NYSE:WES

Stock Analysis Report

Western Gas Partners

Executive Summary

Western Gas Partners, LP acquires, develops, owns, and operates midstream energy assets in the Rocky Mountains, North-central Pennsylvania, and Texas.

Snowflake


Similar Companies

Share Price & News

How has Western Gas Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

WES

-1.8%

US Oil and Gas

0.4%

US Market


1 Year Return

8.0%

WES

-21.8%

US Oil and Gas

6.9%

US Market


Shareholder returns

WESIndustryMarket
7 Day-1.2%-1.8%0.4%
30 Day-2.0%-6.4%-1.1%
90 Day11.5%-9.2%-0.5%
1 Year17.1%8.0%-18.9%-21.8%9.3%6.9%
3 Year47.4%19.3%-8.3%-16.5%45.8%36.4%
5 Year5.1%-23.0%-24.8%-35.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is Western Gas Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Western Gas Partners undervalued compared to its fair value and its price relative to the market?

89.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WES ($49.55) is trading above our estimate of fair value ($24.59)

Significantly Undervalued: WES is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WES is poor value based on its PE Ratio (89.7x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: WES is poor value based on its PE Ratio (89.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: WES is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: WES is overvalued based on its PB Ratio (2.3x) compared to the US Oil and Gas industry average (0.9x).

Future Growth

How is Western Gas Partners forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

61.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WES's forecast earnings growth (61.6% per year) is above the savings rate (2.7%).

Earnings vs Market: WES's earnings (61.6% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WES's revenue (11.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WES's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.

Past Performance

How has Western Gas Partners performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WES's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: WES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WES had negative earnings growth (-56.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (22.6%).


Return on Equity

High ROE: WES's Return on Equity (12.9%) is considered low.


Return on Assets

ROA vs Industry: WES's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: WES has improved its Return on Capital Employed over the past 3 years.

Financial Health

How is Western Gas Partners's financial position?


Financial Position Analysis

Short Term Liabilities: WES's short term assets ($333.5M) do not cover its short term liabilities ($507.6M)

Long Term Liabilities: WES's short term assets (333.5M) do not cover its long term liabilities (5.2B)


Debt to Equity History and Analysis

Debt Level: WES's debt to equity ratio (135.6%) is considered high

Reducing Debt: WES's debt to equity ratio has increased from 49.3% to 135.6% over the past 5 years.

Debt Coverage: WES's debt is well covered by operating cash flow (21.3%).

Interest Coverage: WES's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Information is not available.

Information is not available.

Dividend

What is Western Gas Partners's current dividend yield, its reliability and sustainability?

7.91%

Current Dividend Yield


Dividend Yield vs Market

company7.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years8.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WES's dividend (7.91%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WES's dividend (7.91%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: WES's dividends per share have been stable in the past 10 years.

Growing Dividend: WES's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (693.1%), WES's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WES's dividends in 3 years are not forecast to be well covered by earnings (121.3% payout ratio).

Management

What is the CEO of Western Gas Partners's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Robin Fielder (37yo)

0.2yrs

Tenure

US$797,642

Compensation

Ms. Robin H. Fielder is Chief Executive Officer of Western Gas Equity Holdings, LLC, General Partner of Western Gas Equity Partners, LP and of Western Gas Holding, LLC since January 1, 2019. Ms. Fielder  ...


CEO Compensation Analysis

Information is not available.

Compensation vs Earnings: Insufficient data to compare Robin's compensation with company performance.


Management Age and Tenure

1.8yrs

Average Tenure

46yo

Average Age

Experienced Management: WES's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.1yrs

Average Tenure

55yo

Average Age

Experienced Board: WES's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Don Sinclair (61yo)

    Senior Advisor

    • Tenure: 2.1yrs
    • Compensation: US$352.21k
  • Jaime Casas (48yo)

    Senior VP

    • Tenure: 1.8yrs
    • Compensation: US$2.75m
  • Philip Peacock (46yo)

    Senior VP

    • Tenure: 6.6yrs
    • Compensation: US$685.32k
  • Robin Fielder (37yo)

    President

    • Tenure: 0.2yrs
    • Compensation: US$797.64k
  • Jonathon VandenBrand

    Director of Investor Relations

    • Tenure: 0yrs
  • Gennifer Kelly (45yo)

    Senior VP & COO

    • Tenure: 0.8yrs
    • Compensation: US$914.61k

Board Members

  • Steven Arnold (57yo)

    Independent Director of Western Gas Holdings

    • Tenure: 5.1yrs
    • Compensation: US$220.01k
  • Jim Crane (64yo)

    Independent Director of Western Gas Holdings

    • Tenure: 10.9yrs
    • Compensation: US$220.01k
  • Bob Gwin (55yo)

    Director of Western Gas Holdings

    • Tenure: 11.6yrs
  • Milton Carroll (68yo)

    Independent Director of Western Gas Holdings

    • Tenure: 10.9yrs
    • Compensation: US$232.01k
  • Ben Fink (48yo)

    Chairman of the Board at Western Gas Holdings

    • Tenure: 0.2yrs
    • Compensation: US$3.25m
  • David Tudor (59yo)

    Independent Director of Western Gas Holdings

    • Tenure: 10.9yrs
    • Compensation: US$232.01k
  • Danny Brown (42yo)

    Director of Western Gas Holdings

    • Tenure: 1.3yrs
  • Mitch Ingram (55yo)

    Director of Western Gas Holdings

    • Tenure: 0.3yrs
  • Robin Fielder (37yo)

    President

    • Tenure: 0.2yrs
    • Compensation: US$797.64k

Company Information

Western Gas Partners, LP's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Western Gas Partners, LP
  • Ticker: WES
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$7.690b
  • Market Cap: US$7.562b
  • Shares outstanding: 155.19m
  • Website: https://www.westerngas.com

Location

  • Western Gas Partners, LP
  • 1201 Lake Robbins Drive
  • The Woodlands
  • Texas
  • 77380
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WESNYSE (New York Stock Exchange)YesCommon UnitsUSUSDMay 2008
3NZDB (Deutsche Boerse AG)YesCommon UnitsDEEURMay 2008

Biography

Western Gas Partners, LP acquires, develops, owns, and operates midstream energy assets in the Rocky Mountains, North-central Pennsylvania, and Texas. It is involved in gathering, processing, compressing,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/01 02:11
End of Day Share Price2019/02/27 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.