Western Midstream Partners, LP (WES) AI Stock Analysis

Western Midstream Partners, LP is a midstream energy company based in The Woodlands, Texas, that acquires, develops, and operates critical energy infrastructure across the United States. Its activities include the gathering, compressing, treating, processing, and transportation of natural gas, as well as the gathering, stabilizing, and transportation of condensate, natural gas liquids (NGLs), and crude oil. Western Midstream Partners, LP also manages produced water gathering and disposal, and engages in buying and selling natural gas, NGLs, and condensate. The partnership maintains strategic assets in Texas, New Mexico, the Rocky Mountains, and North-central Pennsylvania, with Western Midstream Holdings, LLC functioning as its general partner.

Western Midstream expanded annual revenue from $2.88B in FY2021 to $3.84B in FY2025, representing a 5-year revenue CAGR of 6.7%. Revenue rose 13.0% in FY2022 to $3.25B, declined 4.5% in FY2023 to $3.11B, and jumped 16.1% in FY2024 to $3.61B before growing 6.6% in FY2025. Annual net income was $916.3M in FY2021, reached $1.57B in FY2024, and settled at $1.17B in FY2025 with a 30.4% net margin. For the latest quarter ended June 30, 2026, quarterly revenue growth was 30.0% year-over-year, while quarterly earnings growth was 13.8%. Across the trailing twelve months, total revenue reached $4.33B with a 29.0% profit margin and an EPS of $3.16.

As of June 30, 2026, Western Midstream held $104.8M in cash and short-term investments alongside total debt of $9.13B, bringing net debt to $9.02B. The partnership reported a debt-to-equity ratio of 2.14, shareholders' equity of $4.26B, total assets of $16.32B, and a current ratio of 0.91. Operating cash flow reached $2.19B in FY2025, yielding free cash flow of $1.46B. Capital allocation in FY2025 included $728.0M in capital expenditures and $1.43B in dividends paid, while the 5-year share count change was -2.2%.

Western Midstream carries a market capitalization of $18.44B and an enterprise value of $27.89B. It trades at a trailing P/E of 14.1x and a forward P/E of 11.3x, both lower than the median of its US-listed Energy peers at 15.0x and 12.7x, respectively. Its EV/EBITDA of 11.0x and price-to-sales of 4.3x stand above peer medians of 8.0x and 1.8x. Over the past year, the stock returned 29.4%, outperforming the S&P 500 gain of 16.8%, while its 5-year return of 191.0% also exceeded the S&P 500 5-year advance of 83.0%.

Western Midstream pays a quarterly distribution with an annual forward dividend of $3.72, delivering a dividend yield of 8.34% as of October 16, 2026. The partnership has paid dividends for 14 consecutive years and generated a 5-year annualized dividend growth rate of 18.3%. Its payout ratio is 113.9%, and its last ex-dividend date was July 31, 2026.

Wall Street analysts maintain 5 Strong Buy, 9 Hold, and 1 Sell ratings on WES. The mean price target is $49.69, indicating an 11.4% upside compared to the last close of $44.62. For the fiscal year ending December 31, 2026, consensus forecasts project revenue of $4.75B and EPS of $3.70, reflecting 21.6% EPS growth. Western Midstream has beaten EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Western Midstream Partners, LP (WES). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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