Research · Sep 3, 2026
[WES] Western Midstream Thesis 2026: Permian Gathering Cycle Drives DJ Basin Cash Distribution
Western Midstream Partners LP (NYSE: WES) FY2025 revenue ~$3.5-3.8B (+3-7%) with adj. EBITDA ~$2.3-2.5B and adj. EPS ~$3.40-3.75 reflecting continued post-2024 ~5+ Bcf/d aggregate natural gas gathering + ~1.0M+ Bbl/d aggregate produced water + crude oil gathering throughput (selected primary Permian Delaware Basin gathering footprint) + selected continued post-2024 ~$0.75-0.80 quarterly base distribution + selected enhanced distributions + selected post-2024 Occidental Petroleum (NYSE: OXY) ~50%+ unitholder governance under continued President + CEO Oscar Brown (~2-year tenure since June 2023). One of the largest US midstream master limited partnerships (MLPs). Founded 2007 as Western Gas Partners LP via Anadarko Petroleum dropdown (~18-year heritage); selected post-2007 NYSE listing IPO; selected post-2018 ~$3.5B aggregate Western Gas Equity + Western Gas Partners merger creating Western Midstream Partners LP; selected post-August 2019 ~$57B Anadarko Petroleum + Occidental Petroleum acquisition transition (selected Occidental ~50%+ unitholder governance succession); selected post-2020 Michael Ure CEO appointment; selected post-June 2023 Oscar Brown CEO appointment. Headquartered in The Woodlands Texas; ~1,400+ employees globally with ~$3.5-3.8B revenue. Three primary asset segments: Natural Gas Assets (~50% ~$1.7-1.9B), Crude Oil + NGL Assets (~30% ~$1.1-1.2B), Produced Water Assets (~20% ~$0.7-0.8B). Permian Delaware gathering cycle: ~70%+ aggregate cash flow exposure to Permian Delaware Basin (~$2.5-2.7B aggregate revenue); selected ~5+ Bcf/d aggregate natural gas + ~600K+ Bbl/d crude oil + ~1.0M+ Bbl/d produced water gathering throughput; selected continued post-2024 Occidental Petroleum + selected various third-party producer dedicated acreage long-term contracts + selected continued post-2024 produced water gathering capacity expansion. DJ Basin + selected various other basins: ~30%+ aggregate cash flow exposure to DJ Basin (Colorado, ~20%) + selected various Powder River + Marcellus + Utica + Mid-Continent (~10%) gathering operations. President + CEO Oscar Brown since June 2023 (~2-year tenure); CFO Kristen Shults. Capital return: ~$3.00-3.20 annual base distribution FY2025 (~+0-3% growth); ~$0.10-0.20 aggregate annual enhanced distribution potential; aggregate capital return ~$3.0-3.5B; net debt-to-adj. EBITDA ~3.0-3.5x; investment-grade Baa3/BBB- credit rating; selected post-2024 Occidental Petroleum (NYSE: OXY) ~50%+ unitholder governance. FY2026 thesis: Permian Delaware gathering cycle + DJ Basin + selected various basin operations + base distribution + enhanced distribution + ~$3.0-3.5B aggregate annual capital return + selected post-2024 ~50%+ Occidental Petroleum unitholder governance + selected potential distribution growth acceleration. Risks: Permian gathering cyclical, Occidental + producer concentration, natural gas + crude oil pricing volatility, basin diversification, ~50%+ Occidental unitholder governance concentration.