November 2019, Vol. 246, No. 11

Global News

Oxy Puts Hold on Western Midstream Selloff

Occidental Petroleum Corp said it failed to draw an attractive offer for Western Midstream while pipeline stocks are in the doldrums and has decided to wait until next year before trying again to sell the business.

Houston-based Oxy gained Western Midstream this year as part of its $38 billion acquisition of Anadarko Petroleum, a move which gave it substantial Permian Basin acreage but also assets in areas it had previously exited or had little interest in.

Oxy signed an $8.8 billion agreement with Total SA for Anadarko’s African holdings in May and held talks in recent weeks with possible buyers, including private equity firms and infrastructure funds, about selling some of Western Midstream.

However, a decline in pipeline stocks since the end of July impacted Western Midstream’s value. Occidental said it remains on track to deliver $10 billion to $15 billion of planned asset sales and remains confident in its deleveraging strategy.

Western Midstream is structured as a master limited partnership. Occidental fully owns the general partner stake, which effectively controls Western Midstream, and around 55% of Western Midstream’s limited partner units.

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