AcquisitionsMay 6, 2026, 04:21 PM
Western Midstream to Acquire Brazos for $1.6B; Q1 Adj. EBITDA $683.1M
AI Summary
Western Midstream Partners, LP announced the acquisition of Brazos Delaware II, LLC for approximately $1.6 billion, comprising $800 million in cash and $800 million in WES common units. This strategic move expands its Delaware Basin footprint, adding 470,000 dedicated acres and 460 MMcf/d natural-gas processing capacity. The company also reported strong first-quarter 2026 results, with record Adjusted EBITDA of $683.1 million, a 15% increase year-over-year, and a 2.2% sequential increase in its quarterly distribution to $0.930 per unit. WES expects to be at the high end of its 2026 Adjusted EBITDA and Distributable Cash Flow guidance ranges, excluding the Brazos transaction.
Key Highlights
- Western Midstream to acquire Brazos Delaware II for approximately $1.6 billion ($800M cash, $800M equity).
- Brazos acquisition adds 470,000 dedicated acres and 460 MMcf/d natural-gas processing capacity.
- Reported record Q1 2026 Adjusted EBITDA of $683.1 million, a 15% increase YoY.
- Net income attributable to limited partners was $342.4 million ($0.85 per diluted unit).
- Declared Q1 distribution of $0.930 per unit, up 2.2% sequentially.
- Expects 2026 Adjusted EBITDA and Distributable Cash Flow at high-end of guidance.
- Achieved record Delaware Basin crude-oil and NGLs throughput of 272 MBbls/d.
- Reduced operation and maintenance expense by 7% YoY (excluding Aris acquisition).