Western Midstream Partners LP's stock fell by 3.20% as it reached a 20-day high, reflecting a challenging market environment.
The company has renegotiated its natural gas gathering and processing contracts with Occidental Petroleum, transitioning to a simplified fixed-fee structure that enhances contract transparency and predictability. Additionally, Western Midstream will redeem 15.3 million common units valued at approximately $610 million from Occidental, reducing its ownership stake from 42% to 40%. This strategic move is expected to optimize its capital structure and enhance revenue stability by diversifying its customer base.
These changes are anticipated to improve cash flow management and financial flexibility, allowing Western Midstream to maintain its distribution yields despite the current market volatility.
Wall Street analysts forecast WES stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WES is 40.50 USD with a low forecast of 39.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast WES stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WES is 40.50 USD with a low forecast of 39.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
4 Hold
0 Sell
Hold
Current: 41.110
Low
39.00
Averages
40.50
High
42.00
Current: 41.110
Low
39.00
Averages
40.50
High
42.00
Wells Fargo
Ned Baramov
Equal Weight
downgrade
$40 -> $39
2026-01-22
Reason
Wells Fargo
Ned Baramov
Price Target
$40 -> $39
AI Analysis
2026-01-22
downgrade
Equal Weight
Reason
Wells Fargo analyst Ned Baramov lowered the firm's price target on Western Midstream to $39 from $40 and keeps an Equal Weight rating on the shares. The firm is trimming its 2026 and beyond estimates to reflect the net impact of lower operating cash flows, lower 2026 capex, lower unit count & distributions, and higher assumed cost reductions.
RBC Capital
Elvira Scotto
Sector Perform
maintain
$39 -> $42
2025-11-28
Reason
RBC Capital
Elvira Scotto
Price Target
$39 -> $42
2025-11-28
maintain
Sector Perform
Reason
RBC Capital analyst Elvira Scotto raised the firm's price target on Western Midstream to $42 from $39 and keeps a Sector Perform rating on the shares. The firm is updating its model after the company's recent Q3 earnings and expectation to be near the high-end of its 2025 adjusted EBITDA guidance, the analyst tells investors in a research note. Western Midstream's strong balance sheet provides financial flexibility to execute growth plans and to support underlying operations during periods of commodity price headwinds, RBC added.
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Wells Fargo
Equal Weight
upgrade
$38 -> $40
2025-11-13
Reason
Wells Fargo
Price Target
$38 -> $40
2025-11-13
upgrade
Equal Weight
Reason
Wells Fargo raised the firm's price target on Western Midstream to $40 from $38 primarily to reflect a higher assumed EV/EBITDA multiple in its sum-of-the-parts for the water business and lower opex. The firm keeps an Equal Weight rating on the shares on valuation.
Stifel
Selman Akyol
Hold
maintain
$41 -> $43
2025-11-06
Reason
Stifel
Selman Akyol
Price Target
$41 -> $43
2025-11-06
maintain
Hold
Reason
Stifel analyst Selman Akyol raised the firm's price target on Western Midstream to $43 from $41 and keeps a Hold rating on the shares. The company posted Q3 results modestly above the firm's estimates and guided estimates to the higher end of its EBITDA range, the analyst tells investors in a research note. The firm said it raised its price target based on its 2026 estimates, which include the Aris acquisition.
About WES
Western Midstream Partners, LP acquires, owns, develops and operates midstream assets. It is engaged in the business of 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. Its core assets provide services for customers in the Delaware Basin in West Texas and New Mexico, and the DJ Basin in northeastern Colorado, and the Powder River Basin in Northeast Wyoming. Additional assets and investments are in South Texas, Utah, and Southwest Wyoming. In its capacity as a natural gas processor, the Company also buys and sells natural gas, NGLs, and condensate on its behalf and its customers under certain gas processing contracts. Its subsidiaries include Western Midstream Operating GP, LLC, Western Midstream Services, LLC, Western Midstream Services Holdings, LLC, Western Midstream Operating, LP, and Aris Water Solutions, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
