Betting 2 Trillion Won on Delaware Basin Gas Infrastructure Expansion: U.S. Midstream Completes Acquisition and Issues Corporate Bonds

Western Midstream Partners, LP (NYSE: WES) on June 11 completed its approximately KRW 2 trillion (roughly $1.5 billion) acquisition of Brazos Delaware II, deploying about $800 million in cash and $800 million in new equity to add significant gathering and processing assets for gas and crude in the Delaware Basin.

To support dividend growth and maintain its investment-grade credit rating, WES on June 22, through its subsidiary Western Midstream Operating, executed a purchase agreement to issue $700 million of 5.7% senior notes due 2036, thereby converting the short-term borrowings used for the acquisition into long-term, fixed-rate debt.

Proceeds from the notes will be used primarily to repay existing short-term borrowings—including amounts drawn under its revolving credit facility and outstanding commercial paper—with any remaining funds allocated to future capital expenditures and general partnership purposes.

In its February release of full-year 2025 results, WES reported record adjusted EBITDA and free cash flow and provided guidance for a modest dividend increase in 2026. Its shares currently trade on the New York Stock Exchange with an annual dividend of $3.72, yielding in the mid-8% range.

Following its late-2025 acquisition of Aris Water Solutions, WES is expanding its produced-water treatment and recycling business, accelerating its transition to a fully integrated Delaware Basin infrastructure provider that spans gas, crude and water services.

WES is a publicly traded master limited partnership with Occidental Petroleum as its general partner. It is a leading midstream operator providing gathering, compression, processing and transportation services for natural gas, crude oil, NGLs and produced water across the Delaware Basin in Texas and New Mexico and the DJ Basin in Colorado.

The U.S. midstream sector, centered on pipeline networks, gas processing and water-handling infrastructure in shale-rich plays such as the Permian and Delaware basins, continues to attract dividend-focused investors with its stable, fee-based cash flows and strong distribution profile.