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Western Midstream Partners offers 8.35% yield with strong Q1 growth and a major acquisition expanding its footprint.

Market News
16 May 2026
Seeking Alpha
View Source
Bullish
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Western Midstream Partners (WES) reported strong Q1 results with a record $683.1 million adjusted EBITDA, a 15% year-over-year increase, and a 2.2% rise in distributions. The company announced a $1.6 billion acquisition of Brazos Delaware, expanding its Delaware Basin operations by 50%, which is immediately accretive and keeps leverage near 3.0x. WES offers an attractive 8.35% yield and targets 5-8% distribution growth, positioning it ahead of peers like Enterprise Products Partners and Energy Transfer in yield and growth potential. However, investors should consider the higher commodity and customer concentration risks associated with WES. Overall, WES is expected to deliver total annualized returns of 10-15%.

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