Western Midstream's Strategic Acquisition of Aris Water Solutions
Western Midstream Acquisition of Aris Water Solutions
Today marks a significant milestone for Western Midstream Partners, LP (NYSE: WES) as it completes its acquisition of Aris Water Solutions, Inc. This strategic acquisition reinforces WES's standing as a leading player in the midstream industry, particularly in the Delaware Basin area.
CEO's Remarks on Growth and Integration
Oscar K. Brown, President and CEO of WES, expressed enthusiasm about the merger, noting the potential benefits for both companies. He stated, "This acquisition solidifies our position among the top flow-assurance providers in the region. We eagerly welcome Aris employees to the WES family and anticipate leveraging our strengths to enhance water solutions in Texas and New Mexico. Together, we are committed to tackling the challenges our clients face in produced-water handling—gathering, recycling, transportation, disposal, and beneficial reuse."?
Details of the Merger Consideration
The acquisition came with a detailed structure for the share exchange. Each holder of Aris's Class A common stock and associated Aris OpCo Units can choose from various options. They can opt for 0.625 common units, a cash payment of $25, or a combination of both. The merger agreement was meticulously designed to facilitate a smooth transaction while ensuring fair value for all stakeholders.
According to the election results, a total of 14,385,652 shares chose the common unit consideration, while another 33,801,151 shares selected the cash alternative, leading to a distribution where about 28% of the merger's consideration will be cash and 72% in common units. This transaction is expected to see Aris securityholders receive approximately $415 million in cash and about 26.6 million common units as part of the deal.
About Western Midstream Partners
Western Midstream Partners, LP is structured as a master limited partnership focused on developing, acquiring, and managing midstream assets. The company operates across several states, including Texas and New Mexico, providing vital services such as gathering, processing, and transporting natural gas and crude oil. Its operational framework is designed to mitigate exposure to commodity price fluctuations, primarily through fee-based arrangements.
By leveraging its extensive infrastructure, WES not only contributes to energy efficiency but also showcases a commitment to sustainable practices, especially in water management. This position becomes even more significant as demand for efficient water solutions rises amidst growing environmental concerns.
Company Contacts and Information
For those interested in learning more about Western Midstream Partners, the company provides ample resources and information through its website. While specific emails are included for investor relations questions, callers can reach the company at their dedicated line for inquiries about the acquisition and future operations.
Frequently Asked Questions
What does the acquisition mean for WES?
The acquisition strengthens WES's position in the midstream sector and expands its service capabilities in water solutions.
What are the primary benefits of this merger?
It allows WES to provide enhanced integrated water solutions and improve efficiency in operations relevant to produced water.
How will shareholders of Aris Benefit?
Aris shareholders can exchange their shares for common units or cash, providing them with liquidity options while also giving them an ownership stake in WES.
What is the strategic vision after the acquisition?
The goal is to integrate and enhance operations, ensuring that both companies work efficiently to provide top-tier services to clients.
Where can I find more information about WES?
Additional details about the company and its operations can be found on the official Western Midstream website.
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