Western Midstream Partners, LP (WES)

In the past six months, WES's stock price has been impacted by several events. WES reported Q3 2025 earnings per share (EPS) of $0.87, meeting consensus estimates, and quarterly revenue increased by 7.8% year-over-year. WES completed its acquisition of Aris Water Solutions, Inc. in October 2025. WES announced quarterly cash distributions of $0.910 per unit for Q3 2025 and Q4 2025. Western Midstream announced renegotiated natural gas gathering and processing contracts in the Delaware Basin with a subsidiary of Occidental Petroleum, converting them to fixed-fee terms, and also added new fixed-fee agreements with ConocoPhillips. Royal Bank of Canada increased its price objective for WES from $39.00 to $42.00, maintaining a "sector perform" rating. WES's stock price passed above its 200-day moving average in early February 2026, and following its Q3 2025 earnings release, the stock drifted 9.2% higher.

Western Midstream Partners' business model relies on fee-based contracts, protecting it from commodity price volatility, but demand for its services is tied to upstream production levels. General seasonality in the energy sector can influence production. The company's focus on high-growth basins and long-term contracts with minimum volume commitments aim to provide stable cash flow, mitigating some of the direct impacts of short-term demand fluctuations. The produced water segment is anticipated to grow significantly, driven by the continuous need for water management in drilling operations.

Western Midstream Partners, LP (WES) is a midstream energy infrastructure company that owns, operates, and develops an integrated network of assets for crude oil, natural gas, and produced water services. WES generates revenue through fee-based contracts, insulating it from commodity price volatility. The company provides natural gas services, crude oil and NGLs services, and produced water management. WES also buys and sells natural gas, NGLs, and condensate.

Western Midstream Partners' core assets and operations are strategically located in key onshore basins across the United States. Its primary areas of operation include the Delaware Basin with 39 processing and treating facilities and 3,497 miles of pipeline, the DJ Basin with five active gas processing plants and a Central Oil Stabilization Facility (COSF), and the Powder River Basin. The company also has assets and investments in South Texas, Utah, and Southwest Wyoming.

Western Midstream Partners emphasizes its commitment to safety, sustainability, and environmental stewardship. The company's mission is to improve lives through safe, sustainable, and efficient energy delivery, and its vision is to lead the North American midstream sector in returns by combining operational reliability with innovative solutions. The acquisition of Aris Water Solutions expanded WES's capabilities and solidified its position as a leading three-stream midstream provider. The WES cooking team won the Permian Basin BBQ Cook-Off and donated to the WTX Food Bank, showcasing community involvement. The commissioning of the North Loving plant ahead of schedule increased West Texas gas processing capacity, demonstrating operational efficiency and growth.

Western Midstream Partners LP has a concentrated ownership structure. Occidental Petroleum Corporation holds a significant corporate interest, representing 40.61% of the outstanding common units, and also manages the company as its general partner. Major institutional owners include ALPS Advisors, Inc., Invesco Ltd., Goldman Sachs Asset Management, L.P., Mirae Asset Global Investments Co., Ltd., Tortoise Capital Advisors, L.L.C., Neuberger Berman Investment Advisers LLC, Chickasaw Capital Management, LLC, Harvest Fund Advisors LLC and Kayne Anderson Capital Advisors, L.P.