Occidental Explores Sale of Western Midstream Stake

image is BloomburgMedia_S95ZVADWLU6800_21-02-2024_21-03-51_638440704000000000.jpg

Signage is displayed outside an Occidental Petroleum Corp. office in Carlsbad, New Mexico, U.S., on Friday, Sept. 11, 2020. With the U.S. oil industry reeling from the collapse in demand this year, the New Mexico shale patch has emerged as the go-to spot for drillers desperate to squeeze as much crude from the ground without bleeding cash. Theres just one problem: Joe Biden wants to ban new fracking there. Photographer: Callaghan O'Hare/Bloomberg

Occidental Petroleum Corp. is exploring the sale of Western Midstream Partners as it looks to pay down debt, according to a Reuters report.

Western Midstream Partners is Occidental’s US natural gas-focused pipeline operator that has a market value of more than $18 billion, Reuters reports, citing people familiar with the matter.

This comes amid a flurry of deal activity in the oil and gas space. Occidental said in December it inked a deal to buy Texas shale driller CrownRock LP for $10.8 billion.

Oil executives are facing pressure from investors to keep buybacks and dividends flowing even as the North American shale sector matures and growth slows. With many of the best production sites already tapped, companies flush with cash from the post-pandemic run-up in oil prices are increasingly buying rivals to secure new places to drill.

©2024 Bloomberg L.P.

By Elizabeth Elkin


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