Form 4: Aris Water Director Converts Shares in Western Midstream Merger

Aris Water Solutions Director Mario Max Yzaguirre converted 55,675 Class A Common Stock and RSUs into cash and Western Midstream units following the merger.

Summary

• Mario Max Yzaguirre, a Director of Aris Water Solutions, Inc., disposed of 55,675 shares of Class A Common Stock on October 15, 2025, as a result of a merger.
• The transaction occurred at the effective time of the merger between Aris Water Solutions, Inc. and Western Midstream Partners, LP, which was agreed upon on August 6, 2025.
• Each share of Class A Common Stock was converted into the right to receive one of the following forms of consideration, based on an election: $7.00 in cash and 0.450 Parent Common Units, $25.00 in cash, or 0.625 Parent Common Units.
• In the event of a failure to timely deliver an election, the consideration defaulted to 0.625 Parent Common Units.
• The disposed amount includes 5,901 shares subject to time-vesting restricted stock units (RSU Awards).
• Each Issuer RSU Award was converted into cash equal to the total number of RSU shares multiplied by $25.00, plus any accrued but unpaid cash-based dividend equivalents.
• Following the reported transaction, Mario Max Yzaguirre's direct beneficial ownership of Class A Common Stock is 0.

Sentiment

Score: 7

Explanation: The sentiment is positive as the merger successfully completed, providing shareholders with defined consideration options (cash and/or units). For the reporting person, it represents a successful liquidity event for their equity holdings.

Positives

• The completion of the merger provides liquidity and a defined exit for Aris Water Solutions shareholders, including Director Yzaguirre.
• Shareholders had multiple options for consideration, including cash, Parent Common Units, or a combination, allowing for flexibility based on investment preferences.
• Restricted Stock Units were converted into cash at a fixed value of $25.00 per share, plus accrued dividends, providing a clear payout for these awards.

Negatives

• The disposition of all Class A Common Stock by a director indicates the cessation of their direct equity interest in Aris Water Solutions, Inc.
• The merger results in Aris Water Solutions, Inc. no longer being an independent publicly traded entity, which may limit future growth opportunities for its previous shareholders.

Future Outlook

The filing reports a completed merger transaction, indicating that Aris Water Solutions, Inc. has been acquired by Western Midstream Partners, LP. As such, the future outlook for Aris Water Solutions as an independent entity is concluded, with its operations now integrated into the acquiring company.

Industry Context

This transaction reflects ongoing consolidation within the energy sector, particularly in the midstream and water management services segments supporting oil and gas operations. Mergers like this often aim to achieve economies of scale, expand operational footprints, and enhance service offerings by combining complementary assets and expertise. Western Midstream Partners, LP's acquisition of Aris Water Solutions, Inc. suggests a strategic move to integrate water solutions more deeply into its midstream infrastructure, potentially optimizing costs and improving environmental performance in its operations.

Stakeholder Impact

• Shareholders of Aris Water Solutions, Inc. received consideration (cash and/or Western Midstream Partners, LP common units) for their shares, concluding their investment in the independent entity.
• Employees of Aris Water Solutions, Inc. will likely be integrated into Western Midstream Partners, LP, potentially impacting roles, benefits, and corporate culture.

Next Steps

• The shares of Aris Water Solutions, Inc. Class A Common Stock are no longer beneficially owned by the reporting person, indicating the completion of the equity conversion process related to the merger.

Key Dates

Keywords

Aris Water Solutions, ARIS, Western Midstream Partners, Merger, Acquisition, Insider Transaction, Form 4, Beneficial Ownership, Class A Common Stock, Restricted Stock Units, Equity Conversion, Oil and Gas Services, Water Management