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Western Midstream Is Monetizing Water, Not Just Hydrocarbons—Here’s Why That Matters Now!

Western Midstream Partners reported strong third-quarter results for 2025, marked by a record high adjusted EBITDA due to reduced operational costs and efficiency improvements. The company announced the successful acquisition of Aris Water Solutions, enhancing its position as a premier midstream flow assurance provider in the Delaware Basin. This acquisition is expected to contribute significantly to Western Midstream’s produced water midstream solutions, an area increasingly scrutinized due to regulatory interest in the Delaware Basin. Operationally, Western Midstream achieved the highest total natural gas throughput in its history, particularly in the Delaware Basin, aided by the Altamont pipeline connection. Conversely, the crude oil and NGLs throughput decreased slightly, with the Powder River Basin also seeing some reduced throughput as previously elevated volumes tapered off. Adjusted gross margins for several streams fluctuated mildly due to variable volumes and pricing, with a general expectation of slight margin declines in the upcoming quarter.