Western Midstream Partners, LP (WES)

In the past six months, WES announced its third-quarter 2025 results with a net income of $331.7 million and a record adjusted EBITDA of $633.8 million, driven by optimized operating expenses. WES completed the acquisition of Aris Water Solutions, expected to expand its asset portfolio and reduce dependence on energy market volatility. Analyst ratings and price target adjustments have influenced the stock, with RBC Capital raising its price target to $42.00 and Wells Fargo & Company raising its price target to $40.00. Citigroup initiated coverage with a "Neutral" rating and a $39.00 price target. Mizuho increased its price target to $46.00, while Morgan Stanley lowered its price target to $39.00. The company declared a quarterly cash distribution of $0.910 per unit.

Demand for Western Midstream Partners' products and services, particularly natural gas, exhibits seasonality, with consumption typically increasing in colder weather due to higher heating demand. WES has noted expected seasonality associated with its utility expense in the summer months due to higher estimated electricity pricing and greater energy usage. While midstream companies generally have fee-based business models, natural gas processing and NGL business lines can still carry some commodity price exposure. The company's operational framework aims to provide stable volumes and revenue streams through long-term relationships with major producers.

Western Midstream Partners, LP (WES) is a master limited partnership involved in gathering, compressing, treating, processing, and transporting natural gas, condensate, NGLs, and crude oil, as well as disposing of produced water. The company operates in the Energy sector, specifically in the Oil & Gas Midstream industry, and its business model is largely fee-based, protecting cash flows from commodity price volatility.

Western Midstream Partners' assets are strategically located in key energy-producing regions across the United States, including the Delaware Basin in West Texas and New Mexico, and the DJ Basin in northeastern Colorado. Additional assets and investments are situated in the Powder River Basin in Northeast Wyoming, South Texas, and Utah. In Utah, WES holds a 75% interest in the Chipeta complex, providing NGL access to fractionation and storage facilities in Mont Belvieu, Texas. In South Texas, assets include the Brasada complex and the Springfield gathering system. Wyoming operations encompass natural gas processing plants and amine treating, along with operating the Thunder Creek NGL Pipeline and the Red Desert complex.

Western Midstream Partners has maintained a generally positive operational reputation, focusing on safety, sustainability, and environmental stewardship. The company emphasizes ensuring the reliability and performance of its systems, creating sustainable cost efficiencies, enhancing its safety culture, and protecting the environment. WES's sustainability reports have an aggregate usefulness score of 4.7 out of 5.0. A recent positive event was winning the Permian Basin BBQ Cook-Off and donating to the WTX Food Bank. The acquisition of Aris Water Solutions has also been highlighted as a strategic move to become a midstream leader in produced water management.

Western Midstream Partners has a diverse ownership structure, primarily consisting of institutional investors, with some insider and retail ownership. Occidental Petroleum Corp. holds a significant stake, owning 40.61% of the shares. Anadarko Petroleum Corp is also noted as a large individual shareholder. Major institutional owners include Alps Advisors Inc., AMLP - ALERIAN MLP ETF, Invesco Ltd., Blackstone Group Inc, Goldman Sachs Group Inc, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., Tortoise Capital Advisors, L.l.c., Neuberger Berman Group LLC, and Chickasaw Capital Management Llc. Other notable institutional investors include The Vanguard Group, Inc., BlackRock Fund Advisors, Kayne Anderson Capital Advisors LP, and State Street Global Advisors, Inc..