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Western Midstream: An 8% Yield Backed By Growth And Strat...
2026-05-17 · via All Articles on Seeking Alpha

Summary

  • Western Midstream is rated a 'Buy' for its compelling blend of income, value, and growth in the midstream energy sector.
  • WES delivers an 8%+ yield, mid-single-digit EBITDA growth guidance, and benefits from strategic acquisitions like Aris and Brazos.
  • Recent Q1 results show 15% YoY adjusted EBITDA growth, record throughput, and structurally lower operating expenses, supporting improved leverage and cash flow.
  • WES’s strong balance sheet and 3-stream model underpin its risk-reward profile.
  • Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »
8% percentage rate icon on a white background

Supertruper/iStock via Getty Images

There is value to be had in energy infrastructure companies that have proven business models and a knack for industry consolidation. While industry giants like Energy Transfer (ET) and MPLX LP (MPLX

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of WES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.