Western Midstream 3Q26: FY26 EBITDA Trending Above Guidance Midpoint Despite Modest 3Q Miss; Constructive Setup Heading into 2027; Remain Overweight

Western Midstream posted mixed 3Q26 results, with adjusted EBITDA of $708mm below the $726mm estimate while revenue of $1.19bn was modestly above the $1.17bn estimate. Adjusted EBITDA fell about 4% q/q but rose 12% y/y, with the sequential decline driven by contract mix and pricing dynamics in West Texas, lower DJ Basin throughput, lower excess NGL and skim oil volumes and pricing, and seasonally higher O&M, partly offset by a full quarter of Brazos. Natural gas throughput reached a record 5.9 Bcf/d, including record Delaware gas throughput of 2.6 Bcf/d, and Delaware produced-water throughput hit a record 3,047 MBbls/d. Management expects FY26 adjusted EBITDA above the midpoint of the previously raised $2.75-2.95bn range, while DCF and FCF guidance were maintained at $2.05-2.25bn and $1.1-1.3bn. 2026 capex is now seen slightly above the high end of the $0.85-1.0bn range, with preliminary 2027 capex roughly in line and about 80% directed to the Delaware. Leverage was about 3.2x on a pro