Western Midstream Partners is a high-quality midstream operator with a wide economic moat, 37% return on equity, and 22% year-over-year revenue growth, but 60% revenue concentration from a single customer and a price already above analyst targets create asymmetric downside risk.
Thesis pillars
- Occidental Customer Concentration→Stable
- Wide Moat High Quality Operations→Stable
- Strong Revenue Growth 22 Pct→Stable
- +1 more pillar — see the Why tab for full reasoning
Western Midstream Partners, LP (WES) Stock Analysis
Range Bound setup
Energy · Oil & Gas Midstream
Sell if holding. Analyst target reached at $43.67 — A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Occidental (60.0%).
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... Read more
Sell if holding. Analyst target reached at $43.67 — A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Occidental (60.0%). Chart setup: RSI 48 mid-range, Bollinger mid-band. Score 6.0/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 32d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-07-06Recent Developments — Western Midstream Partners, LP
Latest news
- NEWS The Wes Buck Show | Ep. 423 | Michael Poland, Clay Millican, & Madelyn Marconi! - Drag Illustrated — Drag Illustrated neutral
- NEWS Western Midstream (WES) Rises As Market Takes a Dip: Key Facts - Yahoo Finance — Yahoo Finance positive
- NEWS Western Midstream Partners (WES) Expected to Announce Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS US Capital Advisors Has Negative Outlook of WES Q2 Earnings - MarketBeat — MarketBeat negative
- NEWS WES Maintained by Morgan Stanley -- Price Target Raised to $51.0 - GuruFocus — GuruFocus positive
Generated 2026-07-06T05:40:27Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerOccidental60%10-K Item 1A: 'dependent on Occidental as our largest customer and the owner of our general partner ... 60% of Total revenues ... attributable to production owned or controlled by Occidental'
- MEDIUMGeographiclimited producing areas10-K Item 1A: 'Our business and operations are concentrated in a limited number of producing areas. Due to our limited geographic diversification...'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $43.67 — A.R:R is negative (-2.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Occidental (60.0%). Chart setup: RSI 48 mid-range, Bollinger mid-band. Prior stop was $41.93. Score 6.0/10, moderate confidence.
Take-profit target: $44.51 (+1.9% upside). Prior stop was $41.93. Stop-loss: $41.93.
Concentration risk — Customer: Occidental (60.0%); Analyst target reached - limited upside remaining; Leverage penalty (D/E 2.5): -1.5.
Western Midstream Partners, LP trades at a P/E of 14.4 (forward 11.5). TrendMatrix value score: 6.4/10. Verdict: Sell.
18 analysts cover WES with a consensus score of 3.4/5. Average price target: $45.
What does Western Midstream Partners, LP do?Western Midstream Partners, LP, together with its subsidiaries, operates as a midstream energy company primarily in the...
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.