WES Stock

HOUSTON, Jan. 24, 2025 /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) has announced that its general partner's board of directors has approved a quarterly cash distribution of $0.8750 per unit for the fourth quarter of 2024, which totals $3.50 annually, matching the previous quarter's distribution. This fourth-quarter distribution will be paid on February 14, 2025, to unitholders who are on record by the end of business on February 3, 2025.

At the end of the last trading day, Western Midstream (WES) was priced at $41.19, which represents an increase of 0.88% compared to the day before.

Western Midstream Partners has demonstrated significant growth in free cash flow and EBITDA. I consider Western Midstream a strong buy due to the rising long-term demand for natural gas, which is partly fueled by AI and data centers. The company has also provided strong guidance for FY 2024, expecting a 19% increase in free cash flow and an 11% rise in adjusted EBITDA, suggesting further potential for growth.

I suggest a 'Strong buy' for Western Midstream Partners LP because it offers an impressive 8.7% forward distribution yield and has the potential for a 33% increase. The company is well-placed in important U.S. oil regions and has a diverse growth strategy that includes mergers and acquisitions as well as organic growth, which bodes well for its future. Additionally, its strong financial position, good profitability, and positive market conditions help maintain its high yield and make it an attractive investment.

In the latest trading session, Western Midstream (WES) finished at $39.24, showing a decrease of 0.05% compared to the day before.

At the end of the last trading day, Western Midstream (WES) was priced at $39.13, which represents a 0.28% increase compared to the day before.

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WES is considered undervalued for a midstream company that focuses on the Permian region. Although its growth rate is slowing, it is still expected to achieve a solid mid-single digit growth rate by 2025, which supports my price target of $46 per unit. For investors looking for income, WES offers an attractive nearly 9% yield, along with the possibility of special distributions and moderate growth in 2025.

Income investing takes time and careful selection of reliable companies that provide consistent and good income. Western Midstream has an 8.7% yield, solid performance indicators, and strong credit ratings, backed by fee-based contracts and careful financial practices. W.P. Carey offers a 6.3% yield, high occupancy levels, long leases, and rent increases that can keep up with inflation, while also growing through buying industrial properties.