Western Midstream Partners (WES) anticipates growth across all three product streams, with strong activity in the Delaware Basin offsetting potential declines in the commodity-sensitive Denver-Julesburg or DJ and Powder River Basins, RBC said.

The brokerage said in a Wednesday note that Western Midstream has implemented cost-cutting initiatives, which have resulted in "sustainable cost savings and improved process efficiency," which the company expects to continue into 2026.

"We believe the company's strong balance sheet provides financial flexibility to execute growth plans and to support underlying operations during periods of commodity price headwinds," said RBC analysts.

RBC said it now forecasts 2025 and 2026 adjusted earnings before interest, taxes, depreciation, and amortization of $2.52 billion and $2.78 billion compared to $2.47 billion and $2.80 billion, previously.

The firm rated the company as sector perform and raised its price target to $42 from $39.

Price: 39.43, Change: +0.43, Percent Change: +1.10