Western Midstream Partners, LP Q4 FY2025 earnings call

• 2025 was successful with record adjusted EBITDA and free cash flow, driven by throughput growth across products and basins. Aris acquisition enhanced asset base. • 2026 expected to be a transition year with moderate throughput growth due to producer activity level reductions and commodity price volatility. • Fourth quarter 2025 generated record adjusted EBITDA of $636 million, excluding adjustments was $665 million, 5% sequential increase. • Aris acquisition integration progressed well, ahead of schedule and mostly complete, achieved $40 million of targeted cost synergies. • Enacted process efficiency improvements, excluding Aris acquisition impact, operations and maintenance expense decreased for 3 consecutive quarters in 2025. • Engineering and construction team reevaluated facility designs to lower expansion capital outlay in 2026 and beyond.

In the fourth quarter, natural gas throughput decreased 4% sequentially due to lower volumes from the Delaware and Powder River Basins, partially offset by record throughput from the DJ Basin. Crude oil and NGLs throughput decreased slightly sequentially, with decreased throughput from the DJ Basin offset by increased throughput from the Delaware Basin. Produced water throughput increased 121% sequentially due to 2.5 months contribution from the Aris acquisition. For full year 2025, natural gas throughput averaged 5.2 Bcf/d, up 4% YoY; crude oil and NGLs throughput averaged 514,000 bbl/d, up 1% YoY; produced water throughput averaged 1.6 Mbb/d, up 40% YoY. For 2026, expected crude oil and NGLs and natural gas throughput in the Delaware Basin to moderate to low to mid-single digit average YoY growth; portfolio-wide average crude oil and NGLs throughput to decline by low to mid-single digits and natural gas throughput to remain relatively flat; produced water throughput to increase by over 80% YoY driven by Aris acquisition.

• 2026 adjusted EBITDA expected to range between $2.5 billion to $2.7 billion, midpoint $2.6 billion, 5% growth at midpoint. • 2026 capital expenditures expected to range between $850 million and $1 billion, midpoint $925 million. • Distributable cash flow expected to range between $1.85 billion to $2.05 billion, midpoint $1.95 billion. • Free cash flow expected to range between $900 million and $1.1 billion, midpoint $1 billion. • Intend to recommend a distribution increase of $0.02 per unit starting with first quarter distribution, guiding to full year distribution of at least $3.70 per unit.

• Macroeconomic and commodity price-driven volatility, which has increased, affecting producer activity levels and commodity prices. • Waha Hub pricing remains a persistent industry-wide challenge, leading to throughput curtailments for some producers and impact on Delaware Basin natural gas throughput. • Uncertainty regarding producer activity levels and production forecasts in certain basins, such as the Delaware Basin where Oxy reallocated activity, with scenarios still being evaluated.

Q: In light of cost of service restructurings, foray into water, balance sheet and where it stands, how thinking about M&A and inorganic growth?

A: Strategy unchanged, preference for bolt-on M&A with synergies, capital deployment to sustain or grow distribution, Aris acquisition done in disciplined fashion.

Q: Waha, ameliorate negative pricing impacts and egress solutions, Pathfinder commercialization?

A: Egress in second half to help with Waha pricing, working with customers on commercial solutions; Pathfinder has high interest, cost coming down.

Q: Water side EBITDA growth, how parsed out?

A: Water likely has higher growth rate than gas and oil in long term, depending on basin growth and producer response.

Q: How WES stacks up against competitors, scale?

A: At good size, scale matters, leader in water business with 10x size of next competitor, projects manageable at current size.

Q: Other contracts to amend, distribution coverage?

A: Few cost of service contracts, not high priority; distribution coverage managed with 5% EBITDA growth outlook, flexibility in capital deployment.

Q: Commodity price backdrop, basin by basin?

A: PRB commodity price-sensitive, DJ Basin wildcard with Oxy's Bronco CAP, Delaware Basin some producers Waha price sensitive.

Q: Expanding into CO2 and power?

A: Exploring CO2 for unconventional EOR as core competency, looking into power business where commercial models make sense, focusing on beneficial reuse in water