v3.25.2
Subsequent Event
6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events
12. SUBSEQUENT EVENT

Aris. On August 6, 2025, the Partnership entered into an agreement to acquire Aris Water Solutions Inc. (“Aris”) by merger in an equity-and-cash transaction valued at $1.5 billion, plus Aris’s outstanding debt of $500 million of senior notes. Under the terms of the merger agreement, Aris shareholders may elect to receive 0.625 common units of the Partnership, $25.00 in cash (without interest), or a combination of both, for each share of Aris common stock held, with the cash consideration being subject to proration to ensure that the total cash consideration paid by the Partnership will not exceed $415 million. In the aggregate, the Partnership expects to issue approximately 26.6 million common units and pay approximately $415 million in cash, assuming maximum cash consideration. The Partnership expects to fund the non-equity portion of the transaction with cash on hand, borrowings under the RCF, and/or commercial paper.
Aris’s water infrastructure assets, located in Lea and Eddy Counties, New Mexico and West Texas, include approximately 790 miles of produced-water pipeline, 1,800 MBbls/d of produced-water handling capacity, 1,400 MBbls/d of water recycling capacity and 625,000 dedicated acres. The merger agreement, which was unanimously approved by the Boards of Directors of Aris and the General Partner, is subject to customary closing conditions, regulatory approvals, and Aris shareholder approval, and is expected to close in the fourth quarter of 2025.