Western Midstream Partners announced it entered into a definitive agreement to acquire all outstanding equity interests of Brazos Delaware II in a transaction valued at approximately $1.6 billion.
Under the terms of the agreement, Western Midstream will pay approximately $800 million in cash and issue approximately $800 million in Western Midstream common units at closing. The transaction is expected to close late in the second quarter of 2026, subject to customary closing conditions and regulatory approvals.
Western Midstream said the acquisition expands its natural gas, crude oil, and natural gas liquids gathering and processing footprint across the Delaware Basin. The transaction adds approximately 470,000 dedicated acres and 460 million cubic feet per day of natural gas processing capacity, increasing the company’s total Delaware Basin dedicated acreage by approximately 49% to more than 1.4 million acres and processing capacity by approximately 20% to approximately 2.75 billion cubic feet per day.
Brazos operates approximately 900 miles of pipeline infrastructure and the Comanche processing complex in Texas’ Delaware Basin. The company’s assets are supported by long-term fixed-fee contracts with a weighted average remaining contract life exceeding nine years.
Western Midstream said the purchase price represents an estimated 8.0x multiple on projected 2027 EBITDA, declining to approximately 7.5x when accounting for expected commercialization of available processing capacity and identified synergies. The company expects the transaction to be immediately accretive to estimated 2026 distributable cash flow per unit.
The company added that the acquisition will diversify its customer base through long-term contracts with investment-grade counterparties while supporting future throughput growth in the Delaware Basin. Western Midstream expects to maintain pro forma net leverage of approximately 3.0x throughout 2026.
Western Midstream noted that the combination of Brazos and its existing Delaware Basin infrastructure creates a more integrated network positioned to compete for additional business opportunities and improve operational efficiencies.
KEY QUOTES:
“We are very pleased to announce the acquisition of Brazos – a highly complementary and strategically compelling bolt-on addition to our existing Delaware Basin platform. The Brazos acquisition is in line with WES’s M&A philosophy of making accretive, strategic acquisitions that enhance the value of WES’s existing asset base, provide a diverse set of high-quality customers, and generate strong Free Cash Flow, all while protecting our investment grade credit ratings. More than 60-percent of WES’s 2026 Adjusted EBITDA is expected to be generated from the Delaware Basin, and that proportion will only grow as the Brazos transaction is closed and integrated, and our organic growth projects, including the Pathfinder Pipeline and North Loving II, come online in the first and second quarters of 2027, respectively.”
Oscar K. Brown, President And Chief Executive Officer, Western Midstream Partners
“Now that the Aris integration is complete, the combination of the Brazos and WES systems creates an even more integrated Delaware Basin network that is better positioned to compete for new business, provide enhanced flow assurance for our customers, and deliver incremental operational efficiencies across a broader footprint. With approximately 3,500 identified drilling locations at $65 per barrel, WES has line of sight to decades of new throughput. The addition of the Comanche processing complex also further strengthens our position as one of the largest natural-gas processors in the basin and provides meaningful capacity to support anticipated throughput growth from the Woodford and other high-return formations on the dedicated acreage.”
Oscar K. Brown, President And Chief Executive Officer, Western Midstream Partners
