Western Midstream Partners LPNYSE: WES

HOUSTON , July 1, 2024 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that its 2023 Schedule K-3 reflecting items of international tax relevance is available online. Unitholders requiring this information may access their Schedules K-3 at www.taxpackagesupport.com/westernmidstream.

Western Midstream has massively increased its distribution this year. The MLP's capital recycling strategy has increased its cash flow while reducing its leverage ratio.

Western Midstream (WES) closed at $38.45 in the latest trading session, marking a +0.13% move from the prior day.

Midstream MLPs represent the utilities of the oil and gas world, with predictable cash flows and long-term contracts. Bond King Bill Gross calls Western Midstream Partners, LP the best-of-breed in an undervalued sector. The market has yet to appreciate Western Midstream's substantial 52% distribution increase fully.

Western Midstream announced robust first-quarter earnings and increased its quarterly base distribution to $0.875 per unit. Shareholders may receive higher distributions in 2025 compared to the base distribution.

Western Midstream has a strong asset portfolio and is successfully increasing volumes. With a dividend yield of nearly 10%, the company is in a good financial position to sustain it. Despite the risk associated with Occidental Petroleum, we anticipate continued growth and profitability from Western Midstream, making it a promising investment opportunity.

Western Midstream Partners' parent company, Occidental Petroleum, is exploring a sale of WES to reduce debt. WES distribution hike is likely to be influenced by OXY. If OXY sells WES towards the end of 2024, investors will likely pocket close to 20% return in 9 months.

My Income Climbed 52%, More Capital Gains Ahead: Western Midstream

Western Midstream reported strong Q4 results and announced it plans to increase its distribution by 52%. The company also announced a number of non-core asset sales that will improve its balance sheet and lower its leverage. There are rumors of Occidental Petroleum selling its stake in Western Midstream, which could potentially lead to an acquisition of the company.