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Western Midstream Partners LP Altman Z-Score

: 1.24 (As of Today)
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Warning Sign:

Altman Z-score of 1.24 is in distress zone. This implies bankrupcy possibility in the next two years.

Western Midstream Partners LP has a Altman Z-Score of 1.24, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Western Midstream Partners LP's Altman Z-Score or its related term are showing as below:

NYSE:WES' s Altman Z-Score Range Over the Past 10 Years
Min: 0.25   Med: 1.81   Max: 4.16
Current: 1.24

0.25
4.16

During the past 13 years, Western Midstream Partners LP's highest Altman Z-Score was 4.16. The lowest was 0.25. And the median was 1.81.


Western Midstream Partners LP Altman Z-Score Historical Data

The historical data trend for Western Midstream Partners LP's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.12 1.81 0.97 1.09 0.86

Western Midstream Partners LP Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score 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 0.71 0.70 0.86 1.19 1.21

Competitive Comparison

For the Oil & Gas Midstream subindustry, Western Midstream Partners LP's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Oil & Gas industry and Energy sector, Western Midstream Partners LP's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Western Midstream Partners LP's Altman Z-Score falls into.



Western Midstream Partners LP Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Western Midstream Partners LP's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0207+1.4*0+3.3*0.1152+0.6*1.0836+1.0*0.234
=1.24

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $11,626 Mil.
Total Current Assets was $886 Mil.
Total Current Liabilities was $1,127 Mil.
Retained Earnings was $0 Mil.
Pre-Tax Income was 239.742 + 192.347 + 272.982 + 257.163 = $962 Mil.
Interest Expense was -92.111 + -95.155 + -97.798 + -92.108 = $-377 Mil.
Revenue was 719.131 + 674.974 + 647.48 + 679.044 = $2,721 Mil.
Market Cap (Today) was $9,290 Mil.
Total Liabilities was $8,573 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(886.251 - 1126.671)/11626.299
=-0.0207

X2=Retained Earnings/Total Assets
=0/11626.299
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(962.234 - -377.172)/11626.299
=0.1152

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=9290.091/8573.426
=1.0836

X5=Revenue/Total Assets
=2720.629/11626.299
=0.234

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Western Midstream Partners LP has a Altman Z-Score of 1.24 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Western Midstream Partners LP  (NYSE:WES) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Western Midstream Partners LP Altman Z-Score Related Terms

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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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