Western Midstream: Strong Returns At The Current Valuation

Western Midstream (WES) offers a robust >9% distribution yield, supported by strong operational performance and disciplined cost management. WES achieved record adjusted EBITDA for three consecutive quarters, with 6% YoY growth and significant O&M expense reductions. Growth projects like North Loving II and the Pathfinder Pipeline underpin mid-single-digit EBITDA growth guidance for 2026 and future distribution increases.