Western Midstream Partners, LP (NYSE: WES) is a midstream energy company. It focuses on gathering, processing, and transporting natural gas, crude oil, and other related products for its customers. The company recently expanded its operations in the Delaware Basin with the $1.6 billion acquisition of Brazos Delaware, increasing its presence there by about 49%.
On May 27, 2026, investment firm Morgan Stanley (NYSE: MS) confirmed its "Underweight" rating for Western Midstream Partners. An "Underweight" rating means the analyst believes the stock may underperform compared to others in its industry. At the same time, Morgan Stanley increased its price target for the company to $51.00 from $41.00, while the stock was trading at $45.40.
This rating comes as Western Midstream Partners reports strong financial performance. For the first quarter of 2026, the company’s revenue increased 22.5% from the previous year to $1.1 billion. It also reported earnings of $0.85 per unit, a 7.6% increase from the prior year and higher than the consensus estimate of $0.74.
The company's growth is linked to higher throughput volumes, which is the amount of product moving through its pipelines and facilities. As highlighted by Zacks, the Aris acquisition was a major contributor, leading to a 140% surge in produced-water throughput. Higher natural gas and crude oil volumes in other basins also supported this growth.
In addition to its operational growth, Western Midstream Partners raised its quarterly distribution to $0.93 per unit. A distribution is a payment made to unitholders, similar to a dividend for stockholders. The company offers a dividend yield above 8%, which is supported by its resilient cash flows and manageable debt levels.
