Core Viewpoint - The S&P 500's dividend yield is currently around 1.1%, near an all-time low, driven by rising stock prices and a reduced focus on dividends by many companies. However, there are notable exceptions with high dividend yields, including three significant stocks offering yields up to 12.5% [1]. Group 1: AGNC Investment - AGNC Investment leads with a 12.5% dividend yield, paying dividends monthly, which enhances its appeal for passive income [4]. - The company invests in Agency MBS, a $9.2 trillion market, leveraging these fixed-income assets to boost returns [5]. - Current strong market conditions for Agency MBS, along with falling interest rates, suggest AGNC can maintain its high monthly dividend [6]. Group 2: Ares Capital - Ares Capital has a 10% dividend yield, providing direct loans to middle-market companies, which generates interest income to support its dividend [7]. - The company has maintained or increased its dividend for over 16 consecutive years, with core earnings exceeding dividend payments, providing a cushion for potential earnings dips [8]. - Ares Capital's strong financial profile and record level of new investments position it well for continued dividend support [9]. Group 3: Western Midstream Partners - Western Midstream Partners currently yields 8.9%, operating a portfolio of energy midstream assets, including pipelines and processing plants [11]. - The majority of its assets generate stable cash flow through long-term, fixed-fee contracts, contributing to its dividend sustainability [11].

Core Viewpoint - Western Midstream Partners, LP (NYSE:WES) is recognized as one of the best pipeline and MLP stocks to buy in 2026, indicating strong market confidence in its future performance [1]. Group 1: Ratings and Price Targets - RBC Capital's Elvira Scotto reiterated a Hold rating on WES with a price target of $42 as of January 28, 2026, while Morgan Stanley maintained a Sell rating with a price target of $41 [2]. Group 2: Financial Performance - Western Midstream Partners declared a quarterly cash distribution of $0.91 per unit for Q4 2025, consistent with the previous quarter's payout, with eligibility for shareholders as of February 2, 2026, for payment on February 13, 2026 [3]. Group 3: Strategic Developments - The company announced renegotiations on key natural gas contracts in the Delaware Basin with Occidental and ConocoPhillips, transitioning to simplified, fixed-fee arrangements. Occidental will transfer 15.3 million WES common units, valued at approximately $610 million, back to the partnership for redemption, aiming to solidify revenue through the late 2030s and diversify its customer base [4]. Group 4: Company Overview - Founded in 2007, Western Midstream Partners, LP is a master limited partnership focused on the gathering, processing, and transportation of natural gas, crude oil, and NGLs across major U.S. basins, utilizing fee-based contracts, and is headquartered in Texas [5].

Core Viewpoint - Western Midstream Partners, LP (NYSE:WES) is recognized as one of the best dividend stocks to buy in February, despite recent adjustments in financial projections and contract renegotiations with Occidental Petroleum [1][2]. Financial Adjustments - Wells Fargo analyst Ned Baramov has lowered the price target for Western Midstream from $40 to $39, maintaining an Equal Weight rating, reflecting updated assumptions for 2026, including lower expected operating cash flow and reduced capital spending [2]. - The adjustments also account for a smaller unit count and distributions, alongside anticipated cost savings [2]. Contract Renegotiations - Western Midstream has renegotiated contracts with Occidental Petroleum regarding its Delaware Basin assets, shifting to a fixed-fee structure for natural gas gathering [3]. - Occidental will transfer 15.3 million common units back to Western Midstream, valued at approximately $610 million, reducing its ownership stake to about 40% [3][4]. Revenue Structure - Following the contract changes, approximately 9% of Western's revenue will still come from cost-of-service arrangements, with most contracts set to expire between the late 2020s and mid-to-late 2030s, potentially transitioning to fixed-fee terms [4]. - The previous fee structure was based on the cost of providing services plus a regulated return, while the new agreement stipulates a fixed rate payment from Occidental [4]. New Agreements - Western Midstream has also entered into a new natural gas gathering and processing agreement with ConocoPhillips for a portion of its Delaware Basin volumes [5].

Core Viewpoint - The article highlights three under-the-radar dividend stocks that offer attractive yields, significantly higher than the S&P 500's current yield of approximately 1.1% [1]. Group 1: Ares Capital - Ares Capital (ARCC) has a dividend yield of 9.5% and operates as a business development company (BDC), required to pay out at least 90% of its taxable income as dividends [2]. - The company has maintained stable-to-increasing dividends for 16 years, despite challenges faced by many BDCs [2]. - Ares Capital focuses on providing capital to middle-market companies with annual revenues between $100 million and $1 billion, generating income through direct loans and equity investments [3]. Group 2: Starwood Property Trust - Starwood Property Trust (STWD) leads with a dividend yield of 10.7% and has never cut its dividend since its IPO in 2009 [6]. - The REIT has maintained its dividend payout rate for over a decade, despite challenges faced by other REITs [6]. - Starwood has diversified its investments from commercial mortgages to high-quality real estate assets and infrastructure lending, which has reduced risk and provided new growth opportunities [9]. - The recent $2.2 billion acquisition of Fundamental Income Properties added 467 properties with long-term leases, enhancing its rental income stability [10]. Group 3: Western Midstream Partners - Western Midstream Partners (WES) offers a distribution yield of 9% and operates as a master limited partnership (MLP) [11]. - The MLP reset its distribution level in 2020 due to the pandemic but has since rebuilt its payout to above pre-pandemic levels [11]. - The company owns energy midstream assets that generate stable cash flow, which is used for distributions and growth investments [13]. - Western Midstream aims to increase its high-yielding payout at a low-to-mid single-digit annual rate and has recently closed a $2 billion acquisition of Aris Water Solutions [14].

Core Viewpoint - Western Midstream Partners, LP announced a quarterly cash distribution of $0.910 per unit for Q4 2025, maintaining the same level as the previous quarter [1] Group 1: Financial Announcements - The fourth-quarter distribution is payable on February 13, 2026, to unitholders of record as of February 2, 2026 [1] - The Partnership plans to report its Q4 2025 results after market close on February 18, 2026, with a conference call scheduled for February 19, 2026, at 9:00 a.m. Central [2][3] Group 2: Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [4] - The company engages in various activities including gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, and crude oil [4] - A significant portion of WES's cash flows is secured through fee-based contracts, reducing direct exposure to commodity price volatility [4]

Core Viewpoint - The company has announced new amendments to its contracts in the Delaware Basin, which involve renegotiations with Occidental Petroleum and a new arrangement with ConocoPhillips, aimed at enhancing its operational framework and long-term strategic benefits [1][2] Group 1: Contract Amendments - The company renegotiated natural-gas gathering and processing contracts in the Delaware Basin with a subsidiary of Occidental Petroleum [1] - A new natural-gas gathering and processing arrangement was established with ConocoPhillips for a portion of its Delaware Basin natural gas volumes [1] - These agreements reset Delaware Basin natural gas fees in exchange for WES common units from Occidental, promoting the development of acreage supported by the company's systems [1] Group 2: Strategic Realignment - The transaction realigns the company's equity capital structure to better accommodate anticipated changes that will provide long-term strategic benefits [2] - These changes signify a significant step in the company's evolution as a stand-alone midstream enterprise, simplifying its contract portfolio and diversifying its customer base [2] - The amendments reinforce the company's ability to deliver enduring value for its stakeholders [2]

Core Viewpoint - Western Midstream is positioned as an attractive passive income investment due to its stable cash flows and high dividend yield supported by long-term contracts with major energy companies [1][10]. Group 1: Financial Performance and Structure - Western Midstream operates essential energy midstream assets that generate stable cash flow, supporting an 8.8% cash distribution yield [1]. - The company has a market capitalization of $17 billion, with a gross margin of 53.34% and a dividend yield of 8.86% [6]. - The restructured contracts with Occidental Petroleum will not impact Western Midstream's free cash flow, as the company expects to offset reduced near-term cash flows with distribution savings and cost-saving initiatives [6][7]. Group 2: Contractual Agreements - Western Midstream has renegotiated natural gas gathering and processing contracts with Occidental Petroleum, transitioning to a simplified fixed-fee structure that reduces Occidental's near-term costs and enhances production growth [3]. - Occidental will transfer 15.3 million common units of Western Midstream, valued at $610 million, resulting in a decrease of Occidental's interest in the MLP from 42% to 40% [3]. - A new gas-gathering and processing agreement with ConocoPhillips will further diversify revenue, reducing related party revenue from Occidental by over 10% [4]. Group 3: Growth Prospects - The company anticipates maintaining a net leverage ratio near 3.0 times, even after a recent acquisition and planned capital spending of $1.1 billion in 2026, indicating a conservative financial strategy [7]. - Western Midstream's growth capital spending plan includes projects like the North Loving II gas processing plant and Pathfinder Pipeline, which are expected to fuel cash flow growth in the coming years [9]. - The MLP aims to deliver low-to-mid single-digit annual distribution growth, supported by predictable cash flows from long-term contracts [9].

Summary of Western Midstream Partners Fireside Chat Company Overview - **Company**: Western Midstream Partners (NYSE: WES) - **Industry**: Midstream Energy Sector, specifically focused on natural gas gathering and processing in the Delaware Basin Key Points Contract Amendments - **Renegotiated Contracts**: Western Midstream announced the renegotiation of natural gas gathering and processing contracts with Occidental Petroleum and a new agreement with ConocoPhillips [2][3] - **Contract Structure Changes**: Transition from a legacy cost-of-service structure to a simplified fixed-fee structure, enhancing competitiveness for acreage serviced by WESS [3] - **Volumetric Protections**: The amended contract with Occidental includes substantial minimum volume commitments, mitigating future throughput risk [3] Financial Implications - **Common Units Transfer**: Occidental will transfer approximately 15.3 million WESS common units, valued at about $610 million, which will decrease OXY's ownership in WESS from 42% to 40% [6] - **Annual Distribution Savings**: The transaction is expected to yield annual distribution savings of over $56 million starting in 2026 [6] - **Adjusted EBITDA Impact**: The total contract liability will increase to approximately $1.2 billion, with about $165 million recognized as revenue annually from 2026 to 2032 [7][8] Revenue Recognition - **Contract Liability**: The contract liability associated with the OXY agreement was $560 million as of December, with revenue recognition beginning in 2026 [10] - **Operating Cash Flow**: Starting in 2026, operating cash flows will reflect only the new fixed-fee rates, while revenues will include recognition of the contract liability [11] Cost Management - **Cost Reduction Initiatives**: WESS has implemented a cost reduction initiative, resulting in an 8% decrease in operations and maintenance costs in Q3 2025 compared to Q3 2024 [15] - **Offsetting Cash Flow Reductions**: Ongoing distribution savings and cost reductions are expected to fully offset the reduction in free cash flow due to the transition to a fixed fee structure [16] Risk Mitigation - **Recontracting Risk**: The new amendments with OXY significantly reduce the percentage of WESS revenue generated by cost-of-service rates, with only 9% of total revenue remaining subject to such rates post-amendment [17][18] - **Long-term Contracts**: Significant fixed fee contracts with OXY are effective through the mid to late 2030s, providing stability [18][19] Strategic Outlook - **Future Growth**: WESS is positioned to capitalize on future growth in the Delaware Basin, with a focus on improving cost structure and process efficiency while pursuing growth opportunities [20] Additional Insights - **Market Positioning**: The amendments and strategic initiatives are aimed at enhancing WESS's competitiveness in the midstream market, reflecting a proactive approach to evolving market conditions [20]

Company Overview - Western Midstream (WES) is valued at nearly $17 billion and has experienced double-digit returns over the past five months, with its share price exceeding $40 per share [2]. Investment Strategy - The Value Portfolio focuses on constructing retirement portfolios using a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]. - The Retirement Forum, led by a seasoned analyst, offers model portfolios, macroeconomic overviews, in-depth company analyses, and retirement planning information to help maximize capital and income [2].

Core Viewpoint - Western Midstream Partners has successfully renegotiated contracts with Occidental Petroleum for natural gas gathering and processing in the Delaware Basin [1] Company Summary - Western Midstream Partners is involved in natural gas gathering and processing operations [1] - The renegotiation of contracts indicates a strategic move to enhance operational efficiency and potentially improve financial performance [1] Industry Summary - The Delaware Basin remains a critical area for natural gas production, and partnerships between midstream companies and producers like Occidental Petroleum are essential for optimizing resource extraction and processing [1]