Western Midstream Partners (WES): Is the Recent Aris Water Acquisition Reflected in Today’s Valuation?

Western Midstream Partners (WES) is drawing attention after its recent acquisition of Aris Water Solutions, in addition to ongoing growth projects in the Delaware Basin. These moves are positioned to boost cash flow and operational expansion.

See our latest analysis for Western Midstream Partners.

Western Midstream Partners’ recent moves seem to have caught the market’s attention, but momentum has faded a bit. Its share price is at $37.34 after a 1-year total shareholder return of 5.5%. Over the longer term, though, the partnership has delivered outstanding multi-year gains. This suggests that strategic growth and acquisitions are still paying off for patient investors.

If you’re curious what other companies are poised for growth in today’s market, this might be the perfect time to discover fast growing stocks with high insider ownership

With recent gains and a competitive yield, the question becomes whether Western Midstream Partners is still undervalued at these levels or if the market has already factored in its growth. Could this be a fresh buying opportunity?

Most Popular Narrative: 7.4% Undervalued

Western Midstream Partners' fair value is estimated at $40.33, putting it 7.4% above the last close price of $37.34. The latest consensus suggests there is tangible upside, but the real intrigue comes from the major infrastructure push driving this view forward.

Investment in major long-term capacity expansions, such as the Pathfinder pipeline and North Loving II plant, are set to come online in 2027. These additions will provide significant processing and transport capability and are expected to materially increase revenues and cash flows in subsequent years.

Read the complete narrative.

What wild growth forecasts and margin leaps are fueling this bullish fair value? The biggest number in the narrative is not what you might expect. Explore which assumptions, hidden in plain sight, are driving this valuation call.

Result: Fair Value of $40.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, large capital commitments and the risk of weaker producer activity could undermine these growth forecasts if market or regulatory conditions shift unexpectedly.

Find out about the key risks to this Western Midstream Partners narrative.

Build Your Own Western Midstream Partners Narrative

If you have a different perspective or would like to dig into the numbers yourself, you can craft your own narrative in just a few minutes, and Do it your way.

A great starting point for your Western Midstream Partners research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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