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Allstream Insiders Summary
Western Midstream Partners is advancing two major Delaware Basin projects: the Pathfinder produced-water pipeline project and the North Loving II natural-gas processing train. The projects form part of Western Midstream’s broader $850 million to $1 billion 2026 capital-expenditure plan.
Pathfinder includes an approximately 42-mile, 30-inch poly-lined steel pipeline designed with approximately 800,000 barrels per day of initial produced-water transportation capacity from the western Delaware Basin toward disposal capacity and potential reuse opportunities in eastern Loving County, Texas. Western Midstream currently estimates total capital expenditures for the broader Pathfinder project, including associated produced-water infrastructure and saltwater-disposal facilities, at approximately $300 million to $350 million. The company currently targets service during the first quarter of 2027.
North Loving II is designed to add 300 million cubic feet per day (MMcf/d) of cryogenic processing capacity at the North Loving plant. The company currently expects the train to enter service during the early second quarter of 2027, increasing its total Delaware Basin processing capacity to approximately 3.1 billion cubic feet per day (Bcf/d).
Western Midstream also executed two long-term gathering and processing agreements in Wyoming’s Powder River Basin, adding approximately 270,000 dedicated acres. Western Midstream said the producers’ development activity under the agreements is expected to begin during the second half of 2026.
Western Midstream Project and Capital Tracker
| Project or transaction | Company-reported scope |
Stage |
Schedule or value |
|---|---|---|---|
| Pathfinder Pipeline and water-system expansion | Approximately 42 miles; 30-inch poly-lined steel; approximately 800 MBbls/d of initial transportation capacity | Under construction | $300M-$350M total project estimate; company targets Q1 2027 service |
| North Loving II | 300 MMcf/d cryogenic processing train | Under construction | Company targets early Q2 2027 service |
| Powder River Basin agreements | Approximately 270,000 dedicated acres under two long-term gathering and processing agreements | Agreements executed | Producer development expected to begin in 2H 2026 |
| Brazos Delaware acquisition | Approximately 900 pipeline miles, 460 MMcf/d of processing capacity and 470,000 dedicated acres | Acquisition closed; integration underway | Approximately $1.6B transaction closed June 11, 2026 |
The $1.6 billion Brazos Delaware acquisition value is separate from Western Midstream’s $850 million to $1 billion capital-expenditure guidance. The capital range covers the company’s organic, maintenance, well-connect, equity-investment and other capital program rather than the purchase price of the acquisition.
What Is the Pathfinder Pipeline Project?
Pathfinder is a long-haul produced-water pipeline project designed with approximately 800 MBbls/d of initial transportation capacity across the Delaware Basin. Western Midstream identifies the mainline as an approximately 42-mile, 30-inch poly-lined steel transportation system extending toward eastern Loving County, Texas.
The project includes more than the mainline. Western Midstream’s disclosed scope also covers:
- Regional gathering and export terminals connecting Pathfinder with legacy water-gathering infrastructure
- Incremental saltwater-disposal facilities and associated offload infrastructure
- Produced-water gathering infrastructure supporting the pipeline
- Connections to disposal capacity in areas with available pore space
Pathfinder is supported by Occidental commitments for 280 MBbls/d of firm gathering and transportation capacity and 220 MBbls/d of firm disposal capacity, together with corresponding minimum-volume commitments. Western Midstream also extended its underlying produced-water gathering agreement with Occidental through December 2036.
Western Midstream currently estimates total capital expenditures for the Pathfinder project, including the long-haul pipeline and associated produced-water and saltwater-disposal infrastructure, at approximately $300 million to $350 million. The company currently targets service during the first quarter of 2027 and reported that construction remained on schedule and under budget as of its August 5 update.
The system is designed with potential expansion beyond 1.2 million barrels per day. That figure represents future expansion capability rather than the initial sanctioned operating capacity.
What Is North Loving II Designed to Add?
North Loving II is designed to add 300 MMcf/d of cryogenic natural-gas processing capacity at Western Midstream’s North Loving plant. The company currently targets service during the early second quarter of 2027.
The project is supported by producer development plans and minimum-volume commitments at the West Texas Complex. Western Midstream sanctioned the second train after North Loving I reached full capacity within one month of its February 2025 startup.
Western Midstream reports approximately 2.75 Bcf/d of current Delaware Basin processing capacity, including the acquired Brazos Delaware assets, bypass capacity at the West Texas Complex and dedicated capacity at the Mi Vida plant. North Loving II is expected to increase that total to approximately 3.1 Bcf/d.
The company said North Loving II remained on schedule and under budget at the time of the second-quarter update. The reported scope establishes a new cryogenic train and a defined startup window without assigning the entire companywide capital plan to the project.
How Is the 2026 Capital Plan Allocated?
Western Midstream reaffirmed 2026 capital expenditures of $850 million to $1 billion and indicated spending was trending toward the high end of the range. The guidance is accrual-based, includes equity investments and excludes capitalized interest and capital associated with the third-party interest in Chipeta.
The company classifies its planned 2026 spending as:
| Capital category | Share of 2026 guidance |
|---|---|
| Expansion projects | 75% |
| Maintenance and regulatory work | 9% |
| Well connections | 9% |
| Equity investments and other | 7% |
Geographically, Western Midstream assigns 82% of the program to the Delaware Basin, 11% to the Powder River Basin, 5% to the DJ Basin and 2% to equity investments and other areas.
Within the Delaware Basin allocation, the company identifies approximately 57% for produced-water infrastructure, 39% for natural-gas infrastructure and 4% for crude-oil infrastructure. These percentages describe the portfolio allocation and should not be converted into project-specific budgets without additional company disclosure.
Powder River Agreements Add 270,000 Dedicated Acres
Western Midstream executed two long-term gathering and processing agreements with large Powder River Basin producers, adding approximately 270,000 dedicated acres. The agreements are backed by acreage dedications and minimum-volume commitments. Western Midstream said the producers’ development activity under the agreements is expected to begin during the second half of 2026.
The company’s existing Powder River Basin system includes approximately 2,685 miles of high- and low-pressure natural-gas gathering pipelines and 440 MMcf/d of natural-gas processing capacity, including approximately 180 MMcf/d of carbon-dioxide treating capacity.
Western Midstream also operates the 120-mile, FERC-regulated Thunder Creek NGL Pipeline, which provides approximately 38,000 barrels per day of NGL takeaway capacity from the basin.
Brazos Delaware Adds 460 MMcf/d of Processing Capacity
Western Midstream closed its approximately $1.6 billion acquisition of Brazos Delaware II on June 11, 2026. The transaction adds natural-gas and crude-oil infrastructure across Reeves, Ward, Pecos, Winkler, Culberson and Loving counties in the Texas Delaware Basin.
The acquired platform includes approximately:
- 900 miles of pipeline
- 460 MMcf/d of natural-gas processing capacity at the Comanche complex
- 470,000 dedicated acres under long-term, fixed-fee contracts
Brazos expands Western Midstream’s current processing base before North Loving II’s currently targeted service date. The acquisition and organic processing expansion are related strategically, but their dollar values describe different actions: $1.6 billion is the acquisition consideration, while North Loving II is part of the broader organic capital program.
Allstream Perspective
Western Midstream’s 2026 program places most of its capital into expansion work, with the Delaware Basin receiving the largest geographic allocation. The company’s currently reported schedule targets first-quarter 2027 service for Pathfinder and early second-quarter 2027 service for North Loving II.
Pathfinder carries the more detailed company-reported construction scope: a 42-mile poly-lined steel mainline, regional gathering and export terminals, saltwater-disposal facilities, associated offload infrastructure and gathering-system connections. North Loving II is a separately sanctioned 300 MMcf/d cryogenic processing train.
