Western Midstream to acquire Aris Water Solutions in $1.5 billion deal
(UI) — Western Midstream Partners LP (WES) will acquire Aris Water Solutions Inc. in a cash-and-equity deal valued at about $1.5 billion, creating an expanded produced-water infrastructure network in the Delaware basin.
Under the agreement, Aris shareholders will receive 0.625 WES common units per share, or $25 in cash, subject to proration. The deal’s total enterprise value is about $2 billion, including debt. The companies expect the transaction to close in the fourth quarter of 2025, pending shareholder and regulatory approvals.
The acquisition adds Aris’s 790 miles of produced-water pipeline, 1,800 MMbbl/d of handling capacity, and 1,400 MMbbl/d of recycling capacity to WES’s 830 miles of pipeline and 2,035 MMbbl/d disposal capacity. It also extends WES’s footprint into Lea and Eddy Counties, New Mexico, and includes the McNeill Ranch property, offering additional disposal and surface-use opportunities.
WES President and CEO Oscar Brown said the combination “creates a leading produced-water gathering, disposal, and recycling business” with expanded flow assurance capabilities for customers in West Texas and New Mexico. Aris President and CEO Amanda Brock called the deal “a significant milestone” that will position the combined company as “a premier midstream water-solutions provider of scale.”
WES expects the deal to be accretive to its 2026 free cash flow per unit, with targeted annual cost synergies of about $40 million.
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