WES: Post Q1 Update—Raising PT to Reflect Acquisition—Stay EW

Research evidence excerpt

WES: Post Q1 Update—Raising PT to Reflect Acquisition—Stay EW

uld be accretive to WES's FCF/unit by ~4 in 2026-2027. Our accretion estimates EBITDA (MM)

assume 50/50 debt/equity funding, a cost of debt of 6%, and annual capex of $20MM, 2026E 683.1 A 706.4 E 722.2 E 735.1 E 2.85B E

consistent with management's comment for >90% FCF conversion rate. We project WES' Prior 592.6 E 600.0 E 612.3 E 627.0 E 2.43B E

leverage to remain at ~3.0x throughout 2026, and decline to 2.7x in 2027. 2027E 756.4 E 788.2 E 815.5 E 849.1 E 3.21B E

Prior 660.8 E 692.8 E 719.9 E 753.3 E 2.83B E

Incremental Tidbits. (1) Units to be issued as consideration for the acquisition of Brazos 3ourYrEBITDAEPS CAGRestimates.from currentSource:yearCompany(unless Data,otherwiseWellsnoted):Fargo SecuritiesBased on

(~18MM) will be subject to a 6-month lock-up period, or through year-end 2026. (2) estimates, and Factset.

Comparisons with earlier G&P deals are complicated by timing (e.g., COVID), asset quality NA = Not Available, NC = No Change, NE = No Estimate

(e.g., sour gas), capex requirements, and control of NGLs (see Exhibit 1). We view the fully Ned Baramov, CFA

synergized multiple of 7.5x as fair given accretion, contiguous acreage position, customer Equity Analyst | Wells Fargo Securities, LLC

diversification, & increased Delaware exposure. Ned.Baramov@wellsfargo.com | 212-214-8021

Michael Blum

Volume Inflection Could Offer Upside. Reduced activity in the Delaware is partly driven Equity Analyst | Wells Fargo Securities, LLC

by takeaway constraints at Waha. Relief could arrive as early as H2’26 as new pipelines Michael.J.Blum@wellsfargo.com | 212-214-5037

enter service. In addition, higher commodity prices are driving increased development Praneeth Satish