Western Midstream Stock (NYSE:WES), Trade Ideas

Western Midstream

Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma), North-central Pennsylvania and Texas.

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SPHR

Editor&#39;s Note: The article has been corrected to accurately state that Executive Chairman and CEO James L. Dolan acquired a total of 76,139 shares of Sphere Entertainment.

Although U.S. stocks closed higher on Friday, there were a few notable insider trades.

Insiders Buying Sphere Entertainment And 2 Other Stocks (CORRECTED)

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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

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OCUL

Although U.S. stocks closed mixed on Tuesday, there were a few notable insider trades.

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Western Midstream Partners, LP Common Units Representing Limited Partner Interests

Western Midstream Partners LP

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West Mining Corp Ordinary Shares

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Western Midstream shares are trading higher after Wolfe Research upgraded the stock from Underperform to Peer Perform.

Wolfe Research analyst Keith Stanley upgrades Western Midstream (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) from Underperform to Peer Perform.

Upgrades

Wolfe Research Upgrades Western Midstream to Peer Perform

Western Midstream's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) short percent of float has risen 26.73% since its last report. The company recently reported that it has 7.29 million shares sold short, which is 3.84% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.27 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Western Midstream Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1711994411_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Western Midstream has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Western Midstream's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Western Midstream's peer group average for short interest as a percentage of float is 3.82%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into Western Midstream's Recent Short Interest

Raymond James analyst Justin Jenkins downgrades Western Midstream (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) from Outperform to Market Perform.

Downgrades

Raymond James Downgrades Western Midstream to Market Perform

In the last three months, 4 analysts have published ratings on Western Midstream (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>), offering a diverse range of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Western Midstream, presenting an average target of $32.75, a high estimate of $36.00, and a low estimate of $27.00. Observing a 7.38% increase, the current average has risen from the previous average price target of $30.50. 
<img src="https://www.benzinga.com/files/images/story/2024/1710169253_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Western Midstream. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Elvira Scotto</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$34.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Spiro Dounis</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Neutral</td>
<td>$34.00</td>
<td>$30.00</td>
</tr>
<tr>
<td>Selman Akyol</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$36.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Neel Mitra</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Underperform</td>
<td>$27.00</td>
<td>$30.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Western Midstream. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Western Midstream compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Western Midstream's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Western Midstream's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/WES/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Western Midstream analyst ratings.</a>
<h2>Unveiling the Story Behind Western Midstream</h2>
Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma), North-central Pennsylvania and Texas.
<h3>Key Indicators: Western Midstream's Financial Health</h3>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Western Midstream's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 10.11%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.
Net Margin: Western Midstream's net margin excels beyond industry benchmarks, reaching 32.82%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Western Midstream's ROE stands out, surpassing industry averages. With an impressive ROE of 9.85%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Western Midstream's ROA excels beyond industry benchmarks, reaching 2.34%. This signifies efficient management of assets and strong financial health.
Debt Management: Western Midstream's debt-to-equity ratio surpasses industry norms, standing at 2.73. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Significance of Analyst Ratings Explained</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings For Western Midstream

RBC Capital analyst Elvira Scotto maintains Western Midstream (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) with a Sector Perform and raises the price target from $27 to $34.

RBC Capital Maintains Sector Perform on Western Midstream, Raises Price Target to $34

Editor&#39;s Note: The article has been corrected to accurately state that Executive Chairman and CEO James L. Dolan acquired a total of 76,139 shares of Sphere Entertainment.
Although U.S. stocks closed higher on Friday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#39;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"> Benzinga&#39;s insider transactions </a> platform.
<h3>Western Midstream Partners </h3>
<ul>
<li>The Trade: Western Midstream Partners, LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wes#NYSE">WES</a>) President and CEO Michael Ure <a href="https://www.benzinga.com/quote/WES/analyst-ratings"> acquired a total of 5,000 shares </a> an average price of $33.65. To acquire these shares, it cost around $168,250.</li>
<li>What&rsquo;s Happening: On Feb. 29, Citigroup analyst Spiro Dounis downgraded Western Midstream from Buy to Neutral and raised the price target from $30 to $34.</li>
<li>What Western Midstream Partners Does: Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets.</li>
</ul>
<h3>Sphere Entertainment </h3>
<ul>
<li>The Trade: Sphere Entertainment Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sphr#NYSE">SPHR</a>) Executive Chairman and CEO James L. Dolan acquired a total of 76,139 shares at an average price of $40.73. To acquire these shares, it cost around $3.1 million.</li>
<li>What&rsquo;s Happening: On Feb. 5, Sphere Entertainment clocked a 97% year-on-year revenue growth to $314.2 million, beating the consensus of $301.8 million.</li>
<li>What Sphere Entertainment Does: Sphere Entertainment Co is live entertainment and media company. The firm creates, writes, cast, produce, and tour shows and events.</li>
</ul>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
<h3>Agree Realty </h3>
<ul>
<li>The Trade: Agree Realty Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/adc#NYSE">ADC</a>) Director, Executive Chairman of Board Richard Agree <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 16,000 shares </a> at an average price of $55.50. To acquire these shares, it cost around $888,000.</li>
<li>What&rsquo;s Happening: On Feb. 27, Truist Securities analyst Ki Bin Kim maintained Agree Realty with a Buy and lowered the price target from $70 to $68.</li>
<li>What Agree Realty Does: Agree Realty Corporation operates as a fully integrated real estate investment trust mainly focused on the ownership, acquisition, development and management of retail properties net leased to industry-leading tenants.</li>
</ul>
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.
<ul>
<li>Tigress Financial boosted the price target for NVIDIA Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) from $790 to $985. Tigress Financial analyst Ivan Feinseth maintained a Buy rating. NVIDIA shares fell 1.3% to close at $776.63 on Wednesday. <a href="https://www.benzinga.com/quote/NVDA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Bernstein increased the price target for Okta, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/okta#NASDAQ">OKTA</a>) from $84 to $114. Bernstein analyst Peter Weed maintained a Market Perform rating. Okta shares rose 0.5% to close at $87.30 on Wednesday. <a href="https://www.benzinga.com/quote/OKTA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Barclays increased Bandwidth Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/band#NASDAQ">BAND</a>) price target from $20 to $22. Barclays analyst Ryan McKeveny maintained an Overweight rating. Bandwidth shares rose 51.8% to close at $18.44 on Wednesday. <a href="https://www.benzinga.com/quote/BAND/analyst-ratings">See how other analysts view this stock.</a></li>
<li>UBS boosted the price target for Pure Storage, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pstg#NYSE">PSTG</a>) from $38 to $44. UBS analyst David Vogt maintained a Neutral rating. Pure Storage shares gained 1.5% to close at $42.12 on Wednesday. <a href="https://www.benzinga.com/quote/PSTG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>TD Cowen lowered Macy&#39;s, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/m#NYSE">M</a>) price target from $23 to $20. TD Cowen analyst Adam Maeder downgraded the stock from Outperform to Market Perform. Macy&#39;s shares fell 7.7% to close at $18.41 on Wednesday. <a href="https://www.benzinga.com/quote/M/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Baird boosted the price target for Salesforce, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>) from $310 to $355. Baird analyst Rob Oliver maintained an Outperform rating. Salesforce shares rose 0.1% to close at $299.77 on Wednesday. <a href="https://www.benzinga.com/quote/CRM/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Citigroup boosted Western Midstream Partners, LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wes#NYSE">WES</a>) price target from $30 to $34. Citigroup analyst Spiro Dounis downgraded the stock from Buy to Neutral. Western Midstream Partners shares fell 1.8% to close at $33.42 on Wednesday. <a href="https://www.benzinga.com/quote/WES/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>UBS boosted Duolingo, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/duol#NASDAQ">DUOL</a>) price target from $230 to $275. UBS analyst Chris Kuntarich maintained a Buy rating. Duolingo shares climbed 0.5% to close at $195.51 on Wednesday. <a href="https://www.benzinga.com/quote/DUOL/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Piper Sandler cut Patterson Companies, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pdco#NASDAQ">PDCO</a>) price target from $34 to $28. Piper Sandler analyst Jason Bednar downgraded the stock from Overweight to Neutral. Patterson shares fell 7.3% to close at $26.74 on Wednesday. <a href="https://www.benzinga.com/quote/PDCO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Morgan Stanley increased Sonic Automotive, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sah#NYSE">SAH</a>) price target from $35 to $40. Morgan Stanley analyst Adam Jonas maintained an Underweight rating. Sonic Automotive shares fell 0.4% to close at $51.24 on Wednesday. <a href="https://www.benzinga.com/quote/SAH/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
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Citigroup analyst Spiro Dounis downgrades Western Midstream (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) from Buy to Neutral and raises the price target from $30 to $34.

Citigroup Downgrades Western Midstream to Neutral, Raises Price Target to $34

Although U.S. stocks closed mixed on Tuesday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#39;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"> Benzinga&#39;s insider transactions </a> platform.
<h3>V.F. Corporation </h3>
<ul>
<li>The Trade: V.F. Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vfc#NYSE">VFC</a>) Director Richard Carucci <a href="https://www.benzinga.com/quote/VFC/analyst-ratings"> acquired a total of 20,000 shares </a> an average price of $15.53. To acquire these shares, it cost around $310,620.</li>
<li>What&rsquo;s Happening: VF Corp expanded board with appointment of Caroline Brown following engagement with Engaged Capital.</li>
<li>What V.F. Corporation Does: VF designs, produces, and distributes branded apparel, footwear, and accessories.</li>
</ul>
<h3>Western Midstream Partners </h3>
<ul>
<li>The Trade: Western Midstream Partners, LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wes#NYSE">WES</a>) Director Kenneth F. Owen acquired a total of 7,000 shares at an average price of $33.96. To acquire these shares, it cost around $237,720.</li>
<li>What&rsquo;s Happening: On Feb. 21, Western Midstream Partners reported a year-over-year increase in fourth-quarter revenue results.</li>
<li>What Western Midstream Partners Does: Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets.</li>
</ul>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
<h3>Ocular Therapeutix </h3>
<ul>
<li>The Trade: Ocular Therapeutix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ocul#NASDAQ">OCUL</a>) 10% owner Summer Road LLC<a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 930,851 shares </a> at an average price of $7.52. To acquire these shares, it cost around 7 million.</li>
<li>What&rsquo;s Happening: On Feb. 22, Ocular Therapeutix announced a $325 million private placement.</li>
<li>What Ocular Therapeutix Does: Ocular Therapeutix Inc is a biotechnology company that specializes in therapies for diseases and conditions of the eye.</li>
</ul>
&nbsp;
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&nbsp;

Western Midstream Partners shares are trading higher after the company reported a year-over-year increase in Q4 revenue results.

Guidance

Asset Sales

Western Midstream Partners Announces Agreements To Divest Interests In Non-Core Assets For Aggregate Proceeds Of $790M; Sees 2024 Adj. EBITDA $2.2B-$2.4B

Western Midstream (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) reported quarterly earnings of $0.74 per share. This is a 12.94 percent decrease over earnings of $0.85 per share from the same period last year. The company reported $858.21 million in sales this quarter. This is a 10.11 percent increase over sales of $779.44 million the same period last year.

Earnings

Western Midstream Q4 EPS $0.74 Down From $0.85 YoY, Sales $858.21M Up From $779.44M YoY

Enterprise Products Partners L.P. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPD#NYSE">EPD</a>) today announced that its affiliate has entered into a definitive agreement to acquire member interests in Panola Pipeline Company, LLC (&quot;Panola&quot;) from an affiliate of Western Midstream Partners, LP (&quot;Western&quot;) in a debt-free transaction for&nbsp;$25 million&nbsp;in cash consideration.
Enterprise executed a definitive agreement to acquire Western&#39;s&nbsp;15 percent&nbsp;equity interest in Panola. Panola owns a 253-mile pipeline that transports mixed NGLs from natural gas processing plants in East Texas, including Enterprise&#39;s Bulldog plant, to multiple destinations, including the partnership&#39;s NGL fractionation complex in Chambers County, Texas. Subject to the rights of other Panola owners to participate in the sale of Western&#39;s interest, upon closing of this transaction, Enterprise will own up to&nbsp;70 percent&nbsp;of Panola.
The transaction is expected to close within 45 days of this announcement, subject to terms under existing agreements. The transaction is expected to be funded using a combination of cash on hand and proceeds from the issuance of short-term notes under the partnership&#39;s commercial paper program.

Enterprise To Acquire Interest In Panola NGL Pipeline From Western Midstream In A Debt-Free Transaction For $25M In Cash Consideration

Western Midstream Partners LP&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) shares are volatile after the news of&nbsp;Occidental Petroleum Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) reportedly exploring a sale of its stake in the company to reduce debt.
Occidental owns 49% of Western Midstream and controls the company&#8217;s operations, which has a U.S. natural gas-focused pipeline operator with a market value of close to $20 billion (including debt), reported Reuters.
As per the report, JPMorgan is advising Occidental to extract the most value from its ownership of Western Midstream.
Western Midstream said in a statement that they are aware of &#8220;recent news coverage indicating that WES is working<a target="_blank" href="https://www.benzinga.com/pressreleases/24/02/n37225166/western-midstream-statement-regarding-recent-media-coverage" rel="noreferrer noopener">&nbsp;towards a sales process</a>.&#8221;
The company added, &#8220;WES has not launched a sales process nor has it engaged bankers or other advisors with a view toward doing so. We are aware, as has been publicly stated, that Occidental Petroleum Corporation (&#8220;Oxy&#8221;) has expressed interest in divesting assets. We cannot speak to the composition of the assets Oxy may seek to divest, and any questions regarding Oxy&#8217;s ownership interest in WES should be directed to Oxy.&#8221;
In particular, the asset sale is projected to help Occidental reduce debt, which stood at $18.5 billion as of December 31,&nbsp;<a target="_blank" href="https://www.oxy.com/siteassets/documents/investors/quarterly-earnings/oxy4q23earningspressrelease.pdf" rel="noreferrer noopener">2023</a>.
Last week, during the earnings release call, Occidental reaffirmed its goal of reducing its debt to below $15&nbsp;<a target="_blank" href="https://www.oxy.com/siteassets/documents/investors/quarterly-earnings/oxy4q23conferencecallslides.pdf" rel="noreferrer noopener">billion</a>. Occidental reported earnings per share of 74 cents for the fourth quarter, which beat a Street consensus estimate of&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/02/37142100/occidental-petroleum-q4-earnings-highlights-buffett-backed-oil-company-beats-estimates-looks-to-m-a" rel="noreferrer noopener">71 cents per share</a>.
Price Action: WES shares, which closed 5.69% higher at $30.81 yesterday, are down 1.56% at $30.33 premarket on the last check Wednesday.
Photo via Shutterstock

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What's Going On With Western Midstream Shares Today?

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Earnings Scheduled For February 21, 2024

The company said &quot;We are aware, as has been publicly stated, that Occidental Petroleum Corporation has expressed interest in divesting assets. We cannot speak to the composition of the assets Oxy may seek to divest, and any questions regarding Oxy&#39;s ownership interest in WES should be directed to Oxy.&quot;

Western Midstream Partners Says It Is Aware Of Recent News Coverage Indicating Sales Process; Says It Has Not Launched Sales Process Nor Has It Engaged Bankers Or Other Advisors With View Toward Doing So

Western Midstream Partners Shares Halted, News Pending

Western Midstream Partners shares are trading higher following a report suggesting that Occidental Petroleum is exploring the sale of the company.

<a href="https://www.reuters.com/markets/deals/occidental-explores-18-bln-plus-sale-western-midstream-sources-say-2024-02-20/" title="https://www.reuters.com/markets/deals/occidental-explores-18-bln-plus-sale-western-midstream-sources-say-2024-02-20/">https://www.reuters.com/markets/deals/occidental-explores-18-bln-plus-sale-western-midstream-sources-say-2024-02-20/</a>
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Occidental Petroleum (OXY.N), opens new tab is exploring a sale of Western Midstream Partners (WES.N), opens new tab, a U.S. natural gas-focused pipeline operator that has a market value of more than $18 billion, including debt, according to people familiar with the matter.
&nbsp;

The divestment would help Occidental, which is backed by Warren Buffett&#39;s Berkshire Hathaway (BRKa.N), opens new tab, slash the $18.5 billion debt pile it has accumulated because of acquisitions.

Occidental inked a deal in December to acquire oil and gas producer CrownRock for $12 billion, a deal which would add further borrowing, four years after its $54 billion purchase of peer Anadarko Petroleum. 
Occidental owns 49% of Western Midstream and controls the company&#39;s operations by also owning its general partner. Western Midstream is structured as a tax-advantaged master limited partnership, and a general partner is its controlling entity.

Houston-based Western Midstream is working with Citigroup (C.N), opens new tab on a sale process, the sources said. JPMorgan Chase (JPM.N), opens new tab is advising Occidental on how to extract the most value from its ownership of Western Midstream, the sources added.

Western Midstream will likely attract interest from most of its major peers, including Enterprise Products Partners (EPD.N), opens new tab, Williams Companies (WMB.N), opens new tab and Kinder Morgan (KMI.N), opens new tab, the sources said. It could also appeal to private equity firms and infrastructure funds.
&nbsp;
The sources cautioned no deal was guaranteed and spoke on condition of anonymity to discuss private deliberations. Occidental last week reaffirmed its goal of reducing its debt to below $15 billion, while saying divesting land it does not need in the Permian basin would depend on completing its CrownRock deal.
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Spokespeople for Western Midstream, Occidental, Citigroup, JPMorgan, Enterprise Products, Williams Companies and Kinder Morgan either declined to comment or did not immediately respond to requests for comment.
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Western Midstream has around 16,000 miles of pipelines in its network, as well as processing, treatment and other facilities, with operations predominantly in the Delaware portion of the Permian basin in Texas and New Mexico, as well as the Denver-Julesburg basin in Colorado.
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The company was formed by Anadarko in 2007. Occidental set up Western Midstream as a standalone company when it took over Anadarko late in 2019.

Contracts

'Occidental Explores $18B-Plus Sale Of Western Midstream, Sources Say' - Reuters News

Crude oil pushes higher on global tensions, signs of strong U.S. gasoline demand

The energy industry is poised for robust growth due to increasing global demand for oil amid supply cuts and potential production disruptions. This trend creates opportunities for investment across the sector. Therefore, investors could consider buying fundamentally strong energy stocks such as Phillips 66 (PSX), Cheniere Energy (LNG), and Western Midstream Partners (WES). Keep reading... The energy industry is well-positioned for substantial growth this year as projections of a steady uptick in oil prices fueled by rising global demand and concerns over geopolitical tensions continuing in the Middle East, alongside production cuts by major oil producers and a gradual recovery of the Chinese economy, are expected to bolster the industry's performance.
Amid this backdrop, investors could consider buying fundamentally strong energy stocks: Phillips 66 (<a href="https://stocknews.com/stock/PSX/">PSX</a>), Cheniere Energy, Inc. (<a href="https://stocknews.com/stock/LNG/">LNG</a>), and Western Midstream Partners, LP (<a href="https://stocknews.com/stock/WES/">WES</a>).
Before diving deeper into the fundamentals of these stocks, let's discuss what's shaping the energy industry's prospects.
Despite the shift towards renewable energy sources, oil and gas will continue to experience steady demand. This is due to the world's escalating energy needs driven by the growing population and rapid industrialization. Oil prices rose to multi-month highs recently after Ukraine's recent attacks on Russian refineries, forcing traders to assess the potential impact on global petroleum inventories.
Ukraine's drone attacks on Russian refineries could disrupt oil production, leading to short-term supply drops and creating market uncertainty, potentially leading to an increase in oil prices. Oil has had a good run over the <a href="https://www.cnbc.com/2024/02/29/oil-on-pace-for-monthly-gain-as-opec-expected-to-extend-production-cuts.html">past two months</a> as OPEC+ extended the voluntary output cuts by <a href="https://www.reuters.com/business/energy/oil-rises-after-opec-extends-output-cuts-2024-03-04/">2.2 million bpd through Q2</a>, with Russia joining in with an additional 417 thousand bpd cut.
According to the latest monthly report, OPEC forecasts a rise in global oil demand by <a href="https://www.reuters.com/markets/commodities/opec-sticks-oil-demand-view-nudges-up-economic-growth-again-2024-03-12/">2.25 million bpd in 2024 and 1.85 million bpd in 2025</a>. The group also increased its economic growth forecast for the current year, now seeing world economic growth of 2.8% in 2024. Strong global economic growth will likely boost oil demand.
Meanwhile, the Energy Information Administration's (EIA) Short-Term Energy Outlook predicts a record-high demand for natural gas in 2024 despite a potential decline in U.S. natural gas production. Moreover, domestic gas consumption is expected to rise from a record 89.09 bcfd in 2023 to 89.68 bcfd in 2024.
The EIA expects Brent crude oil spot price average to be <a href="https://www.eia.gov/outlooks/steo/">$88 per barrel in the second quarter of 2024 and $87 per barrel this year</a>.
U.S. liquefied natural gas exports are expected to increase to 12.34 billion cubic feet per day (bcfd) in 2024 and reach <a href="https://www.reuters.com/business/energy/us-natgas-output-decline-2024-while-demand-rises-record-high-eia-says-2024-03-12/">14.43 bcfd in 2025</a>. Moreover, the Federal Reserve's three anticipated rate cuts this year will increase commodity demand, particularly crude oil.
The Chinese economy is showing signs of recovery as its policymakers look to revive economic growth. As China is the largest importer of crude oil, the government's stimulus measures to revive economic growth would also boost demand for crude oil.
Notably, Deutsche Bank forecasts that Brent Crude oil will reach $88 per barrel by the <a href="https://oilprice.com/Latest-Energy-News/World-News/Deutsche-Bank-Sees-Brent-Oil-Price-at-88-by-the-End-of-2024.html">end of 2024</a>. They anticipate a nearly balanced market in the first half, with OPEC+ discipline and seasonal demand strengthening in the second half.
Considering these conducive trends, let's analyze the fundamental aspects of the featured energy stocks.
Phillips 66 (<a href="https://stocknews.com/stock/PSX/">PSX</a>)
PSX operates as an energy manufacturing and logistics company internationally.  It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&amp;S). The company offers transportation, storage, processing, and marketing services for oil, gas, chemicals, and refined products.
In terms of the trailing-12-month Return on Common Equity, PSX's 23.32% is 29.9% higher than the 17.95% industry average. Likewise, its 9.59% trailing-12-month Return on Total Capital is 16.3% higher than the industry average of 8.25%. Furthermore, the stock's 1.94x trailing-12-month <a href="https://www.investopedia.com/terms/a/assetturnover.asp">asset turnover ratio</a> is 273.4% higher than the industry average of 0.52x.
For the fiscal fourth quarter that ended December 31, 2023, PSX's total revenues and other income came in at $38.74 billion. Its adjusted Midstream and Chemical earnings came in at $754 million and $106 million, up 11.9% and 103.8% over the prior-year quarter, respectively. Also, the company's adjusted net income attributable to PSX and adjusted EPS stood at $1.36 billion and $3.09, respectively.
Street expects PSX's EPS for the fiscal 2025 to increase 8.8% year-over-year to $14.42. It surpassed the Street EPS estimate in three of the trailing four quarters. Over the past nine months, the stock has gained 70.5% to close the last trading session at $159.08.
PSX's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its solid prospects. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It is ranked #12 out of 83 stocks in the <a href="https://stocknews.com/category/energy-oil-gas/">Energy - Oil &amp; Gas</a> industry. It has a B grade for Momentum. <a href="https://stocknews.com/stock/PSX/">Click here</a> to see the other ratings of PSX for Growth, Value, Stability, Sentiment, and Quality.
Cheniere Energy, Inc. (<a href="https://stocknews.com/stock/LNG/">LNG</a>) 
LNG is an energy infrastructure company primarily engaged in liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana, and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns the Creole Trail pipeline and operates the Corpus Christi pipeline.
On November 29, 2023, LNG announced a long-term Integrated Production Marketing (IPM) gas supply agreement with ARC Resources. This agreement will support the Sabine Pass Expansion Project and ensure increased LNG supplies into Europe, marking a significant step in LNG's strategy.
In terms of the trailing-12-month net income margin, LNG's 49.95% is 274.6% higher than the 13.33% industry average. Likewise, its 84.47% trailing-12-month EBITDA margin is 130.5% higher than the industry average of 36.65%. Furthermore, the stock's 22.94% trailing-12-month Return on Total Assets is 244.6% higher than the industry average of 6.66%.
For the fiscal year that ended December 31, 2023, LNG's total revenues stood at $20.39 billion. Its income from operations rose 239.7% year-over-year to $15.49 billion. For the same quarter, the company's net income and net income per common share attributable to common stockholders increased 591.9% and 622% from the year-ago value to $9.88 billion and $40.72, respectively.
Analysts expect LNG's revenue for the quarter ending June 30, 2024, to increase marginally year-over-year to $4.13 billion. Its EPS for the fiscal 2025 is expected to increase 14% year-over-year to $10.28. It surpassed the consensus EPS estimate in each of the trailing four quarters. Over the past year, LNG's stock has gained 7.2% to close the last trading session at $159.68.
LNG's positive outlook is reflected in its POWR Ratings. It has an overall rating of B, equating to a Buy in our proprietary rating system.
It has a B grade for Momentum, Sentiment, and Quality. It is ranked #13 in the Energy - Oil &amp; Gas industry. To see LNG's Growth, Value, and Stability ratings, <a href="https://stocknews.com/stock/LNG/">click here</a>.
Western Midstream Partners, LP (<a href="https://stocknews.com/stock/WES/">WES</a>)
WES and its subsidiaries operate as a midstream energy company primarily in the United States. The company is involved in gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing of produced water.
In terms of the trailing-12-month gross profit margin, WES's 70.15% is 53.4% higher than the 45.73% industry average. Likewise, its 41.51% trailing-12-month EBIT margin is 92.7% higher than the industry average of 21.54%. Furthermore, the stock's 23.67% trailing-12-month Capex / Sales is 59.3% higher than the industry average of 14.85%.
WES's total revenues and other income for the fiscal fourth quarter, which ended on December 31, 2023, grew 10.1% year-over-year to $858.21 million. Its operating income stood at $391.92 million. The company's net income attributable to WES and net income per share came in at $288.35 million and $0.74, respectively.
For the quarter ending March 31, 2024, WES's EPS and revenue are expected to increase 57.2% and 20.1% year-over-year to $0.82 and $881.53 million, respectively. Over the past year, the stock has gained 35.2% to close the last trading session at $34.98.
WES's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has a B grade for Growth, Momentum, and Quality. Within the A-rated <a href="https://stocknews.com/category/oil-gas-mlps/">MLPs - Oil &amp; Gas</a> industry, it is ranked #13 out of 24 stocks. In total, we rate WES on eight different levels. Beyond what we stated above, we also have given WES grades for Value, Stability, and Sentiment. Get all the WES ratings <a href="https://stocknews.com/stock/WES/">here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
PSX shares were trading at $159.35 per share on Friday morning, up $0.27 (+0.17%). Year-to-date, PSX has gained 20.55%, versus a 10.15% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/psx-lng-wes-3-energy-stocks-surging-towards-profitability/>3 Energy Stocks Surging Towards Profitability</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Energy Stocks Surging Towards Profitability

Very Good News For Energy Stocks

KYN: Decent, But Maybe Not The Best Fund In The Sector

Western Midstream Partners (WES – Research Report) received a Hold rating and price target from Wolfe Research analyst Keith Stanley yesterday. The...

Western Midstream Partners (WES) was upgraded to a Hold Rating at Wolfe Research

Williams downgraded, Western Midstream raised at Mizuho in pipeline rating switch

Western Midstream Partners raises dividend by 52.2% to $0.875

EMO: Very Strong Recent Performance, But Higher Risks Than Peers

In a report released yesterday, Elvira Scotto from RBC Capital maintained a Hold rating on Western Midstream Partners (WES – Research Report), with...

RBC Capital Remains a Hold on Western Midstream Partners (WES)

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Press Releases

Western Midstream Announces Third-Quarter 2023 Distribution Increase and Earnings Conference Call

Western Midstream Announces Third-Quarter 2023 Results

Western Midstream Announces Third-Quarter Post-Earnings Interview With Chief Financial Officer, Kristen Shults and VP, Corporate Development, Jon Greenberg and Participation in Upcoming Investor Conferences

Commodities

WESTERN MIDSTREAM ANNOUNCES PARTICIPATION IN UPCOMING INVESTOR CONFERENCE

Dividends

WESTERN MIDSTREAM ANNOUNCES FOURTH-QUARTER 2023 DISTRIBUTION AND EARNINGS CONFERENCE CALL

WESTERN MIDSTREAM STATEMENT REGARDING RECENT MEDIA COVERAGE

WESTERN MIDSTREAM ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2023 RESULTS

WESTERN MIDSTREAM ANNOUNCES 2024 GUIDANCE AND NON-CORE ASSET SALES FOR AGGREGATE PROCEEDS OF $790 MILLION

WESTERN MIDSTREAM ANNOUNCES FOURTH-QUARTER POST-EARNINGS INTERVIEW WITH CHIEF FINANCIAL OFFICER, KRISTEN SHULTS AND PARTICIPATION IN UPCOMING INVESTOR CONFERENCES

WESTERN MIDSTREAM ANNOUNCES FIRST-QUARTER 2024 DISTRIBUTION AND EARNINGS CONFERENCE CALL