Western Midstream Partners, LPWES
NYSE•Energy•Oil & Gas Midstream
Western Midstream Partners, LP, together with its subsidiaries, operates as a midstream energy company primarily in the United States. The company is involved in gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing of produced water. It also buys and sells residue, NGLs, and condensates. The company operates assets located in Texas, New Mexico, and the Rocky Mountains. It also provides water handling solutions. The company was formerly known as Western Gas Equity Partners, LP and changed its name to Western Midstream Partners, LP in February 2019. Western Midstream Partners, LP was incorporated in 2007 and is based in The Woodlands, Texas.
Western Midstream Partners, LP (WES) reported trailing twelve months revenue of $4.05B as of March 2026, a 11.4% increase year-over-year. Quarterly revenue reached $1.12B, reflecting continued top-line momentum.
Western Midstream Partners, LP generated $1.22B in TTM net income, with quarterly EBITDA of $669.62M. The operating margin contracted from 44.7% to 41.8%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (41.8%) and net margin (31.2%) indicates moderate non-operating costs. Net margin has narrowed from 33.7% a year ago, reflecting increased costs or interest expense.
WES trades at a P/E of 13.6x (below the broader market average) and a P/S of 4.1x. The price-to-book ratio of 4.9x reflects a moderate premium to book value.
The company generated $234.18M in free cash flow over the trailing twelve months, a 39.7% decrease year-over-year, indicating cash generation ability. The balance sheet shows $14.92B in total assets with $8.19B in long-term debt against $3.37B in stockholders equity for a debt-to-equity ratio of 2.4, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~44.0% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 41.3% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~18.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 11.9% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.2x on average — earnings are well-supported by cash generation.
D/E ratio of 2.4 is elevated and rising. Monitor for further debt accumulation.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding rose 4.4% — mild dilution. Compare to earnings growth to assess net per-share impact.