Western Midstream Finalizes Major Acquisition of Aris Water Solutions

Western Midstream Partners (WES) has completed its acquisition of Aris Water Solutions, a transaction valued at approximately $1.5 billion. This strategic move significantly bolsters WES's operational footprint in the critical Delaware Basin region. Following the deal's closure, Aris Water Solutions shares have been delisted from the New York Stock Exchange (NYSE).

The merger, initially announced in August 2025, was finalized as scheduled in the fourth quarter of last year. The total enterprise value for the deal stands at $2.0 billion. The consideration for Aris shareholders included a cash component capped at $415 million and the issuance of roughly 26.6 million new WES common units.

Shareholders of Aris were presented with a choice of consideration options. Demand for the cash election reached the contractual maximum, leading to a prorated allocation of the available $415 million. With the integration now complete, Aris operates as a wholly-owned subsidiary within the Western Midstream portfolio.

Should investors sell immediately? Or is it worth buying Aris Water Solutions?

Strategic Expansion in Water Management

This acquisition dramatically expands Western Midstream's capabilities in water handling, recycling, and disposal across the Texas and New Mexico portions of the Delaware Basin. The integrated platform allows the company to offer a more comprehensive suite of water management services to its energy sector customers.

A cornerstone for long-term business stability is the extension of an existing agreement with ConocoPhillips. This contract secures Western Midstream's infrastructure services in the Northern Delaware Basin through 2040, providing a predictable revenue stream for the next decade and a half.

Synergy Targets and Forward Guidance

Management anticipates the acquisition will be immediately accretive to free cash flow per unit in the current 2026 fiscal year. The company is targeting annual cost synergies of $40 million, expected to be realized primarily through operational optimizations and the consolidation of the two networks. This positions Western Midstream as a more formidable, integrated infrastructure partner in the U.S. energy landscape.