Western Midstream Partners, LP Common Limited Partner Interests (WES) Company Bio
Western Gas Partners LP operates, acquires, and develops midstream energy assets in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania, and Texas. The company was founded in 2007 and is based in The Woodlands, Texas.
WES Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Western Midstream Partners LP. To summarize, we found that Western Midstream Partners LP ranked in the 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1276% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for WES, they are:
Western Midstream Partners LP's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 2.01% of tickers in our DCF set.
Western Midstream Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 24.72% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 23.19% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WES, try PDS, GLOP, BASX, PTEN, and USAC.
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Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced third-quarter 2020 financial and operating results. Net income (loss) available to limited partners for the third quarter of 2020 totaled $241.5 million, or $0.55 per common unit (diluted), with third-quarter 2020 Adjusted EBITDA(1) totaling $518.4 million, third-quarter 2020 Cash flows from operating activities totaling $392.9 million, and third-quarter 2020 Free cash flow(1) totaling $339.2 million.
Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced the exchange of its 98% interest in the $260 million 6.50% fixed-rate note receivable due 2038 from Occidental Petroleum Corporation (NYSE: OXY) ("Occidental") for 27.855 million WES common units owned by Occidental (the "Exchange"). The units will be canceled following the Exchange. The net effect of this transaction increases WES's per-annum Free cash flow1 after distributions by approximately $18.1 million based on current per-unit annualized distributions.