Western Midstream Partners LP: Thoughts Into 2Q26: Commodity Tailwinds Underpin Sequential Step Up

研报英文原文证据摘录

Western Midstream Partners LP: Thoughts Into 2Q26: Commodity Tailwinds Underpin Sequential Step Up

Jeremy Tonet, CFA AC North America Equity Research

(1-212) 622-4915 13 July 2026 J P M O R G A N

jeremy.b.tonet@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

WES operates in the DJ and Permian with a primarily MVC/

cost-of-service contractual profile. WES maintains significant

midstream financial flexibility and possesses significantly more

size and scale than pure-play G&P MLPs. While a yield above

peers’ provides valuation support, we continue to see longer-

term contract rolls, lower growth versus peers, and uncertainty

with sponsor OXY (selldowns or other actions) creating a more

balanced risk/reward profile.

Valuation

YTD 1m 3m 12m

Abs 15.8% 2.6% 11.4% 15.9% We base our Dec 2027 price target of $47/unit on a blended

Rel 5.1% 0.7% 1.4% -5.0% valuation for WES. Our DCF valuation assumes a 10% discount

rate and 6% terminal decline, implying a ~$44/unit value. OurCompany Data

EV/EBITDA valuation employs a 9.50x target multiple on

Shares O/S (mn) 394

52-week range ($) 48.01-36.90 2028E EBITDA and implies a ~$50/unit value. The EV/

Market cap ($ mn) 18,011.31 EBITDA multiple, terminal growth rate, and required rate of

Exchange rate 1.00 return are based on leverage/liquidity risk, distribution coverage

Free float (%) 63.2%

3M ADV (mn) 1.36 outlook, volumetric/recontracting risk, commodity/marketing

3M ADV ($ mn) 58.7 risk, take-or-pay contract profile and other factors.

Volatility (90 Day) 24

Index S&P 500

BBG ANR (Buy | Hold | Sell) 4|9|1 Performance Drivers

Key Metrics (FYE Dec)

$ in millions FY25A FY26E FY27E FY28E

Financial Estimates

Enterprise value (EV) 24,742 27,517 27,688 27,191

Adj. EBITDA 2,481 2,830 3,003 3,092