#United States #Houston #Delaware Basin #Western Midstream #Aris Water Solutions

Western Midstream Partners Completes Acquisition of Aris Water Solutions

HOUSTON, Oct. 15, 2025 – In a significant move to strengthen its position in the oil and gas sector, Western Midstream Partners, LP (NYSE: WES) has officially completed its acquisition of Aris Water Solutions, Inc. (NASDAQ: ARIS). This milestone announcement was made by Oscar K. Brown, President and CEO of WES, who expressed enthusiasm for the case ahead.

Brown stated, "We are pleased to announce the completion of WES's acquisition of Aris Water Solutions, solidifying our position as one of the largest three-stream midstream, flow-assurance providers in the Delaware Basin." The acquisition is expected to create synergies between the two companies, enabling them to offer comprehensive services in water management to oil and gas producers in Texas and New Mexico.

With this acquisition, WES welcomes Aris employees into its fold, aiming to foster a collaborative environment that enhances operational efficiency. The integrated entity is set to address the rising demands of the market, particularly in produced-water gathering, recycling, transportation, disposal, and beneficial reuse.

Details of the Merger

As per the merger agreement, shareholders of Aris are presented with multiple options for consideration. They can choose from:

1. Common Unit Election Consideration: 0.625 common units representing limited partner interests in WES.
2. Cash Election Consideration: A cash payment of $25.00, subject to proration.
3. Mixed Election Consideration: A combination of 0.450 Common Units and a cash payment of $7.00.

Following the elections, it has been reported that:

• - Approximately 14.4 million shares opted for common units,
• - Around 33.8 million shares chose cash, with adjustments leading to an approximate receipt of $10.00 in cash and 0.375 Common Units per share,
• - About 11 million shares selected the mixed option.

In total, Aris securityholders will receive approximately 28% of the merger consideration in cash and 72% in common units, equating to a cash payout of $415 million and around 26.6 million common units issued.

Implications for the Industry

Western Midstream, based in Houston, is known for its expansive midstream assets across several states, including Texas, New Mexico, Colorado, Utah, and Wyoming. Their operations span a wide array of services including gathering, compressing, treating, and transporting natural gas, as well as effectively handling the produced water required in the extraction processes.

This acquisition positions WES to deftly navigate market challenges by leveraging Aris’s expertise in water solutions. The leaders within WES are optimistic about the future, aiming to emerge as the leading integrated provider of water solutions in the region.

The financial framework of this acquisition showcases WES's strategy for growth while minimizing exposure to commodity price volatility through fee-based contracts, which is crucial in the fluctuating energy market.

Conclusion

WES's acquisition of Aris Water Solutions marks a strategic advancement within the midstream sector, setting the stage for a more resilient operational framework in the challenging landscape of natural resources management. As the entities combine their resources and expertise, industry stakeholders are keenly observing how this partnership will reshape the future of water solutions for oil and gas production in the Delaware Basin.

For more information about Western Midstream, please visit www.westernmidstream.com.