Occidental Pipeline Subsidiary Internal Restructuring Worth $600 Million

Occidental Petroleum’s wholly owned subsidiary Western Gas Resources returned approximately 15.3 million common units of Western Midstream Partners, LP to the issuer on February 3, 2026, under a unit redemption agreement. The transaction was reported as an internal restructuring rather than an open-market sale. Based on a recent unit price in the low $41 range, the redeemed units are valued at about $630 million (roughly KRW 800 billion). After the redemption, the Occidental group will continue to control Western Midstream through its remaining stake of about 150 million common units—approximately 38% ownership—and its general partner interest.

On January 23, Western Midstream announced a fourth-quarter 2025 distribution of $0.91 per unit, payable on February 13. The company will release its quarterly results after the market close on February 18, followed by a conference call on February 19. ()

Earlier, on January 20, Western Midstream renegotiated its Delaware Basin natural gas gathering and processing agreement with Occidental, converting it from a cost-of-service structure to a fixed-fee arrangement. It also signed a new fixed-fee contract with ConocoPhillips. In return, Occidental agreed to have its 15.3 million WES common units redeemed as part of a package transaction completed on February 3. ()

Western Midstream Partners, LP (NYSE: WES) is a master limited partnership based in Houston, Texas, that owns and operates midstream infrastructure assets—primarily natural gas, crude oil and produced water gathering and processing—in the Delaware Basin. In the third quarter of 2025, it achieved record adjusted EBITDA and throughput volumes. () Its parent, Occidental Petroleum, a leading U.S. oil and gas major, holds both the general partner interest and a substantial common unit position in WES. Through these contract restructurings and the recent unit redemption, Occidental is realigning its intra-group midstream infrastructure. ()