Oil prices hold sharp losses with focus on secondary India tariffs
In a challenging market environment, Western Gas Partners LP (NYSE:WES) stock has touched a 52-week low, dipping to $33.6. According to InvestingPro data, technical indicators suggest the stock is in oversold territory, while maintaining an impressive 10% dividend yield. This latest price level reflects a notable downturn for the energy infrastructure company, though the company maintains strong fundamentals with a P/E ratio of 8.39 and robust revenue growth of 16% over the last twelve months. InvestingPro's analysis indicates the stock is currently trading below its Fair Value, suggesting potential upside opportunity. Investors are closely monitoring the stock as it navigates through the volatile energy sector, with the 52-week low serving as a critical point of interest for potential buying opportunities or further evaluation of the company's financial health and market position. InvestingPro rates WES's overall financial health as GOOD, with 12 additional exclusive ProTips available to subscribers through the comprehensive Pro Research Report.
In other recent news, Western Gas Partners reported fourth-quarter 2024 results that fell short of analyst expectations, with adjusted earnings per unit at $0.85, missing the consensus forecast of $0.87. Revenue for the quarter was $858.9 million, below Wall Street's projection of $926.84 million. Despite this, the company achieved a record annual natural gas throughput of 5.1 billion cubic feet per day in 2024, marking a 16% year-over-year increase. Stifel analysts adjusted their outlook on Western Gas, raising the price target to $41 from $40 and maintaining a Hold rating, noting significant new water midstream projects requiring an investment of $400 million to $450 million over the next two years. These projects are expected to provide additional revenue streams, with capital expenditures anticipated to rise in the coming years. Meanwhile, UBS analysts maintained a Neutral rating with a $40 price target, adjusting their first-quarter 2025 EBITDA estimate to $604 million due to increased operations and maintenance expenses. UBS also projected that Western Gas would generate $335 million in free cash flow during the first quarter of 2025, supporting its ability to cover distributions to shareholders. The company continues to focus on maintaining low leverage and achieving modest growth in its distributions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.