Western Midstream Partners, LP (NYSE:WES – Get Free Report)’s share price reached a new 52-week high during trading on Friday . The stock traded as high as $48.55 and last traded at $48.5470, with a volume of 81350 shares traded. The stock had previously closed at $47.93.
Analysts Set New Price Targets WES has been the subject of several recent research reports. US Capital Advisors upgraded shares of Western Midstream Partners from a “moderate buy” rating to a “strong-buy” rating in a report on Friday, May 29th. Stifel Nicolaus set a $46.00 price target on shares of Western Midstream Partners and gave the company a “buy” rating in a report on Thursday, May 7th. Morgan Stanley upgraded shares of Western Midstream Partners from an “underweight” rating to an “equal weight” rating and set a $51.00 price target on the stock in a research report on Wednesday, June 10th. JPMorgan Chase & Co. raised their price objective on shares of Western Midstream Partners from $46.00 to $47.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 14th. Finally, Wells Fargo & Company lifted their price objective on Western Midstream Partners from $41.00 to $43.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $46.25.
Read Our Latest Analysis on WES
Western Midstream Partners Trading Down 0.7% The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 2.34. The firm has a market cap of $18.74 billion, a price-to-earnings ratio of 15.55, a price-to-earnings-growth ratio of 1.98 and a beta of 0.68. The business has a 50 day moving average of $44.67 and a 200 day moving average of $42.68.
Western Midstream Partners (NYSE:WES – Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The pipeline company reported $0.85 EPS for the quarter, topping analysts’ consensus estimates of $0.74 by $0.11. Western Midstream Partners had a return on equity of 33.89% and a net margin of 29.98%.The firm had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same quarter last year, the business posted $0.79 EPS. The firm’s quarterly revenue was up 22.5% compared to the same quarter last year. On average, research analysts forecast that Western Midstream Partners, LP will post 3.49 earnings per share for the current fiscal year.
Western Midstream Partners Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.93 per share. The ex-dividend date is Friday, July 31st. This represents a $3.72 dividend on an annualized basis and a dividend yield of 7.8%. Western Midstream Partners’s payout ratio is 121.57%.
Hedge Funds Weigh In On Western Midstream Partners A number of institutional investors have recently modified their holdings of WES. Eagle Bay Advisors LLC purchased a new stake in Western Midstream Partners in the 4th quarter worth approximately $27,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Western Midstream Partners during the 4th quarter worth $27,000. Rothschild Investment LLC lifted its stake in shares of Western Midstream Partners by 76.2% during the 4th quarter. Rothschild Investment LLC now owns 793 shares of the pipeline company’s stock worth $31,000 after purchasing an additional 343 shares during the period. Garton & Associates Financial Advisors LLC purchased a new position in shares of Western Midstream Partners during the 4th quarter worth $32,000. Finally, Glen Eagle Advisors LLC boosted its holdings in shares of Western Midstream Partners by 843.0% during the fourth quarter. Glen Eagle Advisors LLC now owns 943 shares of the pipeline company’s stock worth $37,000 after purchasing an additional 843 shares during the last quarter. Institutional investors and hedge funds own 84.82% of the company’s stock.
Western Midstream Partners Company Profile (Get Free Report)
Western Midstream Partners, LP (NYSE: WES) is a midstream energy infrastructure company that owns, operates and develops an integrated network of crude oil, natural gas and produced water gathering, processing, transportation and storage assets in the United States. The partnership’s primary offerings include pipeline transportation, fractionation services, natural gas liquids (NGL) logistics and produced water handling. Through its fee-based and commodity-based contracts, Western Midstream provides its customers with essential services that support efficient energy production and distribution.
The company’s asset portfolio spans key onshore basins, including the Delaware Basin in West Texas and southeastern New Mexico, the San Juan Basin in New Mexico and Colorado, and the Denver-Julesburg Basin in Colorado.
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Western Midstream (WES - Free Report) closed the most recent trading day at $47.06, moving +1.01% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.14%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
The stock of oil and gas transportation and storage company has risen by 7.08% in the past month, leading the Oils-Energy sector's gain of 5.65% and the S&P 500's gain of 0.25%.
Analysts and investors alike will be keeping a close eye on the performance of Western Midstream in its upcoming earnings disclosure. The company's earnings report is set to go public on August 5, 2026. The company is expected to report EPS of $0.88, up 1.15% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.11 billion, indicating a 17.75% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.47 per share and a revenue of $4.45 billion, signifying shifts of +16.44% and +15.76%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Western Midstream. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.75% higher within the past month. Western Midstream currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Western Midstream has a Forward P/E ratio of 13.44 right now. For comparison, its industry has an average Forward P/E of 13.44, which means Western Midstream is trading at no noticeable deviation to the group.
We can also see that WES currently has a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry held an average PEG ratio of 1.69.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
With a more than 8% yield, Western Midstream Partners (WES +1.39%) should be hard to ignore. However, it doesn't have as much positive coverage on Wall Street as other master limited partnerships (MLPs). As a result, it's flying under the radar of most investors.
Here's a look at why you won't want to ignore this high-yielding MLP.
Image source: Getty Images.
Underfollowed and unloved Fourteen Wall Street analysts currently cover Western Midstream Partners. Only four have a "buy" rating on the MLP, while nine rate it a "hold" and one has a "sell" rating. For comparison, 21 analysts currently cover both Energy Transfer (ET 0.20%) and Enterprise Products Partners (EPD +1.52%). They're very bullish on Energy Transfer (five "strong buys" and 14 "buy" ratings) and moderately bullish on Enterprise Products Partners (two "strong buys" and eight "buys").
There are many reasons fewer analysts cover this MLP. It's not as big or as diversified as Energy Transfer or Enterprise Products Partners. Western Midstream also has significant ties to one company: Occidental Petroleum. The oil giant is its top unitholder (39.5% of its common units) and largest customer (55% of its revenue in 2025, falling to 47% in 2026). These and other factors are leading some Wall Street analysts to completely ignore the company.
Today's Change
(
1.39
%) $
0.64
Current Price
$
46.61
What Wall Street is missing For the most part, Wall Street analysts focus on growth over income. As a result, they tend to miss out on the total return potential of some higher-yielding stocks.
Western Midstream's base return comes from its high-yielding distribution. At over 8%, the MLP offers a higher cash yield than Enterprise Products Partners (5.8% current yield) and Energy Transfer (6.6%). That high-yielding payout is on a rock-solid foundation. It generates stable cash flows backed by long-term, fee-based contracts with Occidental Petroleum and third-party customers. The MLP currently expects to produce between $1.9 billion and $2.1 billion of distributable cash flow this year, easily covering its $1.5 billion annual distribution outlay. It also has a solid investment-grade balance sheet backed by a low 3.1 times leverage ratio.
That gives the MLP the financial flexibility to grow its operations through bolt-on acquisitions and organic growth capital projects. The company recently closed its $1.6 billion acquisition of Brazos Delaware, which strategically expands its operations in a core area, further diversifies its revenue away from Occidental, while immediately boosting its cash flow per unit. The MLP also has several organic expansion projects underway, including the Loving II gas processing plant and Pathfinder Pipeline, both of which will enter commercial service early next year. Western expects its growth drivers to fuel long-term adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of 4% to 5% per year. That should support continued annual distribution growth in the low-to-mid single-digits.
High-octane total return potential Western Midstream's high-yielding distribution provides an over 8% base cash return each year, which should grow at a low-to-mid single-digit rate. The company's earnings and distribution growth should support a steadily rising unit price. Add it up, and the MLP could deliver an annual total return of 12% to 14%. That's an attractive proposition for investors comfortable with receiving the Schedule K-1 Federal tax form the MLP sends each year.
Matt DiLallo has positions in Energy Transfer and Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners and Occidental Petroleum. The Motley Fool has a disclosure policy.
AlTi Global Inc. acquired a new stake in shares of Western Midstream Partners, LP (NYSE:WES – Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 12,804 shares of the pipeline company’s stock, valued at approximately $527,000.
Several other large investors have also recently added to or reduced their stakes in WES. Alps Advisors Inc. increased its position in Western Midstream Partners by 0.9% in the 4th quarter. Alps Advisors Inc. now owns 35,074,357 shares of the pipeline company’s stock worth $1,385,437,000 after purchasing an additional 299,631 shares during the last quarter. Invesco Ltd. increased its holdings in Western Midstream Partners by 0.3% in the third quarter. Invesco Ltd. now owns 24,292,437 shares of the pipeline company’s stock worth $954,450,000 after buying an additional 81,183 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in Western Midstream Partners by 10.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 9,562,213 shares of the pipeline company’s stock worth $377,707,000 after buying an additional 936,376 shares during the last quarter. Tortoise Capital Advisors L.L.C. raised its position in Western Midstream Partners by 15.8% during the fourth quarter. Tortoise Capital Advisors L.L.C. now owns 8,539,175 shares of the pipeline company’s stock valued at $337,297,000 after acquiring an additional 1,163,991 shares in the last quarter. Finally, Morgan Stanley raised its position in Western Midstream Partners by 98.1% during the fourth quarter. Morgan Stanley now owns 5,446,475 shares of the pipeline company’s stock valued at $215,136,000 after acquiring an additional 2,696,439 shares in the last quarter. Institutional investors and hedge funds own 84.82% of the company’s stock.
Western Midstream Partners Trading Up 1.5% NYSE:WES opened at $46.66 on Tuesday. The company’s 50 day moving average is $44.53 and its 200-day moving average is $42.48. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 2.34. Western Midstream Partners, LP has a 12 month low of $36.90 and a 12 month high of $48.01. The firm has a market cap of $18.37 billion, a price-to-earnings ratio of 15.25, a P/E/G ratio of 1.93 and a beta of 0.68.
Western Midstream Partners (NYSE:WES – Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The pipeline company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.11. Western Midstream Partners had a net margin of 29.98% and a return on equity of 33.89%. The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same period in the prior year, the firm earned $0.79 EPS. Western Midstream Partners’s quarterly revenue was up 22.5% compared to the same quarter last year. Equities analysts anticipate that Western Midstream Partners, LP will post 3.45 EPS for the current year.
Western Midstream Partners Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be paid a dividend of $0.93 per share. The ex-dividend date is Friday, July 31st. This represents a $3.72 annualized dividend and a yield of 8.0%. Western Midstream Partners’s dividend payout ratio is presently 121.57%.
Wall Street Analysts Forecast Growth WES has been the subject of several recent research reports. Wells Fargo & Company boosted their target price on shares of Western Midstream Partners from $41.00 to $43.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 13th. Wall Street Zen upgraded shares of Western Midstream Partners from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Morgan Stanley raised shares of Western Midstream Partners from an “underweight” rating to an “equal weight” rating and set a $51.00 price objective for the company in a research note on Wednesday, June 10th. UBS Group upped their price objective on shares of Western Midstream Partners from $45.00 to $48.00 and gave the stock a “neutral” rating in a report on Friday, July 10th. Finally, US Capital Advisors raised shares of Western Midstream Partners from a “moderate buy” rating to a “strong-buy” rating in a research report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $46.25.
Check Out Our Latest Stock Report on WES
About Western Midstream Partners (Free Report)
Western Midstream Partners, LP (NYSE: WES) is a midstream energy infrastructure company that owns, operates and develops an integrated network of crude oil, natural gas and produced water gathering, processing, transportation and storage assets in the United States. The partnership’s primary offerings include pipeline transportation, fractionation services, natural gas liquids (NGL) logistics and produced water handling. Through its fee-based and commodity-based contracts, Western Midstream provides its customers with essential services that support efficient energy production and distribution.
The company’s asset portfolio spans key onshore basins, including the Delaware Basin in West Texas and southeastern New Mexico, the San Juan Basin in New Mexico and Colorado, and the Denver-Julesburg Basin in Colorado.
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Western Midstream (WES - Free Report) ended the recent trading session at $46.61, demonstrating a +1.39% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the oil and gas transportation and storage company witnessed a gain of 7.01% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.6%, and the S&P 500's gain of 0.55%.
The upcoming earnings release of Western Midstream will be of great interest to investors. The company's upcoming EPS is projected at $0.86, signifying a 1.15% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.11 billion, indicating a 17.75% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.45 per share and a revenue of $4.45 billion, demonstrating changes of +15.77% and +15.76%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% upward. At present, Western Midstream boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Western Midstream is currently trading at a Forward P/E ratio of 13.33. This signifies no noticeable deviation in comparison to the average Forward P/E of 13.33 for its industry.
It is also worth noting that WES currently has a PEG ratio of 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 1.69 at yesterday's closing price.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
, /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution of $0.93 per unit for the second quarter of 2026, or $3.72 per unit on an annualized basis, which is in-line with the prior quarter's distribution. WES's second-quarter 2026 distribution is payable on August 14, 2026, to unitholders of record at the close of business on July 31, 2026.
The Partnership plans to report its second-quarter 2026 results after market close on Wednesday, August 5, 2026. Management will host a conference call on Thursday, August 6, 2026, at 9:00 a.m. Central (10:00 a.m. Eastern) to discuss the Partnership's quarterly results. Participants are encouraged to dial into the conference call ten to fifteen minutes before the scheduled start time to avoid any delays entering the call. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
Second-Quarter 2026 Results
Thursday, August 6, 2026
9:00 a.m. Central (10:00 a.m. Eastern)
Dial-in number: 888-880-3330
International dial-in number: 646-357-8766
To participate in WES's scheduled second-quarter earnings call, please refer to the above-listed dial-in information. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call will also be available on the website following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES and its general partner believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include our ability to meet distribution expectations and financial guidance; our ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Sections 1.1446-4(b) and 1.1446(f)-4. Brokers and nominees should treat one hundred percent (100.0%) of Western Midstream Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. Furthermore, one hundred percent (100.0%) of Western Midstream Partners, LP's distributions to non-U.S. investors is in excess of cumulative net income for purposes of Treasury Regulation Section 1.1446(f)-4(c)(iii). Brokers and nominees are treated as withholding agents responsible for withholding on distributions received by them on behalf of non-U.S. investors. The CUSIP number of Western Midstream Partners, LP's common units is 958669 103.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866-512-3523
Western Midstream (WES - Free Report) closed the most recent trading day at $45.74, moving +2.51% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 1.55%.
Shares of the oil and gas transportation and storage company witnessed a gain of 0.11% over the previous month, beating the performance of the Oils-Energy sector with its loss of 3.33%, and underperforming the S&P 500's gain of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Western Midstream in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.85, signifying a 2.30% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 17.75% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.44 per share and revenue of $4.45 billion. These totals would mark changes of +15.44% and +15.76%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Midstream. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Western Midstream boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Western Midstream is currently being traded at a Forward P/E ratio of 12.97. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 12.97.
It is also worth noting that WES currently has a PEG ratio of 1.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. WES's industry had an average PEG ratio of 1.64 as of yesterday's close.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 40, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CCD, WES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Western Midstream (WES - Free Report) closed the most recent trading day at $43.13, moving -1.44% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.66%.
The oil and gas transportation and storage company's stock has climbed by 0.32% in the past month, exceeding the Oils-Energy sector's loss of 4.76% and the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of Western Midstream in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.85, marking a 2.3% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 17.75% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.44 per share and a revenue of $4.45 billion, indicating changes of +15.44% and +15.76%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Western Midstream. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Western Midstream currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Western Midstream currently has a Forward P/E ratio of 12.72. This expresses no noticeable deviation compared to the average Forward P/E of 12.72 of its industry.
One should further note that WES currently holds a PEG ratio of 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry held an average PEG ratio of 1.61.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
, /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that its 2025 Schedule K-3 reflecting items of international tax relevance is available online. Unitholders requiring this information may access their Schedule K-3 at www.taxpackagesupport.com/westernmidstream.
A limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. To the extent Schedule K-3 is applicable to your federal income tax return filing needs, we encourage you to review the information contained on this form and refer to the appropriate federal laws and guidance, or consult with your tax advisor.
To receive an electronic copy of your Schedule K-3 via email, unitholders may call Tax Package Support toll free at 833-618-2034.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866-512-3523
Most stocks don't offer very appealing dividends these days, with the yield on the S&P 500 near a multi-decade low at around 1%. Investors seeking a higher yield often need to take on more risk, including the greater likelihood of a future dividend cut.
However, there are some lower-risk, higher-yielding investment options out there if you know where to look. Here are three companies yielding over 8%. Those high yields could enable investors to turn $1,000 into a lucrative passive income stream that could last a lifetime.
Image source: Getty Images.
Starwood Property Trust Starwood Property Trust (STWD +1.26%) is a real estate investment trust (REIT). These entities must distribute at least 90% of their taxable income to investors to comply with IRS regulations. As a result, most REITs have higher yields. Starwood's is currently around 11.5%. At that rate, a $1,000 investment would generate $115 in annual dividend income.
The REIT has never cut its dividend since its 2010 IPO and has maintained its current payment level since 2014. One of the keys driving Starwood's dividend durability is its diversification. The mortgage REIT invests in commercial real estate-backed loans (52% of its portfolio), infrastructure loans (10%), residential loans (8%), and several other assets (10%). It also has a growing portfolio of owned properties (20%).
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Starwood's latest diversification move was the acquisition of the net-lease real estate platform Fundamental Income Properties for $2.2 billion last year. It owns an expandable portfolio of properties secured by long-term leases (a 17-year weighted-average lease term and 2.2% average annual rent escalations). This platform will provide Starwood steadily rising income to support its high-yielding dividend.
Main Street Capital Main Street Capital (MAIN +1.63%) is a business development company (BDC). Like REITs, BDCs must distribute at least 90% of their taxable income to comply with IRS regulations. As a result, they typically offer high yields.
Main Street meets this requirement by paying two dividends. The BDC pays a monthly dividend set at a sustainable level. As a result, Main Street has never reduced its monthly dividend. Instead, it has increased this payment 160% since its 2007 IPO, including for the last 12 quarters in a row. Additionally, Main Street periodically pays supplemental quarterly dividends to reach its required payout ratio. It has paid a supplemental dividend for 19 straight quarters. At the current annualized rate of these two payments, Main Street yields more than 8.5% at its recent share price.
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The BDC primarily invests in loans to small private companies, generating interest income that it pays out through dividends. Additionally, Main Street Capital will make equity investments in some of its portfolio companies, which offer dividend income and potential capital appreciation. These equity investments have helped contribute to its growing dividend over the long term.
Western Midstream Partners Western Midstream Partners (WES +0.54%) is a master limited partnership (MLP). These pass-through entities (MLPs send a Schedule K-1 Federal tax form each year) tend to have higher dividend yields due to their higher payout ratios and lower valuations resulting from the tax complexities of K-1s.
The MLP operates oil and gas pipelines, processing plants, and other energy midstream infrastructure. These assets generate stable cash flow backed by long-term contracts. That predictable cash flow supports Western Midstream's more than 8.5%-yielding distribution.
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The company has increased its payout by 184% since 2021, following a 2020 payout reset aimed at strengthening its financial profile. It aims to deliver low-to-mid annual distribution growth going forward, fueled by organic expansion projects and acquisitions. Western Midstream plans to spend $850 million to $1 billion on maintaining and expanding its operations this year, including building the Pathfinder Pipeline and North Loving II gas processing plant. Additionally, it agreed to spend $1.6 billion to buy Brazos Delaware to strengthen its midstream footprint. These investments support its growing distribution.
Lower risk, high-yielding investments Entities like REITs, BDCs, and MLPs tend to offer higher dividend yields. That makes them enticing options for investors seeking lucrative income streams. Starwood Property, Main Street Capital, and Western Midstream Partners have solid track records of paying sustainable dividends, making them ideal investments for those seeking to turn $1,000 into a durable stream of passive income.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of WES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
In the latest trading session, Western Midstream (WES - Free Report) closed at $42.11, marking a -3.22% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%.
The oil and gas transportation and storage company's stock has dropped by 4.16% in the past month, exceeding the Oils-Energy sector's loss of 7.58% and lagging the S&P 500's loss of 1.34%.
The investment community will be paying close attention to the earnings performance of Western Midstream in its upcoming release. It is anticipated that the company will report an EPS of $0.85, marking a 2.3% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.11 billion, showing a 17.75% escalation compared to the year-ago quarter.
WES's full-year Zacks Consensus Estimates are calling for earnings of $3.44 per share and revenue of $4.45 billion. These results would represent year-over-year changes of +15.44% and +15.76%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Western Midstream. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.26% upward. Currently, Western Midstream is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Western Midstream is at present trading with a Forward P/E ratio of 12.64. Its industry sports an average Forward P/E of 12.64, so one might conclude that Western Midstream is trading at no noticeable deviation comparatively.
We can also see that WES currently has a PEG ratio of 1.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry was having an average PEG ratio of 1.61.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
, /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced today that its subsidiary, Western Midstream Operating, LP ("WES Operating"), has priced an offering of $700 million in aggregate principal amount of 5.7% senior notes due 2036 at a price to the public of 99.705% of their face value (the "Senior Notes"). The offering of the Senior Notes is expected to close on June 25, 2026, subject to the satisfaction of customary closing conditions. Net proceeds from the offering are expected to be used to repay borrowings outstanding under WES Operating's revolving credit facility and commercial paper program (including borrowings incurred by WES to fund the cash consideration for the acquisition of Brazos Delaware II, LLC), and for general partnership purposes, including the funding of capital expenditures.
TD Securities (USA) LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and MUFG Securities Americas Inc. are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended, copies of which may be obtained from TD Securities (USA) LLC, One Vanderbilt Avenue, 11th Floor, New York, New York 10017 or by phone at 1-855-495-9846; Barclays Capital Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 or by phone at 1-888-603-5847, Citigroup Global Markets Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 or by phone at 1-800-831-9146, and MUFG Securities Americas Inc., 1221 Avenue of the Americas, 6th Floor, New York, New York 10020 or by phone at 1-877-649-6848. An electronic copy of the prospectus and the related prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offer is being made only through the prospectus as supplemented, which is part of a shelf registration statement that became effective on June 22, 2026.
ABOUT WESTERN MIDSTREAM
WES is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, supplying and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
This news release contains forward-looking statements. WES, WES Operating, and their general partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including WES Operating's ability to close successfully on the Senior Notes offering and to use the net proceeds as described herein. See "Risk Factors" in WES's and WES Operating's Annual Reports on Form 10-K for the year ended December 31, 2025, Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and other public filings and press releases. Except as required by law, neither WES nor WES Operating undertakes the obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523
, /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced today that its subsidiary, Western Midstream Operating, LP ("WES Operating"), has priced an offering of $700 million in aggregate principal amount of 5.7% senior notes due 2036 at a price to the public of 99.705% of their face value (the "Senior Notes"). The offering of the Senior Notes is expected to close on June 25, 2026, subject to the satisfaction of customary closing conditions. Net proceeds from the offering are expected to be used to repay borrowings outstanding under WES Operating's revolving credit facility and commercial paper program (including borrowings incurred by WES to fund the cash consideration for the acquisition of Brazos Delaware II, LLC), and for general partnership purposes, including the funding of capital expenditures.
TD Securities (USA) LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and MUFG Securities Americas Inc. are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended, copies of which may be obtained from TD Securities (USA) LLC, One Vanderbilt Avenue, 11th Floor, New York, New York 10017 or by phone at 1-855-495-9846; Barclays Capital Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 or by phone at 1-888-603-5847, Citigroup Global Markets Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 or by phone at 1-800-831-9146, and MUFG Securities Americas Inc., 1221 Avenue of the Americas, 6th Floor, New York, New York 10020 or by phone at 1-877-649-6848. An electronic copy of the prospectus and the related prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offer is being made only through the prospectus as supplemented, which is part of a shelf registration statement that became effective on June 22, 2026.
ABOUT WESTERN MIDSTREAM
WES is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, supplying and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
This news release contains forward-looking statements. WES, WES Operating, and their general partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including WES Operating's ability to close successfully on the Senior Notes offering and to use the net proceeds as described herein. See "Risk Factors" in WES's and WES Operating's Annual Reports on Form 10-K for the year ended December 31, 2025, Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and other public filings and press releases. Except as required by law, neither WES nor WES Operating undertakes the obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations [email protected]
866.512.3523
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The produced-water treatment pilot facility is a Joint Industry Project (JIP) between Western Midstream, Chevron, ConocoPhillips, Devon, and ExxonMobil. The facility is designed to produce approximately 1,000 barrels per day of reclaimed freshwater – ten times the amount of JIP 1. The facility's water output is expected to contribute to long-term water security in West Texas. , /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership"), alongside its Joint Industry Project (JIP) collaborators Chevron U.S.A. Inc. ("Chevron"), ConocoPhillips Company ("ConocoPhillips"), Devon Energy Corporation ("Devon"), and Exxon Mobil Corporation ("ExxonMobil"), announced the start-up of its second produced-water treatment pilot facility ("JIP 2") near Red Bluff Reservoir in Reeves County, Texas. The facility is designed to receive 2,000 barrels per day of produced water and produce approximately 1,000 barrels per day of reclaimed freshwater, or approximately ten times the amount produced by JIP 1. This new facility builds upon the success of JIP 1 (described below) which evaluated and field-tested multiple produced-water treatment technologies to select preferred, high-performing solutions for ongoing operations.
In 2023, WES and its collaborators created JIP 1, a small-scale pilot site in West Texas, to evaluate and measure technologies needed to commercialize beneficial use of produced water in the Permian Basin. During the 24-month project, technical experts at WES and its collaborators collected over 50,000 water quality data points to demonstrate a treatment process that can consistently produce water quality suitable for end-use applications that include industrial cooling, irrigation, and surface discharge.
The JIP 2 facility will also serve as a demonstration site, enabling continued optimization of operations while validating consistent reclaimed freshwater production for a range of end-use applications. Insights and data collected from JIP 2 will guide the next phase of commercial-scale desalination facilities. WES and its JIP collaborators will continue to work closely with regulators, local communities, and independent experts to further validate the treatment process and confirm water quality outcomes. These investments are aimed at reducing industry disposal volumes while developing a potential alternative water source benefiting industry and surrounding communities.
"The start-up of JIP 2 marks a pivotal milestone in our journey to transform a produced-water stream from a disposal challenge into a valuable resource for the Permian Basin and beyond," said Oscar K. Brown, President and Chief Executive Officer of WES. "Through our multi-barrier treatment approach, we are transforming that stream into highly treated reclaimed freshwater suitable for industrial cooling and irrigation applications, while helping reduce pressure on Texas' limited water resources. WES already handles approximately 3.0 million barrels per day of produced water using all of today's oil and gas flow-assurance solutions: water sourcing, recycling, gathering, long-haul transportation, and disposal, and we believe beneficial reuse will be the next major solution to the Permian Basin's water challenges. We are very proud of the progress our team and our JIP members have made together over the past two years, and we believe JIP 2 brings us meaningfully closer to WES's first commercial-scale facility."
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
JIP COLLABORATORS DISCLAIMER
The organizations participating in the Joint Industry Project are collaborating solely with respect to the Joint Industry Project described in this release. Such participation does not make any participant a party to, or responsible for, any other Western Midstream transactions, projects, investments, business activities, or statements referenced herein.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523
Western Midstream (WES - Free Report) ended the recent trading session at $42.96, demonstrating a -1.65% change from the preceding day's closing price. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
Heading into today, shares of the oil and gas transportation and storage company had lost 5.08% over the past month, outpacing the Oils-Energy sector's loss of 7.57% and lagging the S&P 500's gain of 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Western Midstream in its upcoming earnings disclosure. In that report, analysts expect Western Midstream to post earnings of $0.85 per share. This would mark a year-over-year decline of 2.3%. Alongside, our most recent consensus estimate is anticipating revenue of $1.11 billion, indicating a 17.75% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.44 per share and a revenue of $4.45 billion, signifying shifts of +15.44% and +15.76%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Midstream. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.26% higher. Western Midstream is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Western Midstream is currently trading at a Forward P/E ratio of 12.69. This represents no noticeable deviation compared to its industry average Forward P/E of 12.69.
We can additionally observe that WES currently boasts a PEG ratio of 1.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry stood at 1.59 at the close of the market yesterday.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 26, placing it within the top 11% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Western Midstream Partners is upgraded to a 'strong buy' due to compelling valuation, low leverage, and robust yield. WES's $1.6B acquisition of Brazos Delaware expands processing capacity and is priced attractively at 8x EV/EBITDA, declining to 7.5x with synergies. Recent financials show consistent revenue, profit, and cash flow growth, with produced water throughput up 139.3% year-over-year in Q1.
Western Midstream (WES) delivers strong double-digit EBITDA growth and maintains a robust, high single-digit distribution yield. WES's $1.6B Brazos Delaware acquisition adds 470K dedicated acres and 49% gathering capacity, expected to be immediately accretive to DCF/unit. Operational efficiency shines with 7% O&M expense reduction and a 2.2% distribution increase to 8.4%, supporting sustainable shareholder returns.
In the latest trading session, Western Midstream (WES - Free Report) closed at $44.57, marking a +1.43% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.5%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.31%.
The oil and gas transportation and storage company's shares have seen a decrease of 4.21% over the last month, not keeping up with the Oils-Energy sector's loss of 2.9% and the S&P 500's loss of 0.23%.
The investment community will be closely monitoring the performance of Western Midstream in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.85, reflecting a 2.3% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 15.79% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.44 per share and revenue of $4.45 billion, indicating changes of +15.44% and +15.76%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Western Midstream. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.79% higher within the past month. As of now, Western Midstream holds a Zacks Rank of #3 (Hold).
With respect to valuation, Western Midstream is currently being traded at a Forward P/E ratio of 12.77. For comparison, its industry has an average Forward P/E of 12.77, which means Western Midstream is trading at no noticeable deviation to the group.
We can also see that WES currently has a PEG ratio of 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Refining and Marketing - Master Limited Partnerships was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
The upcoming report from Western Midstream (WES - Free Report) is expected to reveal quarterly earnings of $0.74 per share, indicating a decline of 6.3% compared to the year-ago period. Analysts forecast revenues of $994.13 million, representing an increase of 8.4% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
With that in mind, let's delve into the average projections of some Western Midstream metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts forecast 'Throughput Attributable to Noncontrolling Interest for Natural Gas Assets per day' to reach . Compared to the present estimate, the company reported in the same quarter last year.
Analysts' assessment points toward 'Throughput for natural-gas assets per day - Total throughput' reaching . The estimate is in contrast to the year-ago figure of .
The consensus estimate for 'Total throughput attributable to WES for natural-gas assets per day' stands at . Compared to the current estimate, the company reported in the same quarter of the previous year.
Analysts predict that the 'Throughput for natural-gas assets per day - Equity Investment' will reach . Compared to the current estimate, the company reported in the same quarter of the previous year.
According to the collective judgment of analysts, 'Throughput for natural-gas assets per day - Delaware Basin' should come in at . The estimate is in contrast to the year-ago figure of .
Based on the collective assessment of analysts, 'Throughput for produced-water assets per day - Delaware Basin' should arrive at 2,836.23 thousands of barrels of oil. The estimate compares to the year-ago value of 1,190.00 thousands of barrels of oil.
It is projected by analysts that the 'Throughput for crude-oil and NGLs assets per day - Delaware Basin' will reach 261.64 thousands of barrels of oil. Compared to the current estimate, the company reported 256.00 thousands of barrels of oil in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Throughput for crude-oil and NGLs assets per day - DJ Basin' will likely reach 95.55 thousands of barrels of oil. Compared to the current estimate, the company reported 94.00 thousands of barrels of oil in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Throughput for crude-oil and NGLs assets per day - Equity investments' of 99.41 thousands of barrels of oil. Compared to the current estimate, the company reported 103.00 thousands of barrels of oil in the same quarter of the previous year.
Analysts expect 'Throughput for crude-oil and NGLs assets per day - Other' to come in at 36.16 thousands of barrels of oil. Compared to the current estimate, the company reported 36.00 thousands of barrels of oil in the same quarter of the previous year.
The consensus among analysts is that 'Throughput for natural-gas assets per day - DJ Basin' will reach . The estimate compares to the year-ago value of .
View all Key Company Metrics for Western Midstream here>>>
Over the past month, Western Midstream shares have recorded returns of +4.2% versus the Zacks S&P 500 composite's +9.5% change. Based on its Zacks Rank #3 (Hold), WES will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Expands WES's natural-gas and crude-oil and NGLs gathering and processing footprint across the core of the Delaware Basin. Adds approximately 470,000 dedicated acres and 460 MMcf/d of natural-gas processing capacity, increasing WES's total Delaware Basin dedicated acres by approximately 49-percent to more than 1.4 million acres and natural-gas processing capacity by approximately 20-percent to approximately 2.750 Bcf/d. Diversifies WES's customer base through long-term, fixed-fee contracts anchored by high-quality, investment grade counterparties with a portfolio-wide weighted average remaining contract life of over nine years. Purchase price of $1.6 billion represents an ~8.0x multiple on 2027 estimated EBITDA(1), declining to ~7.5x with the commercialization of available processing capacity and identified synergies. Expected to be immediately accretive to estimated 2026 Distributable Cash Flow per unit. Transaction consideration consists of 50-percent cash and 50-percent equity, enabling WES to maintain pro forma net leverage of approximately 3.0x throughout 2026. , /PRNewswire/ -- Western Midstream Partners, LP ("WES" or the "Partnership") (NYSE: WES) today announced that it has entered into a definitive agreement pursuant to which WES will acquire all of the outstanding equity interests of Brazos Delaware II, LLC ("Brazos"), in a transaction valued at approximately $1.6 billion. Under the terms of the agreement, WES will pay approximately $800 million in cash and issue approximately $800 million in WES common units at closing. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close late in the second quarter of 2026.
Brazos is one of the largest privately held gathering and processing platforms in the Texas Delaware Basin, with natural-gas and crude-oil assets spanning Reeves, Ward, Pecos, Winkler, Culberson, and Loving counties. Brazos's assets include approximately 900 miles of pipeline, 460 MMcf/d of nameplate natural-gas processing capacity at the Comanche processing complex, and approximately 470,000 dedicated acres under long-term, fixed-fee contracts with a weighted average remaining contract life of more than nine years. The Brazos business, which processed an average of 336 MMcf/d of natural gas and 25 MBbls/d of crude oil in full-year 2025, is supported by a diversified portfolio of investment grade and private-equity backed Permian Basin focused producers. Nearly all drilling locations on acreage dedicated to Brazos are within two miles of the low-pressure infrastructure, limiting future growth capital needs and increasing Free Cash Flow generation.
CEO COMMENTARY
"We are very pleased to announce the acquisition of Brazos – a highly complementary and strategically compelling bolt-on addition to our existing Delaware Basin platform," commented Oscar K. Brown, President and Chief Executive Officer of WES. "The Brazos acquisition is in line with WES's M&A philosophy of making accretive, strategic acquisitions that enhance the value of WES's existing asset base, provide a diverse set of high-quality customers, and generate strong Free Cash Flow, all while protecting our investment grade credit ratings. More than 60-percent of WES's 2026 Adjusted EBITDA is expected to be generated from the Delaware Basin, and that proportion will only grow as the Brazos transaction is closed and integrated, and our organic growth projects, including the Pathfinder Pipeline and North Loving II, come online in the first and second quarters of 2027, respectively."
"Now that the Aris integration is complete, the combination of the Brazos and WES systems creates an even more integrated Delaware Basin network that is better positioned to compete for new business, provide enhanced flow assurance for our customers, and deliver incremental operational efficiencies across a broader footprint. With approximately 3,500 identified drilling locations at $65 per barrel, WES has line of sight to decades of new throughput. The addition of the Comanche processing complex also further strengthens our position as one of the largest natural-gas processors in the basin and provides meaningful capacity to support anticipated throughput growth from the Woodford and other high-return formations on the dedicated acreage."
"The Brazos acquisition is consistent with our disciplined approach to capital deployment, and our strong balance sheet and significant liquidity position has enabled us to take advantage of strategic M&A opportunities when they arise. Additionally, Brazos's strong Free Cash Flow conversion will support our goal of increasing distribution coverage while still delivering mid-to-low single digits annual distribution growth and maintaining our peer-leading leverage ratio," Mr. Brown concluded.
TERMS OF ACQUISITION
Under the terms of the agreement, WES will pay approximately $800 million in cash and issue approximately $800 million in WES common units at closing. WES expects to maintain pro forma net leverage of approximately 3.0x throughout 2026. For additional details on WES's acquisition of Brazos, please refer to the slide presentation available under the "Events and Presentations" tab at www.westernmidstream.com.
ADVISORS
Greenhill, a Mizuho affiliate, served as financial advisor and Troutman Pepper Locke LLP served as legal advisor to WES. Jefferies LLC served as financial advisor and Vinson & Elkins LLP served as legal advisor to Brazos.
ABOUT BRAZOS MIDSTREAM
Headquartered in Fort Worth, Texas, the Brazos Midstream entities ("Brazos Midstream") collectively represent the largest privately held midstream platform in the Permian Basin. On a combined basis, including both Brazos and Brazos Midland, Brazos Midstream's critical hydrocarbon infrastructure totals approximately 1,200 miles of natural-gas, natural-gas liquids and crude-oil gathering pipelines spanning the most prolific producing counties in the Midland and Delaware Basins; approximately 1.0 Bcf/d of total Permian-based processing capacity with expansion projects underway to expand to approximately 1.3 Bcf/d by year-end 2026; and 75,000 barrels of crude oil storage.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
(1)
This is a non-GAAP financial measure. Forecasted EBITDA is based on WES's projections for the business to be acquired. Forecasted EBITDA is not presented as an alternative to the nearest GAAP financial measure, net income, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We are unable to present the most directly comparable GAAP measure or a reconciliation of forecasted EBITDA to net income because certain elements of net income, including interest, depreciation and taxes, are not available without unreasonable effort.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523
Reported first-quarter 2026 Net income attributable to limited partners of $342.4 million, generating record first-quarter Adjusted EBITDA(1) of $683.1 million, which represents a 15-percent increase compared to the prior-year period, and first-quarter Distributable Cash Flow(1) of $508.9 million. Reported first-quarter 2026 Cash flows provided by operating activities of $469.9 million, generating first-quarter Free Cash Flow(1) of $242.3 million. Announced a first-quarter distribution of $0.930 per unit, which is 2.2-percent higher than the prior quarter's distribution, or $3.72 per unit on an annualized basis, and in-line with prior management commentary. Expecting to be towards the high-end of the 2026 Adjusted EBITDA(2) and Distributable Cash Flow(2) guidance ranges of $2.50 billion to $2.70 billion and $1.85 billion to $2.05 billion, respectively, should the current crude-oil and NGLs pricing environment continue. Expecting 2026 total capital expenditures(3) to still range between $850.0 million to $1.00 billion. , /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced first-quarter 2026 financial and operating results. Net income (loss) attributable to limited partners for the first quarter of 2026 totaled $342.4 million, or $0.85 per common unit (diluted), with first-quarter 2026 Adjusted EBITDA(1) totaling $683.1 million and Distributable Cash Flow(1) totaling $508.9 million. First-quarter 2026 Cash flows provided by operating activities totaled $469.9 million and first-quarter 2026 Free Cash Flow(1) totaled $242.3 million. First-quarter 2026 capital expenditures(3) totaled $250.5 million.
RECENT HIGHLIGHTS
Generated record Adjusted EBITDA(1) of $683.1 million, an increase of approximately 7-percent sequentially, driven by a full quarter of contribution from the Aris acquisition and excess natural-gas liquids and higher skim oil volumes at elevated commodity prices. Reduced operation and maintenance expense by 7-percent, compared to the first-quarter of 2025, excluding the Aris acquisition, reflecting continued cost discipline despite increased throughput. Gathered record crude-oil and NGLs throughput in the Delaware Basin of 272 MBbls/d, representing a 4-percent sequential-quarter increase and a 6-percent year-over-year increase. Achieved record produced-water throughput(4) of 2,795 MBbls/d, representing a 4-percent sequential-quarter increase, and 140-percent year-over-year increase primarily driven by the full quarter contribution from the Aris acquisition. Subsequent to quarter-end, retired $440.5 million of senior notes due 2026 with proceeds from the senior notes issued in the fourth quarter of 2025. Subsequent to quarter-end, and as announced earlier today, executed an agreement to acquire Brazos Delaware II, LLC ("Brazos") in the Delaware Basin for a purchase price of approximately $1.6 billion, comprised of $800 million in cash and $800 million in WES common units, with an expected close by the end of the second quarter of 2026. On May 15, 2026, WES will pay its first-quarter 2026 per-unit distribution of $0.930, or $3.72 on an annualized basis, which represents growth of 2.2-percent over the prior quarter's distribution. First-quarter 2026 Free Cash Flow(1) after distributions totaled negative $137.4 million.
First-quarter 2026 natural-gas throughput(4) averaged 5.2 Bcf/d, representing a 1-percent sequential-quarter increase. First-quarter 2026 crude-oil and NGLs throughput(4) averaged 521 MBbls/d, representing a 3-percent sequential-quarter increase. First-quarter 2026 produced-water throughput(4) averaged 2,795 MBbls/d, representing a 4-percent sequential-quarter increase.
"WES delivered record Adjusted EBITDA of $683.1 million in the first-quarter of 2026, increasing 7-percent sequentially and 15-percent compared to the prior-year period, which was primarily driven by a full quarter's contribution from the Aris acquisition, throughput growth across all three products, and successful cost reduction efforts," commented Oscar K. Brown, President and Chief Executive Officer of WES. "Additionally, our Adjusted Gross Margin in the first quarter benefited as crude-oil prices increased in March. This performance also reflects the results of our efficiency and cost reduction strategies, as this and several other variables came together to produce the strongest quarter in the Partnership's history."
"What distinguished Aris among its peers was the quality and structure of its long-term contracts, which include substantial acreage dedications that provide the same fee-based cash flow foundation that defines WES's broader portfolio, and the ability to create additional value from retained skim oil volumes in a favorable commodity price environment. As crude-oil prices increased in March, we benefited directly through skim oil recoveries on the Aris system and the fixed recovery natural-gas processing contracts we have been deliberately building across our portfolio. Combined with the cost reduction actions executed in 2025, which have materially improved our operating leverage, the earnings power of WES is increasingly evident."
"The Delaware Basin remains the cornerstone of our growth strategy and the primary driver of our capital allocation. It is the premier operating basin in North America, and WES has built one of the most integrated midstream platforms across crude-oil, natural-gas, and produced-water in an area which will continue to attract producer capital for decades. The sanctioning of the Pathfinder Pipeline and North Loving II, the Aris acquisition, and today's announcement pertaining to the purchase of Brazos, each reflect that conviction. More than 60-percent of WES's 2026 Adjusted EBITDA is expected to be generated from the Delaware Basin, and that proportion will only grow as our organic growth projects come online in first and second quarters of 2027."
"The Brazos acquisition further enhances our Delaware Basin footprint and is in line with WES's M&A philosophy of making accretive, strategic acquisitions that enhance the value of WES's existing asset base, provide a diverse set of high-quality customers, and generate strong Free Cash Flow, all while protecting our investment grade credit ratings. The asset is contiguous to our existing footprint, can be efficiently integrated into our system, and provides exposure to additional geologic trends, including the growing Woodford Shale. The transaction is expected to contribute approximately $100 million of incremental Adjusted EBITDA in 2026, assuming a close by the end of the second quarter."
"Looking ahead, our fee-based contract structures, supported by substantial minimum-volume commitments and acreage dedications, provide durable, protected cash flows across commodity cycles. While we are not currently updating our annual guidance ranges, as we have not yet received formal changes to our producers' drilling plans for this year, we expect to be towards the high end of both the Adjusted EBITDA and Distributable Cash Flow ranges, without taking into account the impact of the Brazos transaction. This improved outlook is due to increased commercial discussions, the very favorable commodity price environment, and our improving operating leverage due to our successful and ongoing cost competitiveness efforts. With that said, we intend to reevaluate our 2026 guidance ranges in conjunction with our second-quarter results after the scheduled close of the Brazos transaction."
"All in all, years of hard work that have culminated in multiple quarters of record operational and financial results continue to demonstrate WES's financial flexibility to consummate accretive M&A, fund its organic growth program, and sustain a balanced capital return program, all while maintaining one of the strongest balance sheets in the midstream sector."
CONFERENCE CALL TOMORROW AT 9:00 A.M. CT
WES will host a conference call on Thursday, May 7, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first-quarter 2026 results. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A small number of phone lines are available for analysts; individuals should dial 888-880-3330 (Domestic) or 646-357-8766 (International) ten to fifteen minutes before the scheduled conference call time. A replay of the live audio webcast can be accessed on the Partnership's website at www.westernmidstream.com for one year after the call.
For additional details on WES's financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
(1)
Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures.
(2)
This release contains certain forward-looking non-GAAP measures such as the Adjusted EBITDA range and Distributable Cash Flow range for year ending December 31, 2026. A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Distributable Cash Flow range to net income (loss), is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding forward-looking GAAP equivalent for the Adjusted EBITDA or Distributable Cash Flow ranges.
(3)
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.
(4)
Represents total throughput attributable to WES, which excludes (i) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523
Net income (loss) attributable to noncontrolling interests
8,756
7,545
Net income (loss) attributable to Western Midstream Partners, LP
$ 350,276
$ 309,007
Limited partners' interest in net income (loss):
Net income (loss) attributable to Western Midstream Partners, LP
$ 350,276
$ 309,007
General partner interest in net (income) loss
(7,886)
(7,170)
Limited partners' interest in net income (loss)
$ 342,390
$ 301,837
Net income (loss) per common unit – basic
$ 0.86
$ 0.79
Net income (loss) per common unit – diluted
$ 0.85
$ 0.79
Weighted-average common units outstanding – basic
399,095
380,986
Weighted-average common units outstanding – diluted
400,569
382,494
Western Midstream Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands except number of units
March 31, 2026
December 31, 2025
Total current assets
$ 1,539,407
$ 1,656,941
Net property, plant, and equipment
11,294,693
11,220,908
Other assets
2,090,402
2,120,571
Total assets
$ 14,924,502
$ 14,998,420
Total current liabilities
$ 1,407,157
$ 1,236,484
Long-term debt
8,194,171
8,195,170
Asset retirement obligations
443,152
427,858
Other liabilities
1,373,032
975,786
Total liabilities
11,417,512
10,835,298
Equity and partners' capital
Common units (393,775,833 and 408,141,366 units issued and outstanding at March 31,
2026, and December 31, 2025, respectively)
3,361,526
4,016,606
General partner units (9,060,641 units issued and outstanding at March 31, 2026, and
December 31, 2025)
4,265
4,624
Noncontrolling interests
141,199
141,892
Total liabilities, equity, and partners' capital
$ 14,924,502
$ 14,998,420
Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
thousands
2026
2025
Cash flows from operating activities
Net income (loss)
$ 359,032
$ 316,552
Adjustments to reconcile net income (loss) to net cash provided by operating activities and
changes in assets and liabilities:
Depreciation and amortization
200,426
170,460
Long-lived asset and other impairments
608
3
(Gain) loss on divestiture and other, net
6,367
4,667
Change in other items, net
(96,530)
39,111
Net cash provided by operating activities
$ 469,903
$ 530,793
Cash flows from investing activities
Capital expenditures
$ (235,726)
$ (142,402)
Contributions to equity investments - related parties
(1,768)
—
Distributions from equity investments in excess of cumulative earnings – related parties
9,889
11,007
Proceeds from the sale of assets to third parties
—
19
(Increase) decrease in materials and supplies inventory and other
(7,272)
(9,414)
Net cash used in investing activities
$ (234,877)
$ (140,790)
Cash flows from financing activities
Borrowings, net of debt issuance costs
$ (132)
$ —
Repayments of debt
—
(663,831)
Increase (decrease) in outstanding checks
13,461
(113)
Distributions to Partnership unitholders
(379,675)
(340,996)
Distributions to Chipeta noncontrolling interest owner
(2,117)
—
Distributions to noncontrolling interest owner of WES Operating
(7,332)
(6,949)
Other
(31,227)
(20,131)
Net cash used in financing activities
$ (407,022)
$ (1,032,020)
Net increase (decrease) in cash and cash equivalents
$ (171,996)
$ (642,017)
Cash and cash equivalents at beginning of period
819,491
1,090,464
Cash and cash equivalents at end of period
$ 647,495
$ 448,447
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines Adjusted Gross Margin attributable to Western Midstream Partners, LP ("Adjusted Gross Margin") as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owners' proportionate share of revenues and cost of product.
WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP ("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 WES's core operating performance, and (vii) the noncontrolling interest owners' proportionate share of revenues and expenses.
WES defines Distributable Cash Flow as Adjusted EBITDA, less Total revenues and other recognized in Adjusted EBITDA in excess of (less than) customer billings; net cash paid for (i) interest expense (net of interest income recorded in other income (expense) and non-cash capitalized interest), (ii) maintenance capital expenditures, (iii) income taxes; and Distributable Cash Flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.
WES defines Free Cash Flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings.
Adjusted Gross Margin, Adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow are not defined in GAAP. The GAAP measure that is most directly comparable to Adjusted Gross Margin is gross margin. Net income (loss) and net cash provided by operating activities are the GAAP measures that are most directly comparable to Adjusted EBITDA. The GAAP measure that is most directly comparable to Distributable Cash Flow is net income (loss). The GAAP measure that is most directly comparable to Free Cash Flow is net cash provided by operating activities. Our non-GAAP financial measures (i) should not be considered as alternatives to the comparable GAAP measures or any other measure of financial performance presented in accordance with GAAP, (ii) have important limitations as analytical tools because they exclude some, but not all, items that affect the comparable GAAP measures, (iii) should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP, and (iv) may not be comparable to similarly titled measures of other companies in our industry, thereby diminishing their utility as comparative measures.
Management compensates for the limitations of our non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences, and incorporating this knowledge into its decision-making processes. We believe that investors benefit from having access to the same financial measures that our management considers in evaluating our operating results.
The following tables present reconciliations of the GAAP measures to our non-GAAP measures:
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Adjusted Gross Margin
Three Months Ended
thousands
March 31, 2026
December 31, 2025
Reconciliation of Gross margin to Adjusted Gross Margin
Total revenues and other
$ 1,123,579
$ 1,031,481
Less:
Cost of product
102,884
71,618
Depreciation and amortization
200,426
197,882
Gross margin
820,269
761,981
Add:
Distributions from equity investments
25,652
27,147
Depreciation and amortization
200,426
197,882
Less:
Reimbursed electricity-related charges recorded as revenues
33,488
31,488
Adjusted Gross Margin attributable to noncontrolling interests (1)
22,204
20,719
Adjusted Gross Margin
$ 990,655
$ 934,803
Gross margin
Gross margin for natural-gas assets (2)
$ 533,518
$ 506,811
Gross margin for crude-oil and NGLs assets (2)
106,212
91,220
Gross margin for produced-water assets (2)
187,779
170,747
Adjusted Gross Margin
Adjusted Gross Margin for natural-gas assets (3)
$ 618,809
$ 599,775
Adjusted Gross Margin for crude-oil and NGLs assets (3)
144,193
129,395
Adjusted Gross Margin for produced-water assets (3)
227,190
205,633
(1)
Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES's noncontrolling interests.
(2)
Excludes corporate-level depreciation and amortization.
(3)
Excludes certain corporate-level items.
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Adjusted EBITDA
Three Months Ended
thousands
March 31, 2026
December 31, 2025
Reconciliation of Net income (loss) to Adjusted EBITDA
Net income (loss)
$ 359,032
$ 196,269
Add:
Distributions from equity investments
25,652
27,147
Non-cash equity-based compensation expense
10,854
21,386
Interest expense
113,390
105,674
Income tax expense
3,501
7,323
Depreciation and amortization
200,426
197,882
Long-lived asset and other impairments
608
2,509
Other expense
—
17
Less:
Gain (loss) on divestiture and other, net
(6,367)
(3,065)
Equity income, net – related parties
14,776
21,378
Other income
6,734
3,706
Items impacting comparability
Acquisition-related expenses and other, net
(119)
(113,188)
Adjusted EBITDA attributable to noncontrolling interests (1)
15,302
13,794
Adjusted EBITDA
$ 683,137
$ 635,582
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities
$ 469,903
$ 557,645
Interest (income) expense, net
113,390
105,674
Accretion and amortization of long-term obligations, net
(882)
(815)
Current income tax expense (benefit)
2,880
5,615
Other (income) expense, net
(6,730)
(3,706)
Distributions from equity investments in excess of cumulative earnings – related parties
9,889
5,391
Changes in assets and liabilities:
Accounts receivable, net
50,226
(16,853)
Accounts and imbalance payables and accrued liabilities, net
28,316
(52,513)
Other items, net
31,328
(64,250)
Acquisition-related expenses
119
113,188
Adjusted EBITDA attributable to noncontrolling interests (1)
(15,302)
(13,794)
Adjusted EBITDA
$ 683,137
$ 635,582
Cash flow information
Net cash provided by operating activities
$ 469,903
$ 557,645
Net cash used in investing activities
(234,877)
(608,914)
Net cash provided by (used in) financing activities
(407,022)
693,472
(1)
Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES's noncontrolling interests.
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Distributable Cash Flow
Three Months Ended
thousands
March 31, 2026
December 31, 2025
Reconciliation of Net income (loss) to Distributable Cash Flow
Net income (loss)
$ 359,032
$ 196,269
Add:
Distributions from equity investments
25,652
27,147
Non-cash equity-based compensation expense
10,854
21,386
Income tax expense
3,501
7,323
Depreciation and amortization
200,426
197,882
Long-lived asset and other impairments
608
2,509
Other expense
—
17
Less:
Recognized service revenues - fee based (less than) in excess of customer billings
35,508
(31,627)
Gain (loss) on divestiture and other, net
(6,367)
(3,065)
Equity income, net – related parties
14,776
21,378
Items impacting comparability
(119)
(113,188)
Cash paid for maintenance capital expenditures
27,704
36,276
Capitalized interest
4,306
3,518
Cash paid for (reimbursement of) income taxes
3,449
806
Other income (net of interest income)
(86)
87
Distributable cash flow attributable to noncontrolling interests (1)
11,978
11,715
Distributable cash flow
$ 508,924
$ 526,633
Reconciliation of Adjusted EBITDA to Distributable Cash Flow
Adjusted EBITDA
$ 683,137
$ 635,582
Less:
Recognized service revenues - fee based (less than) in excess of customer billings
35,508
(31,627)
Capitalized interest
4,306
3,518
Cash paid for maintenance capital expenditures
27,704
36,276
Cash paid for (reimbursement of) income taxes
3,449
806
Interest expense (net of interest income)
106,570
102,055
Distributable cash flow attributable to noncontrolling interests (1)
(3,324)
(2,079)
Distributable cash flow
$ 508,924
$ 526,633
Weighted-average common units outstanding
399,095
400,491
Weighted-average general partner units
9,061
9,061
(1)
Includes (i) the 25% third-party interest in Chipeta and (ii) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, which collectively represent WES's noncontrolling interests.
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
Free Cash Flow
Three Months Ended
thousands
March 31, 2026
December 31, 2025
Reconciliation of Net cash provided by operating activities to Free Cash Flow
Net cash provided by operating activities
$ 469,903
$ 557,645
Less:
Capital expenditures
235,726
222,208
Contributions to equity investments – related parties
1,768
—
Add:
Distributions from equity investments in excess of cumulative earnings – related parties
9,889
5,391
Free Cash Flow
$ 242,298
$ 340,828
Cash flow information
Net cash provided by operating activities
$ 469,903
$ 557,645
Net cash used in investing activities
(234,877)
(608,914)
Net cash provided by (used in) financing activities
(407,022)
693,472
Western Midstream Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended
March 31, 2026
December 31, 2025
Inc/(Dec)
Throughput for natural-gas assets (MMcf/d)
Gathering, treating, and transportation
430
381
13 %
Processing
4,499
4,437
1 %
Equity investments (1)
464
525
(12) %
Total throughput
5,393
5,343
1 %
Throughput attributable to noncontrolling interests (2)
184
181
2 %
Total throughput attributable to WES for natural-gas assets
5,209
5,162
1 %
Throughput for crude-oil and NGLs assets (MBbls/d)
Gathering, treating, and transportation
429
419
2 %
Equity investments (1)
102
99
3 %
Total throughput
531
518
3 %
Throughput attributable to noncontrolling interests (2)
10
10
— %
Total throughput attributable to WES for crude-oil and NGLs assets
521
508
3 %
Throughput for produced-water assets (MBbls/d)
Gathering and disposal
2,848
2,744
4 %
Throughput attributable to noncontrolling interests (2)
53
51
4 %
Total throughput attributable to WES for produced-water assets
2,795
2,693
4 %
Per-Mcf Gross margin for natural-gas assets (3)
$ 1.10
$ 1.03
7 %
Per-Bbl Gross margin for crude-oil and NGLs assets (3)
2.22
1.91
16 %
Per-Bbl Gross margin for produced-water assets (3)
0.73
0.68
7 %
Per-Mcf Adjusted Gross Margin for natural-gas assets (4)
$ 1.32
$ 1.26
5 %
Per-Bbl Adjusted Gross Margin for crude-oil and NGLs assets (4)
3.07
2.77
11 %
Per-Bbl Adjusted Gross Margin for produced-water assets (4)
0.90
0.83
8 %
(1)
Represents our share of average throughput for investments accounted for under the equity method of accounting.
(2)
Includes (i) the 1.9% limited partner interest in WES Operating owned by an Occidental subsidiary as of March 31, 2026, and December 31, 2025, and (ii) for natural-gas assets, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.
(3)
Average for period. Calculated as Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.
(4)
Average for period. Calculated as Adjusted Gross Margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) attributable to WES for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.
Western Midstream Partners, LP
OPERATING STATISTICS (CONTINUED)
(Unaudited)
Three Months Ended
March 31, 2026
December 31, 2025
Inc/(Dec)
Throughput for natural-gas assets (MMcf/d)
Operated
Delaware Basin
2,035
1,974
3 %
DJ Basin
1,520
1,530
(1) %
Powder River Basin
396
383
3 %
Other
932
931
— %
Total operated throughput for natural-gas assets
4,883
4,818
1 %
Non-operated
Equity investments
464
525
(12) %
Other
46
—
— %
Total non-operated throughput for natural-gas assets
510
525
(3) %
Total throughput for natural-gas assets
5,393
5,343
1 %
Throughput for crude-oil and NGLs assets (MBbls/d)
Operated
Delaware Basin
272
261
4 %
DJ Basin
97
95
2 %
Powder River Basin
25
26
(4) %
Other
35
37
(5) %
Total operated throughput for crude-oil and NGLs assets
429
419
2 %
Non-operated
Equity investments
102
99
3 %
Total non-operated throughput for crude-oil and NGLs assets
102
99
3 %
Total throughput for crude-oil and NGLs assets
531
518
3 %
Throughput for produced-water assets (MBbls/d)
Operated
Delaware Basin
2,848
2,744
4 %
Total operated throughput for produced-water assets
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, U.S. February 18, 2025. REUTERS/Eli Hartman/File Photo Purchase Licensing Rights, opens new tab
CompaniesMay 6 (Reuters) - Western Midstream Partners (WES.N), opens new tab said on Wednesday it would acquire privately held Brazos Delaware II in a $1.6 billion deal, expanding its gathering and processing footprint in the core of the Permian Basin.
The company will pay about $800 million in cash and issue roughly $800 million in common units as part of the transaction, which is expected to close in the second quarter.
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Brazos, one of the largest privately held gathering and processing platforms in the Texas Delaware Basin, has assets across the oil-rich region.
The assets include about 900 miles of pipeline, 460 million cubic feet per day of nameplate natural-gas processing capacity at the Comanche processing complex.
Reporting by Sumit Saha in Bengaluru; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles., opens new tab
For the quarter ended March 2026, Western Midstream (WES - Free Report) reported revenue of $1.12 billion, up 22.5% over the same period last year. EPS came in at $0.85, compared to $0.79 in the year-ago quarter.
The reported revenue represents a surprise of +13.02% over the Zacks Consensus Estimate of $994.13 million. With the consensus EPS estimate being $0.74, the EPS surprise was +15.18%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Western Midstream performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Attributable to Noncontrolling Interest for Natural Gas Assets per day: 184 millions of cubic feet per day compared to the 181.05 millions of cubic feet per day average estimate based on two analysts.Throughput for natural-gas assets per day - Total throughput: 5393 millions of cubic feet per day versus 5330.22 millions of cubic feet per day estimated by two analysts on average.Total throughput attributable to WES for natural-gas assets per day: 5209 millions of cubic feet per day compared to the 5149.18 millions of cubic feet per day average estimate based on two analysts.Throughput for natural-gas assets per day - Equity Investment: 464 millions of cubic feet per day compared to the 526.57 millions of cubic feet per day average estimate based on two analysts.Throughput for natural-gas assets per day - Delaware Basin: 2035 millions of cubic feet per day compared to the 2019.29 millions of cubic feet per day average estimate based on two analysts.Throughput for produced-water assets per day - Delaware Basin: 2848 millions of barrels of oil per day versus the two-analyst average estimate of 2836.23 millions of barrels of oil per day.Throughput for natural-gas assets per day - Equity investments: 464 millions of cubic feet per day versus the two-analyst average estimate of 526.57 millions of cubic feet per day.Throughput for crude-oil and NGLs assets per day - Delaware Basin: 272 millions of barrels of oil per day compared to the 261.64 millions of barrels of oil per day average estimate based on two analysts.Throughput for crude-oil and NGLs assets per day - DJ Basin: 97 millions of barrels of oil per day compared to the 95.55 millions of barrels of oil per day average estimate based on two analysts.Throughput for crude-oil and NGLs assets per day - Equity investments: 102 millions of barrels of oil per day versus 99.41 millions of barrels of oil per day estimated by two analysts on average.Throughput for crude-oil and NGLs assets per day - Other: 35 millions of barrels of oil per day versus 36.16 millions of barrels of oil per day estimated by two analysts on average.Throughput for natural-gas assets per day - DJ Basin: 1520 millions of cubic feet per day versus the two-analyst average estimate of 1465.81 millions of cubic feet per day.View all Key Company Metrics for Western Midstream here>>>
Shares of Western Midstream have returned +3.6% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
and Participation in Upcoming Investor Conferences
, /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that tomorrow before the market open it will make available on its website at www.westernmidstream.com a post-earnings interview with Oscar K. Brown, President and Chief Executive Officer, and Jon Greenberg, Vice President and Head of Corporate Development and New Ventures, that provides additional insights related to WES's first-quarter 2026 results and the agreement to acquire Brazos Delaware II, LLC.
WES intends to participate in the following investor conferences during the second and third quarters of 2026:
TPH & Co. Hotter 'N Hell 2026 in Houston, Texas on May 13, 2026 The 23rd Annual Energy Infrastructure CEO & Investor Conference in Aventura, Florida on May 19 – 20, 2026 Stifel's Ninth Annual Boston Cross Sector 1x1 Conference on June 2, 2026 Institute of Private Investors Mid-Year Forum in New York, New York on June 10 – 11, 2026 J.P. Morgan Natural Resources Conference in New York, New York on June 24, 2026 Citi's 2026 Natural Resources Conference in Las Vegas, Nevada on August 11 – 12, 2026 ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866-512-3523
Key Takeaways Western Midstream produced-water throughput surged 140% in Q1 2026 following the Aris acquisition.WES reported higher natural gas and crude oil throughput across the DJ Basin and the DBM oil system.WES maintained 2026 EBITDA & DCF guidance. It also raised its quarterly distribution to 93 cents per unit. Western Midstream Partners LP (WES - Free Report) reported first-quarter 2026 earnings of 85 cents per unit, up 7.6% from 79 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 74 cents by 14.9%.
Total quarterly revenues of $1.1 billion topped the Zacks Consensus Estimate of $944.1 million. The top line increased 22.5% from the prior-year level of $917.1 million.
The strong quarterly results can be primarily attributed to higher throughputs across its natural gas, crude oil and natural gas liquid (NGL) assets. An increase in total operating expenses partially offset the positives.
Western Midstream Sees Broad-Based Throughput GainsOperationally, Western Midstream logged sequential gains across its three core product lines. The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,209 million cubic feet per day (MMcf/d), up 2% from the prior-year quarter’s figure of 5,110 MMcf/d and up 1% sequentially. The increase was primarily driven by higher volume from the DJ Basin and Chipeta complexes. The commissioning of a new Red Bluff Express receipt point in fourth-quarter 2025 further enhanced throughput volume. However, volume growth from the Powder River Basin and the Mi Vida plant slightly offset the positives.
Total throughput for crude oil and NGL assets was 521 thousand barrels per day (MBbls/d) compared with 503 MBbls/d in the first quarter of 2025. The 3% year-over-year increase is due to higher volumes from the partnership’s DBM oil system. Crude oil and NGL throughput increased 3% sequentially, driven by higher volumes from the DBM oil system and the FRP pipeline.
Total operated throughput for crude oil and NGLs assets was 429 MBbls/d compared with 411 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,795 MBbls/d, up 140% from 1,166 MBbls/d in the year-ago quarter. The increase was driven by expanded capacity at DBM water systems following the acquisition of Aris.
Per management, Delaware Basin growth occurred despite curtailments linked to weak and volatile Waha natural-gas pricing, which it expects to persist through the second quarter amid downstream maintenance.
WES Keeps Tight Grip on Operating CostsCost discipline was another key support for the quarter. Total operating expenses for the quarter stood at $662.5 million, higher than the prior-year reported figure of $523.1 million, reflecting higher cost of product, operation and maintenance, and depreciation and amortization alongside the expanded asset base. Operation and maintenance expenses were $264.2 million, up from $226.5 million in the year-ago quarter, while general and administrative expenses were $75.2 million compared with $66.8 million last year.
Cash Flow of WESNet cash provided by operating activities totaled $444.5 million in the first quarter of 2026, down from $511.5 million in the corresponding period of 2025. The partnership’s free cash flow for the quarter was $242.3 million.
Balance Sheet of WESAs of March 31, 2026, the partnership’s long-term debt was $8.2 billion. Its cash and cash equivalents stood at $647.5 million. WES reported trailing 12-month net leverage of about 3.1X and more than $2.5 billion of total liquidity at quarter end.
WES Maintains 2026 Guidance, Lifts Quarterly PayoutFor 2026, WES kept its prior guidance intact. The partnership reiterated Adjusted EBITDA guidance of $2.5-$2.7 billion and Distributable Cash Flow (DCF) guidance of $1.85-$2.05 billion, while maintaining total capital expenditure expectations of $850 million to $1 billion.
WES increased its quarterly distribution to 93 cents per unit, payable May 15, 2026. Management plans to revisit 2026 guidance ranges alongside second-quarter results, after the anticipated closing of the Brazos transaction.
Some better-ranked stocks from the energy sector that have also reported results are YPF Sociedad Anónima (YPF - Free Report) , Chevron Corporation (CVX - Free Report) and Eni S.p.A. (E - Free Report) .YPF, CVX and E each currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
YPF reported first-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 83 cents by 24.1%. The bottom line surpassed the year-ago quarter’s 32 cents.
As of March 31, 2026, YPF had cash and cash equivalents worth $1.7 billion and net debt of $8.4 billion.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.
Western Midstream Partners offers an 8.35% yield, 5-8% targeted distribution growth, and a compelling risk-adjusted return at $45 per unit. WES's Q1 results were strong, with a record $683.1M adjusted EBITDA, 15% YoY growth, and a 2.2% distribution increase. The $1.6B Brazos Delaware acquisition expands WES's Delaware Basin footprint by 50%, is immediately accretive, and maintains pro forma leverage near 3.0x.
Western Midstream Partners, LP, offers an attractive distribution growth profile for income-focused investors. I see WES's value underpinned by robust core natural gas business growth, expanding pipeline assets, and strong projected natural gas demand. The recent $1.6B Brazos Delaware acquisition expands WES's Delaware Basin footprint by ~49% (to over 1.4M acres), adding significant pipeline and processing capacity.
A month has gone by since the last earnings report for Western Midstream (WES - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Western Midstream due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
WES Q1 Earnings Beat on Higher Throughput VolumeWestern Midstream reported first-quarter 2026 earnings of 85 cents per unit, up 7.6% from 79 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 74 cents by 14.9%.
Total quarterly revenues of $1.1 billion topped the Zacks Consensus Estimate of $944.1 million. The top line increased 22.5% from the prior-year level of $917.1 million.
The strong quarterly results can be primarily attributed to higher throughputs across its natural gas, crude oil and natural gas liquid (NGL) assets. An increase in total operating expenses partially offset the positives.
Western Midstream Sees Broad-Based Throughput GainsOperationally, Western Midstream logged sequential gains across its three core product lines. The throughput attributable to Western Midstream Partners’ natural gas assets totaled 5,209 million cubic feet per day (MMcf/d), up 2% from the prior-year quarter’s figure of 5,110 MMcf/d and up 1% sequentially. The increase was primarily driven by higher volume from the DJ Basin and Chipeta complexes. The commissioning of a new Red Bluff Express receipt point in fourth-quarter 2025 further enhanced throughput volume. However, volume growth from the Powder River Basin and the Mi Vida plant slightly offset the positives.
Total throughput for crude oil and NGL assets was 521 thousand barrels per day (MBbls/d) compared with 503 MBbls/d in the first quarter of 2025. The 3% year-over-year increase is due to higher volumes from the partnership’s DBM oil system. Crude oil and NGL throughput increased 3% sequentially, driven by higher volumes from the DBM oil system and the FRP pipeline.
Total operated throughput for crude oil and NGLs assets was 429 MBbls/d compared with 411 MBbls/d in the prior-year quarter.
Total throughput attributable to WES for produced-water assets was 2,795 MBbls/d, up 140% from 1,166 MBbls/d in the year-ago quarter. The increase was driven by expanded capacity at DBM water systems following the acquisition of Aris.
Per management, Delaware Basin growth occurred despite curtailments linked to weak and volatile Waha natural-gas pricing, which it expects to persist through the second quarter amid downstream maintenance.
WES Keeps Tight Grip on Operating CostsCost discipline was another key support for the quarter. Total operating expenses for the quarter stood at $662.5 million, higher than the prior-year reported figure of $523.1 million, reflecting higher cost of product, operation and maintenance, and depreciation and amortization alongside the expanded asset base. Operation and maintenance expenses were $264.2 million, up from $226.5 million in the year-ago quarter, while general and administrative expenses were $75.2 million compared with $66.8 million last year.
Cash Flow of WESNet cash provided by operating activities totaled $444.5 million in the first quarter of 2026, down from $511.5 million in the corresponding period of 2025. The partnership’s free cash flow for the quarter was $242.3 million.
Balance Sheet of WESAs of March 31, 2026, the partnership’s long-term debt was $8.2 billion. Its cash and cash equivalents stood at $647.5 million. WES reported trailing 12-month net leverage of about 3.1X and more than $2.5 billion of total liquidity at quarter end.
WES Maintains 2026 Guidance, Lifts Quarterly PayoutFor 2026, WES kept its prior guidance intact. The partnership reiterated Adjusted EBITDA guidance of $2.5-$2.7 billion and Distributable Cash Flow (DCF) guidance of $1.85-$2.05 billion, while maintaining total capital expenditure expectations of $850 million to $1 billion.
WES increased its quarterly distribution to 93 cents per unit, payable May 15, 2026. Management plans to revisit 2026 guidance ranges alongside second-quarter results, after the anticipated closing of the Brazos transaction.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 10.34% due to these changes.
VGM ScoresCurrently, Western Midstream has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Western Midstream has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
, /PRNewswire/ -- Western Midstream Partners, LP ("WES" or the "Partnership") (NYSE: WES) today announced it closed the previously announced acquisition of Brazos Delaware II, LLC ("Brazos") for approximately $1.6 billion. Transaction consideration comprised approximately $800 million in cash and approximately $800 million in WES common units. WES issued approximately 19.4 million units based on the volume weighted average WES common unit price at the time the acquisition agreement was signed. The Brazos acquisition expands WES's gathering and processing footprint in the Delaware Basin and aligns with WES's philosophy of only deploying capital that sustains or grows its distribution. The transaction also met the objectives of accretion to per-unit metrics, protecting the Partnership's balance sheet and investment grade credit ratings, and diversifying its customer base and ownership.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523
