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Western Midstream Partners LP Gross Margin %

: 70.91% (As of Sep. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Western Midstream Partners LP's Gross Profit for the three months ended in Sep. 2021 was $542 Mil. Western Midstream Partners LP's Revenue for the three months ended in Sep. 2021 was $764 Mil. Therefore, Western Midstream Partners LP's Gross Margin % for the quarter that ended in Sep. 2021 was 70.91%.


The historical rank and industry rank for Western Midstream Partners LP's Gross Margin % or its related term are showing as below:

NYSE:WES' s Gross Margin % Range Over the Past 10 Years
Min: 47.62   Med: 55.29   Max: 75.5
Current: 71.54

47.62
75.5

During the past 13 years, the highest Gross Margin % of Western Midstream Partners LP was 75.50%. The lowest was 47.62%. And the median was 55.29%.

NYSE:WES's Gross Margin % is ranked lower than
52% of the 445 Companies
in the Oil & Gas industry.

( Industry Median: 51.70 vs. NYSE:WES: 71.54 )

Western Midstream Partners LP had a gross margin of 70.91% for the quarter that ended in Sep. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Western Midstream Partners LP was 7.10% per year.


Western Midstream Partners LP Gross Margin % Historical Data

The historical data trend for Western Midstream Partners LP's Gross Margin % 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
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.48 47.62 65.01 66.23 75.50

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
Gross Margin % 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 75.80 78.24 67.48 69.98 70.91

Competitive Comparison

For the Oil & Gas Midstream subindustry, Western Midstream Partners LP's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Oil & Gas industry and Energy sector, Western Midstream Partners LP's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Western Midstream Partners LP's Gross Margin % falls into.



Western Midstream Partners LP Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Western Midstream Partners LP's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=2093.4 / 2772.592
=(Revenue - Cost of Goods Sold) / Revenue
=(2772.592 - 679.174) / 2772.592
=75.50 %

Western Midstream Partners LP's Gross Margin for the quarter that ended in Sep. 2021 is calculated as


Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=541.6 / 763.84
=(Revenue - Cost of Goods Sold) / Revenue
=(763.84 - 222.234) / 763.84
=70.91 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Western Midstream Partners LP  (NYSE:WES) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Western Midstream Partners LP had a gross margin of 70.91% for the quarter that ended in Sep. 2021 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Western Midstream Partners LP Gross Margin % Related Terms

Thank you for viewing the detailed overview of Western Midstream Partners LP's Gross Margin % 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

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