moneyheap
WES · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Western Midstream Partners, LP (WES) stock moving?
WES reported Q3 2026 results on Nov 4 that missed consensus, with EPS of $0.78 against $0.92 expected and sales of $1.194B against $1.211B. The operating picture was stronger than the headline miss: Adjusted EBITDA rose 12% to $708.3M, Distributable Cash Flow reached $512.3M, Free Cash Flow was $244.2M, gathering throughput hit records, and the Brazos Delaware acquisition and the Solitude Pipeline stake support future volumes. Management reaffirmed 2026 Adjusted EBITDA guidance of $2.75B to $2.95B, FCF guidance of $1.10B to $1.30B, and a $0.930 quarterly distribution, but said capex will run slightly above the $850M to $1.0B range. The stock fell from $45.46 on Oct 30 to a low of $39.85 on Nov 5 on about 4.8M shares, roughly three times normal volume, then recovered to $41.14 by Nov 10 on steadier volume. Stifel kept its Buy rating and lowered its target to $50, which still implies upside. The stock now trades near the $39.85 low from Nov 5 and well below the $44 to $45 area of late October. Near-term direction depends on whether the post-earnings rebound holds and whether the capex overrun is seen as a strain on distribution coverage.
News behind the analysis
- Stifel Maintains Buy on Western Midstream, Lowers Price Target to $50Stifel kept its Buy rating on WES and cut its price target to $50, still above the $41.14 close on Nov 10.
- Western Midstream Announces Third-Quarter 2026 Financial and Operating ResultsQ3 net income attributable to limited partners was $324.8M ($0.78 per unit), Adjusted EBITDA rose 12% to $708.3M, and 2026 guidance was reaffirmed.
- Western Midstream Q3 EPS $0.78 Misses $0.92 Estimate, Sales $1.194B Miss $1.211B EstimateQ3 earnings per share and revenue both came in below analyst consensus estimates.
About Western Midstream Partners, LP
Western Midstream Partners is a Houston-based master limited partnership (MLP) that gathers, processes, treats and transports natural gas, crude oil, NGLs and produced water in Texas, New Mexico, Colorado, Utah and Wyoming. Occidental Petroleum is its main customer and a major owner. Its business is concentrated in the Delaware Basin (Permian), and it has grown its produced-water business, including through the Aris acquisition.
How it makes money
WES mostly earns fees for moving and processing its customers' hydrocarbons and water, so most of its cash flow is shielded from direct swings in commodity prices. The biggest pieces are natural-gas gathering and processing, crude oil and NGL gathering and transport, and produced-water gathering and disposal. Management expects more than 60% of 2026 adjusted EBITDA (approximate) to come from the Delaware Basin. As an MLP, it pays out much of its cash as quarterly distributions, which were about $0.93 per unit in 2026, and unitholders receive K-1 tax forms.
What usually moves WES
- Drilling activity and production volumes from Occidental and other Permian producers
- Oil and natural gas prices and how they affect producer spending
- Changes in quarterly distributions and cash flow guidance
- Interest rates and investor demand for high-yield MLPs
- Acquisitions and expansion projects, plus Occidental's ownership stake