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Western Midstream Partners (WES) +7.2% in Tuesday’s trading following a Reuters report that Occidental Petroleum (NYSE:OXY) is exploring a sale of the natural gas-focused pipeline operator that has a market value of more than $18B including debt.
Western Midstream (WES) is working with Citigroup on a sale process, and JPMorgan Chase is advising Occidental (OXY) on how to extract the most value from its ownership of Western Midstream, according to the report.
Western Midstream (WES) is seen attracting interest from several major peers including Enterprise Products Partners (EPD), Kinder Morgan (KMI) and Williams Cos. (WMB), as well as P-E firms and infrastructure funds, the report said.
Occidental (OXY) owns 49% of Western Midstream (WES), which has ~16K miles of pipelines in its network, as well as processing, treatment and other facilities, with operations mostly in the Delaware portion of the Permian Basin.
A sale would help Occidental (OXY) slash the $18.5B debt pile it has accumulated because of acquisitions, including the recent $12B deal for CrownRock.