![Report: Occidental Eyes Sale of Western Midstream to Reduce Debt](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/02/report-occidental-eyes-sale-western-midstream-reduce-debt.jpg?itok=zanw0PWS)
(Source: Shutterstock)
As Occidental Petroleum works toward closing a $12 billion expansion in the Permian Basin, the E&P is reportedly considering selling midstream interests to reduce debt.
Occidental is exploring a sale of Western Midstream Partners, a pipeline operator with a market valuation of nearly $20 billion, including debt, Reuters reported Feb. 20.
The U.S.-based oil giant plans to shore up its balance sheet after closing a $12 billion acquisition of private Permian producer CrownRock LP by monetizing $6 billion in non-core assets.
Analysts previously said that Occidental could look to sell off parts of its midstream portfolio. The company owns a total effective economic interest of 51% in Western Midstream Partners LP, including all of the 2.3% non-voting general partner interest and 48.8% of the limited partner units in WES, per regulatory filings.
“Examining [Occidental’s] assets, the stake in WES has often been discussed by the market as a potential divestiture candidate,” analysts at Jefferies reported in December when the CrownRock acquisition was announced.
WES shares were trading up over 5% ahead of markets closing on Feb. 20.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Third Week in a Row, Baker Hughes Says
2024-08-30 - The rig count is 8% below this time last year, according to Baker Hughes.
Helix Awarded Vessel Service, Charter Contracts Off Brazil
2024-08-28 - Helix Energy Solutions Group was awarded new three-year charter and service contracts, valued at an estimated $786 million, from Petrobras for Siem Helix 1 and Siem Helix 2.
Shell, Akselos Enter Enterprise Deal for Structural Performance Management
2024-08-28 - Shell Information Technology International will leverage Akselos’ structural performance management software to monitor the health and lifecycle of Shell’s critical assets in Qatar, Canada, the Gulf of Mexico and elsewhere.
From Exxon to APA, E&Ps Feel Need to Scratch Exploration Itch
2024-08-27 - Exxon Mobil is looking for its “next Permian,” which an executive said could be in Algeria.
E&P Highlights: Aug. 26, 2024
2024-08-26 - Here’s a roundup of the latest E&P headlines, with Ovintiv considering selling its Uinta assets and drilling operations beginning at the Anchois project offshore Morocco.