Occidental Reportedly Eyeing Sale Of Anadarko’s Western Midstream
Analysts with Tudor, Pickering, Holt & Co. believe the rumored sale by Occidental of only half of Anadarko’s interest in Western Midstream could indicate a limited pool of buyers.
Western Midstream Partners has assets located in the Rocky Mountains, North-central Pennsylvania, Texas and New Mexico. (Source: Anadarko Petroleum Corp.)
Occidental Petroleum Corp. is reportedly exploring the sale of the midstream MLP that Occidental is set to inherit through its pending takeover of Anadarko Petroleum Corp.
Bloomberg first reported the rumors on June 24 citing unnamed sources. According to the Bloomberg report, Occidental is working with a financial adviser to market half of Anadarko’s interest in Western Midstream Partners LP and its general partner.
Proceeds from the rumored sale would be used to support its $57 billion acquisition of Anadarko Petroleum, which the companies agreed to in early May. The transaction, expected to close in the second half of 2019, comprises 78% cash and 22% stock plus the assumption of Anadarko debt.