Western Midstream Partners (WES) has drawn fresh attention after reporting first quarter 2026 earnings that topped analyst expectations and closing a $1.6b purchase of Brazos Delaware II, LLC, reshaping its midstream footprint.

Western Midstream Partners’ share price has climbed over the year, with a 90 day share price return of 8.7% and a 12.34% year to date share price return, while the 1 year total shareholder return of 23.74% points to sustained momentum beyond recent Brazos Delaware and earnings headlines.

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Western Midstream Partners now sits close to analyst targets after a strong run and the Brazos Delaware purchase, so is most of the upside already reflected in the unit price, or does valuation still point to more ahead?

Most Popular Narrative: 20% Undervalued

Western Midstream Partners last closed at $44.62 compared with a widely followed fair value narrative of about $44.73, which frames the current price as modestly below that estimate and puts the focus on what is driving the long term cash flow story rather than near term price moves.

Investment in major long term capacity expansions, such as the Pathfinder pipeline and North Loving II plant, are set to come online in 2027, adding significant processing and transport capability, and expected to materially increase revenues and cash flows in subsequent years.

Curious what assumptions sit behind that fair value for Western Midstream Partners, and how revenue, margins, and valuation multiples are expected to interact over time? The narrative sets out a detailed path for throughput, profitability, and required returns that is quite different from simply extrapolating recent results, and the numbers behind it may surprise you.

Result: Fair Value of $44.73 (UNDERVALUED)

However, Western Midstream Partners still faces real execution risk if large projects overrun on cost or timing, or if producer drilling and volumes soften in key basins.

Next Steps

With both risks and rewards on the table for Western Midstream Partners, now is the time to review the details yourself and weigh the trade offs. To help frame that decision, take a closer look at the 2 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.