Western Midstream Partners (NYSE: WES ) has suffered a significant valuation drawdown in the last several days which creates a new opportunity for dividend investors to build a position in this leading midstream platform. Western Midstream Partners should not beAnalyst’s Disclosure: I/we have a beneficial long position in the shares of WES, KMI, ENB, EPD, MPLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving comp ...

Western Midstream (WES) closed the most recent trading day at $41.61, moving +1.41% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.87%.The the stock of oil and gas transportation and storage company has risen by 5.99% in the past month, leading the Oils-Energy sector's gain of 3.06% and the S&P 500's loss of 5.28%.Market participants will be closely following the financial res ...

A month has gone by since the last earnings report for Western Midstream (WES) . Shares have added about 2.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Western Midstream due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?I ...

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Core Viewpoint - Western Midstream is facing a significant decline in earnings per share (EPS) while experiencing a modest increase in revenue, indicating potential challenges ahead for the company [3][4]. Company Performance - The stock price of Western Midstream closed at $41.37, reflecting a slight increase of +0.24% from the previous trading day, which is lower than the S&P 500's daily gain of 1.77% [1]. - Over the last month, the company's shares increased by 0.34%, which is below the Oils-Energy sector's gain of 0.43% and outperformed the S&P 500's loss of 5.73% [2]. Earnings Estimates - Analysts anticipate an EPS of $0.83 for the upcoming earnings disclosure, representing a 43.54% decline compared to the same quarter last year [3]. - The consensus estimate projects revenue of $945.11 million, reflecting a 6.46% increase from the equivalent quarter last year [3]. Fiscal Year Projections - For the entire fiscal year, the Zacks Consensus Estimates project earnings of $3.41 per share and revenue of $3.79 billion, indicating changes of -15.17% and +5.21%, respectively, from the prior year [4]. Analyst Sentiment - Recent changes to analyst estimates for Western Midstream suggest a favorable outlook on the company's business health and profitability, as positive revisions often reflect improved short-term business dynamics [5]. Valuation Metrics - Western Midstream is currently trading at a Forward P/E ratio of 12.11, which is a discount compared to the industry's average Forward P/E of 23.29 [8]. - The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector and currently holds a Zacks Industry Rank of 163, placing it in the bottom 36% of over 250 industries [8].

In the latest market close, Western Midstream (WES) reached $41.85, with a +0.02% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.33%.The the stock of oil and gas transportation and storage company has risen by 1.16% in the past month, leading the Oils-Energy sector's loss of 1.22% and the S&P 500's loss of 7.48%.The upcoming earnings release of Western Midstream will be of gr ...

Group 1 - Western Midstream (NYSE: WES) has reached debt levels that management has guided to, indicating a shift to a slow growth mindset for the company [2] - The company, like many midstream firms, offers a generous distribution, which suggests potential for income generation despite the slow growth outlook [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis provided in the article focuses on identifying undervalued companies within the oil and gas sector, including a detailed examination of balance sheets, competitive positions, and development prospects [1] - The service offered includes exclusive analysis for members, which is not available on the free site, highlighting the depth of research conducted [1]

Group 1 - Western Midstream Partners, LP (WES) will release a post-earnings interview on its website providing insights into its Q4 2024 results and 2025 outlook [1] - WES is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across several states including Texas, New Mexico, Colorado, Utah, and Wyoming [2] - The company engages in various activities such as gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, and crude oil [2] Group 2 - A significant portion of WES's cash flows is secured through fee-based contracts, which protect the company from direct exposure to commodity price volatility [2] - WES plans to participate in several investor conferences in 2025, including Barclays IG Energy & Utilities Corporate Days on March 5, NYSE Virtual Energy & Utilities Day on March 20, and the 22nd Annual Energy Infrastructure CEO & Investor Conference from May 20 to 22 [3]

Western Midstream Partners, LP Common Units (NYSE:WES) Q4 2024 Results Conference Call February 27, 2025 2:00 PM ET Company Participants Daniel Jenkins - Director of Investor Relations Oscar Brown - Chief Executive Officer Danny Holderman - Chief Operating Officer Kristen Shults - Chief Financial Officer Jon VandenBrand - SVP of Commercial Conference Call Participants Spiro Dounis - Citi Keith Stanley - Wolfe Research Noah Katz - JPMorgan Manav Gupta - UBS Ned Baramov - Wells Fargo Operator Good afternoon. ...

Company Structure and Operations - Western Midstream Partners, LP owns a 98.0% limited partner interest in Western Midstream Operating, LP[27] - The company is engaged in gathering, compressing, treating, processing, and transporting natural gas, as well as gathering and disposing of produced water[29] - The company’s operations are organized into a single segment that engages in gathering, compressing, treating, processing, and transporting natural gas, crude oil, and produced water[37] - The company’s assets include both owned assets and ownership interests accounted for under the equity method[28] - The company’s operations include the sale of natural gas, NGLs, and condensate on behalf of itself and its customers[29] Financial Position and Credit Facilities - The company has a $2.0 billion senior unsecured revolving credit facility[24] - As of December 31, 2024, the company had approximately $2.0 billion in effective borrowing capacity under the revolving credit facility (RCF), providing liquidity for expansion and acquisition opportunities[47] - The company requires $341.0 million in available cash per quarter to maintain its announced distribution of $0.87500 per unit, totaling $1,364.0 million annually[163] - The company's cash flows, rather than profitability, primarily determine the cash available for distribution, which may fluctuate from quarter to quarter[162] - The company has a buyback program of $1.25 billion that ends on December 31, 2024[24] Acquisitions and Sales - The company sold its 15% interest in Cactus II Pipeline LLC in November 2022[24] - The company acquired Meritage Midstream Services II, LLC on October 13, 2023[24] - The acquisition of Meritage was completed in October 2023 for $885.0 million, funded by cash and proceeds from a $600.0 million senior note issuance[42] - The company closed the sale of its 33.75% interest in the Marcellus Interest systems for proceeds of $206.2 million, resulting in a net gain of $63.9 million recorded in the consolidated statement of operations[40] - In the first quarter of 2024, the company sold equity investments including a 25.00% interest in Mont Belvieu JV for combined proceeds of $588.6 million, resulting in a net gain of $239.7 million[41] Revenue Sources and Customer Dependence - For the year ended December 31, 2024, 60% of total revenues were attributable to production owned or controlled by Occidental, highlighting the company's reliance on this key partner[51] - Occidental accounts for over 50% of the company's revenues related to natural gas, crude oil, NGLs, and produced water, with 60% of total revenues and 91% of throughput for crude oil and NGLs attributable to Occidental's production[146] - A material reduction in Occidental's production could lead to a significant decline in the company's revenues and cash available for distribution[146] - The company reported that 95% of its wellhead natural-gas volume and 100% of its crude-oil and produced-water throughput were serviced under fee-based contracts, providing a stable revenue stream[47] Growth and Expansion Plans - The company plans to enhance growth through systematic acquisition activity while controlling operating, capital, and administrative costs to maintain sustainable distribution growth[45] - The Mentone Train III processing plant was completed, adding 300 MMcf/d of processing capacity to the West Texas complex[61] - The North Loving Plant is under construction with a capacity of 250 MMcf/d, expected to be completed in Q1 2025, bringing total processing capacity of the West Texas complex to 2,190 MMcf/d[63] - Three oil-treating facilities were brought online, adding 45 MBbls/d of treating capacity to the DBM oil system[64] - Several produced-water disposal wells were added, increasing disposal capacity by 210 MBbls/d[65] Regulatory and Compliance Risks - Proposed revisions to pipeline safety regulations by PHMSA could increase compliance costs and operational delays for the company[105] - The company is subject to civil penalties for violations of CFTC and FTC regulations, which can exceed $1.0 million per day per violation[112] - The company’s natural-gas gathering operations may face increased costs and capital expenditures due to potential changes in state or federal regulations[113] - The company is required to comply with ratable-take and common-purchaser statutes, which prohibit discrimination among natural gas producers[114] - FERC's anti-manipulation rules apply to non-jurisdictional entities in connection with gas sales, purchases, or transportation subject to FERC jurisdiction[116] Environmental and Climate Change Regulations - The company has incurred and will continue to incur significant operating and capital expenditures to comply with environmental regulations, which may materially affect its financial condition and results of operations[126] - The EPA's new regulations for ground-level ozone standards could require the installation of new emission controls, significantly increasing capital expenditures and operating costs[127] - Colorado's Senate Bill 24-229 mandates a 50% reduction in oil and gas NO emissions by 2030 relative to 2017 levels, potentially increasing compliance costs for the company[128] - The U.S. aims to reduce net GHG emissions by 50% - 52% below 2005 levels by 2030, which may impose additional costs and affect demand for oil and gas[128] - Increased regulation related to climate change and air emissions could raise operating costs and reduce demand for the company's services, impacting financial performance[187] Operational Risks and Challenges - The company faces various risks, including commodity-price risks and regulatory changes, which could materially affect its financial performance and ability to pay distributions[140] - The company is exposed to credit risk from third-party customers, and non-payment could reduce its ability to make distributions to unitholders[166] - Sustained low prices for natural gas, NGLs, or oil could adversely affect the company's business and cash distributions[155] - The company faces inflationary pressures on costs for labor, materials, and services, which could negatively impact profitability[161] - The company's limited geographic diversification means that adverse developments in key operational areas could disproportionately affect its financial results and cash distributions to unitholders[171] Governance and Partnership Structure - The general partner's liability is limited, which may affect the company's ability to manage obligations and could reduce cash available for distribution to unitholders[204] - The company may issue additional units without unitholder approval, potentially diluting existing ownership interests and affecting market prices[209] - Unitholders may be liable to repay distributions if they were wrongfully distributed, with a three-year liability period for those aware of the violation[211] - The general partner has limited liability for decisions made in good faith, protecting them from monetary damages unless proven otherwise[212] - The partnership's taxation as a flow-through entity is crucial; any change in status could significantly reduce cash available for distribution[215]