Western Midstream Partners overview

Western Midstream Partners (WES) has drawn fresh investor attention as its unit price hovers near recent levels, with performance over the past year and longer term prompting renewed interest in its income and valuation profile.

At a recent share price of US$41.12, Western Midstream Partners has seen mild pressure in the past week but still carries positive momentum on a 30 day and year to date share price return basis, while its 1 year, 3 year and 5 year total shareholder returns point to a strong long term income and reinvestment story.

If this income focused story has your attention, it could be a good moment to broaden your search and check out 21 elite gold producer stocks as another commodity linked opportunity set.

With solid long term total returns and an intrinsic value estimate suggesting a sizeable discount, the key question now is whether Western Midstream Partners is still undervalued or if the market is already pricing in future growth.

Most Popular Narrative: 1.3% Undervalued

With Western Midstream Partners last closing at $41.12 and the most followed fair value sitting around $41.67, the narrative sees only a small upside but still argues the units trade below intrinsic value at a 6.96% discount rate.

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 future throughput, margins and earnings per unit the narrative is baking in to reach that fair value, and how those assumptions stack up against today’s fundamentals and market expectations.

Result: Fair Value of $41.67 (UNDERVALUED)

However, this hinges on producer activity and new projects staying on track, so weaker drilling budgets or cost overruns could quickly challenge that fair value story.

Build Your Own Western Midstream Partners Narrative

If you see the numbers differently or prefer to check the assumptions yourself, you can build a custom Western Midstream view in minutes, starting with Do it your way.

A great starting point for your Western Midstream Partners research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.