Western Midstream Partners, LP (WES)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Western Midstream Partners, LP (WES) trades at $44.24 with AI Score 73/100 (Grade A). Western Midstream Partners, LP is a midstream energy company focused on gathering, processing, and transporting natural gas, NGLs, condensate, and crude oil. Market cap: $17.42B, Sector: Energy.
Price live · AI analysis from May 10, 2026WES stock analysis for 2026: Analysts have set a consensus price target of $41.75 for Western Midstream Partners, LP, suggesting 5.6% downside from the current price of $44.24. The AI MoonshotScore is 73/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
WES: 5/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Western Midstream Partners, LP (WES) Energy Operations & Outlook
Western Midstream Partners, LP (WES) is a midstream energy company operating in the United States, focusing on natural gas, NGLs, condensate, and crude oil. With assets strategically located in key regions like Texas and the Rocky Mountains, WES provides essential gathering, processing, and transportation services within the energy value chain.
What Is the Investment Thesis for WES?
Western Midstream Partners, LP presents a compelling investment case driven by its strategic asset base and integrated midstream services. The company's operations in key production regions like Texas and the Rocky Mountains provide stable cash flows. With a dividend yield of 8.42% and a profit margin of 29.9%, WES demonstrates strong financial performance. Growth catalysts include increased production volumes in its operating areas and potential acquisitions to expand its asset footprint. Potential risks include commodity price volatility and regulatory changes affecting midstream operations. The company's beta of 0.70 suggests lower volatility compared to the broader market. The P/E ratio of 14.3 indicates a reasonable valuation relative to earnings.
Based on FMP financials and quantitative analysis
WES Key Highlights
- Market capitalization of $17.42B, reflecting its significant presence in the midstream energy sector.
- Profit margin of 29.9%, indicating efficient operations and profitability.
- Gross margin of 68.8%, showcasing the value-added nature of its midstream services.
- Dividend yield of 8.42%, providing a substantial income stream for investors.
- Beta of 0.70, suggesting lower volatility compared to the broader market.
Who Are WES's Competitors?
WES is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| VG Venture Global, Inc. | $10.87 | -2.38% | $26.53B | 51 |
| FTI TechnipFMC plc | $67.59 | +1.27% | $26.95B | 46 |
| CTRA Coterra Energy Inc. | $32.56 | +0.00% | $24.72B | 51 |
| VNOM Viper Energy, Inc. | $40.42 | -0.81% | $14.51B | 31 |
| NXT Nextpower Inc. | $114.83 | +1.76% | $17.26B | 83 |
| GLNG Golar LNG Limited | $49.35 | +0.69% | $5.02B | 64 |
| OKE ONEOK, Inc. | $87.27 | -0.64% | $54.98B | 64 |
| ENB Enbridge Inc. | $53.77 | -0.58% | $117.41B | 61 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are WES's Key Strengths?
- Strategic asset locations in key production regions.
- Integrated midstream services.
- Long-term contracts with producers.
- Strong financial performance with high profit and gross margins.
What Are WES's Weaknesses?
- Exposure to commodity price volatility.
- Dependence on production volumes in its operating areas.
- Potential for regulatory changes affecting midstream operations.
- Capital intensive business.
What Could Drive WES Stock Higher?
- Increased production volumes in the Permian Basin driving demand for midstream services.
- Potential acquisitions of complementary midstream assets to expand its footprint.
- Infrastructure development projects increasing capacity and service offerings.
- Expansion of NGL services capturing a larger share of the market.
What Are the Key Risks for WES?
- Financial-distress signal — its Altman Z-Score of 1.51 sits in the distress zone (elevated bankruptcy risk).
- Insider selling — insiders were net sellers of roughly $1.9M recently.
- Decline in oil and gas prices impacting revenue and profitability.
- Increased competition from other midstream companies.
- Environmental regulations restricting oil and gas production.
- Cybersecurity threats to its infrastructure.
- Disruptions in the supply chain affecting operations.
What Are the Growth Opportunities for WES?
- Increased Production Volumes: Expansion of drilling and production activities in the Permian Basin and other key regions represents a significant growth opportunity for Western Midstream Partners. As producers increase output, demand for midstream services such as gathering, processing, and transportation will rise, driving revenue growth for WES. The Permian Basin, in particular, is expected to see continued growth in oil and gas production, creating a favorable environment for midstream operators. This growth is expected to continue through 2030, with significant capital investments planned by producers.
- Strategic Acquisitions: Western Midstream Partners can pursue strategic acquisitions to expand its asset footprint and service offerings. Acquiring complementary midstream assets in key regions can enhance its competitive position and increase its market share. Potential acquisition targets include smaller midstream operators with assets that align with WES's existing infrastructure. These acquisitions can provide synergies and economies of scale, leading to improved profitability. The timeline for potential acquisitions is ongoing, with WES actively evaluating opportunities in the market.
- Infrastructure Development: Investing in new infrastructure projects, such as pipelines and processing plants, can support long-term growth. These projects can increase WES's capacity to handle growing production volumes and provide additional services to its customers. Infrastructure development can also create new revenue streams and enhance the company's competitive advantage. These projects typically have long lead times, with construction timelines ranging from 1 to 3 years. The market for midstream infrastructure is expected to grow as energy production increases.
- Expansion of NGL Services: The increasing demand for natural gas liquids (NGLs) presents a growth opportunity for Western Midstream Partners. Expanding its NGL processing and transportation capabilities can allow WES to capture a larger share of this growing market. NGLs are used in a variety of applications, including petrochemical production and as a blending component for gasoline. The demand for NGLs is expected to increase as global petrochemical production grows. WES can invest in new NGL fractionation and transportation infrastructure to capitalize on this trend. This expansion could be realized within the next 2-5 years.
- Renewable Energy Initiatives: Integrating renewable energy sources into its operations can enhance Western Midstream Partners' sustainability profile and create new growth opportunities. This can include using renewable energy to power its facilities or developing infrastructure to support the transportation and storage of renewable fuels. As the energy transition accelerates, companies that embrace renewable energy will be better positioned for long-term success. WES could explore partnerships with renewable energy developers to integrate solar or wind power into its operations. These initiatives could be implemented over the next 5-10 years.
What Opportunities Does WES Have?
- Increased production volumes in the Permian Basin and other key regions.
- Strategic acquisitions to expand its asset footprint.
- Infrastructure development to increase capacity and service offerings.
- Expansion of NGL services to capture a larger share of the market.
What Threats Does WES Face?
- Decline in oil and gas prices.
- Increased competition from other midstream companies.
- Environmental regulations restricting oil and gas production.
- Cybersecurity threats to its infrastructure.
What Are WES's Competitive Advantages?
- Strategic asset locations in key production regions, providing a competitive advantage.
- Integrated midstream services, offering a comprehensive solution for producers.
- Long-term contracts with producers, ensuring stable cash flows.
- Extensive pipeline network, creating barriers to entry for new competitors.
What Does WES Do?
Western Midstream Partners, LP, established in 2007 and based in The Woodlands, Texas, is a midstream energy company operating in the United States. Originally known as Western Gas Equity Partners, LP, the company rebranded in February 2019 to Western Midstream Partners, LP. The company's operations encompass gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing produced water. WES also engages in the buying and selling of natural gas, NGLs, and condensate. Its asset base is strategically located in Texas, New Mexico, the Rocky Mountains, and North-central Pennsylvania, enabling it to serve key production areas. Western Midstream Holdings, LLC acts as the general partner of the company, overseeing its operations and strategic direction. With a workforce of 1,511 employees, Western Midstream Partners plays a crucial role in connecting energy producers with downstream markets, facilitating the efficient flow of hydrocarbons across the country. The company's integrated midstream services support the production and distribution of essential energy resources.
What Products and Services Does WES Offer?
- Gathers natural gas from production wells.
- Compresses natural gas to increase its pressure for transportation.
- Treats natural gas to remove impurities.
- Processes natural gas to extract valuable NGLs.
- Transports natural gas, NGLs, condensate, and crude oil through pipelines.
- Gathers and disposes of produced water from oil and gas operations.
- Buys and sells natural gas, NGLs, and condensate.
How Does WES Make Money?
- Generates revenue by providing gathering, processing, and transportation services for natural gas, NGLs, condensate, and crude oil.
- Charges fees based on the volume of hydrocarbons transported and processed.
- Buys and sells natural gas, NGLs, and condensate to optimize its asset utilization.
- Operates under long-term contracts with producers, providing stable cash flows.
What Industry Does WES Operate In?
Western Midstream Partners, LP operates within the midstream energy sector, which plays a crucial role in connecting energy producers with downstream markets. The industry is characterized by the transportation, processing, and storage of natural gas, crude oil, and NGLs. Market trends include increasing demand for natural gas as a cleaner energy source and growing production in shale basins. The competitive landscape includes companies like TechnipFMC plc (FTI) and Coterra Energy Inc. (CTRA), which offer similar midstream services. Western Midstream Partners differentiates itself through its strategic asset locations and integrated service offerings.
Who Are WES's Key Customers?
- Oil and gas producers who need midstream services to transport their products to market.
- Refineries and petrochemical plants that use natural gas, NGLs, and crude oil as feedstock.
- Utilities that distribute natural gas to residential and commercial customers.
- Other midstream companies that need transportation or processing services.
Net buyingInsider Activity
Over the past six months, Western Midstream Partners, LP insiders filed 30 SEC Form 4 transactions — 11 sales and 19 purchases. On net that is roughly 289K shares acquired (about $1.9M) — insiders putting money in tends to read as conviction.
WES Valuation & Market Position
With a $17.42B market cap, Western Midstream Partners, LP sits in the large-cap segment of the market. Relative to its peer group, WES's quantitative score of 73/100 is above the peer average of 52/100.
ROE 35%Key Financial Metrics
Return on equity for Western Midstream Partners, LP stands at 35.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 8.1%, showing how much profit it generates from its asset base. WES trades at a trailing price-to-earnings ratio of 14.25, below the Energy sector average of ~17x. Its free cash flow yield is 8.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.09 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.9%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
Western Midstream Partners, LP's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.51 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Western Midstream Partners, LP revenue of about $4.39B for fiscal 2026, with EPS near $3.46. The estimate reflects 3 contributing analysts.
Company Profile
Western Midstream Partners, LP operates in the Oil & Gas Midstream industry within the Energy sector. It is headquartered in The Woodlands, US. The company is led by CEO Oscar K. Brown. WES has traded publicly since 2012.
WES Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Insiders loading up on shares lately hints they see value the market's missing. Could be a signal of positive developments ahead.
- The community's buzzing about potential infrastructure deals – if these pan out, WES could see a significant boost in revenue.
- Despite market jitters, there's a strong undercurrent of belief in WES's long-term stability as a key player in midstream energy.
- Positive chatter suggests WES is innovating in sustainable practices, potentially attracting ESG-focused investors and improving its public image.
Bear Case
- Recent insider selling (if any) might indicate concerns about the company's near-term prospects or broader industry headwinds.
- Community sentiment reveals worries about regulatory changes impacting pipeline operations, which could squeeze WES's profit margins.
- There's a growing narrative that alternative energy sources are gaining traction, posing a long-term threat to traditional midstream businesses like WES.
- Some investors are concerned about WES's debt levels and ability to navigate a potentially volatile energy market, drawing parallels to past energy sector downturns.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
WES Latest News
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Western Midstream Partners Prices $700 Million Notes Offering
MT Newswires · Jun 23, 2026
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Reported Earlier, Western Midstream Says Subsidiary Prices $700M Senior Notes Offering To Repay Revolving Credit Facility And Commercial Paper Borrowings
benzinga · Jun 23, 2026
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Western Midstream Announces Pricing of Notes Offering
gurufocus.com · Jun 22, 2026
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Western Midstream Partners Files Mixed Shelf Offering; Size Not Disclosed
benzinga · Jun 22, 2026
WES Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for WES.
Price Targets
Consensus target: $41.75
WES MoonshotScore
What does this score mean?
The MoonshotScore rates WES's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Western Midstream Partners Prices $700 Million Notes Offering
Reported Earlier, Western Midstream Says Subsidiary Prices $700M Senior Notes Offering To Repay Revolving Credit Facility And Commercial Paper Borrowings
Western Midstream Announces Pricing of Notes Offering
Western Midstream Partners Files Mixed Shelf Offering; Size Not Disclosed
Latest Western Midstream Partners, LP Analysis
Leadership: Oscar K. Brown
Unknown
Oscar K. Brown's detailed background information is not available in the provided context. Further research would be needed to provide a comprehensive overview of his career history, education, and previous roles.
Track Record: Oscar K. Brown's specific achievements and strategic decisions as CEO are not available in the provided context. Further research would be needed to evaluate his track record and contributions to the company's performance.
What Investors Ask About Western Midstream Partners, LP (WES) — Energy
What does Western Midstream Partners, LP do?
Western Midstream Partners, LP is a midstream energy company that focuses on providing essential services to oil and gas producers. These services include gathering, compressing, treating, processing, and transporting natural gas, NGLs, condensate, and crude oil. The company operates primarily in the United States, with assets strategically located in key production regions such as Texas, New Mexico, the Rocky Mountains, and North-central Pennsylvania. By connecting producers with downstream markets, Western Midstream Partners plays a vital role in the energy value chain, facilitating the efficient flow of hydrocarbons across the country.
What do analysts say about WES stock?
Analyst consensus on Western Midstream Partners, LP suggests a generally positive outlook, driven by its strategic asset base and strong financial performance. Key valuation metrics, such as its P/E ratio of 14.3 and dividend yield of 8.42%, are considered attractive. Growth considerations include increased production volumes in its operating areas and potential acquisitions to expand its asset footprint. However, analysts also note potential risks, such as commodity price volatility and regulatory changes affecting midstream operations. The company's beta of 0.70 suggests lower volatility compared to the broader market.
What are the main risks for WES?
Western Midstream Partners, LP faces several risks inherent to the midstream energy sector. Commodity price volatility can impact revenue and profitability, particularly if oil and gas prices decline significantly. Increased competition from other midstream companies can put pressure on margins. Environmental regulations restricting oil and gas production could reduce demand for its services. Cybersecurity threats pose a risk to its infrastructure and operations. Additionally, disruptions in the supply chain could affect its ability to maintain and expand its assets. These risks require careful monitoring and mitigation strategies.
What are the key factors to evaluate for WES?
Western Midstream Partners, LP (WES) holds an AI score of 73/100 (high). P/E: 14.3x vs the S&P 500's ~20-25x. Analysts target $41.75 (-6%). Not financial advice.
How frequently does WES data refresh on this page?
WES prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven WES's recent stock price performance?
Western Midstream Partners, LP (WES) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strategic asset locations in key production regions. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider WES overvalued or undervalued right now?
Western Midstream Partners, LP (WES) trades at 14.3x earnings. Analysts target $41.75 (-6%) — near fair value. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying WES?
Before investing in Western Midstream Partners, LP (WES), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- CEO background and track record information is limited.
- Future projections are based on current market conditions and are subject to change.