WES Stock Recent News

Does Western Midstream (WES) have what it takes to be a top stock pick for momentum investors? Let's find out.

HOUSTON , April 18, 2024 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution ("Base Distribution") of $0.8750 per unit for the first quarter of 2024, or $3.50 on an annualized basis, which is 52-percent higher than the prior quarter's distribution and in-line with WES's previously announced expectations. WES's first-quarter 2024 Base Distribution is payable on May 15, 2024, to unitholders of record at the close of business on May 1, 2024.

Western Midstream Partners' parent company, Occidental Petroleum, is exploring a sale of WES to reduce debt. WES distribution hike is likely to be influenced by OXY. If OXY sells WES towards the end of 2024, investors will likely pocket close to 20% return in 9 months.

My Income Climbed 52%, More Capital Gains Ahead: Western Midstream

Western Midstream reported strong Q4 results and announced it plans to increase its distribution by 52%. The company also announced a number of non-core asset sales that will improve its balance sheet and lower its leverage. There are rumors of Occidental Petroleum selling its stake in Western Midstream, which could potentially lead to an acquisition of the company.

Western Midstream Partners, LP (WES) Q4 2023 Earnings Call Transcript

Western Midstream Partners, LP finally broke above its trading range in the $20s and is forecasting strong EBITDA growth of around 11%. This breakout should continue, supported by Western Midstream increasing quarterly distributions over 50% to $0.875 from $0.575. Throughput of gas, oil, and water all grew, even before completion of two new gas processing plants in the Delaware basin this year.

The headline numbers for Western Midstream (WES) give insight into how the company performed in the quarter ended December 2023, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Higher throughput is likely to have boosted Q4 earnings for Western Midstream (WES).

Lower commodity prices amid flat production are likely to have hurt BP's Q4 earnings to some extent.