Western Midstream Partners, LP Q2 FY26 Earnings Analysis

- WES expects to be at the high end of its 2026 adjusted EBITDA guidance range of $2.5 billion to $2.7 billion and distributable cash flow range of $1.85 billion to $2.05 billion, before Brazos contribution. - Brazos acquisition is expected to add approximately $100 million incremental adjusted EBITDA in 2026, boosting revenue and cash flow. - The Delaware Basin drives over 60% of 2026 adjusted EBITDA, with this proportion set to increase post-Brazos close. - Approximately 3,500 identified drilling locations on Brazos acreage alone provide line of sight to decades of throughput growth. - Organic projects Pathfinder and North Loving II are scheduled for service in Q1 and Q2 2027, expanding processing capacity and supporting volume growth. - Natural gas processing capacity in the Delaware Basin will increase by 20% with the Comanche complex, totaling over 3 billion cubic feet per day by 2027. - Distribution guidance indicates at least $3.70 per unit for full-year 2026, supporting steady growth aligned with EBITDA expansion.

- Adjusted EBITDA guidance for full year 2026 expected towards the high end of $2.5 billion to $2.7 billion, before Brazos contribution. - Distributable cash flow guidance expected towards the high end of $1.85 billion to $2.05 billion, excluding Brazos impact. - Brazos acquisition projected to add approximately $100 million of incremental adjusted EBITDA in 2026, enhancing earnings. - Midstream projects Pathfinder and North Loving II scheduled for Q1 and Q2 2027, respectively, expected to drive volume growth and returns. - Over 60% of 2026 adjusted EBITDA anticipated from Delaware Basin, growing with Brazos integration and new projects. - Expect annual adjusted EBITDA growth of 4% to 5%, supporting a potential 12%-14% annual equity return. - Distribution growth targeted slightly below adjusted EBITDA growth, with full-year distribution guidance of at least $3.70 to $3.72 per unit.

- Western Midstream’s 2026 capital budget is $850 million to $1 billion. - Roughly half of this budget is allocated to two high-confidence projects in the Delaware Basin: Pathfinder and North Loving II. - Pathfinder and North Loving II are on schedule to come online in Q1 and Q2 of 2027, respectively. - Both projects have volume commitments underpinning strong returns. - The Comanche complex adds 460 million cubic feet per day of natural gas processing capacity, expanding Delaware Basin capacity by ~20%. - North Loving II will increase total processing capacity to over 3 billion cubic feet per day once operational. - Minimal incremental capital is required for Brazos acreage drilling due to proximity to existing infrastructure. - Capital deployment balances organic growth and financial discipline, maintaining net leverage around 3x through 2026.

- No formal update on full-year guidance or explicit mention of new fundraising through debt or equity at this time. - The Brazos acquisition is structured as 50% cash and 50% WES common units, indicating partial equity issuance. - The company maintains a strong balance sheet with more than $2.5 billion in total liquidity and targets a pro forma net leverage of approximately 3x through 2026. - They intend to keep conservative leverage, preserving capacity for organic growth, signaling no immediate plans for new debt issuance. - Capital deployment for 2026 is $850 million to $1 billion, largely funded through internal resources and previous financing. - The financial strategy emphasizes maintaining strong financial discipline while supporting growth projects and distribution increases.

The transcript does not explicitly provide information on current or expected orderbook/pending orders for Western Midstream Partners (WES). However, related relevant details include: - Approximately 3,500 identified drilling locations on Brazos acreage at $65 per barrel. - Two high-confidence projects—Pathfinder and North Loving II—scheduled for in-service dates in Q1 and Q2 2027. - Roughly half of the 2026 capital budget ($850M to $1B) allocated to these projects. - Brazos acquisition expected to contribute approximately $100 million incremental adjusted EBITDA in 2026. - Long-term contracts with a weighted average remaining life of over 9 years underpin stable cash flows. - Comanche complex expanding Delaware Basin processing capacity by 20% to 2.75 billion cubic feet per day, reaching over 3 billion cubic feet per day with North Loving II. No explicit mention of orderbook or pending orders figures is provided.