Western Midstream to acquire Brazos Delaware II in $1.6bn deal

Western Midstream Partners (WES) has agreed to get each outstanding equity interests successful Brazos Delaware II, a midstream relation successful the US Permian Basin, for astir $1.6bn.

The transaction involves a outgo of astir $800m successful currency and the issuance of astir $800m successful WES communal units.

WES, which is listed connected the New York Stock Exchange (NYSE), expects the woody to adjacent precocious successful the 2nd 4th of 2026 (Q2 2026). Completion of the woody is taxable to modular closing requirements and indispensable regulatory approvals.

Brazos operates crossed Culberson, Loving, Pecos, Reeves, Ward and Winkler counties successful the Texas Delaware Basin.

Its assets see astir 900 miles of pipelines and 460 cardinal cubic feet per time (mcf/d) of natural-gas processing capableness astatine the Comanche complex.

The institution managed an mean of 336mcf/d of earthy state and 25,000 barrels per time (bpd) of crude lipid passim 2025.

Its acreage includes astir 470,000 acres nether semipermanent agreements with a weighted mean remaining declaration word exceeding 9 years.

Brazos’ lawsuit basal comprises investment-grade and backstage equity-backed producers focused connected the Permian Basin.

WES president and CEO Oscar Brown said: "We are precise pleased to denote the acquisition of Brazos – a highly complementary and strategically compelling bolt-on summation to our existing Delaware Basin platform.

“The Brazos acquisition is successful enactment with WES' M&A [mergers and acquisitions] doctrine of making accretive, strategical acquisitions that heighten the worth of WES' existing plus base, supply a divers acceptable of high-quality customers and make beardown escaped currency flow, each portion protecting our investment-grade recognition ratings.

“More than 60% of WES' 2026 adjusted EBITDA [earnings earlier interest, taxes, depreciation and amortisation] is expected to beryllium generated from the Delaware Basin, and that proportionality volition lone turn arsenic the Brazos transaction is closed and integrated, and our integrated maturation projects, including the Pathfinder Pipeline and North Loving II, travel online successful the archetypal and 2nd quarters of 2027, respectively."

The proximity of astir each drilling locations connected committed Brazos acreage to low-pressure infrastructure is noted arsenic limiting aboriginal maturation superior requirements.

Financial proposal to WES was provided by Greenhill, a Mizuho affiliate, with Troutman Pepper Locke acting arsenic ineligible adviser. Jefferies advised Brazos, portion Vinson & Elkins served arsenic its ineligible counsel.

In precocious 2025, WES acquired each outstanding shares of Aris Water Solutions successful a transaction valued astatine astir $1.5bn.