Western Midstream to buy Brazos Delaware II disposal system for $1.6B
WES•Western Midstream will acquire the Brazos Delaware II disposal system in the Delaware Basin for $1.6 billion, expanding its midstream asset portfolio. The all-cash purchase, financed through cash reserves and new debt, is expected to be immediately accretive to EBITDA and boost distributable cash flow by increasing annual throughput capacity.
1. Deal Details
Western Midstream has agreed to acquire the Brazos Delaware II disposal system in the Delaware Basin for $1.6 billion, with the transaction expected to close by year-end 2026. The all-cash deal will be funded using a combination of existing liquidity and new debt facilities.
2. Asset Profile
The Brazos Delaware II system comprises disposal wells and associated pipelines servicing key Delaware Basin production zones. The infrastructure supports significant produced-water volumes, enhancing Western Midstream’s capacity to provide fee-based disposal services to regional producers.
3. Financial and Strategic Impact
The acquisition is anticipated to be immediately accretive to EBITDA and strengthen distributable cash flow by expanding throughput capacity. It aligns with Western Midstream’s strategy to grow its fee-based cash flows and deepen its midstream footprint in a high-growth shale basin.
