Stock fact sheet · data as of
Western Midstream Partners, LP (WES): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Midstream · United States · High Yield Income
Is WES undervalued?
Western Midstream Partners, LP (WES) closed at 44.82 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 60.89, so the price sits 26% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between GLS Growth (25.56) and Payback Time (128.22). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files WES under High Yield Income: a dividend yield above 4%.
Nine valuation models for WES
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 64.97 | +45% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 27.66 | -38% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 79.58 | +78% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 27.19 | -39% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 25.56 | -43% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 105.41 | +135% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 128.22 | +186% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 54.15 | +21% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 35.31 | -21% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -22.21 | -150% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 49.71 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Western Midstream Partners, LP scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability WES scores 6.8/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 9.0%, ROE 29.1%, ROA 7.8% - with debt at 2.22 times equity and a free-cash-flow yield of 12.1%. Debt of 2.22 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 8.21% (payout ratio 118%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Service Fee Based 80%, Product 10%, Service Product Based 9% (quarter Q2 FY2026).
Institutional ownership scores 6/10, insider activity 7/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 9.0% |
|---|---|---|---|
| GLS Moat | 6.8 / 10 | ROE | 29.1% |
| Debt / equity | 2.22 | ROA | 7.8% |
| Free-cash-flow yield | 12.1% | Payout ratio | 118% |
| Institutions | 6 / 10 | Insiders · Congress | 7 · 5 / 10 |
Wheel Score 81: Prime
With a Wheel Score of 81, Western Midstream Partners, LP sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 23/25, Health 11/20, Moat 10/15, Premium 17/20, Stability 20/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (17 of 20 points). Chain open interest is 39,594 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.8M shares a day on a market cap of $18.5B, with a beta of 0.71 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 23 / 25 | 26% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 10 / 15 | moat 6.8/10 | |
| Premium | 17 / 20 | implied volatility 32% | |
| Stability | 20 / 20 | 1.8M shares/day, $18.5B cap, beta 0.71 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Midstream
The 12 companies below are the closest to Western Midstream Partners, LP by market cap within the Oil & Gas Midstream industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PAA Plains All American Pipeline, L.P. | 24.98 | 51.82 | +52% | 80Prime | $17.6B |
| TCPA TransCanada PipeLines Limited 6 | 20.13 | 36.01 | +44% | 39No options | $20.4B |
| VNOM Viper Energy, Inc. | 44.13 | 18.07 | -144% | 59Fair | $15.9B |
| PBA Pembina Pipeline Corporation | 48.52 | 41.17 | -18% | 51Fair | $28.2B |
| DTM DT Midstream, Inc. | 118.81 | 81.27 | -46% | 62Fair | $12.1B |
| CQP Cheniere Energy Partners, L.P. | 62.25 | 115.62 | +46% | 81Prime | $30.1B |
| VG Venture Global, Inc. | 13.27 | 24.59 | +46% | 86Prime | $33.2B |
| AM Antero Midstream Corporation | 19.92 | 23.06 | +14% | 73Good | $9.5B |
| SOBO South Bow Corporation | 34.03 | 44.93 | +24% | 84Prime | $7.1B |
| HESM Hess Midstream LP | 30.62 | 50.03 | +39% | 90Prime | $6.3B |
| OKE ONEOK, Inc. | 90.65 | 115.64 | +22% | 78Good | $57.1B |
| LNG Cheniere Energy, Inc. | 279.15 | 507.09 | +45% | 87Prime | $57.7B |
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Start free See the Sunday ScanQuestions about WES
Is WES undervalued right now?
By the GLS models, moderately: at 44.82 the stock trades 26% below the average fair value of 60.89 (data as of 16 Oct 2026).
What is the Wheel Score of WES and what does it mean?
WES scores 81 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for WES?
60.89 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Western Midstream Partners, LP report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WES have listed options, and how liquid are they?
Yes. The nightly snapshot found 296 listed contracts with 39,594 open interest across all expiries and implied volatility of 32% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.