Western Midstream Announces Start-up of Second Produced-Water Treatment Facility in the Permian Basin

Rhea-AI Summary

Western Midstream (NYSE: WES) and collaborators Chevron, ConocoPhillips, Devon, and ExxonMobil started up their second produced-water treatment pilot facility (JIP 2) near Red Bluff Reservoir in Reeves County, Texas.

JIP 2 can treat 2,000 barrels per day of produced water and generate about 1,000 barrels per day of reclaimed freshwater, roughly ten times JIP 1. The site will demonstrate and optimize multi-barrier treatment for industrial cooling, irrigation, and potential surface discharge, guiding future commercial-scale desalination projects and supporting long-term water security in West Texas.

Positive

• Second produced-water pilot to reclaim about 1,000 barrels freshwater per day
• Reclaimed freshwater output targeted at roughly 10x initial JIP 1 facility
• JIP 2 data planned to guide commercial-scale desalination facilities
• WES currently handles about 3.0 million barrels per day of produced water

Negative

• None.

News Market Reaction – WES

-0.16%

-0.16% Session close to close

In the Jun 17 session, WES declined 0.16%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights Western Midstream’s push to convert produced water into a reusable reso...

Analysis

This announcement highlights Western Midstream’s push to convert produced water into a reusable resource via its second pilot facility, designed for 2,000 barrels per day of produced water and 1,000 barrels per day of reclaimed freshwater. It builds on a 24‑month JIP 1 effort that gathered over 50,000 data points. In context of recent acquisitions and record results, a key watchpoint is how quickly these water technologies influence volumes, capital allocation, and longer-term project economics.

Key Figures

Reclaimed freshwater output: 1,000 barrels per day Produced water input: 2,000 barrels per day JIP 1 duration: 24 months +5 more

8 metrics

Reclaimed freshwater output 1,000 barrels per day JIP 2 produced-water treatment facility design capacity

Produced water input 2,000 barrels per day JIP 2 designed daily produced-water receipt

JIP 1 duration 24 months Initial West Texas pilot project period

Water quality data points 50,000+ Data collected during JIP 1

Produced water handled 3.0 million barrels per day WES current produced-water handling volume mentioned by CEO

Reclaimed freshwater multiple 10x JIP 1 JIP 2 reclaimed freshwater output vs JIP 1

Project collaboration count 5 companies WES plus Chevron, ConocoPhillips, Devon, ExxonMobil in JIP

Years of collaboration 2 years CEO reference to JIP progress period

Historical Context

5 past events · Latest: Jun 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 11	Acquisition closing	Positive	+1.4%	Closed ~$1.6B Brazos Delaware II acquisition with cash and equity mix.
May 11	Earnings follow-up	Positive	+1.1%	Post-earnings CEO interview and conference participation plans highlighted strategy.
May 06	Q1 2026 results	Positive	+5.0%	Record Q1 EBITDA, strong DCF and guidance toward high end of ranges.
May 06	Acquisition announcement	Positive	+5.0%	Announced ~$1.6B Brazos Delaware II deal adding acreage and processing.
Apr 20	Distribution, call	Positive	+0.4%	Raised quarterly distribution and scheduled Q1 2026 earnings call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent fundamentally positive announcements have generally coincided with modestly positive next-day price moves.

Recent Company History

Over recent months, Western Midstream has emphasized growth and cash generation. On Apr 20, it announced a higher quarterly distribution and set up its Q1 call. On May 6, it reported record Q1 2026 results and guided toward the high end of $2.50B–$2.70B Adjusted EBITDA, alongside a $1.6B Brazos Delaware acquisition, which was later detailed and then closed on Jun 11. Those events all saw modest positive price reactions, framing today’s operational water-treatment update within a broader expansion story.

Key Terms

produced-water, joint industry project (jip), desalination, flow-assurance

4 terms

produced-water technical

"transform a produced-water stream from a disposal challenge into a valuable resource"

Produced water is the salty, often chemically altered water that comes up from underground along with oil and gas during production. Like wastewater from a factory, it can carry hydrocarbons, salts and chemicals and therefore creates costs and environmental risks for operators; managing, treating or disposing of it affects operating expenses, regulatory compliance and potential liabilities, so investors watch it as a driver of cash flow and risk exposure.

joint industry project (jip) technical

"The produced-water treatment pilot facility is a Joint Industry Project (JIP)"

A joint industry project (JIP) is a collaborative research or development effort where multiple companies share funding, resources and data to tackle a common technical or regulatory challenge. For investors, JIPs matter because they spread cost and risk across participants, can speed innovation or compliance by pooling expertise, and may affect future revenue or competitive position depending on how results and intellectual property are shared—think of it like neighbors pooling money to build a shared tool everyone can use.

desalination technical

"guide the next phase of commercial-scale desalination facilities"

Desalination is the process of removing salt and other minerals from seawater or brackish water to produce fresh water people and businesses can use, similar to running salty water through a large, industrial filter or distillation system. It matters to investors because desalination plants are capital-intensive, often produce steady long-term revenue from water sales or contracts, and are sensitive to energy costs, regulation and environmental concerns—factors that affect profitability and risk.

flow-assurance technical

"using all of today's oil and gas flow-assurance solutions: water sourcing, recycling"

Flow-assurance is the set of practices and technologies used to keep oil, gas or other fluids moving smoothly through wells and pipelines, preventing blockages, corrosion or pressure problems—think of it as winterizing a long, industrial plumbing system to stop freezes and clogs. For investors, strong flow-assurance means steadier production, lower maintenance and safety risks, and more predictable revenue from an energy asset; failures can lead to costly shutdowns and lost output.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• The produced-water treatment pilot facility is a Joint Industry Project (JIP) between Western Midstream, Chevron, ConocoPhillips, Devon, and ExxonMobil.
• The facility is designed to produce approximately 1,000 barrels per day of reclaimed freshwater – ten times the amount of JIP 1.
• The facility's water output is expected to contribute to long-term water security in West Texas.

HOUSTON, June 17, 2026 /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership"), alongside its Joint Industry Project (JIP) collaborators Chevron U.S.A. Inc. ("Chevron"), ConocoPhillips Company ("ConocoPhillips"), Devon Energy Corporation ("Devon"), and Exxon Mobil Corporation ("ExxonMobil"), announced the start-up of its second produced-water treatment pilot facility ("JIP 2") near Red Bluff Reservoir in Reeves County, Texas. The facility is designed to receive 2,000 barrels per day of produced water and produce approximately 1,000 barrels per day of reclaimed freshwater, or approximately ten times the amount produced by JIP 1. This new facility builds upon the success of JIP 1 (described below) which evaluated and field-tested multiple produced-water treatment technologies to select preferred, high-performing solutions for ongoing operations.

In 2023, WES and its collaborators created JIP 1, a small-scale pilot site in West Texas, to evaluate and measure technologies needed to commercialize beneficial use of produced water in the Permian Basin. During the 24-month project, technical experts at WES and its collaborators collected over 50,000 water quality data points to demonstrate a treatment process that can consistently produce water quality suitable for end-use applications that include industrial cooling, irrigation, and surface discharge.

The JIP 2 facility will also serve as a demonstration site, enabling continued optimization of operations while validating consistent reclaimed freshwater production for a range of end-use applications. Insights and data collected from JIP 2 will guide the next phase of commercial-scale desalination facilities. WES and its JIP collaborators will continue to work closely with regulators, local communities, and independent experts to further validate the treatment process and confirm water quality outcomes. These investments are aimed at reducing industry disposal volumes while developing a potential alternative water source benefiting industry and surrounding communities.

"The start-up of JIP 2 marks a pivotal milestone in our journey to transform a produced-water stream from a disposal challenge into a valuable resource for the Permian Basin and beyond," said Oscar K. Brown, President and Chief Executive Officer of WES. "Through our multi-barrier treatment approach, we are transforming that stream into highly treated reclaimed freshwater suitable for industrial cooling and irrigation applications, while helping reduce pressure on Texas' limited water resources. WES already handles approximately 3.0 million barrels per day of produced water using all of today's oil and gas flow-assurance solutions: water sourcing, recycling, gathering, long-haul transportation, and disposal, and we believe beneficial reuse will be the next major solution to the Permian Basin's water challenges. We are very proud of the progress our team and our JIP members have made together over the past two years, and we believe JIP 2 brings us meaningfully closer to WES's first commercial-scale facility."

ABOUT WESTERN MIDSTREAM

Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering, transporting, recycling, treating, and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells residue, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity-price volatility through fee-based contracts.

For more information about WES, please visit www.westernmidstream.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.

JIP COLLABORATORS DISCLAIMER

The organizations participating in the Joint Industry Project are collaborating solely with respect to the Joint Industry Project described in this release. Such participation does not make any participant a party to, or responsible for, any other Western Midstream transactions, projects, investments, business activities, or statements referenced herein.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523

Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523

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SOURCE Western Midstream Partners, LP

FAQ

What did Western Midstream (NYSE: WES) announce about its produced-water treatment projects on June 17, 2026?

Western Midstream announced start-up of its second produced-water treatment pilot facility, called JIP 2, in West Texas. According to Western Midstream, JIP 2 will help validate reclaimed freshwater production and support future commercial-scale desalination, enhancing long-term water security in the Permian Basin.

How much reclaimed freshwater will Western Midstream's JIP 2 facility in the Permian Basin produce per day?

JIP 2 is designed to produce approximately 1,000 barrels per day of reclaimed freshwater from produced water. According to Western Midstream, the facility will receive about 2,000 barrels per day of produced water and convert roughly half into highly treated freshwater for beneficial use.

How does Western Midstream's JIP 2 produced-water pilot compare to the earlier JIP 1 project for WES investors?

JIP 2 targets about ten times the reclaimed freshwater volume achieved by JIP 1. According to Western Midstream, JIP 1 was a small-scale pilot that collected over 50,000 water quality data points and helped identify high-performing treatment technologies for ongoing operations and future projects.

What are the end-use applications for reclaimed freshwater from Western Midstream's JIP 2 facility (WES)?

Reclaimed freshwater from JIP 2 is intended for industrial cooling, irrigation, and potentially surface discharge. According to Western Midstream, the multi-barrier treatment process aims to consistently deliver water quality suitable for these uses while helping reduce pressure on limited Texas freshwater resources.

How could Western Midstream's JIP 2 pilot affect future commercial-scale desalination projects for WES?

JIP 2 will serve as a demonstration site to validate consistent reclaimed freshwater production and optimize operations. According to Western Midstream, insights and data from this pilot are expected to guide the next phase of commercial-scale desalination facilities in the Permian Basin.

How much produced water does Western Midstream currently handle daily across its operations?

Western Midstream reports handling approximately 3.0 million barrels per day of produced water. According to the company, this includes water sourcing, recycling, gathering, long-haul transportation, and disposal, with beneficial reuse viewed as the next major solution to the Permian Basin's water challenges.

Which companies are partnering with Western Midstream (WES) in the JIP 2 produced-water treatment facility?

Western Midstream is collaborating with Chevron, ConocoPhillips, Devon, and ExxonMobil on the JIP 2 pilot facility. According to Western Midstream, this Joint Industry Project aims to reduce disposal volumes and develop an alternative water source that benefits both industry and surrounding West Texas communities.