Dallas, Texas – Western Midstream Partners (NYSE: WES) has been making significant moves in the recent months, with Occidental Petroleum (OXY) announcing a partial sale of its stake in the company. This strategic decision by OXY is seen as a move to reduce its debt burden and strengthen its financial position. The sale, involving 19 million limited units with an option for an additional 2.85 million, is set to have a substantial impact on WES and its long-term unitholders. However, the offering price for these units remains undisclosed at this time.

Earlier reports had indicated OXY’s consideration of selling its stake in WES to alleviate its debts, given that OXY currently owns almost half of WES and is a significant customer for the company. The influence of OXY on WES, despite its technical independence, is undeniable, especially with Michael Ure, WES’s CEO, having a background with OXY.

The recent secondary public offering by OXY, along with its significant debt reduction efforts, suggests that the company is strategically repositioning itself to improve its financial standing. With plans to divest assets and reduce debt through various means, OXY’s decision to sell a partial stake in WES aligns with its broader financial strategy.

Furthermore, WES’s strong performance in the second quarter, marked by impressive cash flows and adjusted EBITDA, indicates a positive outlook for the company. The company’s ability to generate free cash flow and maintain a strong balance sheet positions it well for future growth and potential acquisitions. Additionally, a flurry of new commercial agreements is expected to drive increased cash flows in the coming years.

Looking ahead, WES’s investment-grade status and attractive yield make it a compelling choice for investors seeking steady income and potential capital appreciation. The company’s strategic initiatives, coupled with its strong financial performance, bode well for its long-term growth prospects. With a focus on enhancing distributions and pursuing growth opportunities, WES remains a promising investment opportunity in the energy sector.