Western Midstream Partners, LP (WES) completed a $1.2 billion senior notes offering on December 1 2025, issuing two tranches: $600 million of 4.800% notes due 2031 priced at 99.993% of face value, and $600 million of 5.500% notes due 2035 priced at 99.405% of face value. The offering is expected to close on December 4 2025, subject to customary closing conditions.
The proceeds will refinance maturing 4.650% senior notes due 2026, repay outstanding amounts under the company’s commercial paper program—including cash used to fund the October 15 acquisition of Aris Water Solutions—and provide capital for general partnership purposes such as infrastructure expansion. By replacing shorter‑dated debt with longer‑dated notes, WES extends its debt maturity profile while maintaining an investment‑grade balance sheet and a leverage ratio in the low‑3x range for 2025 and 2026.
Although the new notes carry higher coupon rates than the maturing 4.650% notes, the extended maturities and the liquidity they provide are deemed to outweigh the incremental interest expense. The higher rates reflect current market conditions, but the issuance preserves WES’s BBB‑ issue‑level rating from S&P Global and supports the company’s capital‑intensive growth strategy. The financing also cushions the balance sheet against the cash outlay required for the Aris Water acquisition, which added approximately $1.5 billion in equity and $500 million in assumed debt to WES’s portfolio.
The Aris Water acquisition, completed on October 15, expands WES’s footprint in the Delaware Basin’s water midstream services and aligns with the company’s focus on diversified midstream infrastructure. Integrating the acquisition requires significant working capital, and the senior notes offering provides the necessary funding to smooth the transition while keeping leverage manageable. The combined effect of the new debt and the acquisition positions WES to pursue further expansion opportunities without compromising its credit profile.
With the closing scheduled for early December, the senior notes offering represents a strategic step for WES to secure long‑term financing, support recent growth initiatives, and maintain a robust balance sheet in a capital‑intensive industry.
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