Western Midstream Partners LP (WES) Stock

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.

Western Midstream provides a good, tax-deferred return and solid financial health, with the possibility of higher distributions and payouts in 2025. However, its connection with Occidental Petroleum (OXY) brings some risks, such as possible conflicts of interest and unclear plans regarding OXY's ownership of WES. Recent changes, like OXY's partial sale of WES units and new leadership, have led to market uncertainty but may also present investment chances.

Western Midstream Partners is achieving record levels of throughput in the Delaware basin, but growth is anticipated to slow down in the future. As a result, I am slightly lowering my estimates for EBITDA and distributions for next year. However, WES' forward distribution yield of 9.2% is still sustainable and may increase to 10% by 2027.

Western Midstream Partners, LP (NYSE: WES) announced that it will release a post-earnings interview with its CEO and CFO on its website tomorrow, providing more details about its third-quarter performance. Additionally, WES plans to attend several investor conferences, including the BofA Securities Global Energy Conference in Houston on November 12, 2024, and the Wells Fargo Midstream & Utilities Symposium in New York on December 10-11, 2024. Western Midstream is a partnership focused on developing and managing midstream assets.

Western Midstream provides a strong 9% yield, thanks to increased gas production in the Permian Basin. The company is enhancing its gas gathering and processing capabilities, especially in the Delaware Basin, which should support future growth. However, despite stable earnings, Western Midstream has low distribution coverage, making it a riskier investment compared to competitors like Enterprise Products.

Western Midstream Partners, LP will hold its Q3 2024 Earnings Conference Call on November 7, 2024, at 2:00 PM ET. The call will feature company representatives including Daniel Jenkins, Oscar Brown, Danny Holderman, and Kristen Shults. Joanna will be the operator for the conference, welcoming all participants.