- August 6, 2025 (Q2 Earnings): Stock reacted positively to strong results showing $333.8 million net income and record $617.9 million Adjusted EBITDA (Q2 2025 Results)
- May 2025 (Q1 Earnings): Similar positive reaction with $594 million Adjusted EBITDA supporting the 9.4% dividend yield
- February 2025 (Q4 2024): Stable performance maintained investor confidence in distribution sustainability
How to Buy Western Midstream Partners, LP (WES) Shares - Investment in Western Midstream Partners, LP (WES) Stock
Updated on 25 Aug 2025
Thinking about adding energy infrastructure to your portfolio? Western Midstream Partners (WES) offers a compelling 9.4% dividend yield with strong cash flows from its pipeline operations. As a master limited partnership serving major oil producers, WES combines income generation with exposure to America's energy backbone. Let's explore whether this high-yielder deserves a spot in your investment strategy.
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- 📈 Western Midstream Stock: Current Price and Critical Dates
- 🔮 Price Forecast: 2025-2030 Outlook
- ⚠️ Key Risks vs. Positive Signals
- 🛡️ What Should a Beginner Trader Do Today?
- ✅ How to Buy Western Midstream Partners, LP (WES) Shares – Step by Step
- 💡 Why Pocket Option Fits Energy Investors
- 🌍 Western Midstream in 2025: Energy’s Infrastructure Backbone
📈 Western Midstream Stock: Current Price and Critical Dates
As of August 25, 2025, Western Midstream Partners (WES) trades at $38.54 on the NYSE. Mark your calendar: November 5, 2025 is the next earnings date that could significantly move the stock price.
Historical Earnings Impact Analysis:
Looking at recent quarterly reports, WES has shown consistent pattern around earnings releases:
The pattern shows that WES typically experiences 3-7% price movements around earnings, with positive surprises driving stronger rallies. Given the company’s recent reaffirmation of full-year 2025 guidance, the November earnings could provide further confirmation of growth trajectory.
6-Month Price Performance (March-August 2025):
WES has shown resilience despite market volatility, trading within a range of $33.60 to $43.33 over the past year. Recent performance indicates:
- -1.67% over the past week
- -3.14% over the past month
- +1.55% year-over-year growth
The stock has slightly underperformed the broader market (SPY’s +17.3% vs WES’s +10.3%), but this is typical for energy infrastructure stocks facing sector headwinds (Market Performance Data).
🔮 Price Forecast: 2025-2030 Outlook
Near-Term (2025-2026):
Analysts project WES reaching $39.37-$40.50 by mid-2026, representing approximately 5% upside from current levels. The consensus “Hold” rating reflects cautious optimism about the Aris Water Solutions acquisition integration.
Medium-Term (2028):
By 2028, WES could reach $44.54 as the acquired water infrastructure assets contribute to cash flow growth and operational diversification.
Long-Term (2030):
Projections suggest WES trading around $40.10-$45.00 by 2030, with potential for higher returns if energy demand strengthens and the company successfully executes its growth strategy.
Verdict: BUY for income-focused investors comfortable with MLP structure risks. The current pullback provides an attractive entry point for the 9.4% yield.
⚠️ Key Risks vs. Positive Signals
Risks to Consider:
- High leverage: Debt-to-equity ratio of 207.2% amplifies financial risk during downturns
- Counterparty concentration: 60% revenue dependency on Occidental Petroleum creates vulnerability
- MLP complexity: K-1 tax forms and potential UBTI issues for retirement accounts
- Energy sector volatility: Commodity price fluctuations and regulatory changes
- Dividend coverage concerns: Despite 1.6x coverage ratio, sustainability requires monitoring
Green Lights for 2025:
- Record financial performance: Q2 2025 showed $617.9M Adjusted EBITDA and $388.4M free cash flow
- Strategic acquisition: $1.5B Aris Water Solutions deal enhances water handling capabilities
- Infrastructure expansion: New 300 MMcf/d processing train at North Loving plant
- Stable distributions: Maintained $0.910 per unit distribution with strong coverage
- Investment-grade ratings: BBB- credit rating supports financial stability
🛡️ What Should a Beginner Trader Do Today?
- Start small: Allocate no more than 5% of portfolio to WES due to sector concentration risk
- Use dollar-cost averaging: Purchase in increments to average entry price around current levels
- Monitor November earnings: Potential buying opportunity if market overreacts to any short-term concerns
- Consult tax advisor: Understand MLP implications before investing significant amounts
Humorous take: “Trading WES is like owning a pipeline – sometimes you get steady flow, sometimes you get leaks. But the dividend checks keep flowing like West Texas crude!”
✅ How to Buy Western Midstream Partners, LP (WES) Shares – Step by Step
| Step | Action | Why It Matters |
|---|---|---|
| 1 | Choose a brokerage platform | Ensure it supports MLP investments and provides K-1 tax documentation |
| 2 | Complete account funding | Start with manageable amount given the specialized nature of MLPs |
| 3 | Research WES ticker | Use “WES” for Western Midstream Partners on NYSE |
| 4 | Select order type | Limit orders recommended to control entry price in volatile energy sector |
| 5 | Confirm purchase | Review commission costs and settlement details |
| 6 | Set dividend preferences | Choose cash distribution or dividend reinvestment plan |
| 7 | Monitor position | Track energy sector news and company announcements |
| 8 | Tax preparation | Save all documents for K-1 tax filing requirements |
| 9 | Review quarterly | Assess distribution sustainability and operational updates |
| 10 | Rebalance periodically | Maintain appropriate sector allocation based on risk tolerance |
💡 Why Pocket Option Fits Energy Investors
Pocket Option offers unique advantages for investors interested in energy sector opportunities like WES:
- Minimum deposit of $5 allows testing energy sector strategies with minimal risk exposure. The platform’s quick KYC process using any single document enables rapid account activation when time-sensitive opportunities arise in volatile energy markets.
- With hundreds of withdrawal methods including multiple cryptocurrency options, investors can quickly access profits from energy sector movements.
For those interested in quick trading around energy sector events like earnings announcements or oil inventory reports, Pocket Option provides flexible tools to capitalize on short-term price movements while maintaining long-term WES positions elsewhere.
🌍 Western Midstream in 2025: Energy’s Infrastructure Backbone
Western Midstream Partners operates critical midstream infrastructure including natural gas gathering systems, processing plants, and crude oil pipelines primarily in Texas’s Delaware Basin and Colorado’s DJ Basin. The company serves major energy producers by transporting and processing hydrocarbons through fee-based contracts that provide revenue stability.
2025 fun fact: The company’s recent acquisition of Aris Water Solutions makes it one of the largest integrated water management providers in the Permian Basin, handling both hydrocarbons and produced water – essentially becoming the “plumbing system” for America’s most productive oil field!
FAQ
What is the current dividend yield for WES?
Western Midstream Partners currently offers a 9.4% dividend yield, paying $0.910 per unit quarterly.
How does the MLP structure affect taxes?
MLPs issue K-1 tax forms instead of 1099-DIVs, which can create additional tax complexity and potential UBTI issues for retirement accounts.
What is the significance of the Aris Water Solutions acquisition?
The $1.5 billion acquisition expands WES's water handling capabilities to 1.8 million barrels per day and diversifies revenue streams beyond traditional hydrocarbon services.
How dependent is WES on Occidental Petroleum?
Approximately 60% of WES's revenue comes from Occidental Petroleum, creating significant counterparty concentration risk.
What is the analyst consensus for WES stock?
Analysts generally rate WES as "Hold" with average price targets around $40.50, representing about 5% upside from current levels.
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