A Look into Western Gas Partners’ Volatility before 2Q16 Earnings

Western Gas Partners’ (WES) implied volatility has fallen significantly after increasing to over 91.9% in the beginning of 2016. WES’s current implied volatility is 35.4%. This is 4.4% lower than its 15-day average of 37.0%. The increase in WES’s volatility during the first three months of 2016 could be attributed to the volatility in commodity prices. However, as commodity prices started to recover, its implied volatility has fallen slightly.

WES’s peers Crestwood Equity Partners (CEQP) and Antero Midstream Partners (AM) have implied volatilities of 56.5% and 44.3%, respectively.