Is Iodine-from-Water Deal With Iofina Reshaping Western Midstream Partners’ (WES) Infrastructure-Driven Earnings Story?

• Iofina plc recently announced an agreement with Western Midstream Partners to build and operate an IOsorb® plant in the Permian Basin that will use up to 50,000 barrels per day of Western Midstream’s produced water to extract iodine, with operations targeted to start in the second half of 2026.
• The arrangement underscores Western Midstream’s move to monetize produced water through royalty-linked iodine production while supporting higher-value, sustainability-focused water management.
• Next, we’ll examine how this produced-water iodine partnership could influence Western Midstream’s investment narrative around future infrastructure-driven earnings.

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Western Midstream Partners Investment Narrative Recap

To own Western Midstream Partners, you generally need to believe in steady U.S. oil and gas activity supporting long term throughput, fee-based cash flows and infrastructure-led growth. The Iofina iodine agreement looks incrementally positive, but it does not materially change the near term focus on executing large projects like Pathfinder and North Loving II or the key risk around producer spending and volume resilience.

The most relevant recent development alongside this iodine partnership is Western Midstream’s Q3 2025 earnings, which showed solid revenue of US$952.5 million and net income of US$331.7 million with stable produced-water throughput. Together, these underline how monetizing water handling, whether through recycling, disposal or royalty-linked iodine extraction, ties directly into the core volume and infrastructure catalysts investors are watching.

Yet investors should also be aware that if producer budgets tighten and volumes fall, the economics of these water focused initiatives...

Read the full narrative on Western Midstream Partners (it's free!)

Western Midstream Partners' narrative projects $4.5 billion revenue and $1.7 billion earnings by 2028. This requires 7.1% yearly revenue growth and an earnings increase of about $0.5 billion from $1.2 billion today.

Uncover how Western Midstream Partners' forecasts yield a $41.83 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$34 to US$114 per unit, showing how far apart individual views can be. Against that backdrop, the reliance on continued strong basin throughput and successful ramp up of major projects gives you a clear reason to compare several different scenarios before forming your own view.

Explore 4 other fair value estimates on Western Midstream Partners - why the stock might be worth 12% less than the current price!

Build Your Own Western Midstream Partners Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Western Midstream Partners research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Western Midstream Partners' overall financial health at a glance.

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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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