Western Midstream Partners

WES

Market cap $16B

Energy Transfer has strong growth prospects and trades at a discount to peers. Enterprise Products Partners remains the MLP gold standard.

Western Midstream (WES) reached $40.85 at the closing of the latest trading day, reflecting a +1.09% change compared to its last close.

Western Midstream (WES) offers a robust >9% distribution yield, supported by strong operational performance and disciplined cost management. WES achieved record adjusted EBITDA for three consecutive quarters, with 6% YoY growth and significant O&M expense reductions. Growth projects like North Loving II and the Pathfinder Pipeline underpin mid-single-digit EBITDA growth guidance for 2026 and future distribution increases.

The United States operates more than three million miles of pipelines—by far the largest and most strategically important energy network in the world. Key energy basins are increasingly becoming gas-rich and water-intensive. With a 9% yield backed by long-term contracts and already-secured volume growth, Western Midstream Partners is quietly emerging as one of the most reliable and underappreciated income generators in the sector.

Western Midstream offers stable EBITDA of ~$2.5–2.7B for 2026, underpinned by active cost and capital management. WES combines a ~9% yield with ~5% embedded EBITDA growth, supporting early double-digit total returns for income-focused investors. Fee-based and MVC contract structures, alongside structural cost reductions, anchor WES's resilience to volume and commodity price volatility.

Western Midstream remains a top MLP pick due to its sector-leading 8.9% yield and resilient fundamentals. The stock's high yield is driven by a below-average valuation multiple, not excessive leverage or weak fundamentals. The current situation in the oil markets is very likely to enhance the case even further (e.g., render the high dividend more durable).

Despite significant market volatility creating seemingly attractive high yields across multiple sectors, not all income machines are created equal. I detail the factors that the market is overlooking that make Western Midstream Partners (WES) a compelling buy right now. I discuss the key factors that explain why an 11% yield is not enough to make me want to buy Capital Southwest (CSWC).

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Western Midstream (WES) concluded the recent trading session at $40.94, signifying a -1.16% move from its prior day's close.

Western Midstream (WES) closed at $41.16 in the latest trading session, marking a +1.01% move from the prior day.