Western Midstream has been flat for almost 2 years. Meanwhile, its business profile has improved, and distributions have become even more attractive. Currently, WES offers ~9.2% yield, which is underpinned by resilient fundamentals and, importantly, decent growth (the market also agrees with this). In the article I detail why WES is a clear buy for durable income-focused investors.
Western Midstream Partners LP strengthens its growth outlook with the $1.5B acquisition of Aris Water Solutions, expanding its water treatment segment. WES maintains a strong financial position, sector-standard leverage, and offers a well-covered, peer-leading 9.3% yield to unitholders. The Aris acquisition is expected to boost WES's coverage ratio and future distributions, supporting a fair value estimate of $47.5 per unit.
Western Midstream Partners, LP offers an eye-catching dividend yield of nearly 9.5%, attracting investor attention. High yields like WES's often signal underlying risks, but in this case, the structure as an MLP may be the main reason for caution. WES's dividend appears sustainable, with cash flows driven by pipeline fees rather than volatile commodity prices, supporting distribution stability.
Western Midstream Partners is rated a 'Buy' due to its expanding asset portfolio, strong financials, and strategic growth in the Delaware River Basin. WES benefits from the Aris Water Solutions acquisition, new infrastructure projects, and a diversified customer base, supporting robust free cash flow and reduced energy market dependence. The partnership offers an attractive 9.18% forward yield and strong adjusted EBITDA growth, though investors should be aware of MLP-specific tax implications.
Western Midstream Partners, LP Common Units ( WES ) Q3 2025 Earnings Call November 5, 2025 9:00 AM EST Company Participants Daniel Jenkins - Director of Investor Relations - Western Midstream Holdings LLC Oscar Brown - President, CEO & Director - Western Midstream Holdings LLC Daniel Holderman - Senior VP & COO of Western Midstream Holdings, LLC Kristen Shults - Senior VP & CFO - Western Midstream Holdings LLC Conference Call Participants Keith Stanley - Wolfe Research, LLC Gabriel Moreen - Mizuho Securities USA LLC, Research Division Jeremy Tonet - JPMorgan Chase & Co, Research Division Spiro Dounis - Citigroup Inc., Research Division Presentation Operator Good morning. My name is Joanna, and I will be your conference operator today.
In the closing of the recent trading day, Western Midstream (WES) stood at $37.65, denoting a +1.05% move from the preceding trading day.
Western Midstream Partners offers a compelling value opportunity with a leading 9.32% distribution yield and strong profitability metrics. WES's recent acquisition of Aris Water Solutions and organic growth projects expand its footprint in the Delaware Basin, enhancing future cash flow and EBITDA. WES trades at a lower EV/EBITDA than peers, boasts robust free cash flow, and benefits from high asset utilization via Occidental Petroleum.
Western Midstream offers a high single-digit dividend yield, supported by strong cash flow and disciplined leverage, making it an attractive income investment. The company posted robust quarterly growth, with record adjusted EBITDA and increased volumes across natural gas, NGL, and crude oil segments. Significant expansion projects, including the North Loving II and Pathfinder pipelines, position Western Midstream for future growth and enhanced processing capacity.
Western Midstream plans at least $1.1B capex in 2026, boosted by its Aris deal and North Loving expansion to drive Delaware Basin growth.
The company has generated more than 560% total return during the last five years, which surpasses both MLP peers and S&P 500 performance. The company maintains strong fundamentals and delivers record adjusted EBITDA of $618M, while paying quarterly distributions of $0.91. The $2B acquisition of Aris Water enhances WES's infrastructure, while creating opportunities for increased long-term free cash flow.
Western Midstream Partners, LP Common Units (NYSE:WES ) Q2 2025 Earnings Conference Call August 7, 2025 10:00 AM ET Company Participants u - Corporate Participant h - Corporate Participant s - Corporate Participant Daniel Edwards Jenkins - Director of Investor Relations—Western Midstream Holdings LLC Daniel P. Holderman - Senior VP & COO of Western Midstream Holdings, LLC Jonathon E.
While the top- and bottom-line numbers for Western Midstream (WES) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.