Western Midstream Partners (NYSE:WES) Shares Gap Down on Disappointing Earnings

Western Midstream Partners, LP (NYSE:WES)’s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $43.90, but opened at $40.51. Western Midstream Partners shares last traded at $41.3090, with a volume of 1,195,836 shares trading hands.

The pipeline company reported $0.47 earnings per share for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.44). Western Midstream Partners had a return on equity of 35.21% and a net margin of 30.52%.The business had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $1.06 billion. During the same period last year, the business earned $0.85 earnings per share. The company’s revenue for the quarter was up 11.1% on a year-over-year basis.

Western Midstream Partners Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Monday, February 2nd were issued a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 8.8%. The ex-dividend date of this dividend was Monday, February 2nd. Western Midstream Partners’s payout ratio is 107.69%.

Trending Headlines about Western Midstream Partners

Here are the key news stories impacting Western Midstream Partners this week:

• Positive Sentiment: WES has expressed takeover interest in Kinetik Holdings — the market sees strategic upside from consolidation and cash‑flow synergies if a deal advances, which supports longer‑term growth expectations. Read More.
• Positive Sentiment: Reported record fourth‑quarter and full‑year 2025 Adjusted EBITDA and beat the midpoint of full‑year guidance — management highlighted strong fee‑based cash flows and execution on operations, which underpins distributable cash flow potential. Read More.
• Neutral Sentiment: Earnings presentation and call materials available — slides and the earnings call transcript provide detail on segment performance, non‑cash adjustments and 2026 guidance assumptions for volume, capital spending and fees (useful for modeling). Read More.
• Negative Sentiment: Large EPS miss drove the immediate selloff — WES reported $0.47 EPS vs. consensus ~$0.91 and revenue slightly below expectations; management cited non‑cash revenue adjustments that reduced reported earnings, but the headline miss spooked near‑term traders. Read More.
• Negative Sentiment: M&A interest raises questions about financing and leverage — potential deals (Kinetik) could require cash or debt issuance; WES already has elevated leverage metrics that investors will watch if acquisition activity accelerates. Read More.

Analysts Set New Price Targets

WES has been the topic of a number of analyst reports. Stifel Nicolaus set a $43.00 price objective on Western Midstream Partners in a research note on Thursday, November 6th. Royal Bank Of Canada raised their price target on shares of Western Midstream Partners from $39.00 to $42.00 and gave the stock a “sector perform” rating in a research note on Friday, November 28th. Wells Fargo & Company cut their price objective on shares of Western Midstream Partners from $40.00 to $39.00 and set an “equal weight” rating for the company in a research report on Thursday, January 22nd. Finally, Wall Street Zen downgraded shares of Western Midstream Partners from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $41.33.

Insider Buying and Selling at Western Midstream Partners

In other news, SVP Christopher B. Dial sold 5,879 shares of the business’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $42.35, for a total transaction of $248,975.65. Following the completion of the sale, the senior vice president directly owned 185,011 shares of the company’s stock, valued at $7,835,215.85. The trade was a 3.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.04% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Eagle Bay Advisors LLC purchased a new stake in Western Midstream Partners during the fourth quarter valued at about $27,000. Northwestern Mutual Wealth Management Co. acquired a new position in Western Midstream Partners during the fourth quarter valued at approximately $27,000. Rothschild Investment LLC grew its stake in Western Midstream Partners by 76.2% during the fourth quarter. Rothschild Investment LLC now owns 793 shares of the pipeline company’s stock worth $31,000 after buying an additional 343 shares during the period. Garton & Associates Financial Advisors LLC purchased a new stake in Western Midstream Partners during the fourth quarter worth approximately $32,000. Finally, Global Wealth Strategies & Associates acquired a new stake in shares of Western Midstream Partners in the fourth quarter worth $35,000. 84.82% of the stock is owned by hedge funds and other institutional investors.

Western Midstream Partners Stock Performance

The stock’s 50 day moving average price is $40.78 and its 200 day moving average price is $39.36. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 2.08. The firm has a market cap of $16.92 billion, a PE ratio of 13.82 and a beta of 0.77.

About Western Midstream Partners

Western Midstream Partners, LP (NYSE: WES) is a midstream energy infrastructure company that owns, operates and develops an integrated network of crude oil, natural gas and produced water gathering, processing, transportation and storage assets in the United States. The partnership’s primary offerings include pipeline transportation, fractionation services, natural gas liquids (NGL) logistics and produced water handling. Through its fee-based and commodity-based contracts, Western Midstream provides its customers with essential services that support efficient energy production and distribution.

The company’s asset portfolio spans key onshore basins, including the Delaware Basin in West Texas and southeastern New Mexico, the San Juan Basin in New Mexico and Colorado, and the Denver-Julesburg Basin in Colorado.