Form 4: Occidental Petroleum Subsidiaries Sell 19.5 Million Western Midstream Units in Public Offering

Occidental Petroleum Corporation's subsidiaries sold 19.5 million common units of Western Midstream Partners, LP in an underwritten public offering at $35.75 per unit.

Summary

• On August 14, 2024, WGR Asset Holding Company LLC and Anadarko USH1 Corporation, both subsidiaries of Occidental Petroleum Corporation, sold a combined 19,500,000 common units of Western Midstream Partners, LP in a public offering.
• The sale was conducted at a price of $35.75 per common unit.
• Following the transaction, Western Gas Resources, Inc. holds 156,219,520 Common Units, APC Midstream Holdings, LLC holds 457,849 Common Units and AUSHI holds 9,004,209 Common Units.
• Western Gas Resources, Inc. is the sole member of Western Midstream Holdings, LLC, which is the 2% economic general partner of Western Midstream Partners, LP.
• The filing indicates that multiple entities related to Occidental Petroleum are reporting the transaction due to SEC electronic filing system limitations.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reports a transaction without expressing positive or negative views. The sale of shares could be seen as slightly negative, but it's a standard financial activity.

Industry Context

This transaction reflects ongoing adjustments in the ownership structure within the midstream energy sector, potentially driven by strategic realignments or capital allocation decisions by Occidental Petroleum.

Comparison to Industry Standards

• It is difficult to compare this transaction to industry standards without knowing the specific reasons behind the sale.
• However, similar divestitures of midstream assets by parent companies are not uncommon, often aimed at streamlining operations or raising capital.
• Companies like Kinder Morgan and Enterprise Products Partners are major players in the midstream sector, and their activities often set benchmarks for valuation and transaction structures.

Stakeholder Impact

• The sale could have a minor impact on Western Midstream Partners' stock price in the short term.
• The transaction may lead to changes in the ownership structure and potentially influence the company's strategic direction.

Key Dates