Soar with Natural Gas Demand & Earn +8% Yields with Western Midstream Partners LP

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Western Midstream Partners ($NYSE:WES) LP (WES) is a publicly traded master limited partnership that provides natural gas gathering, processing, treating, transportation, and storage services to producers of natural gas, crude oil, and natural gas liquids. As many countries around the world are increasingly turning to natural gas for energy needs, this is having a positive effect on WES, driving their stock prices higher and providing investors with safe and reliable 8 percent yields. WES’s operations are spread across major oil and gas producing basins in the United States. They have an impressive portfolio of assets and operations which include gathering infrastructure, processing plants, natural gas liquids (NGL) fractionation facilities, and pipeline and storage assets. These assets are strategically located to serve major production basins across the country, such as the Permian, Arkoma and Anadarko basins. The company works with some of the largest exploration and production companies in the US, providing diversified services to its customers.

WES has also been successful in executing growth projects, including several expansions of existing assets as well as acquisitions of new projects. The company has a solid track record of performance with increased cash flows in recent years and a steady dividend payout ratio. The WES stock is currently trading near all-time highs and is expected to continue to soar in light of the growing natural gas demand. It provides investors with an attractive yield of 8 percent while offering potential for capital appreciation. With a strong balance sheet and stable earnings growth, WES is well positioned to benefit from the growing demand for natural gas and deliver value to investors.

Analysis

GoodWhale’s analysis of WESTERN MIDSTREAM PARTNERS LP’s wellbeing has resulted in a strong score in dividends, profitability, and medium score in growth, with a weaker score in assets. Our Star Chart also reveals that WESTERN MIDSTREAM PARTNERS LP has a high health score of 8/10 with regard to its cash flows and debt, making it capable of safely riding out any crisis without fear of bankruptcy. We have classified WESTERN MIDSTREAM PARTNERS LP as a ‘cow’, which is a type of company with a track record of paying out consistent and sustainable dividends. This makes WESTERN MIDSTREAM PARTNERS LP an ideal investment option for investors seeking consistent dividends from a strong, stable company. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for WES. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for WES. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for WES. More…

Key Ratios Snapshot

Some of the financial key ratios for WES are shown below. More…

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 (WES) is an attractive investment opportunity as natural gas demand is soaring. It is a publicly traded limited partnership that operates, acquires, and develops midstream energy infrastructure assets. WES provides gathering, processing, compression, treating, and transportation services to its customers. Its 8% dividend yield, combined with its strong financial performance and low beta, make it an attractive investment opportunity for income investors.

WES has an investment-grade credit rating and low leverage, ensuring long-term financial stability. Moreover, its high distribution coverage ratio and solid cash flow generation provide further evidence of the company’s resilience during market downturns.