Western Midstream Partners, LP 10-Q

Item 1. Financial Statements WESTERN MIDSTREAM PARTNERS, LP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, thousands except per-unit amounts 2026 2025 2026 2025 Revenues and other Service revenues – fee based $ 980,096 $ 851,419 $ 1,913,398 $ 1,674,616 Service revenues – product based 112,641 50,442 201,408 109,694 Product sales 124,763 40,280 224,379 74,749 Other 7,219 181 9,113 379 Total revenues and other (1) 1,224,719 942,322 2,348,298 1,859,438 Equity income, net – related parties 21,536 27,128 36,312 47,563 Operating expenses Cost of product 117,440 42,681 220,324 84,173 Operation and maintenance 285,353 224,629 549,594 451,143 General and administrative 85,929 66,146 161,079 132,932 Property and other taxes 19,736 17,805 39,222 35,631 Depreciation and amortization 205,945 172,113 406,371 342,573 Long - lived asset and other impairments 551 686 1,159 689 Total operating expenses (2) 714,954 524,060 1,377,749 1,047,141 Gain (loss) on divestiture and other, net (3) ( 4,598 ) ( 911 ) ( 10,965 ) ( 5,578 ) Operating income (loss) 526,703 444,479 995,896 854,282 Interest expense ( 108,984 ) ( 95,170 ) ( 222,374 ) ( 192,463 ) Gain (loss) on early extinguishment of debt ( 150 ) — ( 150 ) — Other income (expense), net 2,834 3,692 9,564 11,169 Income (loss) before income taxes 420,403 353,001 782,936 672,988 Income tax expense (benefit) 5,152 2,239 8,653 5,674 Net income (loss) 415,251 350,762 774,283 667,314 Net income (loss) attributable to noncontrolling interests 11,699 9,082 20,455 16,627 Net income (loss) attributable to Western Midstream Partners, LP $ 403,552 $ 341,680 $ 753,828 $ 650,687 Limited partners’ interest in net income (loss): Net income (loss) attributable to Western Midstream Partners, LP $ 403,552 $ 341,680 $ 753,828 $ 650,687 General partner interest in net (income) loss ( 8,668 ) ( 7,930 ) ( 16,554 ) ( 15,100 ) Limited partners’ interest in net income (loss) (4) 394,884 333,750 737,274 635,587 Net income (loss) per common unit – basic (4) $ 0.99 $ 0.88 $ 1.85 $ 1.67 Net income (loss) per common unit – diluted (4) $ 0.99 $ 0.87 $ 1.84 $ 1.66 Weighted - average common units outstanding – basic (4) 398,043 381,328 398,566 381,158 Weighted - average common units outstanding – diluted (4) 399,381 382,326 400,030 382,398 _________________________________________________________________________________________ (1) Total revenues and other includes related-party amounts of $ 570.0 million and $ 1.1 billion for the three and six months ended June 30, 2026, respectively, and $ 576.2 million and $ 1.1 billion for the three and six months ended June 30, 2025, respectively. See Note 6 . (2) Total operating expenses includes related-party amounts of $ 41.0 million and $ 36.4 million for the three and six months ended June 30, 2026, respectively, and $( 7.3 ) million and $( 19.4 ) million for the three and six months ended June 30, 2025, respectively, all primarily related to changes in imbalance positions. See Note 6 . (3) See Note 6 . (4) See Note 5 . See accompanying Notes to Consolidated Financial Statements. 6 Table of Contents WESTERN MIDSTREAM PARTNERS, LP CONSOLIDATED BALANCE SHEETS (UNAUDITED) thousands except number of units June 30, 2026 December 31, 2025 ASSETS Current assets Cash and cash equivalents $ 104,766 $ 819,491 Accounts receivable, net 955,052 773,197 Other current assets 78,756 64,253 Total current assets 1,138,574 1,656,941 Property, plant, and equipment Cost 19,286,072 17,648,375 Less accumulated depreciation 6,743,989 6,427,467 Net property, plant, and equipment 12,542,083 11,220,908 Goodwill 391,480 353,257 Other intangible assets 1,384,593 913,758 Equity investments 493,467 504,859 Other assets 367,610 348,697 Total assets (1) $ 16,317,807 $ 14,998,420 LIABILITIES, EQUITY, AND PARTNERS’ CAPITAL Current liabilities Accounts and imbalance payables $ 510,372 $ 319,170 Short - term debt 168,104 448,825 Accrued ad valorem taxes 41,831 60,114 Accrued liabilities 528,843 408,375 Total current liabilities 1,249,150 1,236,484 Long-term liabilities Long - term debt 8,884,977 8,195,170 Deferred income taxes 116,981 111,277 Asset retirement obligations 471,748 427,858 Other liabilities 1,192,801 864,509 Total long - term liabilities 10,666,507 9,598,814 Total liabilities (2) 11,915,657 10,835,298 Equity and partners’ capital Common units ( 413,172,388 and 408,141,366 units issued and outstanding at June 30, 2026, and December 31, 2025, respectively) 4,253,799 4,016,606 General partner units ( 9,060,641 units issued and outstanding at June 30, 2026, and December 31, 2025) 4,507 4,624 Total partners’ capital 4,258,306 4,021,230 Noncontrolling interests 143,844 141,892 Total equity and partners’ capital 4,402,150 4,163,122 Total liabilities, equity, and partners’ capital $ 16,317,807 $ 14,998,420 ________________________________________________________________________________________ (1) Total assets includes related - party amounts of $ 906.0 million and $ 946.4 million as of June 30, 2026, and December 31, 2025, respectively, which includes related - party accounts receivable, net of $ 370.5 million and $ 407.9 million as of June 30, 2026, and December 31, 2025, respectively. See Note 6 . (2) Total liabilities includes related - party amounts of $ 1.2 billion and $ 666.9 million as of June 30, 2026, and December 31, 2025, respectively, which includes related-party accounts and imbalance payables of $ 30.5 million and $ 20.6 million as of June 30, 2026, and December 31, 2025, respectively. See Note 6 . See accompanying Notes to Consolidated Financial Statements. 7 Table of Contents WESTERN MIDSTREAM PARTNERS, LP CONSOLIDATED STATEMENTS OF EQUITY AND PARTNERS’ CAPITAL (UNAUDITED) Partners’ Capital thousands Common Units General Partner Units Noncontrolling Interests Total Balance at December 31, 2025 $ 4,016,606 $ 4,624 $ 141,892 $ 4,163,122 Net income (loss) 342,390 7,886 8,756 359,032 Distributions to Chipeta noncontrolling interest owner — — ( 2,117 ) ( 2,117 ) Distributions to noncontrolling interest owner of WES Operating — — ( 7,332 ) ( 7,332 ) Distributions to Partnership unitholders ( 371,430 ) ( 8,245 ) — ( 379,675 ) WES unit redemption with Occidental (1) ( 610,000 ) — — ( 610,000 ) Equity-based compensation expense 10,854 — — 10,854 Other ( 26,894 ) — — ( 26,894 ) Balance at March 31, 2026 $ 3,361,526 $ 4,265 $ 141,199 $ 3,506,990 Net income (loss) 394,884 8,668 11,699 415,251 Distributions to Chipeta noncontrolling interest owner — — ( 1,881 ) ( 1,881 ) Distributions to noncontrolling interest owner of WES Operating — — ( 7,173 ) ( 7,173 ) Distributions to Partnership unitholders ( 366,217 ) ( 8,426 ) — ( 374,643 ) Acquisition-related issuance of units 851,963 — — 851,963 Equity-based compensation expense 13,507 — — 13,507 Other ( 1,864 ) — — ( 1,864 ) Balance at June 30, 2026 $ 4,253,799 $ 4,507 $ 143,844 $ 4,402,150 ________________________________________________________________________________________ (1) See Note 6 . Partners’ Capital thousands Common Units General Partner Units Noncontrolling Interests Total Balance at December 31, 2024 $ 3,224,802 $ 10,803 $ 139,565 $ 3,375,170 Net income (loss) 301,837 7,170 7,545 316,552 Distributions to noncontrolling interest owner of WES Operating — — ( 6,949 ) ( 6,949 ) Distributions to Partnership unitholders ( 333,068 ) ( 7,928 ) — ( 340,996 ) Equity-based compensation expense 8,248 — — 8,248 Other ( 18,454 ) — — ( 18,454 ) Balance at March 31, 2025 $ 3,183,365 $ 10,045 $ 140,161 $ 3,333,571 Net income (loss) 333,750 7,930 9,082 350,762 Distributions to noncontrolling interest owner of WES Operating — — ( 7,268 ) ( 7,268 ) Distributions to Partnership unitholders ( 347,008 ) ( 8,245 ) — ( 355,253 ) Equity-based compensation expense 10,713 — — 10,713 Other ( 1,588 ) — 2,500 912 Balance at June 30, 2025 $ 3,179,232 $ 9,730 $ 144,475 $ 3,333,437 See accompanying Notes to Consolidated Financial Statements. 8 Table of Contents WESTERN MIDSTREAM PARTNERS, LP CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, thousands 2026 2025 Cash flows from operating activities Net income (loss) $ 774,283 $ 667,314 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 406,371 342,573 Long - lived asset and other impairments 1,159 689 Non - cash equity - based compensation expense 24,361 18,961 Deferred income taxes 2,258 2,012 Accretion and amortization of long - term obligations, net 1,616 4,234 Equity income, net – related parties ( 36,312 ) ( 47,563 ) Distributions from equity - investment earnings – related parties 40,375 51,419 (Gain) loss on divestiture and other, net (1) 10,965 5,578 (Gain) loss on early extinguishment of debt 150 — Other 325 233 Changes in assets and liabilities: (Increase) decrease in accounts receivable, net ( 97,982 ) ( 2,791 ) Increase (decrease) in accounts and imbalance payables and accrued liabilities, net ( 21,891 ) ( 15,645 ) Change in other items, net ( 101,039 ) 67,756 Net cash provided by operating activities 1,004,639 1,094,770 Cash flows from investing activities Capital expenditures ( 506,065 ) ( 321,025 ) Acquisitions from third parties ( 818,723 ) — Contributions to equity investments – related parties ( 2,578 ) — Distributions from equity investments in excess of cumulative earnings – related parties 9,907 14,047 Proceeds from the sale of assets to third parties — 34 (Increase) decrease in materials and supplies inventory and other ( 24,764 ) ( 7,820 ) Net cash used in investing activities ( 1,342,223 ) ( 314,764 ) Cash flows from financing activities Borrowings, net of debt issuance costs 1,052,642 ( 1,171 ) Repayments of debt ( 800,505 ) ( 1,000,589 ) Commercial paper borrowings (repayments), net 162,905 — Increase (decrease) in outstanding checks 14,858 ( 7,656 ) Distributions to Partnership unitholders (1) ( 754,318 ) ( 696,249 ) Distributions to Chipeta noncontrolling interest owner ( 3,998 ) — Distributions to noncontrolling interest owner of WES Operating ( 14,505 ) ( 14,217 ) Other ( 34,220 ) ( 20,856 ) Net cash used in financing activities ( 377,141 ) ( 1,740,738 ) Net increase (decrease) in cash and cash equivalents ( 714,725 ) ( 960,732 ) Cash and cash equivalents at beginning of period 819,491 1,090,464 Cash and cash equivalents at end of period $ 104,766 $ 129,732 Supplemental disclosures Interest paid, net of capitalized interest $ 223,615 $ 197,964 Accrued capital expenditures 141,356 85,153 Income taxes paid (reimbursements received) 13,618 2,301 Asset retirement cost additions and revisions, net 30,892 5,795 Acquisition-related issuance of units 851,963 — WES unit redemption with Occidental (1) 610,000 — _________________________________________________________________________________________ (1) See Note 6 . See accompanying Notes to Consolidated Financial Statements. 9 Table of Contents WESTERN MIDSTREAM OPERATING, LP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, thousands 2026 2025 2026 2025 Revenues and other Service revenues – fee based $ 980,096 $ 851,419 $ 1,913,398 $ 1,674,616 Service revenues – product based 112,641 50,442 201,408 109,694 Product sales 124,763 40,280 224,379 74,749 Other 7,219 181 9,113 379 Total revenues and other (1) 1,224,719 942,322 2,348,298 1,859,438 Equity income, net – related parties 21,536 27,128 36,312 47,563 Operating expenses Cost of product 117,440 42,681 220,324 84,173 Operation and maintenance 285,353 224,629 549,594 451,143 General and administrative 85,226 65,845 160,031 132,819 Property and other taxes 19,736 17,805 39,222 35,631 Depreciation and amortization 205,945 172,113 406,371 342,573 Long-lived asset and other impairments 551 686 1,159 689 Total operating expenses (2) 714,251 523,759 1,376,701 1,047,028 Gain (loss) on divestiture and other, net (3) ( 4,598 ) ( 911 ) ( 10,965 ) ( 5,578 ) Operating income (loss) 527,406 444,780 996,944 854,395 Interest expense ( 108,984 ) ( 95,170 ) ( 222,374 ) ( 192,463 ) Gain (loss) on early extinguishment of debt ( 150 ) — ( 150 ) — Other income (expense), net 2,760 3,643 9,400 11,074 Income (loss) before income taxes 421,032 353,253 783,820 673,006 Income tax expense (benefit) 3,230 2,239 3,356 5,674 Net income (loss) 417,802 351,014 780,464 667,332 Net income (loss) attributable to noncontrolling interest 3,918 2,102 5,847 3,344 Net income (loss) attributable to Western Midstream Operating, LP $ 413,884 $ 348,912 $ 774,617 $ 663,988 ________________________________________________________________________________________ (1) Total revenues and other includes related-party amounts of $ 570.0 million and $ 1.1 billion for the three and six months ended June 30, 2026, respectively, and $ 576.2 million and $ 1.1 billion for the three and six months ended June 30, 2025, respectively. See Note 6 . (2) Total operating expenses includes related-party amounts of $ 41.9 million and $ 38.9 million for the three and six months ended June 30, 2026, respectively, and $( 6.4 ) million and $( 17.0 ) million for the three and six months ended June 30, 2025, respectively, all primarily related to changes in imbalance positions. See Note 6 . (3) See Note 6 . See accompanying Notes to Consolidated Financial Statements. 10 Table of Contents WESTERN MIDSTREAM OPERATING, LP CONSOLIDATED BALANCE SHEETS (UNAUDITED) thousands except number of units June 30, 2026 December 31, 2025 ASSETS Current assets Cash and cash equivalents $ 98,595 $ 808,372 Accounts receivable, net 955,032 773,165 Other current assets 77,128 63,604 Total current assets 1,130,755 1,645,141 Property, plant, and equipment Cost 19,286,072 17,648,375 Less accumulated depreciation 6,743,989 6,427,467 Net property, plant, and equipment 12,542,083 11,220,908 Goodwill 391,480 353,257 Other intangible assets 1,384,593 913,758 Equity investments 493,467 504,859 Other assets 362,827 345,529 Total assets (1) $ 16,305,205 $ 14,983,452 LIABILITIES, EQUITY, AND PARTNERS’ CAPITAL Current liabilities Accounts and imbalance payables $ 513,455 $ 376,947 Short - term debt 168,104 448,825 Accrued ad valorem taxes 41,831 60,114 Accrued liabilities 471,925 326,873 Total current liabilities 1,195,315 1,212,759 Long-term liabilities Long - term debt 8,884,977 8,195,170 Deferred income taxes 37,099 36,646 Asset retirement obligations 471,748 427,858 Other liabilities 1,187,184 859,947 Total long - term liabilities 10,581,008 9,519,621 Total liabilities (2) 11,776,323 10,732,380 Equity and partners’ capital Common units ( 424,275,541 and 403,205,667 units issued and outstanding at June 30, 2026, and December 31, 2025, respectively) 3,623,537 3,347,576 Preferred units ( 21,965,846 units issued and outstanding at June 30, 2026, and December 31, 2025) 868,978 868,978 Total partners’ capital 4,492,515 4,216,554 Noncontrolling interest 36,367 34,518 Total equity and partners’ capital 4,528,882 4,251,072 Total liabilities, equity, and partners’ capital $ 16,305,205 $ 14,983,452 _________________________________________________________________________________________ (1) Total assets includes related - party amounts of $ 901.1 million and $ 943.2 million as of June 30, 2026, and December 31, 2025, respectively, which includes related - party accounts receivable, net of $ 370.5 million and $ 407.9 million as of June 30, 2026, and December 31, 2025, respectively. See Note 6 . (2) Total liabilities includes related - party amounts of $ 1.2 billion and $ 722.3 million as of June 30, 2026, and December 31, 2025, respectively, which includes related-party accounts and imbalance payables of $ 33.9 million and $ 76.0 million as of June 30, 2026, and December 31, 2025, respectively. See Note 6 . See accompanying Notes to Consolidated Financial Statements. 11 Table of Contents WESTERN MIDSTREAM OPERATING, LP CONSOLIDATED STATEMENTS OF EQUITY AND PARTNERS’ CAPITAL (UNAUDITED) thousands Common Units Preferred Units Noncontrolling Interest Total Balance at December 31, 2025 $ 3,347,576 $ 868,978 $ 34,518 $ 4,251,072 Net income (loss) 345,787 14,946 1,929 362,662 Distributions to Chipeta noncontrolling interest owner — — ( 2,117 ) ( 2,117 ) Distributions to WES Operating unitholders ( 370,965 ) ( 14,946 ) — ( 385,911 ) Contributions of equity-based compensation from WES 10,668 — — 10,668 Distribution of receivable related to the WES unit redemption with Occidental (1) ( 610,000 ) — — ( 610,000 ) Balance at March 31, 2026 $ 2,723,066 $ 868,978 $ 34,330 $ 3,626,374 Net income (loss) 398,939 14,945 3,918 417,802 Acquisition-related issuance of units 851,963 — — 851,963 Distributions to Chipeta noncontrolling interest owner — — ( 1,881 ) ( 1,881 ) Distributions to WES Operating unitholders ( 363,738 ) ( 14,945 ) — ( 378,683 ) Contributions of equity-based compensation from WES 13,307 — — 13,307 Balance at June 30, 2026 $ 3,623,537 $ 868,978 $ 36,367 $ 4,528,882 ________________________________________________________________________________________ (1) See Note 6 . thousands Common Units Noncontrolling Interest Total Balance at December 31, 2024 $ 3,399,650 $ 26,476 $ 3,426,126 Net income (loss) 315,076 1,242 316,318 Distributions to WES Operating unitholders ( 347,356 ) — ( 347,356 ) Contributions of equity-based compensation from WES 8,144 — 8,144 Balance at March 31, 2025 $ 3,375,514 $ 27,718 $ 3,403,232 Net income (loss) 348,912 2,102 351,014 Distributions to WES Operating unitholders ( 363,290 ) — ( 363,290 ) Contributions of equity-based compensation from WES 10,563 — 10,563 Other — 2,500 2,500 Balance at June 30, 2025 $ 3,371,699 $ 32,320 $ 3,404,019 See accompanying Notes to Consolidated Financial Statements. 12 Table of Contents WESTERN MIDSTREAM OPERATING, LP CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, thousands 2026 2025 Cash flows from operating activities Net income (loss) $ 780,464 $ 667,332 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 406,371 342,573 Long-lived asset and other impairments 1,159 689 Non-cash equity-based compensation expense 23,975 18,707 Deferred income taxes ( 2,993 ) 2,012 Accretion and amortization of long-term obligations, net 1,616 4,234 Equity income, net – related parties ( 36,312 ) ( 47,563 ) Distributions from equity-investment earnings – related parties 40,375 51,419 (Gain) loss on divestiture and other, net (1) 10,965 5,578 (Gain) loss on early extinguishment of debt 150 — Other 325 233 Changes in assets and liabilities: (Increase) decrease in accounts receivable, net ( 97,994 ) ( 28,762 ) Increase (decrease) in accounts and imbalance payables and accrued liabilities, net ( 49,396 ) ( 14,492 ) Change in other items, net ( 99,501 ) 72,881 Net cash provided by operating activities 979,204 1,074,841 Cash flows from investing activities Capital expenditures ( 506,065 ) ( 321,025 ) Acquisitions from third parties ( 818,723 ) — Contributions to equity investments – related parties ( 2,578 ) — Distributions from equity investments in excess of cumulative earnings – related parties 9,907 14,047 Proceeds from the sale of assets to third parties — 34 (Increase) decrease in materials and supplies inventory and other ( 24,764 ) ( 7,820 ) Net cash used in investing activities ( 1,342,223 ) ( 314,764 ) Cash flows from financing activities Borrowings, net of debt issuance costs 1,052,642 ( 1,171 ) Repayments of debt ( 800,505 ) ( 1,000,589 ) Commercial paper borrowings (repayments), net 162,905 — Increase (decrease) in outstanding checks 12,252 ( 7,656 ) Distributions to WES Operating unitholders (1) ( 764,594 ) ( 710,646 ) Distributions to Chipeta noncontrolling interest owner ( 3,998 ) — Other ( 5,460 ) ( 814 ) Net cash used in financing activities ( 346,758 ) ( 1,720,876 ) Net increase (decrease) in cash and cash equivalents ( 709,777 ) ( 960,799 ) Cash and cash equivalents at beginning of period 808,372 1,084,446 Cash and cash equivalents at end of period $ 98,595 $ 123,647 Supplemental disclosures Interest paid, net of capitalized interest $ 223,615 $ 197,964 Accrued capital expenditures 141,356 85,153 Income taxes paid (reimbursements received) 13,618 2,301 Asset retirement cost additions and revisions, net 30,892 5,795 Acquisition-related issuance of units 851,963 — Distribution of receivable related to the WES unit redemption with Occidental (1) 610,000 — ________________________________________________________________________________________ (1) See Note 6. See accompanying Notes to Consolidated Financial Statements. 13 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION General. Western Midstream Partners, LP (the “Partnership”) is a Delaware master limited partnership formed in September 2012. Western Midstream Operating, LP (together with its subsidiaries, “WES Operating”) is a Delaware limited partnership formed in 2007 to acquire, own, develop, and operate midstream assets. As of June 30, 2026, the Partnership owns, directly and indirectly, a 98.2 % limited partner interest in WES Operating, and directly owns all of the outstanding equity interests of Western Midstream Operating GP, LLC, which holds the entire non - economic general partner interest in WES Operating. In addition, Occidental owns the Partnership’s general partner and, as of June 30, 2026, a 1.8 % limited partner interest in WES Operating through its ownership of WGR Asset Holding Company LLC (“WGRAH”). See Noncontrolling interests below. For purposes of these consolidated financial statements, the Partnership refers to Western Midstream Partners, LP in its individual capacity or to Western Midstream Partners, LP and its subsidiaries, including Western Midstream Operating GP, LLC and WES Operating, as the context requires. “WES Operating GP” refers to Western Midstream Operating GP, LLC, individually as the general partner of WES Operating. The Partnership’s general partner, Western Midstream Holdings, LLC (the “general partner”), is a wholly owned subsidiary of Occidental Petroleum Corporation. “Occidental” refers to Occidental Petroleum Corporation, as the context requires, and its subsidiaries, excluding the general partner. “Anadarko” refers to Anadarko Petroleum Corporation, which became a wholly owned subsidiary of Occidental as a result of Occidental’s acquisition by merger of Anadarko in 2019. “Related parties” refers to Occidental (see Note 6 ), the Partnership’s investments accounted for under the equity method of accounting (see Note 7 ), and WES Operating for transactions with the Partnership that eliminate upon consolidation (see Note 6 ). On June 11, 2026, the Partnership completed the acquisition of Brazos Delaware II, LLC (“Brazos Delaware”) in an equity-and-cash transaction, pursuant to the Membership Interest Purchase Agreement, dated as of May 6, 2026, by and among the Partnership, B-2 Holdings LLC, a wholly owned subsidiary of the Partnership, and Brazos Permian II, LLC. Also, immediately following the closing of the Brazos Delaware acquisition, the Partnership and WES Operating entered into certain post-closing restructuring transactions through which Brazos Delaware and its subsidiaries became indirect wholly owned subsidiaries of WES Operating. See Note 3 . On October 15, 2025, the Partnership completed its previously announced acquisition of Aris Water Solutions, Inc. (“Aris”), pursuant to the Agreement and Plan of Merger, dated as of August 6, 2025 (the “Merger Agreement”), by and among the Partnership, Aris, and certain Partnership and Aris subsidiaries. Also, immediately following the closing of the Aris acquisition, WES Operating and Aris entered into certain post-closing restructuring transactions through which WES Operating issued preferred units to Aris in exchange for Aris’s operating subsidiaries, and WES Operating was the surviving entity in a merger with Aris Water Holdings, LLC, a subsidiary of Aris that was the issuer of its acquired outstanding senior notes (see Note 3 ). The Partnership is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural - gas liquids (“NGLs”), and crude oil; and gathering, transporting, recycling, treating, supplying, and disposing of produced water. In its capacity as a natural - gas processor, the Partnership also buys and sells residue, NGLs, and condensate on behalf of itself and its customers under certain contracts. As of June 30, 2026, the Partnership’s assets and investments consisted of the following: Wholly Owned and Operated Operated Interests Non-Operated Interests Equity Interests Gathering systems 16 2 1 — Treating facilities 43 3 — — Processing plants/trains 30 3 — 1 Produced-water gathering, treating, recycling, and disposal systems 8 — — — NGLs pipelines 2 — — 4 Natural - gas pipelines 6 — — 1 Crude - oil pipelines 2 1 — 1 These assets and investments are located in Texas, New Mexico, and the Rocky Mountains (Colorado, Utah, and Wyoming). 14 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of the Partnership and entities in which it holds a controlling or other financial interest, including WES Operating, WES Operating GP, proportionately consolidated interests, and equity investments. All significant intercompany transactions have been eliminated. Certain information and note disclosures commonly included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying consolidated financial statements and notes should be read in conjunction with the Partnership’s 2025 Form 10-K, as filed with the SEC on February 18, 2026. Management believes that the disclosures made are adequate to make the information not misleading. The consolidated financial results of WES Operating are included in the Partnership’s consolidated financial statements. Throughout these notes to consolidated financial statements, and to the extent material, any differences between the consolidated financial results of the Partnership and WES Operating are discussed separately. The Partnership’s consolidated financial statements differ from those of WES Operating primarily as a result of (i) the presentation of noncontrolling interest ownership (see Noncontrolling interests below), (ii) the elimination of WES Operating GP’s investment in WES Operating with WES Operating GP’s underlying capital account, (iii) the elimination of the preferred unit investment in WES Operating with the Partnership’s underlying preferred capital account (see Note 5 ), (iv) the general and administrative expenses incurred by the Partnership, which are separate from, and in addition to, those incurred by WES Operating, (v) the inclusion of the impact of Partnership equity balances and Partnership distributions, and (vi) transactions between the Partnership and WES Operating that eliminate upon consolidation. Use of estimates. In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other reasonable methods. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates. Effects on the business, financial condition, and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information included herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements. Noncontrolling interests. The Partnership’s noncontrolling interests in the consolidated financial statements consist of (i) the 25 % third - party interest in Chipeta for all periods presented and (ii) the 1.8 %, 1.9 %, and 2.0 % limited partner interest in WES Operating as of June 30, 2026, December 31, 2025, and June 30, 2025, respectively, owned by an Occidental subsidiary. WES Operating’s noncontrolling interest in the consolidated financial statements consists of the 25 % third - party interest in Chipeta. Inventory. As of June 30, 2026, and December 31, 2025, other current assets includes (i) $ 1.3 million and $ 2.7 million, respectively, of crude oil and NGLs inventory and (ii) $ 11.2 million and $ 10.1 million, respectively, of materials and supplies inventory that are classified as short term on the consolidated balance sheets. As of June 30, 2026, and December 31, 2025, other assets includes (i) $ 7.5 million and $ 3.2 million, respectively, of NGLs line - fill inventory and (ii) $ 158.9 million and $ 131.6 million, respectively, of materials and supplies inventory that are classified as long term on the consolidated balance sheets. Segments. The Partnership’s operations continue to be organized into a single operating segment, the assets of which 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 in the United States. See Note 11 . 15 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION New accounting pronouncements not yet adopted. In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The standard requires additional disclosure and disaggregation of certain income statement expense line items and may be applied prospectively or retrospectively. The Partnership plans to adopt the standard when it becomes effective beginning with the fiscal-year 2027 annual financial statements. The Partnership is assessing the impact of this guidance on its disclosures in the Notes to the Consolidated Financial Statements. 2. REVENUE FROM CONTRACTS WITH CUSTOMERS The following table summarizes revenue from contracts with customers: Three Months Ended June 30, Six Months Ended June 30, thousands 2026 2025 2026 2025 Revenue from customers Service revenues – fee based $ 980,096 $ 851,419 $ 1,913,398 $ 1,674,616 Service revenues – product based 112,641 50,442 201,408 109,694 Product sales 124,763 40,280 224,379 74,749 Total revenue from customers 1,217,500 942,141 2,339,185 1,859,059 Revenue from other than customers Other 7,219 181 9,113 379 Total revenues and other $ 1,224,719 $ 942,322 $ 2,348,298 $ 1,859,438 Contract balances. Receivables from customers, which are included in accounts receivable, net on the consolidated balance sheets, were $ 933.5 million and $ 737.0 million as of June 30, 2026, and December 31, 2025, respectively. Contract assets primarily relate to (i) revenue accrued but not yet billed under cost - of - service contracts with fixed and variable fees and (ii) accrued deficiency fees the Partnership expects to charge customers once the related performance periods are completed. The following table summarizes activity related to contract assets from contracts with customers: thousands Contract assets balance at December 31, 2025 $ 10,515 Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (1) ( 3,602 ) Additional estimated revenues recognized (2) 6,753 Amounts acquired with the acquisition of Brazos Delaware (3) 900 Contract assets balance at June 30, 2026 $ 14,566 Contract assets at June 30, 2026 Other current assets $ 7,208 Other assets 7,358 Total contract assets from contracts with customers $ 14,566 _________________________________________________________________________________________ (1) Includes $(2.7) million for the three months ended June 30, 2026. (2) Includes $(0.4) million for the three months ended June 30, 2026. (3) See Note 3 . 16 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Contract liabilities primarily relate to (i) consideration received from customers for which revenue recognition is deferred and (ii) aid - in - construction payments received from customers that must be recognized over the expected period of customer benefit. The following table summarizes activity related to contract liabilities from contracts with customers: thousands Contract liabilities balance at December 31, 2025 $ 767,148 Cash received or receivable, excluding revenues recognized during the period (1) ( 3,900 ) Revenues recognized that were included in the contract liability balance at the beginning of the period (2) ( 56,552 ) Non-cash consideration received for WES unit redemption from Occidental, net of revenues recognized in the period (3) 572,712 Amounts acquired with the acquisition of Brazos Delaware (4) 5,588 Contract liabilities balance at June 30, 2026 $ 1,284,996 Contract liabilities at June 30, 2026 Accrued liabilities $ 192,031 Other liabilities 1,092,965 Total contract liabilities from contracts with customers $ 1,284,996 ________________________________________________________________________________________ (1) Includes $( 10.1 ) million for the three months ended June 30, 2026. (2) Includes $( 24.3 ) million for the three months ended June 30, 2026. (3) See Note 6 . (4) See Note 3 . Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2026, are presented in the table below. The Partnership applies the optional exemptions in Revenue from Contracts with Customers (Topic 606) and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a portion of expected future revenues from existing contracts, as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes. thousands Remainder of 2026 $ 741,693 2027 1,685,247 2028 1,208,166 2029 912,123 2030 765,191 Thereafter 2,554,054 Total $ 7,866,474 17 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 3. ACQUISITIONS AND DIVESTITURES Brazos Delaware. On June 11, 2026, the Partnership closed on the acquisition of Brazos Delaware for an aggregate purchase price of approximately $ 1.67 billion, subject to certain customary post-closing adjustments, consisting of (i) $ 820.3 million in cash, funded with borrowings on the commercial paper program and revolving credit facility (the “RCF”) (see Note 9 ), and (ii) $ 852.0 million of Partnership common units (see Note 5 ). The Partnership acquired Brazos Delaware to expand its gathering and processing footprint in the Delaware Basin and access additional customers in the area. Brazos Delaware owns a gathering and processing system in the Delaware Basin (the “Comanche complex”), with natural-gas and crude-oil assets spanning Reeves, Ward, Pecos, Winkler, Culberson, and Loving counties. The Comanche complex includes approximately 900 miles of pipeline, 460 MMcf/d of nameplate natural-gas processing capacity, and approximately 470,000 dedicated acres under long-term, fixed-fee contracts. The acquisition has been accounted for under the acquisition method of accounting. The assets acquired and liabilities assumed were recorded in the consolidated balance sheet at their estimated fair values as of the acquisition date. Results of operations attributable to the acquisition were included in the Partnership’s consolidated statements of operations beginning on the acquisition date in the second quarter of 2026. For the six months ended June 30, 2026, acquisition-related transaction costs of $ 6.6 million, consisting primarily of third-party consulting and legal fees, are included in General and administrative expenses in the consolidated statements of operations. The following is the preliminary acquisition-date fair value for the assets acquired and liabilities assumed in the acquisition. The preliminary fair values are subject to change within the measurement period (up to one year from the acquisition date), pending a final determination of the values assigned to tangible and identifiable intangible assets and certain customary post-closing working capital adjustments. thousands Assets acquired: Cash and cash equivalents $ 3,991 Accounts receivable, net 79,065 Other current assets 1,284 Property, plant, and equipment 1,126,838 Goodwill 35,889 Other intangible assets 495,000 Other assets 19,220 Total assets acquired 1,761,287 Liabilities assumed: Accounts payable and accrued liabilities 43,139 Other current liabilities 7,777 Asset retirement obligation 20,313 Other liabilities 17,813 Total liabilities assumed 89,042 Net assets acquired $ 1,672,245 18 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 3. ACQUISITIONS AND DIVESTITURES Goodwill recognized in the Brazos acquisition relates primarily to enhancing and diversifying the Partnership’s asset position, as well as delivering operational synergies, including increasing volumes on its existing processing facilities and increasing revenues on its natural-gas and crude-oil gathering systems. Other intangible assets recognized in the Brazos Delaware acquisition are related to customer contracts. The basis for determining the value of these intangible assets is estimated future net cash flows to be derived from acquired customer contracts and relationships, offset with appropriate charges for the use of contributory assets and discounted using a risk-adjusted discount rate. These intangible assets are being amortized on a straight-line basis over an initial period of 30 years, which represents the estimated term over which the customer contracts are expected to contribute to the Partnership’s cash flows. The acquisition-date fair values are based on an assessment of the fair value of the assets acquired and liabilities assumed in the acquisition using inputs that are not observable in the market and thus represent Level 3 inputs. The fair values of the processing plants, gathering systems, and related facilities and equipment are based on market and cost approaches. The following table presents the pro forma condensed financial information of the Partnership as if the acquisition had occurred on January 1, 2025: Three Months Ended June 30, Six Months Ended June 30, thousands 2026 2025 2026 2025 Revenues and other $ 1,281,810 $ 1,022,156 $ 2,491,214 $ 2,016,972 Net income (loss) 413,623 361,206 790,277 686,262 The following table presents the pro forma condensed financial information of WES Operating (which is included in the Partnership’s pro forma condensed financial information) as if the acquisition had occurred on January 1, 2025: Three Months Ended June 30, Six Months Ended June 30, thousands 2026 2025 2026 2025 Revenues and other $ 1,281,810 $ 1,022,156 $ 2,491,214 $ 2,016,972 Net income (loss) 416,174 361,458 796,458 686,280 19 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 3. ACQUISITIONS AND DIVESTITURES The pro forma information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred had the acquisition been completed at the assumed date, nor is it necessarily indicative of future operating results of the combined entity. The pro forma adjustments reflect pre-acquisition results of the acquisition including (i) net increases to revenues of $ 19.0 million and $ 27.4 million for the three and six months ended June 30, 2026, respectively, and net decreases to revenues of $ 6.7 million and $ 26.0 million for the three and six months ended June 30, 2025, respectively, with corresponding adjustments to cost of product, to adjust revenues and cost of product to conform to the Partnership’s accounting policies, including presenting certain product purchases under processing arrangements on a net basis within revenues rather than on a gross basis within cost of product, (ii) adjustments of $ 5.4 million and $ 12.2 million for the three and six months ended June 30, 2026, respectively, and $ 6.4 million and $ 12.8 million for the three and six months ended June 30, 2025, respectively, to decrease depreciation and amortization expense based on the acquisition-date fair value and estimated useful lives of property, plant, and equipment, and intangible assets, (iii) net decreases to interest expense of $ 2.0 million and $ 4.1 million for the three and six months ended June 30, 2026, respectively, and $ 4.3 million and $ 8.8 million for the three and six months ended June 30, 2025, respectively, reflecting the interest expense on the commercial paper program and RCF borrowing used to finance the cash-funded portion of the acquisition, net of the elimination of Brazos’s historical interest expense on higher-rate debt that was repaid at closing and not assumed by the Partnership, (iv) the exclusion of $ 9.6 million of loss on the early extinguishment of debt for the three and six months ended June 30, 2026, which related to Brazos's historical debt that was repaid at closing and not assumed by the Partnership, and (v) the exclusion of Brazos’s historical net gains of $ 1.0 million and $ 5.6 million on the interest rate derivatives for the three and six months ended June 30, 2026, respectively, and net losses of $ 4.3 million and $ 10.9 million for the three and six months ended June 30, 2025, respectively, as the related derivatives were settled prior to closing and the underlying debt was not assumed. The pro forma adjustments include estimates and assumptions based on currently available information. Management believes the estimates and assumptions are reasonable, and the relative effects of the transaction are properly reflected. The pro forma information reflects recurring adjustments, but does not reflect any cost savings or other synergies anticipated as a result of the acquisition, nor any future acquisition-related expenses. The pro forma information in the table above includes $ 16.2 million of revenues and $ 12.1 million of expenses for the three and six months ended June 30, 2026, respectively, attributable to the assets acquired as part of the acquisition that are included in the Partnership’s and WES Operating’s consolidated statements of operations. Aris. On October 15, 2025, the Partnership closed on the acquisition of Aris by merger in a transaction valued at $ 2.0 billion, including the cash and equity merger consideration, Aris’s outstanding debt of $ 80.0 million in revolving credit facility borrowings that were repaid at closing, and $ 500.0 million in principal amount of senior notes (see Note 9 ). Based on Aris shareholder consideration elections, the Partnership issued 26.6 million common units and paid $ 415.0 million in cash, funded with borrowings under the commercial paper program, in exchange for all issued and outstanding shares of Aris common stock. The cash paid to Aris shareholders (net of cash acquired as presented in the table below) was $ 368.6 million for the year ended December 31, 2025. The Partnership acquired Aris to expand its existing produced-water infrastructure and access additional customers in the area. The assets acquired, located in Lea and Eddy Counties, New Mexico, and West Texas, include approximately 830 miles of produced-water pipeline, 1,812 MBbls/d of produced-water handling capacity, 1,560 MBbls/d of water recycling capacity, and 625,000 dedicated acres. The Aris acquisition has been accounted for under the acquisition method of accounting. The assets acquired and liabilities assumed in the Aris acquisition were recorded in the consolidated balance sheet at their estimated fair values as of the acquisition date. Results of operations attributable to the Aris acquisition were included in the Partnership’s consolidated statements of operations beginning on the acquisition date in the fourth quarter of 2025. For the six months ended June 30, 2026, general and administrative expenses in the consolidated statements of operations include acquisition-related transaction costs of $ 0.2 million. 20 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 3. ACQUISITIONS AND DIVESTITURES The following is the final acquisition-date fair value for the assets acquired and liabilities assumed in the Aris acquisition. Measurement period adjustments recorded during the six months ended June 30, 2026, resulted in a $ 2.3 million increase to goodwill. thousands Assets acquired: Cash and cash equivalents $ 46,362 Accounts receivable, net 90,717 Other current assets 7,651 Property, plant, and equipment 1,459,508 Goodwill 350,807 Other intangible assets 298,844 Other assets 16,706 Total assets acquired 2,270,595 Liabilities assumed: Accounts payable and accrued liabilities 11,474 Other current liabilities 153,590 Long-term debt 531,675 Asset retirement obligation 52,020 Other liabilities 94,651 Total liabilities assumed 843,410 Net assets acquired $ 1,427,185 Goodwill recognized in the Aris acquisition relates primarily to enhancing and diversifying the Partnership’s water-asset position, as well as delivering operational synergies, including increasing volumes on its existing processing facilities and increasing revenues on its produced-water systems. Other intangible assets recognized in the Aris acquisition are related to customer contracts. The basis for determining the value of these intangible assets is estimated future net cash flows to be derived from acquired customer contracts and relationships, offset with appropriate charges for the use of contributory assets and discounted using a risk-adjusted discount rate. These intangible assets are being amortized on a straight-line basis over an initial period of 19 years, which represents the estimated term over which the customer contracts are expected to contribute to the Partnership’s cash flows. The acquisition-date fair values are based on an assessment of the fair value of the assets acquired and liabilities assumed in the Aris acquisition using inputs that are not observable in the market and thus represent Level 3 inputs. The fair values of the produced-water disposal and recycling systems and related facilities and equipment are based on market and cost approaches. 21 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 4. PARTNERSHIP DISTRIBUTIONS Partnership distributions. The Partnership distributes all of its available cash, as defined in the partnership agreement, to unitholders of record on the applicable record date within 55 days following each quarter’s end. The Board of Directors of the general partner (the “Board”) declared the following cash distributions to the Partnership’s unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Per-unit Distribution Total Quarterly Cash Distribution Distribution Date Record Date 2025 March 31 $ 0.910 $ 355,253 May 15, 2025 May 2, 2025 June 30 0.910 355,254 August 14, 2025 August 1, 2025 September 30 0.910 379,521 November 14, 2025 October 31, 2025 December 31 0.910 379,675 February 13, 2026 February 2, 2026 2026 March 31 $ 0.930 $ 374,643 May 15, 2026 May 1, 2026 June 30 0.930 392,679 August 14, 2026 July 31, 2026 WES Operating partnership distributions. WES Operating makes quarterly cash distributions to the Partnership and WGRAH, a subsidiary of Occidental, according to the terms of its limited partnership agreement. WES Operating made and/or declared the following cash distributions to its limited partners for the periods presented: thousands Quarters Ended Total Quarterly Cash Distribution Distribution Date 2025 March 31 $ 363,290 May 2025 June 30 363,290 August 2025 September 30 391,568 October 2025 December 31 385,911 February 2026 2026 March 31 $ 378,683 May 2026 June 30 405,281 August 2026 22 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 5. EQUITY AND PARTNERS’ CAPITAL Holdings of Partnership equity. The Partnership’s common units are listed on the New York Stock Exchange under the ticker symbol “WES.” As of June 30, 2026, Occidental held 150,374,176 common units, representing a 35.6 % limited partner interest in the Partnership, and through its ownership of the general partner, Occidental indirectly held 9,060,641 general partner units, representing a 2.1 % general partner interest in the Partnership. The public held 262,798,212 common units, representing a 62.3 % limited partner interest in the Partnership. On January 16, 2026, the Partnership and subsidiaries of Occidental entered into a unit redemption agreement (“Unit Redemption Agreement”) providing for the transfer to, and redemption by, the Partnership on February 3, 2026, of approximately 15.3 million common units of the Partnership (see Note 6 ), valued at $ 610.0 million. On June 11, 2026, in connection with the closing of the Brazos Delaware acquisition (see Note 3 ), the Partnership issued 19,389,239 common units to the seller and its affiliate designees. In connection with the issuance, the Partnership entered into a registration rights and lock-up agreement with the unit recipients, pursuant to which the Partnership agreed to file a registration statement covering the resale of such common units within 60 days following the closing date, and the recipients agreed not to transfer the units for a period of six months following the closing date, subject to customary exceptions. Partnership equity repurchases. In February 2025, the Board authorized the Partnership to buy back up to $ 250.0 million of the Partnership’s common units through December 31, 2026 (the “2025 Purchase Program”). The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. During the six months ended June 30, 2026, the Partnership repurchased no common units. As of June 30, 2026, the Partnership had an authorized amount of $ 250.0 million remaining under the program. Holdings of WES Operating equity. On October 15, 2025, WES Operating issued preferred units to Aris, a wholly owned subsidiary of the Partnership, in connection with the Aris acquisition (see Note 1 ). As of June 30, 2026, (i) the Partnership, directly and indirectly through its ownership of WES Operating GP, owned a 98.2 % limited partner interest and the entire non - economic general partner interest in WES Operating and (ii) Occidental, through its ownership of WGRAH, owned a 1.8 % limited partner interest in WES Operating, which is reflected as a noncontrolling interest within the consolidated financial statements of the Partnership (see Note 1 ). Partnership’s net income (loss) per common unit. The common and general partner unitholders’ allocation of net income (loss) attributable to the Partnership was equal to their cash distributions plus their respective allocations of undistributed earnings or losses in accordance with their weighted - average ownership percentage during each period using the two - class method. The following table provides a reconciliation between basic and diluted net income (loss) per common unit: Three Months Ended June 30, Six Months Ended June 30, thousands except per-unit amounts 2026 2025 2026 2025 Net income (loss) Limited partners’ interest in net income (loss) $ 394,884 $ 333,750 $ 737,274 $ 635,587 Weighted-average common units outstanding Basic 398,043 381,328 398,566 381,158 Dilutive effect of non-vested phantom units 1,338 998 1,464 1,240 Diluted 399,381 382,326 400,030 382,398 Excluded due to anti-dilutive effect 1 488 1 353 Net income (loss) per common unit Basic $ 0.99 $ 0.88 $ 1.85 $ 1.67 Diluted $ 0.99 $ 0.87 $ 1.84 $ 1.66 WES Operating’s net income (loss) per common unit. Net income (loss) per common unit for WES Operating is not calculated because it has no publicly traded units. 23 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 6. RELATED-PARTY TRANSACTIONS Summary of related-party transactions. The following tables summarize material related - party transactions included in the Partnership’s consolidated financial statements: Statements of operations Three Months Ended June 30, Six Months Ended June 30, thousands 2026 2025 2026 2025 Revenues and other Service revenues – fee based $ 542,295 $ 559,192 $ 1,080,356 $ 1,100,937 Service revenues – product based 18,923 12,254 35,949 24,113 Product sales 8,163 4,801 14,018 9,599 Other 643 — 1,160 — Total revenues and other 570,024 576,247 1,131,483 1,134,649 Equity income, net – related parties (1) 21,536 27,128 36,312 47,563 Operating expenses Cost of product (2) 39,798 ( 9,028 ) 33,768 ( 23,042 ) Operation and maintenance 1,169 1,560 2,618 3,481 General and administrative — 179 ( 20 ) 210 Total operating expenses 40,967 ( 7,289 ) 36,366 ( 19,351 ) Gain (loss) on divestiture and other, net — — 1,366 — _________________________________________________________________________________________ (1) See Note 7 . (2) Includes related-party natural - gas and NGLs imbalances. Balance sheets thousands June 30, 2026 December 31, 2025 Assets Accounts receivable, net $ 370,453 $ 407,941 Other current assets 8,819 524 Equity investments (1) 493,467 504,859 Other assets 33,311 33,124 Total assets 906,050 946,448 Liabilities Accounts and imbalance payables 30,545 20,639 Accrued liabilities (2) 184,974 14,991 Other liabilities (2) 979,905 631,292 Total liabilities 1,195,424 666,922 _________________________________________________________________________________________ (1) See Note 7 . (2) Includes contract liabilities from contracts with customers. See Note 2 . 24 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 6. RELATED-PARTY TRANSACTIONS Statements of cash flows Six Months Ended June 30, thousands 2026 2025 Distributions from equity - investment earnings – related parties $ 40,375 $ 51,419 Contributions to equity investments – related parties ( 2,578 ) — Distributions from equity investments in excess of cumulative earnings – related parties 9,907 14,047 Distributions to Partnership unitholders (1) ( 307,289 ) ( 311,914 ) Distributions to WES Operating unitholders (2) ( 14,505 ) ( 14,217 ) _________________________________________________________________________________________ (1) Represents common and general partner unit distributions paid to Occidental pursuant to the partnership agreement of the Partnership. See Note 4 and Note 5 . (2) Represents distributions paid to Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement. See Note 4 and Note 5. The following tables summarize material related - party transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ materially from the Partnership’s consolidated financial statements: Statements of operations Three Months Ended June 30, Six Months Ended June 30, thousands 2026 2025 2026 2025 General and administrative (1) $ 980 $ 1,019 $ 2,480 $ 2,556 _________________________________________________________________________________________ (1) Includes an intercompany service fee between the Partnership and WES Operating. Balance sheets thousands June 30, 2026 December 31, 2025 Other current assets $ 8,636 $ 447 Other assets 28,529 29,957 Accounts and imbalance payables (1) 33,857 76,040 _________________________________________________________________________________________ (1) Includes balances related to transactions between the Partnership and WES Operating. Statements of cash flows Six Months Ended June 30, thousands 2026 2025 Distributions to WES Operating unitholders (1) $ ( 764,594 ) $ ( 710,646 ) _________________________________________________________________________________________ (1) Represents distributions paid to the Partnership and Occidental, through its ownership of WGRAH, according to the terms of WES Operating’s partnership agreement. See Note 4 and Note 5. 25 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 6. RELATED-PARTY TRANSACTIONS Related-party revenues. Related - party revenues include amounts earned by the Partnership from services provided to Occidental and from the sale of natural gas, condensate, NGLs, and water solutions volumes to Occidental. Gathering and processing agreements. The Partnership has significant gathering, treating, processing, stabilization, and produced-water disposal arrangements with affiliates of Occidental on most of its systems. While Occidental is the contracting counterparty of the Partnership, these arrangements with Occidental include not just Occidental - produced volumes, but also, in some instances, the volumes of other working - interest owners of Occidental who rely on the Partnership’s facilities and infrastructure to bring their volumes to market. Natural-gas throughput (excluding equity-investment throughput) attributable to production owned or controlled by Occidental was 31 % and 32 % for the three and six months ended June 30, 2026, respectively, and 36 % for both the three and six months ended June 30, 2025. Crude-oil and NGLs throughput (excluding equity-investment throughput) attributable to production owned or controlled by Occidental was 91 % and 92 % for the three and six months ended June 30, 2026, respectively, and 92 % for both the three and six months ended June 30, 2025. Produced-water throughput attributable to production owned or controlled by Occidental was 41 % and 40 % for the three and six months ended June 30, 2026, respectively, and 79 % and 80 % for the three and six months ended June 30, 2025, respectively, which decreased primarily due to the addition of third-party volumes from the Aris acquisition. The Partnership has discussed varying interpretations of certain contractual provisions with Occidental regarding the calculation of the cost - of - service rates under an oil - gathering contract related to the Partnership’s DJ Basin oil - gathering system. If such discussions are resolved in a manner adverse to the Partnership, such resolution could have a negative impact on the Partnership’s financial condition and results of operations, including a reduction in rates and a non-cash charge to earnings. During the first quarter of 2026, Delaware Basin Midstream LLC (“DBM”), a subsidiary of the Partnership, entered into an amendment (the “GGA Amendment”) to its Delaware Basin gas gathering agreement with Anadarko E&P Onshore LLC (“AEP”), a subsidiary of Occidental, to, among other things, (i) replace its cost-of-service-based gathering fee structure with a fixed-fee structure, (ii) add a new minimum-volume commitment through the end of 2027, and (iii) modify the process for certain dedication-related acreage transfers and releases. On January 16, 2026, and in connection with the GGA Amendment and related transactions, including an agreement between DBM and a third party pursuant to which DBM will gather and process certain volumes of natural gas already existing on the Partnership’s system, and conforming modifications to the terms of the associated processing arrangements between subsidiaries of the Partnership and Occidental, the Partnership and subsidiaries of Occidental also entered into a Unit Redemption Agreement providing for the transfer to, and redemption by, the Partnership on February 3, 2026, of approximately 15.3 million common units of the Partnership, valued at $ 610.0 million. The Unit Redemption Agreement and the GGA Amendment and related transactions were reviewed and approved by the Special Committee of the Board of Directors of the general partner, consisting entirely of independent members of the Board of Directors, and, based upon the recommendation of the Special Committee, the full Board of Directors. Marketing services. While the Partnership markets and sells substantially all of its crude oil, residue gas, and NGLs directly to third parties, it does still have some marketing agreements with affiliates of Occidental, the activity for which is reflected in the related-party statements of operations above. Operating leases. Certain surface - use and salt - water disposal agreements between an affiliate of Occidental and certain wholly owned subsidiaries of the Partnership are classified as operating leases (see Related-party commercial agreement below). In addition, the Partnership has operating leases for field offices with Occidental as the lessor. 26 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 6. RELATED-PARTY TRANSACTIONS Related-party expenses. Operation and maintenance expense includes amounts accrued for or paid to related parties for field - related costs, field offices, and easements (see Related-party commercial agreement below) supporting the Partnership’s operations at certain assets. General and administrative expense includes amounts accrued for or paid to Occidental for certain reimbursed expenses pursuant to the provisions of the Partnership’s and WES Operating’s agreements with Occidental. Cost of product expense includes amounts related to certain continuing marketing arrangements with affiliates of Occidental, related - party imbalances, and transactions with affiliates accounted for under the equity method of accounting. See Marketing services in the section above. Related - party expenses bear no direct relationship to related - party revenues, and third - party expenses bear no direct relationship to third - party revenues. Services Agreement. Occidental performed certain centralized corporate functions for the Partnership and WES Operating pursuant to the agreement dated as of December 31, 2019, between WES Operating GP and Occidental (“Services Agreement”). Most of the administrative and operational services previously provided by Occidental fully transitioned to the Partnership by December 31, 2021, with certain limited transition services remaining in place pursuant to the terms of the Services Agreement. Construction reimbursement agreements and purchases and sales with related parties . From time to time, the Partnership enters into construction reimbursement agreements with Occidental providing that the Partnership will manage the construction of certain midstream infrastructure for Occidental in the Partnership’s areas of operation. Such arrangements generally provide for a reimbursement of costs incurred by the Partnership on a cost or cost-plus basis. Additionally, from time to time, in support of the Partnership’s business, the Partnership purchases and sells equipment, inventory, and other miscellaneous assets from or to Occidental or its affiliates. Related-party commercial agreement. During the first quarter of 2021, an affiliate of Occidental and the Partnership amended certain West Texas surface - use and salt - water disposal agreements to reduce usage fees owed by the Partnership in exchange for the forgiveness of certain deficiency fees owed by Occidental and other unrelated contractual amendments. The present value of the reduced usage fees under the amended agreements was $ 30.0 million at the time the agreement was executed. As a result of the amendments, (i) these agreements are classified as operating leases and (ii) a right-of-use (“ROU”) asset, included in Other assets on the consolidated balance sheets, was recognized during the first quarter of 2021. The ROU asset is being amortized to Operation and maintenance expense through 2038, the remaining term of the agreements. Customer concentration. Occidental was the only customer from which revenues exceeded 10% of consolidated revenues for all periods presented in the consolidated statements of operations. 27 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 7. EQUITY INVESTMENTS The following table presents the financial statement impact of the Partnership’s equity investments for the six months ended June 30, 2026: thousands Percentage Ownership Interest Balance at December 31, 2025 Equity income, net Contributions Distributions Distributions in excess of cumulative earnings (1) Balance at June 30, 2026 FRP 33.33 % $ 176,806 $ 19,124 $ — $ ( 19,668 ) $ ( 3,638 ) $ 172,624 Mi Vida 50.00 % 31,741 ( 2,991 ) 2,578 — — 31,328 Red Bluff Express 30.00 % 111,795 10,400 — ( 10,400 ) ( 506 ) 111,289 Rendezvous (2) 22.00 % 372 ( 171 ) — ( 101 ) ( 100 ) — TEG 20.00 % 13,935 339 — ( 350 ) ( 238 ) 13,686 TEP 20.00 % 164,034 7,496 — ( 7,741 ) ( 3,847 ) 159,942 White Cliffs 10.00 % 6,176 2,115 — ( 2,115 ) ( 1,578 ) 4,598 Total $ 504,859 $ 36,312 $ 2,578 $ ( 40,375 ) $ ( 9,907 ) $ 493,467 _________________________________________________________________________________________ (1) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. (2) Carrying value remained zero as of June 30, 2026, as cumulative equity method losses exceeded our investment balance. Further losses have been suspended as the Partnership has no obligation to fund losses or provide other financial support. 28 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 8. SELECTED COMPONENTS OF WORKING CAPITAL A summary of accounts receivable, net is as follows: The Partnership WES Operating thousands June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Trade receivables, net $ 938,588 $ 759,183 $ 938,588 $ 759,183 Other receivables, net 16,464 14,014 16,444 13,982 Total accounts receivable, net $ 955,052 $ 773,197 $ 955,032 $ 773,165 A summary of other current assets is as follows: The Partnership WES Operating thousands June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Crude and NGLs inventory $ 1,250 $ 2,733 $ 1,250 $ 2,733 Materials and supplies 11,169 10,103 11,169 10,103 Imbalance receivables 19,705 12,220 19,705 12,220 Prepaid insurance 9,328 16,111 7,884 15,540 Contract assets 7,208 3,386 7,208 3,386 Other 30,096 19,700 29,912 19,622 Total other current assets $ 78,756 $ 64,253 $ 77,128 $ 63,604 A summary of accrued liabilities is as follows: The Partnership WES Operating thousands June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Accrued interest expense $ 133,076 $ 136,006 $ 133,076 $ 136,006 Short - term asset retirement obligations 6,876 9,942 6,876 9,942 Short-term remediation and reclamation obligations 8,914 8,376 8,914 8,376 Income taxes payable 4,710 9,430 5,368 9,430 Contract liabilities (1) 192,031 22,883 192,031 22,883 Accrued payroll and benefits 57,660 69,623 1,062 4,450 Short-term lease liabilities 75,930 65,295 75,930 65,295 Other (2) 49,646 86,820 48,668 70,491 Total accrued liabilities $ 528,843 $ 408,375 $ 471,925 $ 326,873 _________________________________________________________________________________________ (1) See Note 2 . (2) Includes aid-in-construction reimbursement prepayments, other employee expenses, and Aris-related accruals as of December 31, 2025. 29 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 9. DEBT WES Operating is the borrower for all outstanding debt and is expected to be the borrower for all future debt issuances. The following table presents the outstanding debt: June 30, 2026 December 31, 2025 thousands Principal Carrying Value Fair Value (1) Principal Carrying Value Fair Value (1) Short - term debt Commercial paper $ 163,300 $ 162,905 $ 162,905 $ — $ — $ — Senior Notes — — — 440,505 440,205 440,923 Finance lease liabilities 5,199 5,199 5,199 8,620 8,620 8,620 Total short - term debt $ 168,499 $ 168,104 $ 168,104 $ 449,125 $ 448,825 $ 449,543 Long - term debt Senior Notes (2) $ 8,936,329 $ 8,874,911 $ 8,653,606 $ 8,236,329 $ 8,182,745 $ 8,010,240 Finance lease liabilities 10,066 10,066 10,066 12,425 12,425 12,425 Total long - term debt $ 8,946,395 $ 8,884,977 $ 8,663,672 $ 8,248,754 $ 8,195,170 $ 8,022,665 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level 2 fair-value inputs. (2) As of June 30, 2026, maturity dates range from 2028 to 2050. Debt activity. The following table summarizes the debt activity for the period presented: thousands Carrying Value Balance at December 31, 2025 $ 8,643,995 RCF borrowings 360,000 Commercial paper borrowings (repayments), net (1) 162,905 Repayments of RCF borrowings ( 360,000 ) Repayment of 4.650 % Senior Notes due 2026 ( 440,505 ) Issuance of 5.700 % Senior Notes due 2036 700,000 Finance lease liabilities ( 5,780 ) Other ( 7,534 ) Balance at June 30, 2026 $ 9,053,081 _________________________________________________________________________________________ (1) Net of borrowings and repayments related to commercial paper notes with original maturities of 90 days or less. WES Operating Senior Notes. Including the effects of the issuance prices, underwriting discounts, and interest - rate adjustments, the effective interest rates of the Senior Notes due 2030 and 2050 were 4.169 % and 5.363 %, respectively, at June 30, 2026 and 2025. The effective interest rate of these notes is subject to adjustment from time to time due to a change in credit rating. During the second quarter of 2026, WES Operating retired the 4.650 % Senior Notes due 2026 with proceeds from the public offerings of $ 1.2 billion in aggregate principal amount of Senior Notes issued in the fourth quarter of 2025. A loss of $ 0.2 million was recognized for the early retirement of these notes. Also during the second quarter of 2026, WES Operating completed the public offering of $ 700.0 million in aggregate principal amount of 5.700 % Senior Notes due 2036. Net proceeds from the offering were used to repay borrowings outstanding under the RCF and commercial paper program (including borrowings incurred to fund the cash consideration for the acquisition of Brazos Delaware), and for general partnership purposes, including the funding of capital expenditures. As of June 30, 2026, WES Operating was in compliance with all covenants under the relevant governing indentures. 30 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 9. DEBT Revolving credit facility. As of June 30, 2026, there were no outstanding borrowings, resulting in $ 1.8 billion in effective borrowing capacity under the RCF, after taking into account the $ 163.3 million of outstanding commercial paper borrowings (see below), for which WES Operating maintains availability under the RCF as support for WES Operating’s commercial paper program. RCF borrowings during the three-months ended June 30, 2026, were used to fund the acquisition of Brazos Delaware (see Debt activity above and Note 3 ). As of June 30, 2026 and 2025, the interest rate on any outstanding RCF borrowings was 4.95 % and 5.62 %, respectively. The facility - fee rate was 0.20 % at June 30, 2026 and 2025. As of June 30, 2026, WES Operating was in compliance with all covenants under the RCF. Commercial paper program. In November 2023, WES Operating entered into an unsecured commercial paper program under which it may issue (and have outstanding at any one time) an aggregate principal amount up to $ 2.0 billion. The maturities of the notes may vary but may not exceed 397 days. As of June 30, 2026, there were $ 163.3 million outstanding borrowings under the commercial paper program at a weighted-average interest rate of 4.27 % and weighted-average maturity of 20 days. A portion of the outstanding borrowings were used to fund the acquisition of Brazos Delaware (see Note 3 ). 10. COMMITMENTS AND CONTINGENCIES Environmental obligations. The Partnership is subject to various environmental-remediation obligations arising from federal, state, and local regulations regarding air and water quality, hazardous and solid waste disposal, and other environmental matters. As of June 30, 2026, and December 31, 2025, the consolidated balance sheets included $ 12.5 million and $ 10.0 million, respectively, of liabilities for remediation and reclamation obligations. The current portion of these amounts is included in accrued liabilities , and the long-term portion of these amounts is included in other liabilities. The majority of payments related to these obligations are expected to be made over the next year. See Note 8 . As of June 30, 2026, and December 31, 2025, the recorded obligations reflect gross amounts and exclude $ 6.6 million and $ 6.5 million, respectively, of anticipated insurance recoveries which are included in accounts receivable, net. Litigation and legal proceedings. From time to time, the Partnership is involved in legal, tax, regulatory, and other proceedings in various forums regarding performance, contracts, and other matters that arise in the ordinary course of business. Management is not aware of any such proceeding for which the final disposition could have a material adverse effect on the Partnership’s financial condition, results of operations, or cash flows. Other commitments. The Partnership has payment obligations, or commitments, that include, among other things, a revolving credit facility, other third - party long - term debt, obligations related to the Partnership’s capital spending programs, pipeline and offload commitments, and various operating and finance leases. The payment obligations related to the Partnership’s capital spending programs, the majority of which is expected to be paid in the next 12 months, primarily relate to expansion, construction, and asset - integrity projects at the DBM water systems, West Texas complex, Powder River Basin complex, DJ Basin complex, and DBM oil system. 31 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 11. 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. 32 Table of Contents WESTERN MIDSTREAM PARTNERS, LP AND WESTERN MIDSTREAM OPERATING, LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 11. 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: Three Months Ended June 30, Six Months Ended June 30, thousands 2026 2025 2026 2025 Revenues from external customers (1) $ 1,217,500 $ 942,141 $ 2,339,185 $ 1,859,059 Other revenues 7,219 181 9,113 379 Total revenues and other 1,224,719 942,322 2,348,298 1,859,438 Equity income, net – related parties 21,536 27,128 36,312 47,563 Less significant expenses: (2) Operation and maintenance 285,353 224,629 549,594 451,143 Cash general and administrative costs (3) 70,462 54,009 133,291 111,713 Less other segment items: Depreciation and amortization 205,945 172,113 406,371 342,573 Interest expense 108,984 95,170 222,374 192,463 Other (income) expense, net (4) ( 2,834 ) ( 3,692 ) ( 9,564 ) ( 11,169 ) Income tax expense (benefit) 5,152 2,239 8,653 5,674 Other (5) 157,942 74,220 299,608 147,290 Net income (loss) $ 415,251 $ 350,762 $ 774,283 $ 667,314 _________________________________________________________________________________________ (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 June 30, 2026, and December 31, 2025, the consolidated balance sheets included $ 16.3 billion and $ 15.0 billion, respectively, of total assets, which includes $ 493.5 million and $ 504.9 million of assets related to equity investments as of June 30, 2026, and December 31, 2025, respectively. Capital expenditures for additions to long-lived assets were $ 506.1 million and $ 321.0 million for the six months ended June 30, 2026 and 2025, respectively. 33 Table of Contents