WES - Western Midstream: 10% Forward Yield Plus Capital Appreciation From Investment Grade Company
2024-04-03 01:56:50 ET
Summary
- Western Midstream Partners' parent company, Occidental Petroleum, is exploring a sale of WES to reduce debt.
- WES distribution hike is likely to be influenced by OXY.
- If OXY sells WES towards the end of 2024, investors will likely pocket close to 20% return in 9 months.
- If the sale does not occur, investors will keep receiving 10% tax-deferred distributions plus capital appreciation a year from now.
I assume most of my readers are familiar with Western Midstream Partners LP ( WES ). For others briefly, WES is a midstream operator with natural gas gathering, operating, and transporting as its major business. Two other businesses are oil and NGL transporting; and gathering and disposal of produced water. Please refer to other sources for a more detailed company description....
Western Midstream: 10% Forward Yield Plus Capital Appreciation From Investment Grade Company