On 6 August 2025, Western Midstream Partners, a U.S. natural gas and liquids midstream operator, announced a US$2 billion acquisition of Aris Water Solutions, an integrated midstream water company. The transaction includes US$1.5 billion in equity and US$500 million in assumed debt, with Aris shareholders receiving US$25 per share in cash. Occidental Petroleum, which owns 43.5% of Western Midstream Partners, played a key role in the deal’s strategic rationale.
The acquisition marks another step in consolidating the water midstream sector in Texas’s Permian Basin. The combined platform will span more than 1,600 miles of produced water pipelines and offer over 3.8 million barrels per day of handling capacity. Water is fast becoming the critical enabler of unconventional oil and gas production. As operators face rising water-to-oil ratios, seismicity-related injection limits, and operational cost pressures, control over water systems is essential to ensure production uptime and long-term cost competitiveness. This transaction signals a recognition that water is no longer a byproduct; it is strategic infrastructure.
