By Kiel Porter and Rachel Adams-Heard
Representatives for Occidental, Anadarko and Enterprise Products declined to comment. Representatives for Oneok and Energy Transfer didn’t respond to requests for comment.
Western Midstream rose 2.2% to close at $29.37 in New York trading Monday, giving The Woodlands, Texas-based company a market value of about $13.3 billion.
Anadarko owns 55.5 percent of Western Midstream and all of its general partner, according to regulatory filings.
Occidental is poised to acquire Western Midstream after agreeing in May to buy Anadarko for $38 billion, a deal expected to close in the second half of 2019. Occidental has said it would be open to selling Western Midstream after outbidding Chevron Corp. for Anadarko.
“We don’t really feel like we have to necessarily own infrastructure to take advantage of it,” Vicki Hollub, Occidental’s chief executive officer, said in a conference call with analysts on May 6. “We would be willing to consider the optimization, monetization, of that sooner rather than later depending on the potential buyer.”
Western Midstream controls more than 15,200 miles of pipelines and about six dozen processing and treatment facilities in the Midwestern U.S. and Texas, according to an investor presentation in May. Anadarko formed the company and took it public in 2012 as a so-called master limited partnership, or entity that gets tax breaks in exchange for doling out most of its profits to investors.
A potential sale could help Occidental meet its goal of selling $10 billion to $15 billion of assets to pay down debt over the next two years. The company has already agreed to sell Anadarko’s operations in Africa for $8.8 billion to Total SA.