Western Midstream Partners and Occidental Petroleum said Monday the companies have executed agreements that will allow Western to operate as a stand-alone midstreamer, Kallanish Energy reports.
Western expects to continue its relationship with Occidental, but also will continue to pursue/retain third-party customers.
“Over the last few months, WES (Western Midstream) and Occidental have worked together to execute agreements that are supportive of both companies’ intent to operate and report as two separate and distinct entities,” said CEO Michael Ure.
Taking into account the anticipated economic impact of the aforementioned agreements, Ure said WES has refined its 2020 outlook and currently expects 2020 adjusted EBITDA between $1.88 billion and $1.98 billion, and 2020 total capital expenditures between $875 million and $950 million.
As part of the new pacts, new long-term oil and natural gas gathering acreage dedications will be made by Oxy, covering roughly 21,000 acres in Weld County, Colorado, supported by minimum volume commitments and complemented by previously executed DJ Basin gas-processing dedications.
Western Midstream Partners is a Delaware master limited partnership formed by Anadarko Petroleum in 2007 to acquire, own, develop and operate midstream assets.
WES became part of Occidental Petroleum last year with Oxy’s $58 billion acquisition of Anadarko. The company has midstream assets located in the Rocky Mountains, Northcentral Pennsylvania and Texas.
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