Morgan Stanley has completed its exit from Brazos Delaware II through a $1.6 billion transaction that transfers assets to WES. The deal values the Permian Basin operation at an 8.0x EBITDA multiple based on projected 2027 earnings, marking a significant portfolio shift for the investment bank.

The acquisition adds approximately 470,000 acres and 460 million cubic feet per day of natural gas processing capacity to WES's operations. This expansion strengthens WES's gathering and processing footprint across the Delaware Basin's core areas, enhancing their midstream energy infrastructure presence in one of North America's most productive oil and gas regions.

The transaction reflects ongoing consolidation in the energy sector as companies seek scale advantages amid commodity volatility. For Morgan Stanley, exiting the asset represents portfolio optimization amid broader strategic repositioning in energy investments.

The 8.0x EBITDA multiple signals confidence in future cash flows despite current market pressures. This deal demonstrates continued appetite for quality midstream assets that provide stable returns regardless of upstream price swings.