Alexander Steinberg Investments

Alexander Steinberg Investments

Why Western Midstream Came Back on My Radar So Quickly

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Alexander Steinberg
Oct 01, 2025
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In terms of yield, Western Midstream (WES) is off-the-charts: 9.3% today, sheltered from US taxes for many years if you buy today. This is from an investment-grade company with cash inflows supported by multi-year take-or-pay contracts. The distributions are almost certain to be hiked in half a year and annually thereafter. It may surprise Nvidia fans, but there are still some folks who value reliable yield and cash, among other things.

I posted on WES less than two months ago (“Western Midstream: Time to Revisit the Yield King”) and did not expect to revisit so soon again. But new information has made the company more attractive.

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