WES has approximately 16,000 miles of pipelines and several processing and treatment facilities. Credit: Western Midstream.

Occidental Petroleum is exploring the sale of WES, a pipeline operator focused on natural gas in the US that could be valued at more than $20bn, including debt, reported Reuters.

This potential divestment is part of Occidental’s strategy to reduce its significant debt, which currently stands at $18.5bn.

Related Company Profiles

View all

In December 2023, Occidental agreed to purchase CrownRock, an oil and gas producer, for $12bn, adding to its debt load.

Four years earlier, it bought Anadarko Petroleum for $54bn.

CrownRock is a joint venture between CrownQuest Operating and Lime Rock Partners.

Currently, Occidental owns a 49% stake in WES and has operational control through its ownership of its general partner, reported the news outlet.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

JPMorgan Chase is advising Occidental on the sale process, with the aim to maximise the value from its WES stake.

WES is expected to draw interest from companies such as Enterprise Products Partners, Williams Companies and Kinder Morgan, as well as private equity and infrastructure funds.

Commenting on Occidental’s move, WES said: “WES has not launched a sales process nor has it engaged bankers or other advisors with a view toward doing so.

“We are aware, as has been publicly stated, that Occidental Petroleum Corporation (“Oxy”) has expressed interest in divesting assets. We cannot speak to the composition of the assets Oxy may seek to divest, and any questions regarding Oxy’s ownership interest in WES should be directed to Oxy.”

While the sale is not certain, Occidental has reaffirmed its commitment to lowering its debt below $15bn, reported Reuters.

WES has approximately 16,000 miles of pipelines and various processing and treatment facilities.

The company’s midstream assets are located in the Rocky Mountains, north-central Pennsylvania, Texas and New Mexico.