Aris Deal And Water Expansion Could Be A Game Changer For Western Midstream Partners (WES)

• Western Midstream Partners recently expanded its footprint by acquiring Aris Water Solutions and increasing its presence in the Delaware Basin’s produced water disposal segment, including the Pathfinder Pipeline project.
• This move deepens the partnership’s role in water infrastructure while supporting its well-covered, high-yield distribution and reinforcing its balance sheet strength for income-focused investors.
• We’ll now examine how the Aris Water Solutions acquisition and produced water expansion may reshape Western Midstream Partners’ investment narrative.

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Western Midstream Partners Investment Narrative Recap

To own Western Midstream Partners, you need to believe its fee-based midstream model and water infrastructure focus can support a high distribution while managing leverage and capital needs. The Aris Water Solutions acquisition and Delaware Basin produced water expansion reinforce that income-first story in the near term, but they also tie Western more closely to producer activity and execution risk on Pathfinder and related projects.

The recent agreement with Iofina to build a large IOsorb iodine plant using Western’s produced water underscores how the Aris acquisition is already shaping new water-related revenue opportunities. While relatively modest in size, this project highlights how expanding water capabilities can support throughput-driven catalysts while adding another layer of complexity to Western’s capital and operational commitments.

However, even with these income attractions, investors should be aware that if large capital projects like Pathfinder and North Loving II fail to deliver expected volumes and returns...

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 about a $0.5 billion earnings increase from $1.2 billion today.

Uncover how Western Midstream Partners' forecasts yield a $41.83 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see fair value for Western Midstream between US$34.06 and US$109.48, reflecting wide disagreement on upside. When you weigh those opinions against the company’s heavy dependence on producer drilling and completion plans, it becomes even more important to compare several viewpoints before deciding how Western might fit into your portfolio.

Explore 4 other fair value estimates on Western Midstream Partners - why the stock might be worth over 2x more 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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