Western Midstream Partners, LP (WES) Stock Price & How to Invest
Last updated July 2026
Short answer
Western Midstream is a Permian and DJ Basin gathering, processing and produced-water partnership whose case rests on fee-based contracts with minimum volume commitments and a distribution running near $3.72 a unit, covered roughly 1.4 times by cash flow. Owning it means owning an MLP, so the position is units rather than shares, it reports on a Schedule K-1, and Occidental Petroleum sits on both sides of the table as controlling owner and largest customer.
WES stock price
As of 2026-08-25, Western Midstream Partners, LP (WES) last closed at $47.94, up 25.3% over the past year. Over the past 52 weeks it has traded between $37.26 and $49.80.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Western Midstream Partners, LP's investor relations page. Walnut is informational, not investment advice.
What does Western Midstream Partners, LP (WES) do?
Western Midstream Partners owns the pipes, compressors, treating and processing plants and water systems that sit between a producer's wellhead and the long-haul market. The footprint is deliberately concentrated: the Delaware Basin in west Texas and New Mexico, the DJ Basin in Colorado, a growing position in the Powder River Basin, and equity interests in a handful of joint-venture pipelines. Second-quarter 2026 set records across nearly every stream the partnership measures, with Delaware Basin natural gas at ~2,140 MMcf/d, produced water at ~2,993 MBbls/d and DJ Basin gas at ~1,547 MMcf/d. Two purchases built that scale in under a year: Aris Water Solutions closed in October 2025 for roughly $1.5B, and Brazos Delaware II closed in June 2026 for roughly $1.6B, split about evenly between cash and newly issued units.
The investment picture is an income vehicle first. Q2 adjusted EBITDA of ~$736.5M rose ~19% year over year, management raised full-year guidance to ~$2.75B to ~$2.95B, and the ~$3.72 annualized distribution was covered roughly 1.4 times by distributable cash flow. The complication is structural rather than operational. Occidental Petroleum is both the general partner and the largest customer, holding roughly 40% of the units after a February 2026 redemption, and January's renegotiation of the Delaware Basin gathering contract swapped a legacy cost-of-service formula for a flat fee, with Occidental handing back 15.3 million units as part of the exchange. Anyone weighing WES is really weighing whether contracts struck between a controlling owner and the partnership it controls keep landing in the partnership's favor.
What's driving Western Midstream Partners, LP (WES)?
1. Delaware Basin throughput and the Brazos integration
Delaware Basin gas and produced-water volumes both set records in Q2 2026, and the ~$1.6B Brazos Delaware II purchase that closed in June added about 460 MMcf/d of processing capacity across roughly 470,000 acres in the same core. Management said the stronger price environment has pushed several Delaware customers to lift second-half activity, most of which shows up in 2027 throughput rather than this year's. Capacity bought inside a basin the partnership already operates carries less execution risk than a move into unfamiliar geography.
2. Produced water as a second fee stream
Handling produced water is the least glamorous part of Permian midstream and among the stickiest, since disposal capacity is permitted, local and hard to replace. The Aris Water Solutions deal, closed in October 2025 for about $1.5B, roughly doubled that business, and water throughput near ~2,993 MBbls/d now rivals the gas franchise in importance. Water volumes track barrels lifted rather than gas prices, which gives the revenue mix a different shape from a pure gathering and processing peer.
3. The recontracted Occidental agreements
January 2026 replaced the cost-of-service structure on the Delaware Basin gas gathering contract with a fixed fee, supported by an acreage dedication and by minimum volume commitments running through the original cost-of-service term. The separate processing contract keeps its volume commitments through 2035. Occidental returned 15.3 million common units as part of the exchange, trimming its stake. The economics are simpler for both sides now, with less upside to WES when a producer's costs run high, which is exactly what the old formula captured.
4. Coverage and the path back to 3.0 times
Distributable cash flow guidance of ~$2.05B to ~$2.25B against roughly $1.54B of annual distributions leaves coverage near 1.4 times. Total debt rose to ~$9.05B after the Brazos cash outlay, putting pro forma net leverage around 3.15 times against a stated 3.0 times target, so cash above the distribution has an obvious first claim. Capital spending guidance of ~$850M to ~$1.0B was flagged as likely to land at the high end, which is the tension in the story: growth, the distribution and deleveraging all draw on the same pool.
What are the risks to Western Midstream Partners, LP (WES)?
Occidental sits on both sides of every material contract as controlling owner, general partner and largest customer, so unitholders depend on a negotiation they take no part in. Delaware and DJ Basin volumes ultimately follow drilling budgets, and minimum volume commitments soften a downturn without erasing it; a sustained crude decline would reach gathering and water volumes within a few quarters. Leverage near 3.15 times sits above the 3.0 times target after Brazos, and growth capex, a high distribution and debt reduction compete for the same cash flow. Colorado's permitting regime remains a live variable for the DJ Basin assets. The partnership structure itself narrows the buyer pool, because K-1 reporting keeps many index funds, foreign holders and tax-exempt accounts away, which can leave units priced below comparable corporations for reasons unrelated to the underlying business.
What is the Western Midstream Partners, LP (WES) forecast?
12 analysts publish price targets on WES, averaging $48.17 against a $47.94 price as of August 2026, or +0.5%. The published targets run from $41.00 to $58.00, a moderate spread, and the ratings split 4 buy, 9 hold, 1 sell. Over the last six months there have been 11 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.
Read the full WES forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.
Is WES a buy or a sell?
We give no verdict on Western Midstream Partners, LP. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. Delaware Basin throughput and the Brazos integration. Delaware Basin gas and produced-water volumes both set records in Q2 2026, and the ~$1.6B Brazos Delaware II purchase that closed in June added about 460 MMcf/d of processing capacity across roughly 470,000 acres in the same core. The most optimistic published target, $58.00, assumes this works close to its best case.
The case against. Occidental sits on both sides of every material contract as controlling owner, general partner and largest customer, so unitholders depend on a negotiation they take no part in. The most pessimistic target, $41.00, is roughly what WES is worth if this bites instead.
Read the full bull and bear case on WES, including what would have to change to break either one. Walnut is not an investment adviser.
How is Western Midstream Partners, LP (WES) valued? (approximate, August 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Western Midstream Partners, LP's investor relations page or your broker.
- Revenue (TTM): ~$4.33B
- Q2 2026 adjusted EBITDA: ~$736.5M, up ~19% year over year
- FY2026 adjusted EBITDA guidance: ~$2.75B to ~$2.95B (raised in August)
- Distribution: ~$0.93 per unit quarterly, ~$3.72 annualized, ~7.8% yield at ~$47.94
- Balance sheet: total debt ~$9.05B, pro forma net leverage ~3.15x against a ~3.0x target
- Market value: ~$19.81B market cap, roughly 10x enterprise value to 2026 guided EBITDA
Q2 revenue of ~$1,224.7M and net income to limited partners of ~$394.9M came alongside ~$263.6M of free cash flow, and guidance went up on all three of EBITDA, distributable cash flow and free cash flow. On the guidance midpoint the units change hands around 10 times enterprise value to EBITDA, which is roughly where gathering and processing peers trade and well under the multiples midstream partnerships carried before the 2015 reset. The distribution yield near 7.8% is doing most of the work in how the market prices these units, so the coverage ratio and the leverage path matter more here than earnings per unit.
Which ETFs hold Western Midstream Partners, LP (WES)?
If you want WES exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.
| ETF | Name | % in WES | Expense ratio | |
|---|---|---|---|---|
| AMLP | Alerian MLP ETF | 13.0% | 1.01% |
Who competes with Western Midstream Partners, LP (WES)?
Permian and Rockies gathering and processing
Targa Resources, ONEOK and Kinetik Holdings compete for the same Delaware and Midland Basin acreage dedications, and Hess Midstream is the closest structural analogue as another partnership built around one dominant sponsor-customer. Competition in this business happens at the wellhead: whoever already has pipe near a new pad usually wins the dedication, so incumbency in a basin is worth more than balance-sheet size.
Large diversified midstream partnerships
Enterprise Products Partners, Energy Transfer, MPLX and Plains All American compete less for volumes and more for the same income-seeking dollar. They carry broader asset bases across gathering, long-haul transport, fractionation and exports, which usually earns them lower yields and tighter leverage targets than a basin-concentrated operator like WES.
Produced-water and disposal specialists
Select Water Solutions, NGL Energy Partners and private operators such as Deep Blue run the recycling and disposal networks that WES expanded into by buying Aris. Permits, pore space and pipeline density decide this market, and capacity in the right county is difficult to replicate quickly, which is part of why the segment earns fee-based contracts similar in structure to gas gathering.
What stocks are similar to Western Midstream Partners, LP (WES)?
Other names that sit close to WES: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in Western Midstream Partners, LP (WES)
There are three common ways to get WES exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (AMLP), which spreads the position across many companies. Or build it into a focused thematic portfolio, so WES sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where WES fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Western Midstream Partners, LP (WES)
WES is an income-first midstream partnership with real Delaware Basin volume growth behind it, priced for the two things that could go wrong: Occidental's dual role and a Permian slowdown.
More on Western Midstream Partners, LP (WES)
Whether WES is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is WES a buy or a sell?, and where the stock could go from here in the WES stock forecast.
For income investors, whether WES pays a dividend and how the payout looks is covered in does WES pay a dividend? And to weigh WES against a peer, read the full side-by-side comparisons: WES vs TRGP and WES vs OKE.
Wondering how WES fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Western Midstream Partners, LP with AI
Connect the broker you already use and ask Walnut's AI how WES fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What does Western Midstream actually do?
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It gathers, compresses, treats and processes natural gas, gathers and transports crude oil and NGLs, and gathers, disposes of and recycles produced water. The assets sit mainly in the Delaware Basin of west Texas and New Mexico and the DJ Basin of Colorado, with a newer position in the Powder River Basin and stakes in several joint-venture pipelines. WES does not drill wells and generally does not own the molecules it moves. It charges producers a fee for the service, so the revenue driver is throughput volume, not the price of what flows through.
Is WES a stock or an MLP, and what is the difference for an ordinary investor?
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WES is a master limited partnership, so what trades on the NYSE is a common unit, not a share of stock, and a holder is a limited partner rather than a shareholder. The cash payment is called a distribution rather than a dividend, and a portion of it is typically treated as a return of capital that lowers the cost basis instead of being taxed as income in the year received. Limited partners generally do not vote on directors the way corporate shareholders do; the general partner, controlled by Occidental, manages the business. Everything else about buying and selling works the same way as a stock at a normal brokerage.
What does a Schedule K-1 mean at tax time, and does WES belong in an IRA?
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MLPs send a Schedule K-1 rather than a Form 1099-DIV, and K-1s often arrive later in the filing season than 1099s, which can push back a return. A K-1 allocates a share of the partnership's income, deductions and credits, and holding units can create a filing obligation in states where the partnership operates, which for WES means Texas, New Mexico, Colorado and others. Inside an IRA or other tax-exempt account, partnership income can count as unrelated business taxable income, and an account with more than $1,000 of UBTI in a year may owe tax through a Form 990-T filed by the custodian. All of this depends entirely on an individual's own situation and account type, and Walnut does not give tax advice, so a tax professional is the right place to settle it.
How well covered is the distribution?
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The Q2 2026 distribution was $0.930 per unit, an annualized ~$3.72, and full-year guidance calls for at least $3.70. Against roughly 413.2 million units outstanding, that is about $1.54B a year of payments versus distributable cash flow guided to ~$2.05B to ~$2.25B, so coverage sits near 1.4 times. Coverage at that level leaves room for capital spending and debt reduction without cutting the payout, though it is a guidance figure rather than a promise. Distributions on an MLP are declared quarterly and can be changed at the general partner's discretion.
How dependent is Western Midstream on Occidental?
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Heavily, in two directions at once. Occidental controls the general partner and holds roughly 40% of the common units after a February 2026 redemption of 15.3 million units, and it is also the single largest source of throughput across the Delaware and DJ Basin systems. That arrangement produces steady volumes and a partner with an interest in the assets working, and it also means the terms of the largest contracts are set between related parties. The January 2026 amendments, which moved Delaware gas gathering from cost-of-service to a fixed fee in exchange for units, are the clearest example of how that negotiation actually plays out.
Are WES cash flows exposed to oil and gas prices?
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Less directly than a producer, but not fully insulated. A substantial majority of revenue comes from fee-based contracts, and volume commitments plus acreage dedications provide a floor: the Delaware processing contract carries minimum volume commitments through 2035, and the amended gathering contract carries them through the original cost-of-service term. What prices do affect is activity. Producers set drilling budgets off the strip, and Q2 commentary pointed to customers raising second-half plans because prices improved, which is the same mechanism running in reverse when prices fall.
Has anyone announced a buyout or take-private of WES units?
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No such transaction has been announced as of August 2026. Occidental has been reducing rather than increasing its unit count, redeeming 15.3 million units in February 2026 as part of the contract amendments, and the partnership has been spending on acquisitions of its own instead. Speculation about a parent buying in an affiliated MLP is a recurring theme across the sector and has no announced basis here. A public filing would be the place any such deal appears first.
How do people typically hold WES, and what is worth tracking afterward?
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Units trade on the NYSE like any listed security, so a standard brokerage account buys them, though fractional-unit support varies by broker and some retirement accounts restrict partnerships because of the UBTI question above. Once held, the numbers that move the story are quarterly throughput by basin, the coverage ratio, net leverage against the 3.0 times target and the pace of capital spending. Walnut can track a WES position inside a stated theme such as midstream energy income, show what it contributes to overall return, and answer questions about it in the assistant. Nothing here is investment or tax advice.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Western Midstream Partners, LP's investor relations page or your broker before making investment decisions.