Western Midstream Partners, LP (NYSE: WES) heads into its fourth-quarter earnings release with units trading at $43.73, up 0.69% at the close. After-hours pricing edged slightly lower to $43.70. The partnership currently carries a market capitalization of approximately $17.84 billion and offers a forward dividend yield of 8.32%, positioning it as a high-income name within the midstream energy space.

The earnings call is scheduled for February 19, 2026, at 10:00 AM EST, with investors closely watching both distribution sustainability and growth visibility for 2026.

Performance Snapshot

Western Midstream has delivered strong longer-term returns relative to the broader market. Year-to-date performance stands at 13.19%, outperforming the S&P 500’s slight decline. Over one year, units are up 18.32%, and the three-year return exceeds 107%. The five-year total return approaches 296%, highlighting the partnership’s sustained value creation through both price appreciation and distributions.

This outperformance reflects steady operational execution in gathering, processing, and transporting natural gas, NGLs, and crude oil across Texas, New Mexico, and the Rocky Mountains.

Earnings Trends and Recent Results

Recent quarters show a mixed but stabilizing earnings pattern. In Q4 FY24, Western Midstream delivered earnings per share of $0.88, in line with estimates. Q1 FY25 and Q2 FY25 saw slight misses, though Q2 and Q3 returned to modest beats of $0.04 and $0.01, respectively.

For the upcoming quarter ending December 2025, analysts expect EPS of $0.80, compared with $0.88 in the year-ago period. Revenue for the quarter is projected at $1.05 billion, slightly above last year’s $928.5 million but reflecting an estimated short-term contraction of 8.88% year over year.

Valuation and Financial Position

Western Midstream trades at a trailing P/E ratio of 12.85 and a forward P/E of 11.57, suggesting a reasonable valuation relative to cash flow stability. The enterprise value stands at $24.54 billion, with an EV/EBITDA multiple of 10.17.

Profit margins are strong at 34.57%, supported by disciplined cost management and long-term contracts. Return on equity sits at 40.49%, underscoring efficient capital deployment. However, total debt-to-equity stands at 210.30%, which remains a key metric investors will monitor, particularly in a shifting rate environment.

Levered free cash flow over the trailing twelve months totals approximately $676.79 million, providing support for the partnership’s distribution coverage.

Analyst Sentiment

The average analyst price target is $41.75, slightly below the current trading price. Coverage remains largely neutral, with recent ratings maintaining an “Equal-Weight” stance and modest price target adjustments downward.

EPS revisions over the past 30 days show more downward adjustments than upward revisions, reflecting tempered expectations heading into earnings. Still, full-year 2026 EPS is projected at $3.65, up from an estimated $3.40 in 2025, implying moderate forward growth of 7.58%.

Outlook

Western Midstream’s appeal continues to center on its high yield, stable midstream assets, and disciplined capital allocation. While near-term revenue growth appears modest, the longer-term earnings trajectory remains constructive, supported by infrastructure demand and basin activity.

Investors will be listening closely for commentary on distribution policy, leverage management, and 2026 capital spending plans when management reports results.