Western MidstreamHF Sinclair

Western Midstream vs HF Sinclair

This page compares Western Midstream (Western Midstream Partners LP) and HF Sinclair (HF Sinclair Corp). It describes differences in business models, financial performance, and market context in clear...

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Riding The OPEC+ Wave: Midstream Energy Plays

Riding The OPEC+ Wave: Midstream Energy Plays

OPEC+ is moving forward with its plan to increase oil production to meet summer demand. This creates an opportunity for companies that transport, store, and process the additional crude oil and natural gas.

Published: July 25, 2025

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OPEC+ Opens The Taps: Midstream's Moment

OPEC+ Opens The Taps: Midstream's Moment

OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.

Published: July 25, 2025

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Natural Gas Drilling Revival Play

Natural Gas Drilling Revival Play

A carefully selected group of stocks poised to benefit from the recent upturn in U.S. natural gas drilling activity. Our professional analysts have identified companies across the entire natural gas value chain that could see improved performance as drilling rebounds for the first time in twelve weeks.

Published: July 20, 2025

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Toll Road Businesses

Toll Road Businesses

These gatekeepers of modern commerce own indispensable infrastructure and collect fees on the flow of goods, energy, and data. Our analysts have selected companies with durable, recurring revenues from hard-to-replicate physical and digital networks.

Published: June 17, 2025

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Investment Analysis

Pros

  • Western Midstream reported record third-quarter adjusted EBITDA and strong net income, reflecting robust operational performance.
  • The company completed strategic acquisitions and sanctioned new infrastructure projects, enhancing its competitive position in the midstream sector.
  • Free cash flow is expected to exceed the high end of 2025 guidance, supporting distribution stability and potential for future growth.

Considerations

  • Recent earnings and revenue slightly missed analyst forecasts, indicating possible near-term execution or market challenges.
  • The company's debt-to-equity ratio is relatively high, increasing financial risk in volatile market conditions.
  • Dividend payout ratio is above sustainable levels, raising concerns about long-term distribution coverage.

Pros

  • HF Sinclair operates a diversified portfolio across refining, renewables, and midstream, providing multiple revenue streams.
  • The company is evaluating strategic pipeline expansion, which could boost capacity and market reach in western regions.
  • HF Sinclair offers a relatively high dividend yield, attractive to income-focused investors.

Considerations

  • Recent financial results show negative net income and low return on assets, indicating profitability challenges.
  • The company's interest coverage ratio is negative, suggesting difficulty in servicing debt obligations.
  • Price-to-book and price-to-earnings ratios are elevated compared to sector peers, potentially reflecting overvaluation risks.

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