Western Midstream Partners announced a definitive agreement to acquire all outstanding shares of Aris Water Solutions, Inc. in a cash-and-stock transaction valued at approximately $1.5 billion. The total enterprise value of the transaction is approximately $2.0 billion before transaction costs. Aris shareholders will receive 0.625 common units of WES for each Aris share, with an option to elect $25.00 per share in cash, subject to proration, with a maximum cash consideration of $415 million.
This strategic acquisition is expected to close in the fourth quarter of 2025, subject to customary closing conditions, regulatory approvals, and Aris shareholder approval. The transaction represents a 10-percent premium to Aris's 30-day volume-weighted average price and a 23-percent premium to its closing price on August 5, 2025. Aris's assets include approximately 790 miles of produced-water pipeline, 1,800 MBbls/d of produced-water handling capacity, and 1,400 MBbls/d of water recycling capacity, supported by long-term contracts.
The integration of Aris's assets will significantly extend WES's existing footprint into Lea and Eddy Counties, New Mexico, providing access to incremental throughput opportunities across its natural-gas, crude-oil, and produced-water businesses. The acquisition is expected to be accretive to 2026 Free Cash Flow per unit and targets approximately $40 million of annualized cost synergies. WES expects pro forma net leverage to remain at approximately 3.0x, demonstrating disciplined financing.
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