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Western Midstream Partners LP (WES)



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Upturn Advisory Summary
06/20/2025: WES (2-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $40
1 Year Target Price $40
2 | Strong Buy |
1 | Buy |
8 | Hold |
1 | Sell |
1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 34.61% | Avg. Invested days 74 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 14.70B USD | Price to earnings Ratio 11.54 | 1Y Target Price 40 |
Price to earnings Ratio 11.54 | 1Y Target Price 40 | ||
Volume (30-day avg) 13 | Beta 1.08 | 52 Weeks Range 32.78 - 41.37 | Updated Date 06/30/2025 |
52 Weeks Range 32.78 - 41.37 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 9.44% | Basic EPS (TTM) 3.34 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 35.2% | Operating Margin (TTM) 42.97% |
Management Effectiveness
Return on Assets (TTM) 7.86% | Return on Equity (TTM) 39.99% |
Valuation
Trailing PE 11.54 | Forward PE 11.06 | Enterprise Value 21590517078 | Price to Sales(TTM) 4.05 |
Enterprise Value 21590517078 | Price to Sales(TTM) 4.05 | ||
Enterprise Value to Revenue 5.94 | Enterprise Value to EBITDA 9.02 | Shares Outstanding 381327008 | Shares Floating 214328857 |
Shares Outstanding 381327008 | Shares Floating 214328857 | ||
Percent Insiders 0.32 | Percent Institutions 84 |
Analyst Ratings
Rating 4 | Target Price 40 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 8 | Sell 1 | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Western Midstream Partners LP

Company Overview
History and Background
Western Midstream Partners LP (WES) was formed in 2007 by Anadarko Petroleum Corporation. It focuses on gathering, processing, treating, and transporting natural gas, natural gas liquids (NGLs), crude oil, and condensate.
Core Business Areas
- Gathering: Collecting natural gas, crude oil, and condensate from wellheads and transporting it to processing facilities.
- Processing: Removing impurities and separating natural gas into its components (e.g., methane, ethane, propane).
- Transportation: Moving processed natural gas, NGLs, crude oil, and condensate through pipelines.
- Treating: Removes impurities from natural gas.
Leadership and Structure
The General Partner of Western Midstream Partners LP is Western Midstream Holdings, LLC. The leadership team includes Michael Ure (CEO) and Kristen Shaughnessy (CFO). The company operates as a master limited partnership (MLP).
Top Products and Market Share
Key Offerings
- Natural Gas Gathering: Collecting natural gas from wellheads. Market share data is difficult to pinpoint exactly for a single company. Competitors include Kinder Morgan (KMI), MPLX LP (MPLX). Revenue difficult to pinpoint exactly per segment, but is a significant part of total revenue.
- Natural Gas Processing: Processing natural gas to remove impurities and separate components. Again, market share is hard to pinpoint. Competitors include Energy Transfer (ET) and Williams Companies (WMB). Revenue difficult to pinpoint exactly per segment, but is a significant part of total revenue.
- Crude Oil Gathering: Collecting crude oil from wellheads. Competitors include Enterprise Products Partners L.P. (EPD).
Market Dynamics
Industry Overview
The midstream sector transports and processes oil and natural gas, linking producers with consumers. It is affected by commodity prices, production levels, and regulatory changes.
Positioning
Western Midstream Partners LP operates primarily in the Rocky Mountain region, and the Delaware Basin. It has competitive advantages through its strategic asset locations and long-term contracts with producers.
Total Addressable Market (TAM)
The midstream oil and gas market is multi-billion dollar globally. Western Midstream Partners LP captures a portion of the market through its infrastructure and operations in key production areas.
Upturn SWOT Analysis
Strengths
- Strategic asset locations
- Long-term contracts
- Integrated service offerings
- Experienced management team
Weaknesses
- Sensitivity to commodity price fluctuations
- Dependence on producers' drilling activity
- Regulatory risk
- MLP structure can complicate financing
Opportunities
- Expansion into new geographic areas
- Acquisition of complementary assets
- Increased demand for natural gas
- Development of new infrastructure projects
Threats
- Decreased drilling activity
- Increased regulatory scrutiny
- Competition from other midstream companies
- Changes in commodity prices
Competitors and Market Share
Key Competitors
- KMI
- MPLX
- ET
- EPD
- WMB
Competitive Landscape
Western Midstream Partners LP competes with other midstream companies for gathering, processing, and transportation contracts. Its competitive advantages include its strategic asset locations and integrated service offerings. Disadvantages can include its smaller scale compared to some larger competitors.
Major Acquisitions
Merit Energy Company
- Year: 2020
- Acquisition Price (USD millions): 380
- Strategic Rationale: Acquired gas gathering and processing assets to expand footprint in the Powder River Basin.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by acquisitions, organic expansion, and increased throughput volumes.
Future Projections: Future growth is expected to be driven by increased production in the Delaware and Rocky Mountain region, expansion of existing infrastructure, and potential acquisitions. Analyst estimates are needed for precise projections.
Recent Initiatives: Recent initiatives include optimizing operations, expanding gathering and processing capacity in the Delaware Basin, and pursuing strategic acquisitions.
Summary
Western Midstream Partners LP is a midstream company that has potential to grow. Its strategic assets and long-term contracts provide a solid foundation. The company is exposed to commodity price fluctuations and regulatory risks. Expansion into new areas and further infrastructure development are key for future success. Given the volatile nature of the oil and gas industry, cautious monitoring of market conditions is crucial.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC filings
- Industry reports
- Analyst estimates
- Company Website
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Financial data and market share are estimates and may not be precise. Please conduct thorough research and consult with a financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Western Midstream Partners LP
Exchange NYSE | Headquaters The Woodlands, TX, United States | ||
IPO Launch date 2008-05-09 | President, CEO & Director - Western Midstream Holdings LLC Mr. Oscar K. Brown | ||
Sector Energy | Industry Oil & Gas Midstream | Full time employees 1511 | Website https://www.westernmidstream.com |
Full time employees 1511 | Website https://www.westernmidstream.com |
Western Midstream Partners, LP, together with its subsidiaries, operates as a midstream energy company primarily in the United States. The company is involved in gathering, compressing, treating, processing, and transporting of natural gas; gathering, stabilizing, and transporting of condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing of produced water. It also buys and sells natural gas, NGLs, and condensate. The company operates assets located in Texas, New Mexico, and the Rocky Mountains. Western Midstream Holdings, LLC operates as the general partner of the company. The company was formerly known as Western Gas Equity Partners, LP and changed its name to Western Midstream Partners, LP in February 2019. Western Midstream Partners, LP was incorporated in 2007 and is based in The Woodlands, Texas.
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