Morgan Stanley Increases Value of Western Midstream Partners to $37.00
January 12, 2023
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WES Stock Fair Value – Western Midstream Partners ($NYSE:WES) LP (WESTERN) is an energy company focused on natural gas gathering, processing and transportation. It operates in five regional areas: the Permian Basin, Texas Panhandle, Rocky Mountains, East Texas and Gulf Coast. WESTERN provides a full suite of midstream services, including natural gas gathering, processing, treating, compression and transportation services. It also owns and operates natural gas liquids (NGL) fractionation and transportation assets. Morgan Stanley recently increased its estimated value of WESTERN to $37.00. WESTERN has seen its share price rise significantly over the past few months.
This dividend increase reflects the company’s confidence in its future performance and its commitment to providing attractive returns to shareholders. The increased value from Morgan Stanley is likely due to the positive outlook for natural gas prices in the near future. WESTERN’s recent acquisition of additional midstream assets will also likely be a factor in the increased value. The company’s strong financial position and strong balance sheet will also have been taken into account when assessing WESTERN’s value. Overall, the increased value from Morgan Stanley is a testament to the strength of WESTERN’s business model and its ability to generate returns for investors. The company’s commitment to providing attractive returns to shareholders through dividends and share price appreciation will likely continue to attract investor attention going forward.
Stock Price
The stock opened at $27.3 and closed at $27.9, up by 3.1% from the previous day’s closing price of $27.0. This new value is reflective of the company’s potential for long-term growth and stability. WESTERN MIDSTREAM PARTNERS LP is an integrated midstream company that provides natural gas gathering, processing, treating, transportation, and storage services. The company operates in the Anadarko Basin and has a wide network of facilities and pipelines that span Oklahoma and Texas. Through its services, WESTERN MIDSTREAM PARTNERS LP ensures the safe and efficient transportation of natural gas from production sites to end-user customers. Over the past year, the company has seen a steady increase in revenue and profitability, thanks to its strategic investments in its infrastructure and operations.
Additionally, WESTERN MIDSTREAM PARTNERS LP’s management team is focused on delivering long-term value through strategic acquisitions, as well as cost-effective operations. Overall, Morgan Stanley’s increase in value of WESTERN MIDSTREAM PARTNERS LP stock reflects the confidence in the company’s potential for long-term growth and stability. With its wide network of facilities and pipelines, as well as its focus on delivering long-term value through strategic investments and cost-effective operations, WESTERN MIDSTREAM PARTNERS LP is well-positioned to benefit from the increasing demand for natural gas. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WES. More…
| Total Revenues | Net Income | Net Margin |
| 3.19k | 1.1k | 35.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WES. More…
| Operations | Investing | Financing |
| 1.87k | -426.5 | -1.38k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WES. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.47k | 8.47k | 7.9 |
Key Ratios Snapshot
Some of the financial key ratios for WES are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.9% | 17.2% | 46.2% |
| FCF Margin | ROE | ROA |
| 44.8% | 30.5% | 8.0% |
VI Analysis – WES Stock Fair Value Calculator
Western Midstream Partners LP is an energy company that focuses on the gathering, processing and transportation of natural gas, natural gas liquids and crude oil. The company’s fundamentals reflect its long term potential as seen through the analysis provided by VI app. This value is calculated through the VI Line which is a set of assumptions and calculations used to determine the intrinsic value of a stock. At present, the Western Midstream Partners LP stock is being traded at $27.9 which is overvalued by 28%. This implies that the stock is currently trading at a price higher than its actual worth. The company’s financial statements and market conditions are some of the key factors that influence the stock price. Investors should keep a close eye on all such developments as they could affect the future performance of the company. Also, they should consider the relative risk associated with investing in Western Midstream Partners LP stocks. By taking into account all these aspects, investors can make an informed decision and make a profitable investment in the company’s shares. More…
VI Peers
The general partner is Anadarko Petroleum Corporation. The partnership owns, operates, develops and acquires midstream energy assets in the United States. The assets include natural gas gathering systems, natural gas processing plants, natural gas liquids (NGL) fractionation facilities, olefins production facilities, pipelines and natural gas and NGL storage facilities.
– Kinder Morgan Inc ($NYSE:KMI)
Kinder Morgan Inc is a leading energy infrastructure company in North America. They own an interest in or operate approximately 84,000 miles of pipelines and 157 terminals. Their pipelines transport natural gas, refined petroleum products, crude oil, and CO2. Terminals handle and store products such as petroleum, chemicals, ethanol, and coal. Kinder Morgan Inc’s market cap as of 2022 is 39.38B. Their ROE is 7.82%.
– Williams Companies Inc ($NYSE:WMB)
The Williams Companies, Inc. is an energy infrastructure company based in Tulsa, Oklahoma. It is engaged in natural gas processing and transportation, as well as oil and gas exploration and production. The company owns and operates a large network of natural gas pipelines, storage facilities, and processing plants in the United States. Williams also has a minority interest in a natural gas pipeline in Canada. The company was founded in 1908 and has a workforce of approximately 4,000 employees.
– Pembina Pipeline Corp ($TSX:PPL)
Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America’s energy industry for over 65 years. Pembina owns and operates an integrated system of pipelines that transport crude oil, natural gas and natural gas liquids (NGLs). Pembina also owns and operates gas gathering and processing facilities and an NGL extraction business. With facilities strategically located in western Canada and in natural gas liquids-rich basins in the United States, Pembina delivers its services to customers where they need it most.
Summary
Western Midstream Partners LP is a midstream energy company engaged in gathering, processing, compressing, treating and transporting natural gas, condensate, crude oil and NGLs. Recently, Morgan Stanley boosted the value of the company to $37.00 per share, sending the stock price up the same day. In general, investors are attracted to the company’s steady dividend yields, solid balance sheet and efficient capital structure.
Analysts believe that the company is well-positioned to benefit from rising demand for natural gas in the midstream market, as well as increasing midstream activity in the US. Furthermore, WESTERN MIDSTREAM PARTNERS LP has a strong management team that has managed to increase its earnings over time, providing investors with a sound long-term investment opportunity.
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