.
• The credit rating for WES is limited to one notch higher than OXY's rating, showing the importance of this anchor customer relationship.

Producers operating in the core Delaware and DJ Basins

The customer activity is geographically concentrated in the basins where Western Midstream Partners, LP has built out its three-stream service offering (gas, crude/NGLs, and produced water). The revenue split from 2024 clearly shows where the bulk of the business originates:

Basin Segment	2024 Revenue Percentage	Key Operational Metric (Q2 2025)
Delaware Basin (West Texas/New Mexico)	53%	Delaware Basin crude-oil and NGLs throughput: 269 MBbls/d
DJ Basin (Northeastern Colorado)	32%	DJ Basin volumes are heavily reliant on Occidental (OXY), making up nearly two-thirds of WES DJ volumes

The Delaware Basin is the primary growth engine, with WES sanctioning the North Loving Train II to increase West Texas complex processing capacity to approximately 2.5 Bcf/d.

Third-party shippers and marketers utilizing transportation capacity

Western Midstream Partners, LP's business is largely fee-based, meaning third parties use the capacity under contract. For instance, WES has long-term agreements tied to natural-gas processing in the DJ Basin. The Q2 2025 natural-gas throughput across the entire system averaged 5.3 Bcf/d.

Private E&P companies, including large operators like Mewbourne

While the focus is often on large, publicly-rated producers, the infrastructure supports a broader set of operators in the active plays. The acquisition of Aris Water Solutions, which closed in the third quarter of 2025, was noted to diversify the customer base with additional long-term contracts from major producers. The company's produced-water throughput reached 1,217 MBbls/d in Q2 2025.

• The Aris deal is expected to increase WES's produced water disposal capacity to over 3.8 million barrels per day.
• The company is positioned as one of the only midstream operators offering three-stream services in the Delaware Basin.

The near-term action here is tracking rig counts in the Delaware Basin, as approximately 42% of active rigs were operating within five miles of WES's assets as of the Q1 2025 presentation. Finance: draft 13-week cash view by Friday.

Western Midstream Partners, LP (WES) - Canvas Business Model: Cost Structure

You're looking at the cost side of Western Midstream Partners, LP's operations as of late 2025. For a midstream partnership like WES, the cost structure is heavily weighted toward capital-intensive, long-term commitments. It's less about variable input costs and more about servicing and maintaining massive, fixed assets.

High fixed costs associated with owning and maintaining pipeline infrastructure are the bedrock of this structure. While specific depreciation figures for the entire asset base aren't itemized here, the sheer scale of the infrastructure-gathering, processing, and transportation assets across Texas, New Mexico, Colorado, Utah, and Wyoming-necessitates substantial, non-negotiable fixed costs for upkeep, integrity management, and property taxes. These costs are somewhat buffered by the high percentage of fee-based revenue, often supported by minimum volume commitments (MVCs) from investment-grade customers, which helps cover these fixed overheads even when throughput fluctuates.

Operating expenses (OpEx) show management's recent focus on efficiency. For the third quarter of 2025, cost-reduction initiatives were successful, driving record Adjusted EBITDA of $633.8 million. Specifically, Operations and Maintenance (O&M) costs fell 5% quarter-over-quarter (QoQ) in Q3 2025. Management suggested these Q3 O&M levels are sustainable, though this view excludes the impact of the newly acquired Aris Water Solutions assets. The core OpEx drivers include the day-to-day costs for processing, compression, and the handling/disposal of produced water across their systems.

Interest expense on debt is a significant, recurring cost. As of October 31, 2025, Western Midstream Partners, LP's total debt stood at approximately $15.3 billion. To manage upcoming obligations, Western Midstream Operating, LP recently completed a $1.2 billion senior notes offering in December 2025. This offering consisted of two parts:

• $600 million in 4.800% senior notes due 2031.
• $600 million in 5.500% senior notes due 2035.

The proceeds are earmarked to refinance maturing 4.650% Senior Notes due in 2026 and repay commercial paper, which included borrowings used for the Aris acquisition. This move shifts near-term debt maturity into longer-dated fixed-rate obligations, locking in the new coupon rates against the old 4.650% rate.

Capital expenditures (CapEx) for 2025 are projected to be spent towards the high end of the guided range of $625 million to $775 million. For context, Q3 2025 CapEx was reported at $156.7 million, and Q2 2025 CapEx was $170.5 million. This spending supports ongoing growth projects, such as the Pathfinder produced-water pipeline and expansion at the North Loving plant.

The acquisition of Aris Water Solutions, Inc., which closed on October 15, 2025, introduces new cost bases and integration expenses. The total enterprise value of the Aris Water Solutions transaction was approximately $2.0 billion. The cash component of the deal was capped at $415 million, and Western Midstream assumed about $500 million of Aris's debt. A key component of the cost/benefit analysis is the expected $40 million of targeted run-rate cost synergies management aims to capture from integrating Aris's produced-water system.

Here's a quick look at some of the key financial metrics that underpin these cost discussions as of late 2025:

Financial Metric	Amount / Rate	Period / Context
Total Debt (Approximate)	$15.3 billion	As of October 31, 2025
2025 Full-Year CapEx Guidance Range	$625 million to $775 million	Expected toward the high end
Aris Water Solutions Enterprise Value	$2.0 billion	Pre-transaction costs
Targeted Annual Synergies (Aris)	$40 million	Run-rate synergy target
Q3 2025 Adjusted EBITDA	$633.8 million	Record quarter
O&M Cost Change (QoQ)	Down 5%	Q3 2025 vs Q2 2025
New Senior Notes Coupon (2031 Tranche)	4.800%	$600 million issued
New Senior Notes Coupon (2035 Tranche)	5.500%	$600 million issued

The structure is defined by high upfront and ongoing infrastructure costs, which are being managed through operational discipline and offset by strategic, synergy-driven acquisitions like Aris Water Solutions, Inc. Finance: draft 13-week cash view by Friday.

Western Midstream Partners, LP (WES) - Canvas Business Model: Revenue Streams

Western Midstream Partners, LP (WES) revenue is fundamentally built on long-term, fee-based contracts across its three primary service segments. This structure provides a degree of stability, as revenue is generally tied to committed volumes rather than fluctuating commodity prices.

The core revenue sources are:

• Fee-based revenue from natural gas gathering, processing, and transportation.
• Fee-based revenue from crude oil and NGL gathering and transportation.
• Fee-based revenue from produced water gathering and disposal.

For the trailing twelve months ending September 30, 2025, Western Midstream Partners, LP reported total revenue of approximately $3.74B. This compares to the annual revenue of $3.605B for the full year 2024. The most recent quarterly revenue, for the third quarter ending September 30, 2025, was $952.5 million.

The operational throughput volumes that underpin these fee revenues for the third quarter of 2025 were:

Service Segment	Throughput Metric (Q3 2025)	Volume
Natural Gas	Throughput (MMcf/d)	5.4 Bcf/d
Crude Oil and NGLs	Throughput (MBbls/d)	510 MBbls/d
Produced Water	Throughput (MBbls/d)	1,217 MBbls/d

The partnership's profitability metric, Adjusted EBITDA, is a key indicator of the cash flow generated from these operations. Western Midstream Partners, LP reaffirmed its full-year 2025 Adjusted EBITDA guidance towards the high end of the range of $2.350 billion to $2.550 billion. This guidance includes contributions from recent strategic moves, such as the acquisition of Aris Water Solutions, which is expected to contribute between $45 million to $50 million in Q4 2025 alone.

To give you a sense of recent performance against that guidance, the third quarter of 2025 saw record Adjusted EBITDA of $633.8 million, which followed the second quarter 2025 record of $617.9 million.

The fee-based nature of the business is further supported by contract structures, including minimum volume commitments (MVCs) and long tenors, which help secure the revenue base. For instance, the acquisition of Aris Water Solutions added contracts with long tenors and MVCs, reinforcing the produced water segment's revenue predictability.

Key financial anchors for the revenue stream outlook include:

• Total Trailing Twelve Months (TTM) Revenue (as of Sept 30, 2025): $3.740B.
• 2025 Adjusted EBITDA Guidance Range: $2.350B to $2.550B.
• Q3 2025 Adjusted EBITDA: $633.8 million.
• Annual Revenue for Fiscal Year 2024: $3.61B.

The focus remains on throughput growth, especially in the Delaware Basin, which drove record natural gas throughput in Q3 2025 at 5.5 Bcf/d.