Western Midstream Partners, LP Plans Quarterly Dividend of $0.91 (NYSE:WES)

Key Points

• Western Midstream Partners, LP has declared a quarterly dividend of $0.91 per share, with an annualized dividend yield of 9.6% for shareholders of record on October 31st.
• The company has a challenging payout ratio of 100.8%, indicating it currently relies on its balance sheet rather than earnings to cover the dividend payments.
• Equities analysts forecast that Western Midstream Partners will have an earnings per share of $3.47 next year, which may not suffice to cover its annual dividend of $3.64, leading to an expected future payout ratio of 104.9%.

Western Midstream Partners, LP (NYSE:WES - Get Free Report) declared a quarterly dividend on Friday, October 17th. Shareholders of record on Friday, October 31st will be paid a dividend of 0.91 per share by the pipeline company on Friday, November 14th. This represents a c) dividend on an annualized basis and a dividend yield of 9.6%. The ex-dividend date is Friday, October 31st.

Western Midstream Partners has a payout ratio of 100.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Western Midstream Partners to earn $3.47 per share next year, which means the company may not be able to cover its $3.64 annual dividend with an expected future payout ratio of 104.9%.

Western Midstream Partners Stock Up 0.3%

Shares of WES traded up $0.11 on Friday, hitting $37.74. 1,234,206 shares of the stock traded hands, compared to its average volume of 1,251,579. The company has a market capitalization of $14.39 billion, a PE ratio of 11.61 and a beta of 1.12. The company has a debt-to-equity ratio of 2.08, a quick ratio of 1.30 and a current ratio of 1.30. The business has a 50 day simple moving average of $38.41 and a 200 day simple moving average of $38.48. Western Midstream Partners has a one year low of $33.60 and a one year high of $43.33.

Western Midstream Partners (NYSE:WES - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The pipeline company reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.82 by $0.05. The company had revenue of $942.32 million during the quarter, compared to the consensus estimate of $954.17 million. Western Midstream Partners had a net margin of 34.45% and a return on equity of 37.70%. The firm's quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.97 earnings per share. As a group, equities analysts forecast that Western Midstream Partners will post 4.02 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

WES has been the subject of several analyst reports. Mizuho raised their price target on shares of Western Midstream Partners from $44.00 to $46.00 and gave the company an "outperform" rating in a research report on Friday, August 29th. Royal Bank Of Canada raised their target price on shares of Western Midstream Partners from $38.00 to $39.00 and gave the stock a "sector perform" rating in a report on Tuesday, August 26th. Finally, Morgan Stanley dropped their target price on shares of Western Midstream Partners from $41.00 to $39.00 and set an "underweight" rating on the stock in a report on Tuesday, August 26th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $40.25.

About Western Midstream Partners

Western Midstream Partners, LP, together with its subsidiaries, operates as a midstream energy company primarily in the United States. It is involved in gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing produced water.

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