Western Midstream Amends Key Gas Agreements, Redeems Units

Western Midstream Partners ( (WES) ) has issued an update.

On January 16, 2026, Western Midstream subsidiary Delaware Basin Midstream LLC amended its Delaware Basin gas gathering agreement with Occidental Petroleum’s Anadarko E&P Onshore LLC, shifting from a cost-of-service to a fixed-fee structure, adding new minimum volume commitments through 2027, and revising acreage transfer terms, while also entering related natural gas gathering and processing arrangements with a ConocoPhillips subsidiary. In connection with these changes, Western Midstream agreed to redeem 15.3 million of its common units from Occidental on February 3, 2026—reducing Occidental’s ownership stake—and structured the reset of Delaware Basin natural gas fees and new fixed-fee contracts so that lower operating cash flows over time are expected to be largely offset by distribution savings and recognition of contract liability revenue through 2032, further diversifying revenues, reducing related-party exposure, and advancing Western Midstream’s transition toward a more transparent, standalone fixed-fee midstream model with leverage targeted around 3.0x Adjusted EBITDA in 2026.

The most recent analyst rating on (WES) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Western Midstream Partners stock, see the WES Stock Forecast page.

Spark’s Take on WES Stock

According to Spark, TipRanks’ AI Analyst, WES is a Outperform.

Western Midstream Partners scores well due to its strong financial performance and attractive valuation. The company’s strategic acquisitions and financial maneuvers further bolster its position. While technical indicators show positive momentum, some operational challenges remain, particularly in throughput declines.

To see Spark’s full report on WES stock, click here.

More about Western Midstream Partners

Western Midstream Partners, LP is a master limited partnership that develops, acquires, owns, and operates midstream energy infrastructure across Texas, New Mexico, Colorado, Utah, and Wyoming. The company provides gathering, compression, treating, processing, and transportation services for natural gas, as well as gathering, stabilizing, and transporting condensate, natural gas liquids, and crude oil, and handling produced water through gathering, transport, recycling, treating, and disposal, largely under fee-based contracts that limit direct commodity price exposure.

Average Trading Volume: 1,337,804

Technical Sentiment Signal: Strong Buy

Current Market Cap: $16.59B

Learn more about WES stock on TipRanks’ Stock Analysis page.