Western Midstream Partners (WES), a US-based natural gas-focused pipeline operator, has signed a cash and stock deal worth around $1.5bn to acquire Aris Water Solutions.
Aris Water Solutions specialises in environmental infrastructure solutions that aid clients in reducing water and carbon footprints through comprehensive water management services.
As per the terms of the deal, Aris Water Solutions’ shareholders will receive 0.625 Western Midstream Partners’ common units per share or opting for $25 in cash per share, subject to proration. The total cash consideration is capped at $415m.
The transaction offers a 10% premium to Aris Water Solutions’ 30-day volume-weighted average price and a 23% premium to its closing price on 5 August 2025. The enterprise value of the deal stands at approximately $2bn before transaction costs.
Both Western Midstream Partners and Aris Water Solutions are currently listed on the New York Stock Exchange (NYSE).
Post-transaction, Aris Water Solutions’ shareholders will own about 7% of Western Midstream Partners’ common units. Aris Water Solutions’ existing debt of $500m in senior notes will remain post-acquisition.
The company’s water infrastructure assets include 1,271km of produced-water pipeline and a handling capacity of 1,800 thousand barrels per day (mbbls/d). Additionally, the assets include a water recycling capacity of 1,400mbbls/d and 625,000 dedicated acres from investment-grade counterparties.
These assets complement Western Midstream Partners’ existing infrastructure, which includes 1335.7km of pipeline and a disposal capacity of 2,035mbbls/d.
The acquisition extends Western Midstream Partners’ operations into Lea and Eddy Counties, New Mexico, enhancing throughput opportunities across its natural gas, crude oil, and produced-water businesses.
Aris Water Solutions’ recent acquisition of McNeill Ranch is expected to provide long-term commercial benefits as produced-water disposal needs increase in the Delaware Basin.
Aris Water Solutions president and CEO Amanda Brock said: “Since our founding in 2015, Aris has been dedicated to developing a sustainable produced-water infrastructure platform focused on gathering, disposal, and recycling activities for some of the largest operators in the Permian Basin.
“The combination of Aris and WES creates a premier midstream water-solutions provider of scale that is better positioned to deliver a variety of water services, provide critical flow assurance for natural-gas and crude-oil production activities, and generate strong returns for our shareholders through WES’s leading distribution policy and attentive focus on executing accretive growth projects.”
Western Midstream Partners operates midstream assets across several states including Texas and New Mexico, focusing on natural gas processing and transportation as well as produced-water management.
Post-transaction, the integrated infrastructure establishes a comprehensive produced-water value chain that includes water gathering, disposal, and recycling and reuse. It also covers beneficial reuse such as desalination and mineral extraction, industrial water services, and long-haul transport through the Pathfinder water pipeline, which was sanctioned by Western Midstream Partners in February 2025.
Western Midstream Partners president and CEO Oscar Brown said: “Aris has a strong track record of growth and operational performance in the Delaware Basin. The combination of our assets creates a leading produced-water gathering, disposal, and recycling business that can meet the flow assurance needs of customers as they execute on their decades’ worth of drilling inventory.”
The deal, approved by both companies’ boards, awaits customary closing conditions, regulatory approvals, and Aris Water Solutions’ shareholder consent. Completion is anticipated in Q4 2025.
Western Midstream Partners has secured support agreements from Aris Water Solutions’ shareholders holding around 42% of its stock to vote in favour of the merger.
