Aris Water Solutions Inc Stock Price, News & Analysis

Western Midstream Partners (NYSE: WES) has announced the acquisition of Aris Water Solutions (NYSE: ARIS) in a strategic equity-and-cash transaction valued at approximately $1.5 billion. Under the agreement, Aris shareholders will receive 0.625 WES common units per share or $25.00 in cash, with a maximum cash consideration of $415 million.

The transaction, expected to close in Q4 2025, creates a premier Delaware Basin produced-water system with approximately 1,620 miles of pipeline and 3,835 MBbls/d of disposal capacity. The merger combines Aris's 790-mile infrastructure and 1,800 MBbls/d handling capacity with WES's existing 830-mile network and 2,035 MBbls/d capacity.

The deal targets $40 million in annual cost synergies and is expected to be accretive to WES's 2026 Free Cash Flow per unit, representing an approximate 7.5x multiple on consensus 2026 EBITDA including synergies.

[ "Transaction valued at $1.5B represents a 23% premium to Aris's closing price", "Expected to be accretive to 2026 Free Cash Flow per unit", "$40 million in targeted annual cost synergies", "Significant expansion into New Mexico market with complementary infrastructure", "Long-term contracts with investment grade counterparties", "Maintains healthy 3.0x pro forma net leverage", "Creates fully integrated produced-water value chain" ]

Western Midstream (NYSE:WES) reported strong Q2 2025 results with record Adjusted EBITDA of $617.9 million and Net income of $333.8 million. The company announced two major strategic moves: the acquisition of Aris Water Solutions for $2.0 billion and the sanctioning of a new 300 MMcf/d cryogenic processing train at North Loving plant.

Q2 operational highlights include record Delaware Basin throughput across all products: natural gas (2.1 Bcf/d), crude oil/NGLs (269 MBbls/d), and produced water (1,242 MBbls/d). The company maintained its quarterly distribution of $0.910 per unit and reaffirmed its 2025 guidance with Adjusted EBITDA of $2.350-2.550 billion.

The Aris acquisition is expected to be accretive to 2026 Free Cash Flow per unit, targeting $40 million in annual cost synergies while maintaining a pro forma net leverage of approximately 3.0x.

Western Midstream Partners (NYSE:WES) has announced the acquisition of Aris Water Solutions (NYSE:ARIS) in a transaction valued at approximately $2.0 billion. The equity-and-cash deal offers ARIS shareholders 0.625 WES common units or $25.00 per share in cash, with a maximum cash consideration of $415 million.

The strategic combination creates a premier Delaware Basin produced-water system, with Aris contributing 790 miles of pipeline, 1,800 MBbls/d of handling capacity, and 1,400 MBbls/d of recycling capacity. The merger significantly expands WES's New Mexico footprint and is expected to generate $40 million in annual cost synergies.

The transaction, expected to close in Q4 2025, is projected to be accretive to 2026 Free Cash Flow per unit and represents a 7.5x multiple on consensus 2026 EBITDA. Post-closing, Aris shareholders will own approximately 7% of WES's outstanding common units.

Aris Water Solutions (NYSE: ARIS) has announced a significant seven-year extension of its Water Gathering and Disposal Agreement with ConocoPhillips, extending the term from May 2033 to May 2040. The extension maintains existing terms while strengthening their operational partnership.

This strategic development extends Aris' acreage-weighted remaining term of produced water contracts from approximately 6 years to over 10 years. The company will continue providing comprehensive water infrastructure services, including recycled water supply and produced water handling in the Northern Delaware Basin.

Additionally, Aris expects to report Q2 2025 Adjusted EBITDA at the high end of its guidance range and has reaffirmed its full-year financial outlook, supported by strong activity levels from dedicated customers.

Aris Water Solutions (NYSE:ARIS) has scheduled its second quarter 2025 earnings conference call for August 12, 2025, at 8:00 a.m. Central Time. The company will release its Q2 2025 financial results after market close on August 11, 2025.

Investors can participate by calling (800) 274-8461 with reference code ARISQ225, or listen to the live webcast through the Investor Relations section of ariswater.com. An audio replay will be available for approximately fourteen days following the call.

Aris Water Solutions (NYSE: ARIS) reported strong Q1 2025 financial results with record volumes in both Produced Water Handling and Water Solutions. The company achieved net income of $16.0 million and Adjusted EBITDA of $56.5 million, up 4% sequentially and 6% year-over-year. Key operational highlights include a 7% sequential increase in Produced Water Handling volumes and 41% year-over-year growth in recycled water volumes. The company strengthened its financial profile through a successful senior notes refinancing, leading to a Moody's credit rating upgrade to "B1". With a leverage ratio of 2.2X and strong liquidity position, Aris declared a Q2 2025 dividend of $0.14 per share. For Q2 2025, the company expects Adjusted EBITDA between $50-55 million, while maintaining its full-year 2025 outlook despite monitoring potential volatility from macroeconomic factors and lower oil prices.

Aris Water Solutions (NYSE: ARIS) has scheduled its first quarter 2025 earnings conference call for Wednesday, May 7, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). The company will release its Q1 2025 earnings report after market close on May 6, 2025.

Investors can participate by calling (877) 407-5792 or accessing the live webcast through the Investor Relations section of the company's website at www.ariswater.com. An audio replay will be available for approximately fourteen days after the call, accessible by dialing (877) 660-6853 within the US or (201) 612-7415 internationally, using replay access code 13753162.

Aris Water Solutions (NYSE: ARIS) has announced the pricing of an upsized $500 million offering of 7.250% Senior Notes due 2030, increased from the original $400 million offering. The Notes, to be issued at par with maturity on April 1, 2030, will be fully guaranteed by the Issuer's existing subsidiaries on a senior unsecured basis.

The offering is expected to close on March 25, 2025. The company plans to use the proceeds to redeem all outstanding 7.625% Senior Notes due 2026, repay outstanding borrowings under the Issuer's credit facility, and for general corporate purposes.

Aris Water Solutions is an environmental infrastructure company providing full-cycle water handling and recycling solutions in the Permian Basin, helping customers reduce their water and carbon footprints through integrated pipeline infrastructure and comprehensive produced water management services.

Aris Water Solutions (NYSE: ARIS) has announced plans to offer $400 million in Senior Notes due 2030 through its subsidiary Aris Water Holdings, The company intends to use the proceeds, along with cash on hand, to redeem all outstanding 7.625% Senior Notes due 2026.

The new Notes will be guaranteed on a senior unsecured basis by all existing subsidiaries. The redemption of the 2026 Notes is scheduled for April 1, 2025, contingent upon completing an offering of at least $400 million in senior debt securities. The Notes will be offered exclusively to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.