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 representing limited partner interests in Western Midstream Partners, LP.
• The sale occurred in an underwritten public offering 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, the 2% economic general partner of the Issuer.
• The filing indicates that multiple entities related to Occidental Petroleum Corporation are reporting the transaction due to the SEC's 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 could be seen as positive for Occidental if it strengthens their balance sheet, or negative if it signals a lack of confidence in Western Midstream's future.

Industry Context

This transaction reflects a significant divestiture by Occidental Petroleum of its stake in Western Midstream Partners, potentially to streamline its portfolio or raise capital. Such moves are common in the midstream energy sector as companies adjust their asset holdings based on market conditions and strategic priorities.

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 in the midstream sector often involve companies like Kinder Morgan, Energy Transfer, or Enterprise Products Partners, which are major players in the pipeline and processing business.
• These companies frequently adjust their asset portfolios through acquisitions and divestitures to optimize their operations and financial performance.

Stakeholder Impact

• Shareholders of Western Midstream Partners may experience some price volatility due to the large block of shares being sold.
• Occidental Petroleum's shareholders may see a positive impact if the proceeds from the sale are used to reduce debt or invest in higher-return opportunities.

Key Dates