Western Midstream Partners (WES) is well positioned for growth due to its asset footprint, with produced-water operations also set to drive growth, RBC Capital Markets said in a Friday note.
RBC analysts were updating their estimates after the company posted better-than-expected Q2 results and increased guidance.
The report said its guidance hike for 2026 is driven by the Brazos Delaware Basin acquisition, higher crude oil prices, and better system performance.
The note also pointed to Pathfinder produced-water pipeline entering service in Q1 2027 with capital costs tracking below budget, delivering 15% returns with the potential to reach 20% as utilization ramps.
RBC kept its sector perform rating while raising its price target to $47 from $41 on the back of higher estimates.
Price: 48.04, Change: -0.33, Percent Change: -0.67