Western Midstream Expands Permian Reach for $1.6B

Western Midstream buys Brazos Delaware II for $1.6B, adding Permian processing capacity and about $100M in expected 2026 EBITDA.

27 Jul 2026

Western Midstream Partners has closed its $1.6 billion acquisition of Brazos Delaware II, expanding its position in one of North America’s busiest oil and gas regions. Announced and completed on June 21, 2026, the transaction adds a large private gathering and processing system in the Delaware Basin to Western Midstream’s Permian network.

The appeal is both operational and financial. Brazos Delaware II brings additional processing capacity that can be integrated with Western Midstream’s existing infrastructure, while the acquired assets are expected to contribute roughly $100 million in EBITDA during 2026.

Competition for high-quality Permian midstream assets has intensified as producers expand drilling across West Texas and southeastern New Mexico. By securing an established system, Western Midstream gains access to additional upstream volumes while giving producers more infrastructure to move and process growing output.

Beyond processing, the acquisition broadens the partnership’s gathering footprint across the Delaware Basin. Greater network reach can strengthen customer relationships and support more predictable cash flows, particularly when infrastructure is tied to sustained production activity.

With $1.6 billion committed to an operating asset, Western Midstream is positioning itself to capture further volume growth as Permian producers add wells through 2026 and into 2027. The enlarged footprint could also give the partnership a stronger base for future consolidation if more midstream assets come to market.