| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 67 | 15.3x | 17.8x | Top tier | |
Growth | 44 | 18.0% | 7.1% | Around median | |
Quality | 82 | 14.5% | 4.5% | Top tier | |
Safety | 44 | 3.7x | 2.6x | Around median | |
Capital Return | 73 | 7.41% | 2.12% | Top tier | |
Momentum | 90 | 21.8% | 2.9% | Top tier | |
Sentiment | 91 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Western Midstream Partners operates by gathering, processing, and transporting natural gas, crude oil, natural gas liquids, and produced water, with a primary presence in the Delaware Basin alongside the DJ and Powder River basins and other natural gas assets. Cash generation relies heavily on long-term, fee-based contracts supported by minimum volume commitments and acreage dedications, while fixed recovery contracts for natural gas liquids and oil recovery from water provide partial exposure to commodity prices. Following the Brazos transaction, management expects the Delaware Basin to account for approximately 65% of EBITDA.
In fiscal Q1 2026, revenue reached $1.1 billion and net income according to EDGAR filings was approximately $350.3 million, compared with revenue of $1.0 billion and net income of $190.7 million in fiscal Q4 2025. The company also reported net income attributable to limited partners of $342 million, record adjusted EBITDA of $683 million, distributable cash flow of $509 million, and free cash flow of $242 million. Accounting gross margins were not presented in the data, but the adjusted natural gas margin per thousand cubic feet increased by $0.06 sequentially, while the crude oil and natural gas liquids margin increased by $0.30 per barrel and the produced water margin increased by $0.07 per barrel.
The operating mix in fiscal Q1 2026 was driven by the Delaware Basin: natural gas throughput exceeded 2 billion cubic feet per day, up 3% sequentially, while crude oil and natural gas liquids reached a record 272 thousand barrels per day, up 4% sequentially and 6% year over year. Produced water throughput also reached a record of nearly 2.8 million barrels per day, up 4% sequentially, benefiting from a full-quarter contribution from Aris. At the portfolio level, natural gas throughput increased 1%, crude oil and natural gas liquids increased 3%, and produced water increased 4% sequentially.
The average analyst price target is $48.83, within a range of $46 to $55, compared with a 52-week share-price range of $36.9 to $50.07; therefore, the average target is near the historical upper end, while the high target exceeds it. The "Neutral" consensus reflects a balance between record earnings growth and the addition of Brazos on one hand, and Waha pressures, declining Powder River volumes, and execution risks related to the investment program on the other. The absence of a displayed P/E ratio in the provided data also makes the analyst target range and the 52-week range the available valuation anchors.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Western Midstream reported adjusted EBITDA of $683 million, up 7% sequentially and 15% year over year, along with $509 million in distributable cash flow. Results benefited from a full-quarter contribution from Aris, growth in daily throughput across all three product lines, and cost reductions. Higher oil and natural gas liquids prices in March 2026 also boosted revenue from oil recovered from water and excess natural gas liquids volumes. According to EDGAR, revenue was approximately $1.1 billion and net income was $350.3 million in the same quarter.
The Brazos Delaware II transaction is valued at approximately $1.6 billion, split roughly equally between cash and WES units. The assets add more than 470 thousand dedicated acres, more than 900 miles of pipelines, and approximately 460 million cubic feet per day of natural gas processing capacity, increasing dedicated West Texas acreage by 49% and processing capacity by 20%. The contracts have an average remaining life of 9.2 years, and management expects a contribution of approximately $100 million to adjusted EBITDA in fiscal 2026. The Comanche facility also provides approximately 125 million cubic feet per day of unused capacity, but realizing the transaction’s full value depends on marketing this capacity and operationally integrating it.
Automated analysis for informational purposes only — not investment advice.
Management is targeting the upper end of the $2.5–2.7 billion adjusted EBITDA range and the $1.85–2.05 billion distributable cash flow range, before including Brazos. It also maintained free cash flow guidance of $900 million to $1.1 billion and capital spending guidance of $850 million to $1 billion. It expects 5%–9% growth in adjusted EBITDA before the impact of Brazos, supported by prices, commercial discussions, and cost reductions. Conversely, it expects natural gas throughput to remain approximately flat, crude oil and natural gas liquids to decline by a low- to mid-single-digit percentage, and produced water to increase by approximately 80%.
Produced water throughput reached a record of nearly 2.8 million barrels per day in fiscal Q1 2026, up 4% sequentially due to Aris and growth in the legacy business. The company expects average produced water volumes to increase by approximately 80% in fiscal 2026 and raised its expected average adjusted margin to approximately $0.91 per barrel. The Pathfinder pipeline and its associated systems, together with North Loving II, account for approximately half of planned fiscal 2026 spending. The company is also expanding a pilot water desalination facility tenfold in preparation for potential industrial uses of treated water.
In the Delaware Basin, low and sometimes negative Waha prices caused some customers to curtail natural gas throughput, and the company expects volatility to continue during fiscal Q2 2026. In Powder River, management expects throughput to decline 10%–15% year over year because of weak prices and delayed well completions, despite expecting increased activity that will benefit fiscal 2027. In the DJ, the timing of wells placed in service in Q1 improved the annual outlook, but the number of wells placed in service is still expected to decline by a mid-single-digit percentage. The deployment of significant additional capital in the DJ also remains linked to changes in the regulatory and political environment.
The company generated $509 million in distributable cash flow and $242 million in free cash flow in fiscal Q1 2026. It announced a quarterly distribution of $0.93 per unit, equivalent to $3.72 annually, compared with guidance of at least $3.70 during fiscal 2026. Management targets distribution growth at a slightly slower pace than adjusted EBITDA growth to increase the coverage ratio over time. This policy is supported by liquidity exceeding $2.5 billion and net leverage of approximately 3.1 times at the end of the quarter.
