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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World 呦乐园’ February 2024 issue
The February 2024 issue of World 呦乐园 includes a report on pipeline activity in the UK and Europe, along with technical articles on protecting 呦乐园 during construction, surface preparation, and measuring methane emissions from 呦乐园. This issue also includes our annual inline inspection Q&A, with contributions from a host of ILI experts.