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

Subsidiaries of Occidental Petroleum sold 19.5 million common units of Western Midstream Partners, LP in an underwritten public offering.

Summary

• On August 14, 2024, WGR Asset Holding Company LLC and Anadarko USH1 Corporation, both subsidiaries of Occidental Petroleum, sold a combined total of 19,500,000 common units representing limited partner interests in Western Midstream Partners, LP.
• The sale was conducted as an underwritten public offering.
• The price per common unit was $35.75.
• 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.
• Several entities, including OXY USA Inc., OXY Oil Partners, Inc., Baseball Merger Sub 2, Inc., Anadarko Petroleum Corporation, Anadarko Holding Company, Western Gas Resources, Inc., Kerr-McGee Corporation, APC Midstream Holdings, LLC, Kerr-McGee Worldwide Corporation, and WGR Asset Holding Company LLC, are all direct or indirect wholly-owned subsidiaries of Occidental Petroleum Corporation.

Sentiment

Score: 6

Explanation: The document is a standard SEC filing related to a stock sale. It's neutral in tone and doesn't inherently indicate positive or negative sentiment. The sale itself could be interpreted in various ways depending on the context, but the filing itself is simply a factual disclosure.

Industry Context

This transaction reflects ongoing capital management and portfolio optimization activities within the energy sector, where companies routinely adjust their holdings in midstream partnerships to manage debt, fund operations, or reallocate capital.

Comparison to Industry Standards

• Similar transactions are common in the midstream sector, with companies like Energy Transfer Partners and Kinder Morgan frequently adjusting their ownership stakes in various partnerships.
• The sale of units at $35.75 is within the typical range for midstream partnerships, but the specific valuation would depend on factors like distribution yield, growth prospects, and leverage ratios compared to peers.

Stakeholder Impact

• The sale of units may have a short-term impact on the trading price of Western Midstream Partners, LP.
• The proceeds from the sale will likely be used by Occidental Petroleum and its subsidiaries for general corporate purposes, potentially benefiting shareholders through debt reduction or reinvestment in core operations.

Key Dates