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Western Midstream (WES) closed at $40.39 in the latest trading session, marking a +1.94% move from the prior day.
These yields look risky at first glance. However, the market is missing important details. These are rare setups that could deliver income and upside at the same time.
The year is 2026, and the market (and macro) environment seem to be exactly the opposite of what is required for stress-free income. For prudent income investors, considering taking some risk off the table might be a good idea. But in most cases it comes at the cost of reduced income potential.
Western Midstream and MPLX both have high yields, with distributions that are well covered and solid balance sheets. Western has a nice growth opportunity by expanding into the produced water business.
Western Midstream Partners earns a Strong Buy rating, driven by a 9% yield, discounted valuation, and resilient, fee-based revenues. WES' strategic pivot to water handling in the Delaware Basin, bolstered by the Aris acquisition, positions it for robust growth and higher distribution coverage. Long-term contracts with minimum volume commitments, especially with OXY through 2035, underpin predictable cash flows and mitigate downside risk.
Western Midstream has been flat for almost 2 years. Meanwhile, its business profile has improved, and distributions have become even more attractive. Currently, WES offers ~9.2% yield, which is underpinned by resilient fundamentals and, importantly, decent growth (the market also agrees with this). In the article I detail why WES is a clear buy for durable income-focused investors.
Western Midstream earns a reiterated Buy rating, offering a 9.2% forward yield and trading at a 27% discount to fair value. WES's growth profile remains intact, driven by Pathfinder Pipeline improvements, North Loving II expansion, and $40 million in Aris Water Solutions synergies. The company maintains a strong investment-grade balance sheet with a 3x leverage ratio and robust free cash flow after capex and distributions.
Energy Transfer is a great combination of growth and yield. Western Midstream has one of the highest yields in the energy space, but comes with a strong balance sheet.
Osaic Holdings Inc. boosted its position in shares of Western Midstream Partners, LP (NYSE: WES) by 39.8% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 57,692 shares of the pipeline company's stock after purchasing an additional 16,416 shares during the quarter. Osaic
Starwood has maintained its lucrative dividend for more than a decade. Western Midstream aims to steadily increase its big-time distribution payment.
Bloomberg's 2026 Dividend Focus list highlights 14 ‘safer' stocks with free cash flow yields exceeding dividend yields, signaling potential buy opportunities. Top projected net gainers for 2026 include Marvell Technology (MRVL), Nike (NKE), and PT Telekom Indonesia (TLK), with analyst-estimated gains up to 37.98%. Four ‘IDEAL' stocks—Aviva, Sodexo, Danske Bank, and Western Midstream—offer dividends from $1,000 invested greater than their share price, meeting the dogcatcher ‘watch to buy' threshold.
Energy badly lagged this year, and I underestimated how severe the supply glut would be. I was early - but the long-term thesis remains firmly intact. Today's oil prices aren't sustainable. Low prices are forcing discipline, squeezing supply, and creating a rare setup where sentiment and fundamentals are deeply misaligned. With positioning extremely bearish and costs rising, I see energy setting up for a powerful reversal - offering both income and upside for patient investors.
Energy Transfer pays a more than 8% yielding distribution backed by a rock-solid financial profile. Western Midstream has an even higher-yielding payout.
Western Midstream has a huge yield with a distribution that is well covered and a strong balance sheet. Energy Transfer is one of the best-positioned midstream companies to benefit from AI.
Discover the two high-yield infrastructure stocks I have the highest conviction in for my own core and retirement portfolios. Find out why their recession-resistant cash flows and rock-solid balance sheets support their massive, sustainable, and growing distributions. These picks offer a combined average yield above 8% and possess a strong potential for attractive total returns moving forward.
The Undercovered Dozen spotlights 12 lesser-known stocks and funds with compelling investment theses and recent developments. This week's edition covers articles published between Nov. 28 and Dec. 4, offering fresh investment ideas. The series aims to inspire discussion and help investors discover overlooked opportunities in the market.
Iofina PLC (AIM:IOF, OTC:IOFNF) announced an agreement with Western Midstream Partners to develop the company's next IOsorb plant in the Permian Basin. The plant will use Iofina's WET IOsorb technology with produced water supplied by Western Midstream.
Energy Transfer's distribution is well covered and the company is in growth mode. Western Midstream has a safe and growing distribution.
HOUSTON , Dec. 1, 2025 /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) ("WES" or "Western Midstream") announced today that its subsidiary, Western Midstream Operating, LP ("WES Operating"), has priced an offering of $600 million in aggregate principal amount of 4.800% senior notes due 2031 at a price to the public of 99.993% of their face value (the "2031 Senior Notes") and $600 million in aggregate principal amount of 5.500% senior notes due 2035 at a price to the public of 99.405% of their face value (the "2035 Senior Notes" and, together with the 2031 Senior Notes, the "Senior Notes"). The offering of the Senior Notes is expected to close on December 4, 2025, subject to the satisfaction of customary closing conditions.
Western Midstream Partners offers a high yield over 9%. WES stands out as an investment-grade partnership with a low debt ratio. The current high yield suggests WES is undervalued.