Western Midstream (WES) offers a robust >9% distribution yield, supported by strong operational performance and disciplined cost management. WES achieved record adjusted EBITDA for three consecutive quarters, with 6% YoY growth and significant O&M expense reductions. Growth projects like North Loving II and the Pathfinder Pipeline underpin mid-single-digit EBITDA growth guidance for 2026 and future distribution increases.
The United States operates more than three million miles of pipelines—by far the largest and most strategically important energy network in the world. Key energy basins are increasingly becoming gas-rich and water-intensive. With a 9% yield backed by long-term contracts and already-secured volume growth, Western Midstream Partners is quietly emerging as one of the most reliable and underappreciated income generators in the sector.
Western Midstream offers stable EBITDA of ~$2.5–2.7B for 2026, underpinned by active cost and capital management. WES combines a ~9% yield with ~5% embedded EBITDA growth, supporting early double-digit total returns for income-focused investors. Fee-based and MVC contract structures, alongside structural cost reductions, anchor WES's resilience to volume and commodity price volatility.
Western Midstream (WES) concluded the recent trading session at $40.94, signifying a -1.16% move from its prior day's close.
Western Midstream (WES) closed at $41.16 in the latest trading session, marking a +1.01% move from the prior day.
Western Midstream (WES) closed the most recent trading day at $41.78, moving 2.25% from the previous trading session.
Since my last article, Western Midstream has handily outperformed the S&P 500 index, all while being a money-printing machine. Beyond some near-term headwinds in 2026, there are still plenty of reasons to expect healthy growth in 2027 and beyond. The partnership's balance sheet is investment-grade, and its 9% distribution yield is safely covered.
Western Midstream (WES) reported earnings 30 days ago. What's next for the stock?
Western Midstream (WES) concluded the recent trading session at $41.46, signifying a +1.1% move from its prior day's close.
Western Midstream Partners is rated Strong Buy, driven by record EBITDA, robust free cash flow, and a leading 8.7%+ yield. WES benefits from surging energy demand, structural tailwinds from AI/data centers, LNG exports, and the Iran-Hormuz crisis, positioning Delaware Basin assets for outsized growth. Recent contract simplification with Occidental and ConocoPhillips, plus Oxy's reduced stake, de-risk the revenue model and support unitholder value.
Western Midstream Partners misses Q4 earnings and revenue estimates as lower natural gas, oil and NGL throughputs, and higher costs weigh on the results.
Western Midstream Partners, LP Common Units (WES) Discusses Fourth Quarter Performance, Cost-Cutting Initiatives, and Growth Strategy Progress Transcript