Western Midstream Announces Entry into New Service, Operating, and Governance Agreements
January 06, 2020 at 08:00 am EST
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Western Midstream Partners, LP and Occidental Petroleum Corporation announced the execution of several agreements that will enable WES to fully operate as a stand-alone business, consistent with WES's and Occidental's joint effort to establish WES as an independent midstream company. WES fully expects to continue its long-term and meaningful relationship with Occidental. These new agreements support WES's ongoing and focused pursuit of third-party growth opportunities and underscore the importance of WES's commitment to leverage its existing midstream infrastructure to attract additional Occidental and third-party volumes.
Key terms of the newly executed agreements include: The December 2019 transfer of employment of WES's management team from Occidental to WES, which ensures independent managerial control of WES's strategic initiatives and day-to-day operations; The December 2019 secondment of specifically identified WES-dedicated employees of Occidental who will be under the direct supervision of WES management prior to their transfer from Occidental to WES, which will occur during 2020; The provision of limited administrative shared services by Occidental to WES for an initial two-year period; The meaningful expansion of WES unitholders' rights to replace WES's general partner under an amended limited partnership agreement. New long-term oil and gas gathering acreage dedications by Occidental, covering approximately 21,000 acres in Weld County, Colorado, supported by minimum volume commitments and complemented by previously executed DJ Basin gas-processing dedications will be put in place.
Western Midstream Partners, LP acquires, owns, develops and operates midstream assets. The Company is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas, gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil, and gathering and disposing of produced water. The Companyâs midstream assets are located in Texas, New Mexico, Colorado, Utah and Wyoming. In addition, in its capacity as a processor of natural gas, the Company also buys and sells natural gas, NGLs, and condensate on behalf of itself and as an agent for its customers under certain contracts. The Companyâs subsidiaries include Western Midstream Operating GP, LLC, Western Midstream Services, LLC, Western Midstream Services Holdings, LLC and Western Midstream Operating, LP.