Western Midstream Partners, LPWES
Western Midstream Partners, LP Segments Disclosure
17. REPORTABLE SEGMENT
Segment overview. The Partnership’s chief operating decision maker (“CODM”) is the Partnership’s President and Chief Executive Officer who assesses performance and allocates resources on a consolidated basis due to the similar nature of services provided to customers across the Partnership’s domestic asset portfolio. The CODM does not assess performance and allocate resources separately for Western Midstream Operating, LP. Accordingly, the Partnership has a single operating and reportable segment, all the assets of which are in the United States and gather, compress, treat, process, and transport natural gas; gather, stabilize, and transport condensate, NGLs, and crude oil; and gather, transport, recycle, treat, supply, and dispose of produced water.
Performance measures. Adjusted EBITDA attributable to Western Midstream Partners, LP (“Adjusted EBITDA”) is used as the performance measure by the Partnership’s CODM in assessing performance and allocating resources to the Partnership’s single operating and reportable segment. Net income (loss) is the most comparable GAAP metric to the performance metric of non-GAAP Adjusted EBITDA. The Partnership defines Adjusted EBITDA as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) income tax benefit, (v) other income, (vi) other items impacting comparability with the Partnership’s core operating performance, and (vii) the noncontrolling interest owners’ proportionate share of revenues and expenses.
Adjusted EBITDA is a non-GAAP financial measure that the CODM utilizes to assess (i) the Partnership’s operating performance as compared to other publicly traded partnerships in the midstream industry, without regard to financing methods, capital structure, or historical cost basis, (ii) the ability of the Partnership’s assets to generate cash flow to make distributions, and (iii) the viability of acquisitions and capital expenditures and the returns on investment of various investment opportunities. The Partnership’s calculation of Adjusted EBITDA may or may not be comparable to similarly titled measures used by others.
17. REPORTABLE SEGMENT
Summarized financial information. The following table presents information about the Partnership’s single operating and reportable segment including (i) total revenues and other, (ii) significant expenses, and (iii) other segment items:
| Year Ended December 31, | ||||||||||||||||||||
| thousands | 2025 | 2024 | 2023 | |||||||||||||||||
Revenues from external customers (1) | $ | 3,841,599 | $ | 3,604,138 | $ | 3,105,508 | ||||||||||||||
Other revenues | 1,804 | 1,085 | 968 | |||||||||||||||||
Total revenues and other | 3,843,403 | 3,605,223 | 3,106,476 | |||||||||||||||||
| Equity income, net – related parties | 85,788 | 112,385 | 152,959 | |||||||||||||||||
Less significant expenses: (2) | ||||||||||||||||||||
| Operation and maintenance | 915,896 | 880,568 | 762,530 | |||||||||||||||||
Cash general and administrative costs (3) | 343,305 | 230,103 | 198,639 | |||||||||||||||||
Less other segment items: | ||||||||||||||||||||
| Depreciation and amortization | 710,778 | 650,428 | 600,668 | |||||||||||||||||
| Interest expense | 390,490 | 378,513 | 348,228 | |||||||||||||||||
Other (income) expense, net (4) | (16,629) | (31,741) | (5,679) | |||||||||||||||||
Income tax expense (benefit) | 15,086 | 18,111 | 4,385 | |||||||||||||||||
Other (5) | 357,810 | (19,626) | 302,657 | |||||||||||||||||
| Net income (loss) | $ | 1,212,455 | $ | 1,611,252 | $ | 1,048,007 | ||||||||||||||
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(1)Includes Service revenue - fee based, Service revenue - product based, and Product sales.
(2)The significant expense categories and amounts align with the information that is regularly provided to the CODM.
(3)General and administrative expense as presented in the consolidated statements of operations less non-cash equity-based compensation expense and non-cash amortization of cloud-computing arrangements.
(4)Includes interest income earned on cash and cash equivalent balances.
(5)Other includes: (i) Cost of product, (ii) Non-cash equity-based compensation expense, (iii) non-cash amortization of cloud-computing arrangements, (iv) Property and other taxes, (v) Long-lived asset and other impairments, (vi) Gain (loss) on divestiture and other, net, and (vii) Gain (loss) on early extinguishment of debt.
The CODM uses consolidated total assets as the measure of the Partnership’s single reportable segment assets. As of December 31, 2025 and 2024, the consolidated balance sheets included $15.0 billion and $13.1 billion, respectively, of total assets, which includes $504.9 million and $541.4 million of assets related to equity investments as of December 31, 2025 and 2024, respectively.
Capital expenditures for additions to long-lived assets were $728.0 million, $833.9 million, and $735.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.