Western Midstream Partners LP Common Units Representing Limited Partner Interests (WES)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Western Midstream as a toll-road-like midstream operator whose assets gather, process and transport natural gas, NGLs, crude and water. The cash generation is real: trailing free cash flow of $1.2B, a 6.8% free cash flow yield, and a 7.87% distribution yield. In fiscal 2025, the year ended 2025-12-31, filed results show revenue of $3.8B and net income of $1.2B; in fiscal 2024, the year ended 2024-12-31, revenue was $3.6B and net income $1.6B. Revenue rose, but profit fell. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $1.1B and net income $350.3M, compared with fiscal Q1 2025, the quarter ended 2025-03-31, revenue of $916.9M and net income of $309.0M. That is progress. The low beta of 0.66 suggests the units are less market-sensitive than many equities. Yet the balance sheet needs watching: debt-to-equity is 2.07 and the Altman Z-Score is 1.07, which is not a comfortable reading. Return on capital employed is 7.49%, modest for a leveraged business, even as return on equity is 34.11%. At the 2026-10-13 close of $45.32, FairStock shows a P/E of 14.34, P/B of 5.31, and Graham Number of $27.07, leaving a negative margin of safety of 67.42%. FairStock calls it a Stalwart, based on 17.5% annual profit growth and 8.6% revenue growth over five years. I see a decent cash-generating asset base, but the price already reflects much of that. I would want a wider discount before treating it as a classic value bargain.

In plain English: Western Midstream Partners moves and processes natural gas, oil liquids, and water for energy producers. The business earns solid profits and generates plenty of cash, but it also carries a lot of debt. At the recent price, it looks expensive compared with conservative value measures, even though the income stream is attractive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer