Western Midstream Partners (NYSE:WES) Shares Gap Down Following Weak Earnings

Western Midstream Partners, LP (NYSE:WES)’s stock price gapped down prior to trading 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 traded.

The pipeline company reported $0.47 EPS for the quarter, missing the consensus estimate of $0.91 by ($0.44). The business had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $1.06 billion. Western Midstream Partners had a return on equity of 39.37% and a net margin of 35.18%.The firm’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.85 EPS.

Western Midstream Partners Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Monday, February 2nd were paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 8.9%. The ex-dividend date of this dividend was Monday, February 2nd. Western Midstream Partners’s payout ratio is currently 107.69%.

Western Midstream Partners News Roundup

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

• Positive Sentiment: Company reported record adjusted EBITDA for Q4 and full‑year 2025 (Q4 Adjusted EBITDA $635.6M; full‑year $2.481B), and net income and EBITDA exceeded the midpoint of its full‑year guidance — evidence of strong underlying cash generation and operating performance. Western Midstream Announces Record Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Industry M&A/speculation: reports that Texas midstream players and Kinetik are exploring sale processes highlight rising interest in midstream assets as gas demand grows — could affect sector comps and long‑term strategic options, but impact to WES is indirect and uncertain. Texas pipeline operator prepares sale process as gas demand booms
• Neutral Sentiment: Additional coverage on potential Kinetik sale and broader sector dynamics — useful context for relative valuation and investor interest in midstream M&A. Kinetik Holdings: A Potential Sale in the Pipeline
• Negative Sentiment: Q4 EPS materially missed estimates — reported $0.47 vs. consensus $0.91 — and revenue came in slightly light ($1.03B vs. ~$1.06B), driving the immediate selloff; the EPS shortfall is the primary near‑term negative catalyst. Western Midstream misses Q4 earnings estimates, shares fall
• Negative Sentiment: Company disclosed $29.5M of unfavorable non‑cash revenue adjustments in Q4; while EBITDA remained strong, these adjustments and the EPS miss raise near‑term earnings quality questions for some investors. Western Midstream: Q4 Earnings Snapshot
• Negative Sentiment: Balance‑sheet/leverage considerations (reported debt/equity ~2.08) and the drop from expectations increase scrutiny on capital allocation and dividend sustainability if commodity or throughput trends deteriorate. Western Midstream Partners LP (WES) Q4 2025: Everything You Need To Know Ahead Of Earnings

Analysts Set New Price Targets

A number of analysts have recently issued reports on WES shares. Wall Street Zen downgraded shares of Western Midstream Partners from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Royal Bank Of Canada lifted their price target on 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 reduced their price objective on Western Midstream Partners from $40.00 to $39.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 22nd. Finally, Stifel Nicolaus set a $43.00 price objective on Western Midstream Partners in a report on Thursday, November 6th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Western Midstream Partners has an average rating of “Hold” and an average target price of $41.33.

Insider Activity

In other news, SVP Christopher B. Dial sold 5,879 shares of Western Midstream Partners stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $42.35, for a total value of $248,975.65. Following the transaction, the senior vice president owned 185,011 shares in the company, valued at approximately $7,835,215.85. The trade was a 3.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.04% of the company’s stock.

Institutional Investors Weigh In On Western Midstream Partners

Institutional investors have recently bought and sold shares of the stock. Eagle Bay Advisors LLC purchased a new position in Western Midstream Partners in the 4th quarter worth approximately $27,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Western Midstream Partners in the fourth quarter worth approximately $27,000. Rothschild Investment LLC increased its stake in shares of Western Midstream Partners by 76.2% in 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 position in shares of Western Midstream Partners in the fourth quarter worth $32,000. Finally, Global Wealth Strategies & Associates bought a new stake in Western Midstream Partners during the 4th quarter valued at $35,000. 84.82% of the stock is currently owned by hedge funds and other institutional investors.

Western Midstream Partners Stock Down 6.9%

The company’s 50-day simple moving average is $40.72 and its two-hundred day simple moving average is $39.35. The firm has a market cap of $16.68 billion, a PE ratio of 12.10 and a beta of 0.77. The company has a debt-to-equity ratio of 2.08, a quick ratio of 1.43 and a current ratio of 1.43.

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.