Reuters: Occidental explores US$20 billion+ sale of Western Midstream
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Occidental Petroleum is exploring a sale of Western Midstream Partners, a US natural gas-focused pipeline operator that has a market value of close to US$20 billion, including debt, according to people familiar with the matter (Reuters reports).
The divestment would help Occidental, which is backed by Warren Buffett's Berkshire Hathaway, slash the US$18.5 billion debt pile it has accumulated because of acquisitions.
Occidental signed a deal in December to acquire oil and gas producer CrownRock for US$12 billion, an acquisition which would add further borrowing, four years after its US$54 billion purchase of peer Anadarko Petroleum.
Western Midstream shares closed 5.7% higher at US$30.81 on the news, their highest finish since July 2019. Occidental shares dropped 1.6% to US$59.56, along with broad 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, and a general partner is its controlling entity.
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
World Pipelines’ February 2024 issue
The February 2024 issue of World Pipelines includes a report on pipeline activity in the UK and Europe, along with technical articles on protecting pipelines during construction, surface preparation, and measuring methane emissions from pipelines. This issue also includes our annual inline inspection Q&A, with contributions from a host of ILI experts.
Read the article online at: https://www.worldpipelines.com/business-news/21022024/reuters-occidental-explores-us20-billion-sale-of-western-midstream/
You might also like
World Pipelines Podcast: Going global with IPLOCA
In this episode, Elizabeth Corner speaks to Georges Hage, Executive Secretary at IPLOCA, about IPLOCA's insights on the culture and characteristics of the pipeline contractor community, and how it works to support sustainable energy infrastructure.
ROSEN Group publishes Sustainability Report
The ROSEN Group publishes its first Sustainability Report, for the 2024 fiscal year.
