Western Midstream Partners LP (WES) is a 'Neutral' Ahead of ARIS Water Acquisition Completion: UBS

Western Midstream Partners LP (NYSE:WES) is one of the most profitable energy stocks to buy right now. On September 30, analysts at investment bank UBS reiterated a ‘Neutral’ rating on the stock and a $40 price target.

The Neutral stance comes as the investment bank awaits the completion of the proposed acquisition of ARIS Water Solution in a cash-and-stock deal valued at $1.4 billion. The acquisition is expected to strengthen the company’s water midstream business in the Delaware Basin.

The deal is poised to close in the fourth quarter following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. While the transaction is expected to be accretive to WES’s 2026 free cash flow, it will also represent a 7.5x multiple on consensus 2026 EBITDA, inclusive of estimated cost synergies.

Western Midstream Partners LP (NYSE:WES) owns and operates midstream energy infrastructure, providing services such as gathering, compressing, treating, processing, and transporting natural gas, crude oil, and natural gas liquids (NGLs), as well as gathering and disposing of produced water.

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Disclosure: None. This article is originally published at Insider Monkey.