Occidental Petroleum Corp is reportedly considering a potential sale of its pipeline and storage assets, Western Midstream Partners LP, in a deal that could exceed $20 billion. Sources familiar with the matter have indicated that Occidental is exploring strategic options to divest its stake in Western Midstream.
Western Midstream Partners LP, a master limited partnership formed by Occidental, operates a network of pipelines and storage facilities primarily in the Permian Basin. The company plays a crucial role in transporting and storing oil and gas produced by Occidental and other energy companies in the region.
Occidental's potential sale of Western Midstream comes as part of the company's broader efforts to reduce debt and streamline its operations. Occidental has been under pressure to improve its financial position following its acquisition of Anadarko Petroleum Corp in 2019.
The sale of Western Midstream could attract significant interest from potential buyers, given the company's strategic assets and strong market position. Analysts believe that the deal could fetch a valuation of over $20 billion, making it one of the largest transactions in the energy sector in recent years.
Occidental has not officially confirmed the potential sale of Western Midstream, and details of the process remain confidential. However, sources suggest that Occidental is working with financial advisors to evaluate various options, including a full or partial sale of its stake in Western Midstream.
Investors and industry observers will be closely monitoring developments surrounding Occidental's potential divestment of Western Midstream as the energy sector continues to undergo significant changes and consolidation. The outcome of this strategic move could have far-reaching implications for Occidental and the broader energy industry.
