Western Midstream Partners yields over 8% but draws little Wall Street coverage

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Summary · why it matters

Western Midstream Partners offers a distribution yield above 8%, yet only 14 Wall Street analysts cover the master limited partnership and just four rate it a buy. The MLP expects to generate between $1.9 billion and $2.1 billion of distributable cash flow this year, easily covering its $1.5 billion annual distribution, and carries a low 3.1 times leverage ratio. It recently closed the $1.6 billion acquisition of Brazos Delaware, which expands its operations and diversifies revenue away from top customer Occidental Petroleum, which accounts for 55% of revenue in 2025. Organic projects including the Loving II gas processing plant and Pathfinder Pipeline are set to enter service early next year, supporting projected long-term adjusted EBITDA growth of 4% to 5% annually. The combination of a high base cash return and low-to-mid single-digit distribution growth could deliver annual total returns of 12% to 14%, according to the analysis.