WES Stock Forecast & Price Target

Western Midstream is supported by a diversified, fee-based asset base that should continue to underpin distribution growth and resilience, even as near-term results have reflected weaker per-unit adjusted gross margins and softer liquids pricing. Its outlook is strengthened by tangible growth drivers such as the Brazos Delaware Basin acquisition, the Pathfinder produced-water pipeline, North Loving II, and newly signed Powder River Basin agreements, all of which point to higher throughput and margin expansion through 2027. The stock also appears undervalued versus peers at about 8.5x 2027E EBITDA, while a strong balance sheet, cost initiatives, and exposure to natural gas gathering, processing, and produced-water services support a favorable risk/reward setup.

Western Midstream is facing weakening fundamentals as quarterly adjusted EBITDA fell about 4% to roughly $708MM, pressured by lower per-unit margins from accelerated volumes, a 4% decline in higher-margin DJ natural gas throughput, unfavorable West Texas contract mix, and weaker Crude Oil & NGLs and Produced Water margins. Elevated capital intensity also weighs on the outlook, with FY26 capex guided above the prior $1B high at an estimated ~$1.03B and FY27 still near ~$960MM, reflecting additional spending tied to Solitude, PRB dedications, and a new processing plant. The downside case is reinforced by expected higher regulatory costs in Colorado, permitting delays, and a lower commodity-price backdrop that could slow drilling across its footprint.