Western Midstream Partners, LP (WES) and Aris Water Solutions, Inc. announced a definitive agreement for WES to acquire all outstanding shares of Aris in an equity-and-cash transaction valued at approximately $1.5 billion. Aris shareholders will receive 0.625 common units of WES or $25.00 per share in cash, subject to proration, with a maximum total cash consideration of $415 million. This represents a 23% premium to Aris's closing price on August 5, 2025.
The total enterprise value of the transaction is approximately $2.0 billion before transaction costs. The merger, unanimously approved by both Boards of Directors, is expected to close in the fourth quarter of 2025, pending customary closing conditions, regulatory approvals, and Aris shareholder approval. Aris shareholders are expected to own approximately 7% of WES's outstanding common units upon closing.
This transformative merger aims to create a differentiated and fully integrated produced-water system and value chain in the Delaware Basin. The integration of Aris's extensive water infrastructure assets, including 790 miles of pipeline and significant handling and recycling capacities, will expand WES's footprint into New Mexico and accelerate the development of beneficial reuse and desalination technologies.
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