>
Switch to:

Western Midstream Partners LP Owner Earnings per Share (TTM)

: 1.93 (As of Sep. 2021)
View and export this data going back to 2012. Start your Free Trial

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Western Midstream Partners LP's Owner Earnings per Share (TTM) ended in Sep. 2021 was $1.93. It's Price-to-Owner-Earnings ratio for today is 11.99.


The historical rank and industry rank for Western Midstream Partners LP's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:WES' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 9.42   Med: 38.68   Max: 551.79
Current: 11.97

9.42
551.79

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Western Midstream Partners LP was 551.79. The lowest was 9.42. And the median was 38.68.


NYSE:WES's Price-to-Owner-Earnings is ranked lower than
51% of the 435 Companies
in the Oil & Gas industry.

( Industry Median: 11.80 vs. NYSE:WES: 11.97 )

Western Midstream Partners LP's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $0.61. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $2.22. It's PE Ratio ratio for today is 10.42.

Western Midstream Partners LP's EPS without NRI for the three months ended in Sep. 2021 was $0.61. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $2.22. It's PE Ratio without NRI ratio for today is 10.42.


Western Midstream Partners LP Owner Earnings per Share (TTM) Historical Data

The historical data trend for Western Midstream Partners LP's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Western Midstream Partners LP Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.58 1.59 1.38 0.84 0.68

Western Midstream Partners LP Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.46 0.68 1.71 1.96 1.93

Competitive Comparison

For the Oil & Gas Midstream subindustry, Western Midstream Partners LP's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Western Midstream Partners LP Owner Earnings per Share (TTM) Distribution

For the Oil & Gas industry and Energy sector, Western Midstream Partners LP's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Western Midstream Partners LP's Owner Earnings per Share (TTM) falls into.



Western Midstream Partners LP Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Western Midstream Partners LP's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 937
Depreciation, Depletion and Amortization 514
Change In Deferred Tax 3
5Y Average of Maintenance Capital Expenditure 691
Change In Working Capital 36
Shares Outstanding (Diluted Average) 413

1. Start with "Net Income" from income statement. Western Midstream Partners LP's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was $937 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Western Midstream Partners LP's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2021 was $514 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Western Midstream Partners LP's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2021 was $3 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $691 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Western Midstream Partners LP's 5-Year Average Maintenance Capital Expenditure = $691 Mil

5. "Change In Working Capital" is from cashflow statement. Western Midstream Partners LP's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2021 was $36 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Western Midstream Partners LP's Shares Outstanding (Diluted Average) for the months ended in Sep. 2021 was 412.714 Mil.

Western Midstream Partners LP's Onwer Earnings Per Share for Sep. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 936.666 +513.802+3.178
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-691.48153843135+35.604)/412.714
=1.93

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=23.14/1.93
=11.99

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Western Midstream Partners LP Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Western Midstream Partners LP's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Western Midstream Partners LP Business Description

Western Midstream Partners LP logo
Industry
Energy » Oil & Gas NAICS : 213112 SIC : 1389
Traded in Other Exchanges
N/A
Address
9950 Woodloch Forest Drive, Suite 2800, The Woodlands, TX, USA, 77380
Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma), North-central Pennsylvania and Texas.
Executives
Stewart Lisa A director EL PASO CORPORATION 1001 LOUISIANA STREET HOUSTON TX 77002
Schulte David J director 233 WEST 47TH ST. KANSAS CITY MO 64112
Owen Kenneth F. director 15631 JACINTOPORT BLVD. HOUSTON TX 77015
Oxy Oil Partners, Inc. 10 percent owner 5 GREENWAY PLAZA, SUITE 110 HOUSTON TX 77046
Occidental Permian Manager Llc 10 percent owner 5 GREENWAY PLAZA, SUITE 110 HOUSTON TX 77046
Baseball Merger Sub 2, Inc. 10 percent owner 5 GREENWAY PLAZA, SUITE 110 HOUSTON TX 77046
Wgr Asset Holding Co Llc 10 percent owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Kerr-mcgee Worldwide Corp other: Former 10% Owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Apc Midstream Holdings, Llc 10 percent owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Anadarko E&p Onshore Llc other: Former 10% Owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Western Gas Resources Inc 10 percent owner 1099 18TH STREET, SUITE 1200 DENVER CO 80202-1955
Anadarko Petroleum Corp 10 percent owner 1201 LAKE ROBBINS DR. THE WOODLANDS TX 77380
Occidental Petroleum Corp /de/ 10 percent owner 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Oxy Usa Inc 10 percent owner 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Bourne Robert W. officer: SVP & Chief Commercial Officer 1400 16TH STREET SUITE 310 DENVER CO 80202

Western Midstream Partners LP Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)