Start here if you're new
what it is
Western Midstream moves, processes, and treats oil and gas through pipelines and plants, then sends a big chunk of the cash to you.
how it gets paid
Last year Western Midstream made $3.8B in revenue. natural gas gathering was the main engine at $1.4B, or 37% of sales.
why it's growing
Revenue grew 6.6% last year. The 45.98% EPS miss matters most because high-yield stocks get punished fast when investors start doubting payout coverage.
what just happened
Revenue hit $2.8B, but EPS came in at $0.47 versus a $0.87 estimate, a 45.98% miss.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
55/100 earnings predictability — expect surprises
12.1x trailing p/e — the market's not buying it — or you found a deal
9.4% dividend yield — cash in your pocket every quarter
20.0% return on capital — nothing to write home about
xvary composite: 51/100 — below average
What they do
Western Midstream moves, processes, and treats oil and gas through pipelines and plants, then sends a big chunk of the cash to you.
Pipes win because once they are in the ground, replacing them is miserable. Western Midstream has 14,371 miles of pipeline across the Rockies, Texas, and New Mexico, and that network already connects producers to processing and takeaway. Midstream assets → the pipes and plants between the well and the buyer → so what: your customer is far less likely to switch when the steel is already buried.
How they make money
$3.8B
annual revenue · their business grew +6.6% last year
natural gas gathering
$1.4B
natural gas processing
$1.1B
produced water handling
$0.6B
crude oil and NGL transportation
$0.5B
treating and other services
$0.2B
The products that matter
gathers and processes natural gas
Gathering & Processing
$2.5B · 66% of segment revenue shown
it's the largest business here at $2.5B, and that scale is why producer activity matters so much to the whole WES story.
core cash engine
moves oil and gas through pipelines
Transportation & Logistics
$1.3B · 34% of segment revenue shown
this $1.3B segment is the steadier side of the business. it turns the asset base into fee-like cash flow when volumes stay healthy.
stability piece
Key numbers
$3.90
fy2027 eps est
$5B
fy2029 rev est
12.1x
trailing p/e
9.4%
dividend yield
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $6.9B (29% of capital)
- net profit margin 40.0% — keeps 40 cents of every dollar in revenue
- return on equity 68% — $0.68 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in WES 3 years ago → it's now worth $19,730.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Revenue hit $2.8B, but EPS came in at $0.47 versus a $0.87 estimate, a 45.98% miss.
That is the quiet part. Sales exploded 195% vs. prior year, yet profit still missed badly. Revenue was loud. Earnings quality was not.
$2.8B
revenue
$0.47
eps
46.0%
surprise
the number that mattered
The 45.98% EPS miss matters most because high-yield stocks get punished fast when investors start doubting payout coverage.
source: company earnings report, 2026
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What could go wrong
the #1 risk is delaware basin volume growth failing to offset weaker pricing and activity.
high
organic growth slowdown
the cleanest evidence is already in the guide. 2026 adjusted EBITDA of $2.5B–$2.7B follows a 2025 result of $2.7B. if the business cannot grow after a record year, the market will keep treating the 9.4% yield as compensation, not opportunity.
caps distribution growth and keeps the valuation multiple stuck
med
high-yield skepticism
a 9.4% yield is attractive if you want income. it is also the market's way of saying it wants to be paid for uncertainty. at 12.1x earnings, WES is not being valued like a business with a trusted growth runway.
income holds up, but share price upside can stay limited
low
deal and leverage risk
reported interest in Kinetik Holdings adds a second question on top of the operating story. with $6.9B in long-term debt already on the balance sheet, any large deal would need to improve the math quickly.
more debt or integration friction could dilute the income case
the guide midpoint is $2.6B versus $2.7B in 2025, so the current risk picture is not abstract — even modest operating slippage can pressure a stock investors mostly own for its payout.
source: institutional data · regulatory filings · risk analysis
Pay attention to
guidance
2026 EBITDA range
$2.5B–$2.7B is the whole argument right now. movement toward the top end would calm the market. living near the midpoint keeps the stock in income mode.
payout
distribution coverage
a 9.4% yield looks great until coverage gets tight. if operating results soften while the payout stays fixed, the yield stops looking generous and starts looking defensive.
basin trend
delaware throughput
management pointed to rising volumes across gas, crude, NGLs, and produced water. you want to see that operational strength turn into EBITDA, not just busier pipes.
next report
whether the tone improves next quarter
the next earnings update needs to do more than repeat the range. a raise, or at least a firmer path to $2.7B, would matter more than another reminder that volumes are healthy.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this could lag from here.
risk profile
average
stability score 3 — this is not a bunker stock, but it is not a rollercoaster either.
chart momentum
average
technical score 3 — the chart is not screaming breakdown or breakout.
earnings predictability
55 / 100
that is middling. you can underwrite the payout story more easily than you can underwrite clean, steady earnings growth.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 142 buyers vs. 86 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$35
$61
$41
current price
$48
target midpoint · +16% from current · 3-5yr high: $70 (+70% · 20% ann'l return)
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