WES

Western Midstream is a classic fee-based natural-gas-gathering-and-transmission MLP, and the FY2025 numbers show the model working: revenue grew 6.6% to $3.84B at a 41.7% operating margin and 30.7% net margin — profitability most operating companies never see. Operating cash flow rose 4.0% to $2.22B, comfortably funding the $1.43B distribution (up 14.8% YoY), which is the entire reason most investors own a midstream partnership. Net income did fall 24.9% to $1.18B and operating income dropped 18.7% to $1.60B, but against a five-year history that has run $0.9-1.6B, FY2025 sits mid-range; the prior year's $1.57B was the outlier high.

The trade-off in any MLP is leverage and units. Total liabilities reached $10.8B against $15.0B of assets, and the partnership grew its asset base 14.1% — consistent with ongoing capex-heavy gathering build-out. Units outstanding rose only 3.2% to 394M, modest dilution for the distribution growth delivered, and no buybacks were made (appropriate for an MLP that returns cash via distributions). Cash fell 24.8% to $819M, but current assets ($1.66B) still cover current liabilities ($1.24B).