Western Midstream Partners (WES) entered into a new agreement with Iofina PLC to supply up to 50,000 barrels per day of produced water from the Delaware Basin to Iofina’s WET IOsorb plant. The water will be used to produce crystalline iodine, and WES will receive a royalty fee on the iodine output, creating a new, volume‑linked revenue stream for the midstream company.
The agreement doubles Iofina’s brine processing capacity to 50,000 barrels per day, a step‑change that will support the company’s goal of expanding iodine production. Iofina estimates the new plant will cost between $8 million and $9 million, and the partnership positions the company as the largest iodine producer in North America. Tom Becker, Iofina’s CEO, said the collaboration will accelerate the company’s growth strategy and help meet rising demand for iodine in healthcare and electronics.
For WES, the deal strengthens its produced‑water portfolio and reinforces its strategy of integrating water, gas, and oil services. The company already handles more than 2.7 million barrels per day of water in the Permian Basin, and the new agreement adds a fee‑based, downstream‑linked income source that improves cash‑flow predictability. Oscar K. Brown, WES’s CEO, described the partnership as a “critical step forward in sustainably addressing the challenges within the basin.”
WES reported Q3 2025 earnings that missed consensus estimates: earnings per share of $0.87 versus an expected $0.88, and revenue of $952.48 million versus a forecast of $962.47 million. The miss was driven by higher operating costs and a modest decline in the midstream segment, but the company’s adjusted EBITDA of $634 million and net income of $332 million remained strong, reflecting disciplined cost management and operational leverage.
Iofina posted record 2024 revenue of $54.5 million, up 9% from the previous year, driven by higher sales of iodine derivatives and increased production. The new plant will further boost the company’s capacity to meet growing demand, while the royalty arrangement with WES provides a stable revenue base that complements Iofina’s core operations.
The partnership underscores the growing importance of water reuse in the Permian Basin, where high water‑to‑oil ratios create significant produced‑water volumes. By converting a waste stream into a valuable input for iodine production, both companies enhance sustainability and create a competitive advantage in a market where iodine demand is rising across multiple sectors.
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