Upside case
Bull case
$77+86.9%
WES would need investors to value it at roughly 24x earnings — about 11x more generous than today's 13x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Western Midstream Partners, LP (WES) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
13
analysts
3 bullish · 2 bearish · 13 covering WES
Strong Buy
0
Buy
3
Hold
8
Sell
2
Strong Sell
0
Consensus Target
$41
-0.6% vs today
Scenario Range
$27 – $77
Model bear to bull value window
Coverage
13
Published analyst ratings
Valuation Context
12.9x
Forward P/E · Market cap $16.8B
WES price targets
Three scenarios for where WES stock could go
Current
~$41
Confidence
47 / 100
Updated
May 1, 2026
Where we are now
Current · $41
Bear
$27
Base
$49
Bull
$77
Market caseClosest to today
Base case
$49+18.3%
At 15x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$27-33.7%
If investor confidence fades or macro conditions deteriorate, a 4x multiple contraction could push WES down roughly 34% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Western Midstream Partners, LP
WES · NYSEEnergyOil & Gas MidstreamDecember year-end
Western Midstream Partners operates a network of pipelines and processing facilities that gather, transport, and process natural gas, crude oil, and natural gas liquids across key U.S. energy basins. It generates revenue primarily through fee-based contracts — gathering, processing, and transportation fees — with minimal commodity price exposure, supplemented by commodity sales. The company's competitive advantage lies in its strategically located assets in prolific basins like the Permian and its long-term contracts with major producers that provide stable cash flow.
Market Cap
$16.8B
Revenue TTM
$4.0B
Net Income TTM
$1.2B
Net Margin
29.9%
WES Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
42%Exceptional
12 quarters tracked
Revenue Beat Rate
42%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 1 of 4Q2 2025
EPS
$0.79/$0.83
Revenue
$917M/$920M
Q3 2025
EPS
$0.87/$0.83
Revenue
$942M/$940M
Q4 2025
EPS
$0.87/$0.88
Revenue
$952M/$961M
Q1 2026
EPS
$0.47/$0.84
Revenue
$1.0B/$1.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.79/$0.83 | -5.2% | $917M/$920M | -0.3% |
| Q3 2025 | $0.87/$0.83 | +4.9% | $942M/$940M | +0.2% |
| Q4 2025 | $0.87/$0.88 | -1.1% | $952M/$961M | -0.9% |
| Q1 2026 | $0.47/$0.84 | -44.4% | $1.0B/$1.0B | +0.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.1B
+6.5% YoY
FY2
$4.3B
+6.0% YoY
EPS Outlook
FY1
$3.31
+12.8% YoY
FY2
$3.59
+8.6% YoY
Trailing FCF (TTM)$1.4B
FCF Margin: 33.6%
Next Earnings
May 6, 2026
Expected EPS
$0.73
Expected Revenue
$1.0B
WES beat EPS estimates in 1 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
WES Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $3.8B
Product Mix
Latest annual revenue by segment or product family
Service Fee Based
89.8%
+6.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Service Fee Based is the largest disclosed segment at 89.8% of FY 2025 revenue, up 6.3% YoY.
WES Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $59 — implies +40.8% from today's price.
Upside to Fair Value
40.8%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WES
13.8x
vs
S&P 500
25.2x
45% discount
vs Energy Trailing P/E
WES
13.8x
vs
Energy
16.9x
18% discount
vs WES 5Y Avg P/E
Today
13.8x
vs
5Y Average
10.6x
+29% premium
Forward PE
12.9x
S&P 500
19.1x
-32%
Energy
13.2x
-2%
5Y Avg
—
—
Trailing PE
13.8x
S&P 500
25.2x
-45%
Energy
16.9x
-18%
5Y Avg
10.6x
+29%
PEG Ratio
0.67x
S&P 500
1.75x
-62%
Energy
0.52x
+28%
5Y Avg
—
—
EV/EBITDA
10.9x
S&P 500
15.3x
-29%
Energy
8.1x
+33%
5Y Avg
8.9x
+22%
Price/FCF
11.5x
S&P 500
21.3x
-46%
Energy
14.1x
-19%
5Y Avg
10.0x
+15%
Price/Sales
4.4x
S&P 500
3.1x
+40%
Energy
1.6x
+180%
5Y Avg
3.7x
+20%
Dividend Yield
8.62%
S&P 500
1.88%
+359%
Energy
2.97%
+190%
5Y Avg
8.11%
+6%
| Metric | WES | S&P 500 | Energy | 5Y Avg WES |
|---|---|---|---|---|
| Forward PE | 12.9x | 19.1x-32% | 13.2x | — |
| Trailing PE | 13.8x | 25.2x-45% | 16.9x-18% | 10.6x+29% |
| PEG Ratio | 0.67x | 1.75x-62% | 0.52x+28% | — |
| EV/EBITDA | 10.9x | 15.3x-29% | 8.1x+33% | 8.9x+22% |
| Price/FCF | 11.5x | 21.3x-46% | 14.1x-19% | 10.0x+15% |
| Price/Sales | 4.4x | 3.1x+40% | 1.6x+180% | 3.7x+20% |
| Dividend Yield | 8.62% | 1.88% | 2.97% | 8.11% |
WES trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWES Financial Health
Verdict
Strong
WES generates $1.4B in free cash flow at a 33.6% margin — 10.5% ROIC signals a durable competitive advantage · returns 8.6% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$4.0B
Revenue Growth
TTM vs prior year
+11.4%
Gross Margin
Gross profit as a share of revenue
68.8%
Operating Margin
Operating income divided by revenue
40.6%
Net Margin
Net income divided by revenue
29.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.02
Free Cash Flow (TTM)
Cash generation after capex
$1.4B
FCF Margin
FCF as share of revenue — the primary cash quality signal
33.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
10.5%
ROA
Return on assets, trailing twelve months
8.9%
Cash & Equivalents
Liquid assets on the balance sheet
$819M
Net Debt
Total debt minus cash
$8.1B
Debt Serviceability
Net debt as a multiple of annual free cash flow
6.0× FCF
~6.0 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
33.5%
* Elevated by buyback-compressed equity — compare ROIC (10.5%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
8.6%
Dividend
8.6%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$3.56
Payout Ratio
Share of earnings distributed as dividends
122.4%
Shares Outstanding
Current diluted share count
408M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageWES Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Commodity Price Volatility
A significant decline in oil and natural gas prices can reduce drilling activity, which in turn affects the volumes transported through WES's systems. This is particularly concerning for systems without minimum volume commitments.
High Risk
Earnings Misses or Guidance Cuts
Failure to meet earnings expectations or downward revisions in financial guidance can negatively impact WES's stock price. Such events can lead to a loss of investor confidence and a decline in market valuation.
High Risk
Regulatory Challenges
Potential regulatory hurdles, especially in regions like Colorado, pose a risk to WES's operations and future growth. These challenges can lead to increased compliance costs and delays in project execution.
Medium
Interest Rate Fluctuations
Increases in interest rates, such as those by the Federal Reserve, can lead to higher financing costs for WES. This can impact profitability and cash flow, particularly for a company with significant debt.
Medium
Project Delays and Cost Overruns
Growth projects may face delays or exceed their budgeted costs, which can significantly impact profitability. Such operational inefficiencies can hinder WES's ability to capitalize on market opportunities.
Medium
Competition and Margin Pressure
Increased competition within the midstream sector can lead to pressure on profit margins. This competitive landscape may affect WES's pricing power and overall financial performance.
Lower
Broader Market and Economic Headwinds
General weakness in the overall stock market or economic downturns can affect WES's stock performance. Market sentiment and broader economic factors can lead to volatility in stock prices.
Lower
Incentive Distribution Rights (IDRs)
The impact of IDRs on corporate governance can be a concern for investor confidence. Uncertainties regarding IDRs may affect shareholder perceptions and investment decisions.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WES Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
High Initial Yield
WES offers a substantial yield, around 9.2%, which is attractive compared to other MLPs and alternative income investments. This high yield is a primary draw for income-focused investors.
Gradually Growing Distributions
The company aims for gradually growing distributions supported by core cash flow growth, which helps maintain income attractiveness on an inflation-adjusted basis and speeds up compounding. In Q3 2025, WES recorded a second consecutive quarter of record adjusted EBITDA generation, indicating resilience even with depressed oil prices.
Fee-Based Cash Flows
Western Midstream Partners' focus on sustaining a high yield is backed by fee-based midstream cash flows, providing a degree of stability.
Stable Value Base
The stock has maintained a relatively flat share price, allowing investors to maximize reinvested dividends. This stability is appealing for long-term income-focused investors.
Attractive Valuation
WES is trading at a compelling multiple, with an EV/EBITDA of 9.1x, which is significantly lower than peers like Enbridge Inc. and MPLX. This valuation suggests potential for upside as the market recognizes its value.
Resilient Fundamentals
Despite market uncertainties, WES's underlying fundamentals are considered resilient. The market anticipates that WES will likely deliver incremental earnings growth in the future.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WES Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$41.25
52W Range Position
63%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$35.25
+17.0% from the low
52-Week High
$44.74
-7.8% from the high
1 Month
+0.93%
3 Month
+0.32%
YTD
+3.9%
1 Year
+15.7%
3Y CAGR
+17.3%
5Y CAGR
+14.6%
10Y CAGR
+0.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WES vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
12.9x
vs 13.1x median
-1% below peer median
Revenue Growth
+6.5%
vs +6.2% median
+4% above peer median
Net Margin
29.9%
vs 11.0% median
+171% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WES WES Western Midstream Partners, LP | $16.8B | 12.9x | +6.5% | 29.9% | Hold | -0.6% |
EPD EPD Enterprise Products Partners L.P. | $81.2B | 13.1x | -0.8% | 11.0% | Buy | -1.5% |
ET ET Energy Transfer LP | $68.4B | 12.3x | +9.5% | 5.9% | Buy | -4.4% |
MPL MPLX MPLX Lp | $56.5B | 12.6x | +6.2% | 37.5% | Buy | +8.2% |
PAA PAA Plains All American Pipeline, L.P. | $15.6B | 13.8x | +6.1% | 3.2% | Buy | +1.9% |
HES HESM Hess Midstream LP | $8.0B | 13.2x | +7.1% | 21.8% | Hold | -16.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WES Dividend and Capital Return
WES returns 8.6% total yield, led by a 8.62% dividend.
Dividend SustainableFCF Stretched
Total Shareholder Yield
8.6%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
8.62%
Payout Ratio
1.2%
How WES Splits Its Return
Div 8.62%
Dividend 8.62%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$3.56
Growth Streak
Consecutive years of dividend increases
4Y
3Y Div CAGR
25.4%
5Y Div CAGR
18.3%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
408M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.84 | — | — | — |
| 2025 | $3.61 | +12.7% | 0.0% | 9.0% |
| 2024 | $3.20 | +28.3% | 0.0% | 8.7% |
| 2023 | $2.49 | +36.5% | 1.2% | 11.4% |
| 2022 | $1.83 | +44.1% | 4.6% | 11.5% |
FAQ
7 questionsWES Investor Questions
Common questions answered from live analyst data and company financials.
01Is Western Midstream Partners, LP (WES) stock a buy or sell in 2026?
Western Midstream Partners, LP (WES) is rated Hold by Wall Street analysts as of 2026. Of 13 analysts covering the stock, 3 rate it Buy or Strong Buy, 8 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $41, implying -0.6% from the current price of $41. The bear case scenario is $27 and the bull case is $77.
02What is the WES stock price target for 2026?
The Wall Street consensus price target for WES is $41 based on 13 analyst estimates. The high-end target is $42 (+1.8% from today), and the low-end target is $39 (-5.5%). The base case model target is $49.
03Is Western Midstream Partners, LP (WES) stock overvalued in 2026?
WES trades at 12.9x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Western Midstream Partners, LP (WES) stock in 2026?
The primary risks for WES in 2026 are: (1) Commodity Price Volatility — A significant decline in oil and natural gas prices can reduce drilling activity, which in turn affects the volumes transported through WES's systems. (2) Earnings Misses or Guidance Cuts — Failure to meet earnings expectations or downward revisions in financial guidance can negatively impact WES's stock price. (3) Regulatory Challenges — Potential regulatory hurdles, especially in regions like Colorado, pose a risk to WES's operations and future growth. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Western Midstream Partners, LP's revenue and earnings forecast?
Analyst consensus estimates WES will report consensus revenue of $4.1B (+6.5% year-over-year) and EPS of $3.31 (+12.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $4.3B in revenue.
06When does Western Midstream Partners, LP (WES) report its next earnings?
Western Midstream Partners, LP is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $0.73 and revenue of $1.0B. Over recent quarters, WES has beaten EPS estimates 42% of the time.
07How much free cash flow does Western Midstream Partners, LP generate?
Western Midstream Partners, LP (WES) generated $1.4B in free cash flow over the trailing twelve months — a free cash flow margin of 33.6%. WES returns capital to shareholders through dividends (8.6% yield) and share repurchases ($0 TTM).