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

Western Midstream Partners (WES) has agreed to acquire all outstanding equity interests in Brazos Delaware II, a midstream operator in the US Permian Basin, for approximately $1.6bn.

The transaction involves a payment of roughly $800m in cash and the issuance of around $800m in WES common units.

WES, which is listed on the New York Stock Exchange (NYSE), expects the deal to close late in the second quarter of 2026 (Q2 2026). Completion of the deal is subject to standard closing requirements and necessary regulatory approvals.

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

Its assets include nearly 900 miles of pipelines and 460 million cubic feet per day (mcf/d) of natural-gas processing capacity at the Comanche complex.

The company managed an average of 336mcf/d of natural gas and 25,000 barrels per day (bpd) of crude oil throughout 2025.

Its acreage includes roughly 470,000 acres under long-term agreements with a weighted average remaining contract term exceeding nine years.

Brazos’ customer base comprises investment-grade and private equity-backed producers focused on the Permian Basin.

WES president and CEO Oscar Brown said: "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' M&A [mergers and acquisitions] philosophy of making accretive, strategic acquisitions that enhance the value of WES' 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% of WES' 2026 adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] 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."

The proximity of nearly all drilling locations on committed Brazos acreage to low-pressure infrastructure is noted as limiting future growth capital requirements.

Financial advice to WES was provided by Greenhill, a Mizuho affiliate, with Troutman Pepper Locke acting as legal adviser. Jefferies advised Brazos, while Vinson & Elkins served as its legal counsel.

In late 2025, WES acquired all outstanding shares of Aris Water Solutions in a transaction valued at approximately $1.5bn.

"Western Midstream to acquire Brazos Delaware II in $1.6bn deal" was originally created and published by Offshore Technology, a GlobalData owned brand.

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