Western Midstream Partners (WES) AI Stock Analysis

• Market Cap: $15.88B
• Dividend Yield: 9.32%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.48
• Revenue Growth: 5.81%
• EPS Growth: -13.58%
• Country: US
• Employees: 1,511
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.87
• Shares Outstanding: 407,995,730
• 10 Day Avg. Volume: 1,670,494
• 30 Day Avg. Volume: 1,885,279
• PEG Ratio: 0.17
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 11.47
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 5.88
• Enterprise Value/Gross Profit: 7.73
• Enterprise Value/Ebitda: 9.11
• 1Y Price Target: $40.57
• Price Target Upside: 5.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.49
• Revenue Forecast (FY): $3.86B

• Rating: 78 Outperform
• Price Target: $44.00 ▲(14.02% Upside)

Western Midstream Partners scores well due to strong financial performance and attractive valuation metrics. The positive technical indicators and strategic growth initiatives further support the stock's potential. However, challenges in throughput and regional declines slightly temper the outlook.

Positive Factors

Strong Cash Flow Generation

The company's strong cash flow generation supports its ability to fund operations, invest in growth opportunities, and maintain financial stability.

Strategic Acquisition

The acquisition strengthens Western Midstream's market position and operational capacity, providing synergies and growth potential in a key region.

Record Adjusted EBITDA

Achieving record EBITDA indicates effective cost management and operational efficiency, bolstering long-term profitability and competitive strength.

Negative Factors

Crude Oil and NGLs Throughput Decline

Declining throughput can impact revenue and profitability, reflecting challenges in maintaining volume growth in key product lines.

Powder River Basin Challenges

Reduced activity in the Powder River Basin may hinder growth prospects and revenue stability in this region, affecting overall performance.

Decreased Adjusted Gross Margin for Natural Gas

A decline in gross margin indicates potential pricing pressure and reduced profitability, which could affect financial performance if sustained.

Western Midstream Partners Business Overview & Revenue Model

Company Description

Western Midstream Partners, LP (WES) is a leading midstream service provider in the energy sector, primarily focused on natural gas, natural gas liquids (NGLs), and crude oil. The company operates a vast network of pipelines, processing facilities, and storage assets across key production basins in the United States, including the Permian Basin and the Rockies. Through its integrated services, Western Midstream Partners plays a critical role in the transportation and processing of hydrocarbons, facilitating efficient energy delivery to markets.

How the Company Makes Money

Western Midstream Partners generates revenue primarily through fee-based contracts for its midstream services, which include gathering, processing, transportation, and storage of natural gas, crude oil, and NGLs. The company's revenue model is largely based on long-term contracts with producers, which provides stable cash flows. Key revenue streams include fees from gathering systems, processing plants, and transportation pipelines. Additionally, Western Midstream has established significant partnerships with major oil and gas producers, enhancing its operational capacity and market reach. Factors contributing to its earnings include the volume of hydrocarbons processed and transported, market demand for energy, and the efficiency of its operations.

Western Midstream Partners Financial Statement Overview

Summary

Western Midstream Partners shows strong financial health with high profitability margins and improved leverage. The company maintains efficient operations and cash flow management, positioning it well for future growth. However, slight cost pressures are noted.

Income Statement

Western Midstream Partners demonstrates strong profitability with a high gross profit margin of 77.24% and a solid net profit margin of 35.18% for TTM. Revenue growth is positive, albeit modest at 1.88% TTM, indicating stability in revenue generation. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the slight decline in EBIT margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet shows a significant improvement in leverage, with a debt-to-equity ratio dropping to 0.0039 TTM from over 2 in previous years, indicating reduced financial risk. Return on equity remains strong at 39.60%, showcasing effective use of equity capital. However, the equity ratio is not explicitly provided, which could offer additional insights into asset financing.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 13.17% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 3.39 suggests efficient cash conversion, while the free cash flow to net income ratio of 0.82 reflects solid cash retention. These metrics highlight the company's ability to generate and manage cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.74B	3.61B	3.11B	3.25B	2.88B	2.77B
Gross Profit	2.85B	2.78B	2.34B	2.25B	2.00B	2.09B
EBITDA	2.42B	2.64B	1.99B	2.16B	1.85B	1.38B
Net Income	1.32B	1.57B	1.02B	1.22B	916.29M	527.01M
Balance Sheet
Total Assets	12.13B	13.14B	12.47B	11.27B	11.27B	11.83B
Cash, Cash Equivalents and Short-Term Investments	177.29M	1.09B	272.79M	286.66M	202.00M	444.92M
Total Debt	7.00B	8.14B	7.96B	6.83B	6.95B	7.89B
Total Liabilities	8.80B	9.77B	9.44B	8.16B	8.18B	8.93B
Stockholders Equity	3.18B	3.24B	2.90B	2.97B	2.96B	2.76B
Cash Flow
Free Cash Flow	1.46B	1.27B	913.12M	1.21B	1.45B	1.22B
Operating Cash Flow	2.20B	2.11B	1.65B	1.70B	1.77B	1.64B
Investing Cash Flow	-718.57M	-39.17M	-1.61B	-218.24M	-257.54M	-448.25M
Financing Cash Flow	-2.43B	-1.25B	-58.83M	-1.40B	-1.75B	-871.98M

Western Midstream Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WES, the sentiment is Positive. The current price of 38.59 is above the 20-day moving average (MA) of 38.02, above the 50-day MA of 37.69, and above the 200-day MA of 37.23, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WES.

Western Midstream Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AM	78 Outperform	$8.65B	18.61	22.52%	4.96%	8.70%	21.42%
WES	78 Outperform	$15.88B	11.51	40.29%	9.32%	5.81%	-13.58%
DTM	75 Outperform	$11.79B	29.40	9.04%	2.91%	20.39%	-3.85%
PAA	72 Outperform	$11.95B	13.74	9.78%	8.97%	-7.53%	9.74%
HESM	72 Outperform	$6.92B	11.83	59.81%	8.71%	10.78%	19.10%
PAGP	68 Neutral	$13.29B	19.92	10.33%	8.51%	-7.53%	11.27%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Western Midstream Partners Corporate Events

Western Midstream Partners Reports Revenue Growth in Q3 2025

Western Midstream Partners, LP is a Delaware-based master limited partnership engaged in the gathering, compressing, treating, processing, and transporting of natural gas and related products, with operations primarily located in Texas, New Mexico, and the Rocky Mountains. In its latest earnings report for the quarter ended September 30, 2025, Western Midstream Partners, LP reported total revenues of $952.5 million, an increase from $883.4 million in the same period last year. The company’s net income attributable to Western Midstream Partners, LP was $339.6 million, up from $288.5 million in the previous year. Key financial metrics highlighted in the report include a rise in service revenues and product sales, contributing to the overall revenue growth. Operating expenses also saw a slight increase, with notable rises in operation and maintenance costs. Despite these increases, the company maintained a strong operating income of $441.6 million. Looking ahead, Western Midstream Partners, LP remains focused on optimizing its operations and exploring strategic opportunities to enhance shareholder value, as indicated by the management’s positive outlook for future performance.

Western Midstream Partners’ Earnings Call Highlights

Western Midstream Partners, Lp’s recent earnings call reflected a balanced sentiment, highlighting both achievements and challenges. The company celebrated record adjusted EBITDA and strategic acquisitions while acknowledging obstacles such as decreased throughput in crude oil and NGLs, and anticipated declines in the Powder River Basin due to commodity price weaknesses.

Western Midstream Completes Aris Water Solutions Acquisition

On October 15, 2025, Western Midstream Partners completed its acquisition of Aris Water Solutions, marking a significant expansion in the Delaware Basin. This merger positions WES as a leading integrated water solutions provider, enhancing its capabilities in produced-water gathering, recycling, transportation, disposal, and beneficial reuse. The merger consideration involved a mix of cash and common units, with Aris securityholders receiving approximately 28% in cash and 72% in common units. The acquisition is expected to strengthen WES’s market position and operational agility, benefiting its producer customers in Texas and New Mexico.

The most recent analyst rating on (WES) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Western Midstream Partners stock, see the WES Stock Forecast page.

Western Midstream Partners’ Earnings Call Highlights Record Achievements

The recent earnings call for Western Midstream Partners, Lp was marked by a generally positive sentiment, underscoring record-breaking achievements in EBITDA and throughput in the Delaware Basin, alongside strategic acquisitions and a robust financial stance. However, the call also acknowledged some hurdles, such as decreased margins and anticipated increases in operation and maintenance expenses.

Western Midstream Partners Reports Q2 2025 Earnings

Western Midstream Partners, LP is a master limited partnership primarily engaged in the gathering, processing, and transportation of natural gas and other related products. Operating within the energy sector, the company is known for its extensive midstream assets located in key regions across the United States.

Western Midstream Partners Announces Merger with Aris Water

On August 6, 2025, Western Midstream Partners announced a merger agreement with Aris Water Solutions, marking a strategic move to enhance its position as a leading midstream water services provider in the Delaware Basin. The transaction, valued at approximately $2 billion, is expected to close in the fourth quarter of 2025 and aims to achieve $40 million in annualized cost synergies. The merger will expand WES’s capabilities in natural-gas, crude-oil, and produced-water businesses, further solidifying its market presence in West Texas and New Mexico. The board of directors of both companies have approved the merger, which is subject to customary closing conditions, including shareholder approval and regulatory clearances.

The most recent analyst rating on (WES) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Western Midstream Partners stock, see the WES Stock Forecast page.