Western Midstream to acquire Aris Water Solutions in $2 billion deal

HOUSTON - Western Midstream Partners, LP (NYSE:WES) announced Wednesday it will acquire Aris Water Solutions, Inc. (NYSE:ARIS) in an equity-and-cash transaction valued at approximately $1.5 billion, with a total enterprise value of about $2 billion before transaction costs. According to InvestingPro data, Aris enters this deal with a strong financial foundation, maintaining a healthy current ratio of 1.87 and demonstrating solid profitability with a gross margin of nearly 59%.

Under the agreement, Aris shareholders will receive 0.625 common units of WES for each Aris share, with the option to elect $25.00 per share in cash, subject to a maximum total cash consideration of $415 million. Based on WES’s closing price on August 5, the transaction represents a 23-percent premium to Aris’s closing price on the same day. InvestingPro analysis shows Aris has been generating steady revenue growth of 12% over the last twelve months, with analysts projecting continued profitability for the year ahead.

The acquisition combines two significant water infrastructure operators in the Delaware Basin. Aris’s assets include approximately 790 miles of produced-water pipeline, 1,800 MBbls/d of produced-water handling capacity, and 1,400 MBbls/d of water recycling capacity. These complement WES’s existing produced-water business that includes approximately 830 miles of pipeline and disposal capacity of 2,035 MBbls/d.

The merger significantly expands WES’s footprint into Lea and Eddy Counties, New Mexico, and provides access to Aris’s McNeill Ranch, which offers potential for additional disposal capacity and surface use opportunities.

"The combination of our assets creates a leading produced-water gathering, disposal, and recycling business that can meet the flow assurance needs of customers as they execute on their decades’ worth of drilling inventory," said Oscar Brown, President and CEO of WES.

The transaction, which was unanimously approved by the boards of both companies, is expected to close in the fourth quarter of 2025, subject to regulatory approvals and Aris shareholder approval. For investors seeking deeper insights into water infrastructure companies and similar opportunities, InvestingPro offers comprehensive research reports covering over 1,400 US stocks, including detailed financial health assessments and expert analysis.

WES expects to issue approximately 26.6 million common units and pay about $415 million in cash, resulting in a total consideration mix of approximately 72-percent equity and 28-percent cash. Upon closing, Aris shareholders are expected to own approximately 7-percent of WES’s outstanding common units.

The information in this article is based on a press release statement from the companies.

In other recent news, Aris Water Solutions, Inc. has extended its Water Gathering and Disposal Agreement with ConocoPhillips to 2040, ensuring the continuation of full-cycle water infrastructure services in the Northern Delaware Basin. Meanwhile, JPMorgan has assumed coverage of Aris Water Solutions with a Neutral rating, setting a price target of $25.00 for December 2026. This follows a previous Neutral rating with a higher target of $31.00 for December 2025. Additionally, Goldman Sachs reiterated its Buy rating on Aris Water Solutions, adjusting its price target to $28.00 from $30.00, while forecasting second-quarter 2025 EBITDA of $54 million. This projection is slightly below their prior estimate but remains in the upper half of the company’s guidance range.

In separate developments, Aris Mining Corporation has agreed to sell its Juby Gold Project in Ontario, Canada, to McFarlane Lake Mining Limited for $22 million. The transaction includes a 100% interest in the Juby Gold Project and a 25% joint venture stake in the adjacent Knight property. Aris Mining also reported a 13% increase in gold production for the first half of 2025, totaling 113,415 ounces. The company remains on track to meet its full-year production guidance, with expectations of increased output in the second half of the year.

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