Western Midstream Partners announced the completion of its previously announced acquisition of Brazos Delaware II for approximately $1.6 billion.
The transaction consideration consisted of roughly $800 million in cash and approximately $800 million in Western Midstream common units. As part of the deal, the company issued approximately 19.4 million common units based on the volume-weighted average unit price when the acquisition agreement was signed.
According to the company, the acquisition expands Western Midstream’s gathering and processing footprint in the Delaware Basin and is consistent with its strategy of deploying capital in ways that sustain or increase distributions to unitholders.
Western Midstream said the transaction was designed to be accretive to per-unit metrics while maintaining the partnership’s balance sheet strength and investment-grade credit ratings. The acquisition also broadens the company’s customer base and ownership profile.
Headquartered in Texas, Western Midstream Partners is a master limited partnership that owns and operates midstream infrastructure assets across Texas, New Mexico, Colorado, Utah, and Wyoming. The company provides services including natural gas gathering, compression, treatment, processing, and transportation, along with crude oil, condensate, natural gas liquids, and produced water gathering and handling services.
Western Midstream noted that a substantial majority of its cash flows are protected from direct commodity price exposure through fee-based contracts.
The addition of Brazos Delaware strengthens the partnership’s position in the Delaware Basin, one of the most active oil and gas producing regions in the United States.
