Western Midstream Partners, LP (WES) Stock Analysis & Winston Score

Western Midstream Partners collects, processes, and moves natural gas and natural gas liquids for oil and gas producers. It operates pipelines, processing plants, and gathering systems — mostly in the Rocky Mountains, the Delaware Basin in Texas, and Wyoming. Occidental Petroleum is its largest customer and also its parent company, which gives Western Midstream a steady base of business. The company earns money mainly through fee-based contracts, meaning it gets paid for the volume of gas it handles rather than based on commodity prices. This model provides relatively predictable cash flow, and the long-term contracts with Occidental create a durable competitive position. However, the heavy reliance on one customer is also a key risk — if Occidental cuts drilling activity or renegotiates terms, Western Midstream's revenue could drop meaningfully. Growth depends largely on producers increasing output in the basins where Western Midstream already has infrastructure in place.