Description

Western Midstream’s $1.5 Billion Bet On Aris—What Wall Street Isn’t Telling You

Western Midstream Partners has recently signaled a major strategic shift by agreeing to acquire Aris Water Solutions in a cash-and-stock deal valued at approximately $1.5 billion. This announcement follows Western’s strong Q1 2025 performance—highlighted by the successful commissioning of the North Loving plant, net leverage below 3×, and roughly $2.4 billion of liquidity—underscoring its financial resilience amid market volatility. Under the proposed terms, Aris shareholders may opt for 0.625 WES common units per share or $25 in cash (capped at $415 million), representing a 23 percent premium to Aris’s closing price on August 5. Aris brings to the table nearly 790 miles of produced-water pipeline, 1.4 billion barrels/day recycling capacity, and 625,000 dedicated acres, complementing Western’s existing footprint of 830 miles of pipeline and 2.035 billion barrels/day disposal capacity. As Western deepens its presence in West Texas and the Delaware Basin, the proposed combination promises synergy at multiple levels—operational, contractual, and commercial—while building on Western’s disciplined capital allocation and contract structures that emphasize minimum volume commitments and cost-of-service protections.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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