Western Midstream Partners, LP ("WES") has announced the completion of its acquisition of Aris Water Solutions, Inc. ("ARIS"), solidifying its position as one of the largest three-stream midstream, flow-assurance providers in the Delaware Basin. With the acquisition finalized, it is evident that ARIS securityholders will receive approximately 28% of the merger consideration in cash and approximately 72% in common units. The total consideration to be paid in cash will amount to $415.0 million, and the total consideration to be paid in equity will be approximately 26.6 million common units.
In terms of the merger consideration elections, holders of 14,385,652 shares of ARIS class A common stock and ARIS OpCo stapled units elected to receive the common unit election consideration. Meanwhile, holders of 33,801,151 shares of ARIS class A common stock and ARIS OpCo stapled units elected to receive the cash election consideration, and due to prorationing, will receive approximately $10.00 in cash and 0.375 common units for each share of ARIS class A common stock and each ARIS OpCo stapled unit. Additionally, holders of 11,017,951 shares of ARIS class A common stock and ARIS OpCo stapled units elected to receive the mixed election consideration.
WES, as a master limited partnership, is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas, stabilizing and transporting condensate, natural gas liquids, and crude oil, and gathering and disposing of produced water for its customers. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts. The market has reacted to these announcements by moving the company's shares -0.82% to a price of $37.34. For more information, read the company's full 8-K submission here.
