Reuters: Occidental explores US$20 billion+ sale of Western Midstream
Published by Elizabeth Corner,
Senior Editor
World 糖心Vlog,
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 ( 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.
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Read the article online at: /business-news/21022024/reuters-occidental-explores-us20-billion-sale-of-western-midstream/
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