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Oil Gas Pipelines

Western Gas Equity Partners Lp (NYSE: WGP) is a publicly traded limited partnership engaged in the gathering, processing, and transportation of natural gas, crude oil, and natural gas liquids (NGLs). Here are some key points to know about the company's fundamentals, earnings, and growth:

1.Historical Background:

Western Gas Equity Partners was founded in 2012 as a spin-off from Western Gas Partners. Its general partner, Western Gas Partners, LP (NYSE: WES), is a publicly traded master limited partnership that owns a 68.6% interest in Western Gas Equity Partners.

2.Stock Information:

As of April 2023, Western Gas Equity Partners' stock (WGP) is traded on the New York Stock Exchange (NYSE) under the ticker symbol "WGP."

3.Market Capitalization:

As of April 2023, Western Gas Equity Partners has a market capitalization of around $4.22 billion, making it a mid-cap company.

4.Industry and Peers:

Western Gas Equity Partners operates in the Energy sector, specifically in the Oil & Gas Pipelines industry. Its peers include Plains All American Pipeline (PAA), Enterprise Products Partners (EPD), and Magellan Midstream Partners (MMP).

5.Fundamentals:

a.Revenue: In 2022, Western Gas Equity Partners reported $3.35 billion in total revenue, with a five-year annual revenue growth rate of 13.9%.

b.Net Income: The company's net income for 2022 was $753.4 million, with a five-year annual net income growth rate of 24.3%.

c.Earnings Per Share (EPS): In 2022, Western Gas Equity Partners' basic earnings per common unit were $2.15, with a five-year annual EPS growth rate of 20.6%.

d.Dividend Yield: As of April 2023, the company's dividend yield is 4.99%, with a five-year average dividend yield of 5.33%.

e.Valuation: Western Gas Equity Partners' forward price-to-earnings ratio (P/E) is around 13.3, which is lower than the industry average of 16.16. Its price-to-book ratio (P/B) is 2.34, slightly higher than the industry average of 2.21.

6.Growth Prospects:

a.Growth Drivers: The partnership's growth prospects are driven by increasing demand for natural gas and NGLs, as well as its strategic location in the prolific Permian Basin. Western Gas Equity Partners has a strong presence in the Delaware Basin, which is a leading growth area for oil and gas production in the United States.

b.Capital Expenditures: Western Gas Equity Partners plans to invest around $1.3 billion in growth capital expenditures in 2023, primarily focused on expanding its assets in the Delaware Basin.

c.Acquisitions: In 2020, the partnership acquired the remaining 33.3% interest in the Delaware Basin pipeline from an affiliate of Plains All American Pipeline for approximately $1.35 billion. The acquisition enhanced Western Gas Equity Partners' presence in the Delaware Basin and provided greater control over its assets.

7.Key Management:

Benjamin M. Fink - Chairman and Chief Executive Officer

Michael P. Hennigan - President and Chief Operating Officer

Jorge A. Madera - Chief Financial Officer

8.In conclusion:

Western Gas Equity Partners Lp (WGP) is a growth-oriented, fee-based limited partnership offering exposure to the energy industry with an emphasis on natural gas and NGLs. Its strong presence in the Delaware Basin and strategic acquisitions position it for future growth. However, investors should keep an eye on the company's reliance on the volatile energy market and sensitivity to changes in commodity prices.