Western Midstream Partners LP

Western Midstream closed up 1.74% at $49.03, outpacing the S&P 500's 0.86% gain, as the company heads into its upcoming earnings report with a Zacks Rank of #1 (Strong Buy). Analysts expect the company to report quarterly EPS of $0.89, a 2.3% increase from the year-ago quarter, on revenue of $1.2 billion, up 25.52% year over year. For the full year, the Zacks Consensus Estimates call for earnings of $3.66 per share and revenue of $4.67 billion, representing changes of +22.82% and +21.47%, respectively, from last year. Over the past month, the Zacks Consensus EPS estimate has moved 3.82% higher. The stock trades at a Forward P/E ratio of 13.18, a premium to its industry's average of 12.8, and a PEG ratio of 1.42, in line with its industry average.

Diamondback Energy has joined WhiteWater, Devon Energy, MPLX, and Western Midstream Partners in a positive Final Investment Decision to build the Solitude Pipeline System, two 48-inch natural gas pipelines from the Permian Basin to Katy, Texas, targeting initial capacity of about 2.25 billion cubic feet per day in the second half of 2029. Diamondback holds a 7.5% stake in the joint venture, backed by long-term transportation agreements with predominantly investment-grade shippers. The move broadens Diamondback's footprint beyond upstream production into long-haul gas infrastructure, though the long lead time to 2029 means it does not materially change the near-term focus on managing costs and preserving free cash flow sensitivity to oil and gas prices. The company's August 2026 guidance update raised full-year production expectations and confirmed robust second-quarter volumes, giving it more optionality in moving and marketing its gas. Analysts see the infrastructure investment supporting views of revenue reaching about US$17.7 billion and earnings near US$8.0 billion by 2029, far more bullish than the baseline projection of $16.5 billion revenue and $4.9 billion earnings.

WhiteWater and its joint venture partners Devon Energy, Diamondback Energy, Western Midstream Partners and MPLX have reached a final investment decision to construct the Solitude Pipeline System in the US. The project will feature two 48-inch natural gas pipelines transporting supplies from the Permian Basin to a hub in Katy, Texas, near the Gulf coast, with initial capacity of approximately 2.25 billion cubic feet per day expected in late 2029 and an additional 2.25 billion cubic feet per day in 2030. WhiteWater holds a 50% stake in the joint venture, Devon Energy owns 25%, MPLX 10%, and Diamondback Energy and Western Midstream Partners each hold 7.5%. The system is supported by long-term transportation agreements with mainly investment-grade shippers, and Western Midstream Partners has taken firm capacity on the pipelines to enhance flow assurance for its Delaware Basin customers. Commissioning is subject to customary regulatory and other approvals, with service targeted to commence in the second half of 2029.

Western Midstream Partners raised its 2026 adjusted EBITDA midpoint by $250 million to $2.85 billion following record second-quarter results. Adjusted EBITDA rose 19% year over year to $737 million, driven by higher Delaware Basin natural gas and produced-water volumes, the Brazos Delaware II acquisition, and stronger commodity prices. The partnership also increased its distributable cash flow and free cash flow guidance midpoints by $200 million each, reflecting the mid-June closing of the $1.6 billion Brazos deal, which is expected to contribute about $100 million of EBITDA in the second half and generate $15 million to $20 million in synergies. Western Midstream now expects produced-water throughput to grow approximately 85% in 2026 and signed new Powder River Basin agreements covering 270,000 acres. The partnership maintained its $0.93 quarterly distribution and ended the quarter with more than $1.8 billion of liquidity and pro forma net leverage of about 3.15 times.

Western Midstream Partners LP announced a total dividend of $0.93 per share, with the ex-dividend date set for 2026-07-31 and payment on 2026-08-14. The company has maintained a consistent quarterly dividend record since 2013, and its 12-month trailing dividend yield stands at 7.68%, while the forward yield is 7.84%. Over the past three years, the annual dividend growth rate was 25.40%, though the dividend payout ratio as of 2026-03-31 is 1.16, indicating distributions exceed net income. GuruFocus ranks the company's profitability 8 out of 10 and its growth 8 out of 10, supported by a 6.50% average annual revenue increase and a 5.30% five-year EBITDA growth rate.

Western Midstream Partners offers a distribution yield above 8%, yet only 14 Wall Street analysts cover the master limited partnership and just four rate it a buy. The MLP expects to generate between $1.9 billion and $2.1 billion of distributable cash flow this year, easily covering its $1.5 billion annual distribution, and carries a low 3.1 times leverage ratio. It recently closed the $1.6 billion acquisition of Brazos Delaware, which expands its operations and diversifies revenue away from top customer Occidental Petroleum, which accounts for 55% of revenue in 2025. Organic projects including the Loving II gas processing plant and Pathfinder Pipeline are set to enter service early next year, supporting projected long-term adjusted EBITDA growth of 4% to 5% annually. The combination of a high base cash return and low-to-mid single-digit distribution growth could deliver annual total returns of 12% to 14%, according to the analysis.

Hess Midstream and Western Midstream offer dividend yields of 7.7% and 8.1%, respectively, outpacing the 4.9% yield of large-cap peer Enbridge. Hess Midstream, an $8.3 billion mid-cap operator in the Bakken and Three Forks shale regions, announced a distribution increase in January and expects at least 5% annual dividend growth through 2028, supported by free-cash-flow growth and minimum-volume commitments from Chevron, which accounted for 96% of its first-quarter revenue. Western Midstream, an $18.8 billion Permian Basin operator, has a five-year streak of dividend increases and forecast 2026 distributable cash flow of $1.85 billion to $2.05 billion, while its recent $1.6 billion acquisition of Brazos and $1.5 billion purchase of Aris Water Solutions strengthen its position in the Delaware Basin and water services. Both stocks have posted gains this year, with Hess Midstream up 16.2%.

The Alerian MLP ETF, trading near $53 and up 17% year to date, saw its quarterly distribution rise to $1.03, pushing its forward yield to roughly 7.8%. Every major holding raised payouts in the first half of 2026, with Enterprise Products Partners extending its 27-year distribution growth streak with a 3% increase to $0.55 per unit, and MPLX delivering a 13% raise to $1.08 while reaffirming that pace through 2027. Energy Transfer lifted its distribution more than 3% to $0.3375 and raised 2026 EBITDA guidance by $750 million to a range of $18.2 to $18.6 billion, while Western Midstream raised to $0.93 and posted record first-quarter adjusted EBITDA of $683 million. Risks include leverage creep at MPLX, which climbed to 3.7 times after three acquisitions, a 26% one-month drop in WTI crude to about $70, and the fund’s C-corp tax structure, which contributed to its five-year total return of 117% trailing underlying MLPs such as Western Midstream at 216% and MPLX at 198%.

The Alerian MLP ETF, trading under the ticker AMLP, is delivering a 7.79% yield and a 15.3% one-year return, nearly doubling Shell's 4.08% dividend yield. The ETF's $14.1 billion portfolio consists of 15 midstream Master Limited Partnerships that earn fixed fees per barrel for transporting and storing oil and gas, insulating revenues from commodity price swings. Top holdings include Plains All-American Pipeline, Western Midstream Partners, and Sunoco, each representing over 13% of assets. AMLP collects partnership revenues into a C-Corp structure, issuing 1099 forms to shareholders instead of K-1s for simpler tax filing. The fund has returned 13% year-to-date and 19.66% over three years, with an expense ratio of 1.01%.

The Motley Fool suggests that investors nervous about the tech stock frenzy consider three steady, high-yield master limited partnership pipeline stocks: Energy Transfer, Enterprise Products Partners, and Western Midstream. Energy Transfer offers a 7.2% yield and trades at a forward enterprise value-to-EBITDA multiple of 8.3, with growth projects like the Hugh Brinson and Desert Southwest Pipelines expected to generate high-teens returns. Enterprise Products Partners has increased its distribution for 27 straight years, yields 6%, and trades at a forward EV/EBITDA multiple of 10.5, while maintaining low leverage of 3.2x and a strong balance sheet. Western Midstream yields 8.7%, trades at a forward EV/EBITDA multiple under 9, and is expanding its natural gas and crude gathering footprint in the Delaware Basin through the Brazos Delaware acquisition, with leverage of only 3x.

Western Midstream Operating, a unit of Western Midstream Partners, priced an offering of $700 million in aggregate principal amount of 5.7% senior notes due 2036. Net proceeds will be used to repay outstanding borrowings under the company's revolving credit facility and commercial paper program, including debt incurred to finance the acquisition of Brazos Delaware II, and for general partnership purposes such as funding capital expenditures. The notes offering is expected to close on June 25.

Western Midstream Partners has commissioned a second large-scale produced-water treatment pilot facility in the Permian Basin, developed with major oil and gas partners to materially expand water reclamation capacity in West Texas. The new facility treats 2,000 barrels per day of produced water into approximately 1,000 barrels per day of reclaimed freshwater, providing hard data on costs, reliability, and revenue potential. Western Midstream is working alongside Chevron, ConocoPhillips, Devon, and ExxonMobil, aligning its infrastructure plans with the water needs of some of the largest Permian producers. The initiative aims to support beneficial reuse of produced water for potential industrial and community uses while reducing disposal volumes, and could position Western Midstream as a preferred water infrastructure partner relative to peers such as Enterprise Products Partners, Kinder Morgan, or Energy Transfer.