Western Midstream Partners, LP (WES): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of Western Midstream Partners, LP (WES) to see how they actually make money, and honestly, it's a masterclass in midstream stability. After two decades analyzing these plays, I can tell you their 'three-stream' model-gas, oil, and water-is rock solid, especially with that massive footprint in the Permian Basin. What really matters for 2025 is their guidance, projecting Adjusted EBITDA towards the high end of $2.350 billion to $2.550 billion, all underpinned by those long-term, fee-based contracts. If you want to see exactly how they lock in that cash flow, especially after integrating Aris Water Solutions, dive into the full Business Model Canvas below.

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

You're looking at the core relationships that keep Western Midstream Partners, LP running strong, especially after major moves like the Aris Water Solutions acquisition. These partnerships are the foundation for securing capacity and managing risk across their three-stream business.

Occidental Petroleum (Oxy) as a major anchor customer

Occidental Petroleum (Oxy) remains central to Western Midstream Partners, LP's structure and operations. As of August 1, 2025, Oxy held an economic ownership stake of 44.7% in Western Midstream Partners, LP, comprising 43.4% of the Limited Partner units and 2.4% of the General Partner units, which secures their control. Oxy is definitely the anchor.

This relationship is cemented by long-term contracts. For instance, Western Midstream Partners executed a new long-term produced-water agreement with Occidental Petroleum Corporation in February 2025. This deal commits Occidental to minimum-volume commitments for up to 280 MBbls/d of firm gathering and transportation capacity and up to 220 MBbls/d of firm disposal capacity. Furthermore, Occidental Petroleum is the only announced customer so far for the Pathfinder pipeline project.

Integrated producers like Chevron and ConocoPhillips post-Aris acquisition

The August 2025 acquisition of Aris Water Solutions for an enterprise value of $2.0 billion brought in significant new customer relationships, including major integrated producers. The deal, which involved $1.5 billion in equity consideration, immediately elevated water services to 16% of Western Midstream Partners' proforma EBITDA share.

The customer base from Aris is notable:

• ConocoPhillips was the biggest customer for Aris Water Solutions.
• ConocoPhillips also held an ownership stake in Aris, owning 22% of the company prior to the acquisition.
• Chevron was also listed among the companies whose operations are impacted by or related to the strategic rationale of the Aris deal.

Western Midstream Partners is targeting $40 million in annual run rate cost synergies from integrating Aris.

Joint venture partners in key pipelines (e.g., Red Bluff Express, Front Range)

Western Midstream Partners, LP diversifies its asset base and expands its reach through equity investments in various joint ventures, which are accounted for using the equity method or proportionate consolidation.

Here are the ownership stakes in the specified joint ventures as of the early 2025 10-K filing:

These equity investments also include Mi Vida JV LLC at 50.00%, Rendezvous Gas Services, LLC at 22.00%, Texas Express Pipeline LLC at 20.00%, and Texas Express Gathering LLC at 20.00%.

Domestic steel mills for securing pipe for growth projects like Pathfinder

Growth projects require securing materials early, and Western Midstream Partners took action on this front for the Pathfinder pipeline. In the first quarter of 2025, the company specifically placed a steel pipe order with a domestic steel mill. This action was taken to protect the project's targeted returns by minimizing the impact of tariffs. The Pathfinder pipeline itself is a $400-450 million investment in produced-water infrastructure.

Financial institutions for the $2.0 billion revolving credit facility

Financial partners provide the necessary liquidity for operations and major transactions, like the Aris acquisition. Western Midstream Operating, LP has a senior unsecured revolving credit facility with an aggregate commitment amount of $2,000,000,000.

Key details regarding this facility and related financing include:

• Wells Fargo Bank, National Association serves as the Administrative Agent for the Fourth Amended and Restated Revolving Credit Agreement.
• Borrowings under this facility were used, in part, to fund the cash consideration for the $1.5 billion Aris Water Solutions acquisition.
• The notes issued in December 2025 rank equally in right of payment with borrowings under this revolving credit facility.

The company aims to maintain a pro forma net leverage ratio of approximately 3.0x following the Aris transaction. Finance: draft 13-week cash view by Friday.

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

You're looking at the core engine of Western Midstream Partners, LP, the daily, hands-on work that keeps the cash flowing. This is where the physical assets are run, optimized, and expanded to meet producer demand, especially in the Delaware Basin.

The primary operational focus centers on moving product reliably. In the third quarter of 2025, Western Midstream Partners, LP achieved a record level of throughput across its systems. This high utilization is a direct result of maintaining near-perfect uptime.

System operability optimization is a key activity that directly impacts the bottom line. For Q3 2025, the operations teams hit a record system operability of 99.6%. That's an increase of nearly 100 basis points year-over-year, which is defintely something to note when you consider the scale of the assets they manage. This operational excellence supported record financial results, with Q3 2025 Adjusted EBITDA hitting $633.8 million and cash flows provided by operating activities reaching $570.2 million for the quarter.

Here's a look at the throughput volumes that this high operability supported in Q3 2025:

Executing high-return organic growth projects is the second major activity, ensuring future capacity keeps pace with production forecasts. Western Midstream Partners, LP sanctioned the North Loving Train II project, a 300 MMcf/d cryogenic natural-gas processing train. This project is set to boost their West Texas complex processing capacity to approximately 2.5 Bcf/d and has an expected in-service date in early Q2 2027. Also in the execution pipeline is the Pathfinder Pipeline project. Capital spending reflects this focus, with the company anticipating being towards the high end of its $625 million to $775 million total capital expenditures guidance for 2025, which includes initial spending for North Loving II.

Integrating Aris Water Solutions was a massive, recent activity, closing on October 15, 2025, to create a leading three-stream midstream provider in the Delaware Basin. The deal had an enterprise value of approximately $2.0 billion before transaction costs. The consideration involved $415.0 million in cash and the issuance of approximately 26.6 million common units, alongside assuming about $500.0 million of Aris debt. Management is targeting $40 million of annualized cost synergies from this integration. This move is expected to increase the share of associated water in EBITDA from 10% to 16% by the end of 2025.

Managing the contract structure is critical, as a substantial majority of Western Midstream Partners, LP's cash flows are protected by fee-based contracts, insulating them from direct commodity price swings. This stability is underpinned by the long-term nature of these agreements. You can see the duration:

• Gas Contract Weighted-Average Remaining Life: ~9 Years
• Oil Contract Weighted-Average Remaining Life: > 7 Years
• Water Contract Weighted-Average Remaining Life: > 8 Years

These contract lives, combined with the newly integrated Aris water assets which brought their own long-term contracts and minimum-volume commitments, secure the revenue base for the next several years. Finance: draft 13-week cash view by Friday.

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

You're looking at the core assets that make Western Midstream Partners, LP run. These aren't just lines on a map; they are the physical, contracted backbone supporting their fee-based cash flows. Honestly, in this business, the assets are the moat.

Western Midstream Partners, LP owns and operates extensive midstream energy infrastructure across key US plays. The scale of their physical plant is substantial, providing the foundation for their three-stream service model (natural gas, crude/NGLs, and produced water).

The sheer size of the network is impressive:

• Total pipeline miles as of December 31, 2024: approximately 14,000 miles.
• System operability reached 99.6-percent in the third quarter of 2025.
• As of Q1 2025, the company had 63 produced-water handling facilities before integrating the Aris Water Solutions acquisition.

Here's a breakdown of the processing and gathering footprint as of late 2024/early 2025, which has since been enhanced by new projects:

The natural gas processing capability saw a significant boost in early 2025. The commissioning of the North Loving plant in the Delaware Basin added 250 million cubic feet per day (MMcf/d) of capacity. This expansion brought the total natural gas processing capacity at the West Texas complex to approximately 2.2 Bcf/d as of Q1 2025. That plant was reported as full since start-up.

For produced water, a critical third stream, Western Midstream Partners, LP is heavily investing. They sanctioned the Pathfinder pipeline, a 42-mile, 30-inch line with initial capacity to transport over 800 Mbbls/d, expandable up to 1.2 MMb/d. This project includes building nine incremental saltwater disposal facilities (SWDs) with effective disposal capacity of approximately 220 Mb/d. The partnership's produced-water throughput averaged 1.217 million bbl/d in the third quarter of 2025.

Financial strength underpins the ability to deploy capital for these resources. You need to know that Western Midstream Partners, LP maintains an investment-grade credit rating from S&P ('BBB-'), Fitch, and Moody's, all with a stable outlook as of September 30, 2025. The management target for net leverage remains disciplined, expecting to stay at or near 3x throughout 2026, even after the Aris Water Solutions acquisition. Liquidity is also a key resource, reported at approximately $2.4 billion in Q1 2025.

The contract portfolio is what turns physical assets into predictable cash flow. The company relies on a portfolio of long-term, fee-based contracts, which insulate cash flows from commodity price swings. A prime example is the new long-term produced-water agreement executed with Occidental Petroleum Corporation, which commits Western Midstream Partners, LP to provide up to 280 MBbls/d of firm gathering/transportation and up to 220 MBbls/d of firm disposal capacity, all backed by minimum-volume commitments. The 2025 Adjusted EBITDA guidance range of $2.350 billion to $2.550 billion reflects the stability provided by these structures.

The company's capital allocation framework prioritizes these organic growth projects. For 2025, total capital expenditures guidance was set between $625.0 million and $775.0 million, with the Pathfinder project alone requiring an investment of $400 million to $450 million over 24 months, including $65 million earmarked for 2025.

Finance: draft 13-week cash view by Friday.

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:

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:

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:

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:

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:

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:

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.