Western Midstream Closes $1.6 Billion Acquisition of Brazos
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 11 2026
0mins
Source: PRnewswire
- Acquisition Completed: Western Midstream Partners has successfully closed the acquisition of Brazos Delaware II for approximately $1.6 billion, consisting of about $800 million in cash and $800 million in common units, thereby enhancing its gathering and processing capabilities in the Delaware Basin.
- Unit Issuance Details: In this transaction, WES issued approximately 19.4 million units based on the volume-weighted average price at the time of the acquisition agreement, ensuring effective capital deployment and supporting sustainable distribution growth.
- Financial Stability: The acquisition aligns with WES's financial strategy aimed at enhancing per-unit metrics, protecting the Partnership's balance sheet and investment-grade credit ratings, thereby bolstering market confidence.
- Customer Base Diversification: This acquisition not only expands WES's customer base but also diversifies its operations, further solidifying its market position in the midstream asset sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy WES?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on WES
Wall Street analysts forecast WES stock price to fall
4 Analyst Rating
0 Buy
4 Hold
0 Sell
Hold
Current: 43.680
Low
39.00
Averages
40.50
High
42.00
Current: 43.680
Low
39.00
Averages
40.50
High
42.00
About WES
Western Midstream Partners, LP acquires, owns, develops and operates midstream assets. It is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas, gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil, and gathering and disposing of produced water. Its core assets provide services for customers in the Delaware Basin in West Texas and New Mexico, and the DJ Basin in northeastern Colorado, and the Powder River Basin in Northeast Wyoming. Additional assets and investments are in South Texas, Utah, and Southwest Wyoming. In its capacity as a natural gas processor, the Company also buys and sells natural gas, NGLs, and condensate on its behalf and its customers under certain gas processing contracts. Its subsidiaries include Western Midstream Operating GP, LLC, Western Midstream Services, LLC, Western Midstream Services Holdings, LLC, Western Midstream Operating, LP, and Aris Water Solutions, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Western Midstream Launches Second Water Treatment Facility
- Facility Launch: Western Midstream, alongside its partners, has launched its second produced-water treatment pilot facility in Texas, designed to handle 2,000 barrels per day and produce 1,000 barrels of reclaimed freshwater, which is ten times the output of the first facility, marking a significant advancement in water resource management.
- Technology Validation: The JIP 2 facility will serve as a demonstration site to continue optimizing operations and validating consistent reclaimed freshwater production, with insights gathered guiding the next phase of commercial-scale desalination facilities, pushing the industry towards sustainability.
- Industry Impact: By managing approximately 3 million barrels of produced water daily, Western Midstream not only alleviates water resource pressures in Texas but also provides a viable alternative water source for industrial cooling and irrigation, showcasing its leadership in water resource management.
- Strategic Vision: CEO Oscar K. Brown stated that the launch of JIP 2 marks a pivotal milestone in transforming produced water into a valuable resource, demonstrating the company's commitment to addressing water scarcity challenges through a multi-barrier treatment approach, further solidifying its market position in the Permian Basin.
See More
Western Midstream Launches New Water Treatment Facility
- Facility Launch: Western Midstream, alongside its partners, has launched its second produced-water treatment pilot facility in Texas, designed to produce approximately 1,000 barrels of reclaimed freshwater per day, which is ten times the output of the first pilot, significantly enhancing water security in the region.
- Technology Validation: The new facility will continue to optimize operations while validating the production of reclaimed freshwater suitable for various applications, including industrial cooling and irrigation, promoting sustainable water use in Texas.
- Data-Driven Decisions: The first pilot project collected over 50,000 water quality data points, ensuring the effectiveness of the treatment process and providing crucial guidance for subsequent commercial-scale desalination facilities.
- Industry Impact: Currently, Western Midstream handles approximately 3.0 million barrels of produced water daily, and the new treatment facility not only reduces industry disposal volumes but also offers a potential alternative water source for surrounding communities, addressing water challenges in the Permian Basin.
See More
Western Midstream Closes $1.6 Billion Acquisition of Brazos
- Acquisition Completed: Western Midstream Partners has successfully closed the acquisition of Brazos Delaware II for approximately $1.6 billion, consisting of about $800 million in cash and $800 million in common units, thereby enhancing its gathering and processing capabilities in the Delaware Basin.
- Unit Issuance Details: In this transaction, WES issued approximately 19.4 million units based on the volume-weighted average price at the time of the acquisition agreement, ensuring effective capital deployment and supporting sustainable distribution growth.
- Financial Stability: The acquisition aligns with WES's financial strategy aimed at enhancing per-unit metrics, protecting the Partnership's balance sheet and investment-grade credit ratings, thereby bolstering market confidence.
- Customer Base Diversification: This acquisition not only expands WES's customer base but also diversifies its operations, further solidifying its market position in the midstream asset sector.
See More
Lazard Hires Brian McCabe to Lead North America Energy Banking
- Executive Change: Lazard is set to hire Brian McCabe from JPMorgan Chase to lead its North America energy investment banking practice, with his official start expected in the coming months, indicating the firm's strategic focus on the energy sector.
- Industry Expertise: McCabe, a veteran oil and gas dealmaker specializing in mergers and acquisitions involving pipeline and midstream companies, brings extensive experience from his senior role at JPMorgan, which is anticipated to create new growth opportunities for Lazard.
- Market Demand: With a surge in demand for energy infrastructure, particularly to support artificial intelligence, Lazard aims to enhance its competitive position in the rapidly evolving energy market through this executive recruitment.
- Strategic Expansion: This personnel move aligns with Lazard's recent hiring of former Western Midstream Partners CEO Michael Ure as a senior adviser to its energy division, reflecting the company's ongoing investment and expansion intentions in the energy sector.
See More
Top High-Yield MLP Stocks to Buy Now
- Energy Transition Potential: Energy Transfer (ET) currently offers a 6.9% dividend yield with plans to grow distributions by 3% to 5% in the coming years, and its 8.5x enterprise value to EBITDA ratio highlights its attractiveness and growth potential in the energy sector.
- Consistent Dividend Growth: Enterprise Products Partners (EPD) has increased its dividend for 27 consecutive years, currently yielding 5.8% and achieving a 2.8% increase in the first quarter, showcasing its resilience and appeal in uncertain markets.
- High Yield Appeal: Western Midstream Partners (WES) leads with an 8.5% dividend yield, and its strong first-quarter results indicate adjusted EBITDA will approach the high end of $2.6 billion to $2.7 billion guidance, reflecting its growth potential in the market.
- Acquisition Strengthens Position: Western Midstream's recent $1.6 billion acquisition of Brazos in the Permian region is expected to add $200 million in EBITDA by 2027, further solidifying its market position and enhancing future growth prospects.
See More
Western Midstream Partners Reports Record Q1 2026 Earnings Driven by Acquisitions and Cost Reductions
- Record Performance: Western Midstream reported an adjusted EBITDA of $683 million for Q1 2026, a 15% year-over-year increase, driven by the full contribution from the Aris acquisition, throughput growth across all product lines, and ongoing cost reductions, highlighting the company's robust market position.
- Gas and Oil Production Growth: Despite WAHA-driven constraints, natural gas throughput increased by 3%, while crude oil and NGL throughput reached a record 272,000 barrels per day, indicating strong momentum and sustained market demand in the Delaware Basin.
- Strategic Acquisition Plans: The company announced the $1.6 billion acquisition of Brazos Delaware II, adding approximately 470,000 dedicated acres, which increases total dedicated acreage in the Delaware Basin by nearly 50%, while also enhancing natural gas processing capacity by 460 million cubic feet per day, further strengthening its competitive edge.
- Distribution Policy and Future Outlook: The first-quarter distribution was $0.93 per unit, up 2.2% sequentially, with expectations for annual distributions to reach at least $3.70, demonstrating a commitment to aligning distribution strategy with EBITDA growth while maintaining capital discipline for long-term financial health.
See More
Western Midstream Launches Second Water Treatment Facility
- Facility Launch: Western Midstream, alongside its partners, has launched its second produced-water treatment pilot facility in Texas, designed to handle 2,000 barrels per day and produce 1,000 barrels of reclaimed freshwater, which is ten times the output of the first facility, marking a significant advancement in water resource management.
- Technology Validation: The JIP 2 facility will serve as a demonstration site to continue optimizing operations and validating consistent reclaimed freshwater production, with insights gathered guiding the next phase of commercial-scale desalination facilities, pushing the industry towards sustainability.
- Industry Impact: By managing approximately 3 million barrels of produced water daily, Western Midstream not only alleviates water resource pressures in Texas but also provides a viable alternative water source for industrial cooling and irrigation, showcasing its leadership in water resource management.
- Strategic Vision: CEO Oscar K. Brown stated that the launch of JIP 2 marks a pivotal milestone in transforming produced water into a valuable resource, demonstrating the company's commitment to addressing water scarcity challenges through a multi-barrier treatment approach, further solidifying its market position in the Permian Basin.
See More
Western Midstream Launches New Water Treatment Facility
- Facility Launch: Western Midstream, alongside its partners, has launched its second produced-water treatment pilot facility in Texas, designed to produce approximately 1,000 barrels of reclaimed freshwater per day, which is ten times the output of the first pilot, significantly enhancing water security in the region.
- Technology Validation: The new facility will continue to optimize operations while validating the production of reclaimed freshwater suitable for various applications, including industrial cooling and irrigation, promoting sustainable water use in Texas.
- Data-Driven Decisions: The first pilot project collected over 50,000 water quality data points, ensuring the effectiveness of the treatment process and providing crucial guidance for subsequent commercial-scale desalination facilities.
- Industry Impact: Currently, Western Midstream handles approximately 3.0 million barrels of produced water daily, and the new treatment facility not only reduces industry disposal volumes but also offers a potential alternative water source for surrounding communities, addressing water challenges in the Permian Basin.
See More
Western Midstream Closes $1.6 Billion Acquisition of Brazos
- Acquisition Completed: Western Midstream Partners has successfully closed the acquisition of Brazos Delaware II for approximately $1.6 billion, consisting of about $800 million in cash and $800 million in common units, thereby enhancing its gathering and processing capabilities in the Delaware Basin.
- Unit Issuance Details: In this transaction, WES issued approximately 19.4 million units based on the volume-weighted average price at the time of the acquisition agreement, ensuring effective capital deployment and supporting sustainable distribution growth.
- Financial Stability: The acquisition aligns with WES's financial strategy aimed at enhancing per-unit metrics, protecting the Partnership's balance sheet and investment-grade credit ratings, thereby bolstering market confidence.
- Customer Base Diversification: This acquisition not only expands WES's customer base but also diversifies its operations, further solidifying its market position in the midstream asset sector.
See More
Lazard Hires Brian McCabe to Lead North America Energy Banking
- Executive Change: Lazard is set to hire Brian McCabe from JPMorgan Chase to lead its North America energy investment banking practice, with his official start expected in the coming months, indicating the firm's strategic focus on the energy sector.
- Industry Expertise: McCabe, a veteran oil and gas dealmaker specializing in mergers and acquisitions involving pipeline and midstream companies, brings extensive experience from his senior role at JPMorgan, which is anticipated to create new growth opportunities for Lazard.
- Market Demand: With a surge in demand for energy infrastructure, particularly to support artificial intelligence, Lazard aims to enhance its competitive position in the rapidly evolving energy market through this executive recruitment.
- Strategic Expansion: This personnel move aligns with Lazard's recent hiring of former Western Midstream Partners CEO Michael Ure as a senior adviser to its energy division, reflecting the company's ongoing investment and expansion intentions in the energy sector.
See More
Top High-Yield MLP Stocks to Buy Now
- Energy Transition Potential: Energy Transfer (ET) currently offers a 6.9% dividend yield with plans to grow distributions by 3% to 5% in the coming years, and its 8.5x enterprise value to EBITDA ratio highlights its attractiveness and growth potential in the energy sector.
- Consistent Dividend Growth: Enterprise Products Partners (EPD) has increased its dividend for 27 consecutive years, currently yielding 5.8% and achieving a 2.8% increase in the first quarter, showcasing its resilience and appeal in uncertain markets.
- High Yield Appeal: Western Midstream Partners (WES) leads with an 8.5% dividend yield, and its strong first-quarter results indicate adjusted EBITDA will approach the high end of $2.6 billion to $2.7 billion guidance, reflecting its growth potential in the market.
- Acquisition Strengthens Position: Western Midstream's recent $1.6 billion acquisition of Brazos in the Permian region is expected to add $200 million in EBITDA by 2027, further solidifying its market position and enhancing future growth prospects.
See More
Western Midstream Partners Reports Record Q1 2026 Earnings Driven by Acquisitions and Cost Reductions
- Record Performance: Western Midstream reported an adjusted EBITDA of $683 million for Q1 2026, a 15% year-over-year increase, driven by the full contribution from the Aris acquisition, throughput growth across all product lines, and ongoing cost reductions, highlighting the company's robust market position.
- Gas and Oil Production Growth: Despite WAHA-driven constraints, natural gas throughput increased by 3%, while crude oil and NGL throughput reached a record 272,000 barrels per day, indicating strong momentum and sustained market demand in the Delaware Basin.
- Strategic Acquisition Plans: The company announced the $1.6 billion acquisition of Brazos Delaware II, adding approximately 470,000 dedicated acres, which increases total dedicated acreage in the Delaware Basin by nearly 50%, while also enhancing natural gas processing capacity by 460 million cubic feet per day, further strengthening its competitive edge.
- Distribution Policy and Future Outlook: The first-quarter distribution was $0.93 per unit, up 2.2% sequentially, with expectations for annual distributions to reach at least $3.70, demonstrating a commitment to aligning distribution strategy with EBITDA growth while maintaining capital discipline for long-term financial health.
See More
