Income investing requires patience in selecting quality companies with well-covered distributions, offering high and steady income streams. Western Midstream offers an 8.7% yield, strong operational metrics, and investment-grade credit ratings, supported by fee-based contracts and prudent financial management. W.P. Carey provides a 6.3% yield, high occupancy rates, long lease terms, and inflation-resistant rent escalations, with strategic growth through industrial property acquisitions.
Western Midstream offers a high, tax-deferred yield and strong fundamentals, with potential for increased distributions and enhanced payouts in 2025. WES's affiliation with Occidental Petroleum (OXY) poses risks due to potential conflicts of interest and uncertainty about OXY's intentions to divest its WES stake. Recent developments, including OXY's partial sale of WES units and CEO transitions, have created market uncertainty but also potential investment opportunities.
Western Midstream Partners continues to hit throughput records in the Delaware basin, but slower growth is expected going forward. With the moderation in growth, I am slightly reducing my projections for EBITDA and distributions next year. WES' 9.2% forward distribution yield remains sustainable and could grow to 10% by 2027.
Western Midstream offers a high 9% yield, benefiting from rising gas production in the Permian Basin. The company is expanding its gas gathering and processing capacity, particularly in the Delaware Basin, which is expected to drive long-term growth. Despite resilient earnings, Western Midstream's distribution coverage is low, making it a higher-risk investment compared to peers like Enterprise Products.
Western Midstream Partners, LP Common Units (NYSE:WES ) Q3 2024 Earnings Conference Call November 7, 2024 2:00 PM ET Company Participants Daniel Jenkins - Director of Investor Relations Oscar Brown - President & Chief Executive Officer Danny Holderman - Chief Operating Officer Kristen Shults - Chief Financial Officer Conference Call Participants Jeremy Tonet - JPMorgan Manav Gupta - UBS Keith Stanley - Wolfe Research Zach Van Everen - TPH Ned Baramov - Wells Fargo Neel Mitra - Bank of America Operator Good afternoon, my name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners Third Quarter 2024 Earnings Conference Call.
Western Midstream (WES) closed at $37.49 in the latest trading session, marking a +0.27% move from the prior day.
In the latest trading session, Western Midstream (WES) closed at $37.98, marking a -1.17% move from the previous day.
In the closing of the recent trading day, Western Midstream (WES) stood at $38.32, denoting a -1.03% change from the preceding trading day.
Western Midstream Partners offers a high dividend yield of 9.1%, supported by a strong balance sheet and high demand for its pipeline capacity. The company boasts a return on assets of 13%, significantly higher than its peers, and maintains a low leverage ratio, enhancing its financial stability. Western Midstream's free cash flow is expected to grow by 19% this year, driven by ongoing investments and increasing transportation volumes.
Western Midstream (WES) concluded the recent trading session at $38.80, signifying a -1.62% move from its prior day's close.
Here is how Western Midstream (WES) and Williams Companies, Inc. (The) (WMB) have performed compared to their sector so far this year.
In the latest trading session, Western Midstream (WES) closed at $38.51, marking a +0.65% move from the previous day.