Occidental Eyes Sale Of Western Midstream For $20-B

Occidental Petroleum is exploring the sale of Western Midstream Partners, a US natural gas-focused pipeline operator with a market value of close to $20 billion, including debt, according to sources familiar with the matter, as reported by Anirban Sen and David French for Reuters.

Shares of Western Midstream rose 5.7% to $30.81 on the news, marking their highest finish since July 2019. I Photo: Western Midstream Facebook

The potential divestment would help Occidental, backed by Warren Buffett's Berkshire Hathaway, reduce the $18.5 billion debt pile accumulated from acquisitions.

Occidental's acquisition of oil and gas producer CrownRock for $12 billion in December added to its borrowing, four years after its $54 billion purchase of peer Anadarko Petroleum.

Shares of Western Midstream rose 5.7% to $30.81 on the news, marking their highest finish since July 2019.

Occidental shares, however, dropped 1.6% to $59.56 amid broader declines among energy producers. Occidental owns 49% of Western Midstream and controls the company's operations by also owning its general partner.

Western Midstream is structured as a tax-advantaged master limited partnership, with its controlling entity being the general partner.

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