Western Midstream Buys Brazos Delaware in $1.6 Billion Permian Deal

Western Midstream is acquiring Brazos Delaware in a $1.6 billion deal that adds 900 miles of pipeline and expands its Delaware Basin gathering and processing footprint.

(P&GJ) — Western Midstream Partners has agreed to acquire Brazos Delaware II in a $1.6 billion transaction that significantly expands the company’s natural gas gathering, processing and crude infrastructure footprint across the Delaware Basin.

The deal includes approximately 900 miles of pipeline, 460 million cubic feet per day of natural gas processing capacity at the Comanche processing complex and roughly 470,000 dedicated acres across Reeves, Ward, Pecos, Winkler, Culberson and Loving counties in Texas.

Western Midstream said the acquisition will increase its Delaware Basin dedicated acreage position by about 49% to more than 1.4 million acres and boost total natural gas processing capacity in the basin by roughly 20% to approximately 2.75 billion cubic feet per day.

Under the agreement, Western Midstream will pay about $800 million in cash and issue roughly $800 million in common units. The transaction is expected to close late in the second quarter of 2026, pending regulatory approvals and customary closing conditions.

Brazos processed an average of 336 million cubic feet per day of natural gas and 25,000 barrels per day of crude oil during 2025, supported by long-term fixed-fee contracts with producers operating in the Permian Basin.

Western Midstream CEO Oscar Brown said the acquisition strengthens the company’s Delaware Basin position and complements its existing infrastructure network, including future expansion projects such as the Pathfinder Pipeline and North Loving II. The company expects more than 60% of its 2026 adjusted EBITDA to come from the Delaware Basin following the transaction.

The company said the acquisition is expected to immediately increase distributable cash flow per unit while maintaining leverage near targeted levels.