WESTERN MIDSTREAM ANNOUNCES SECONDARY PUBLIC OFFERING OF COMMON UNITS

Rhea-AI Summary

Western Midstream Partners, LP (NYSE: WES) has announced a secondary public offering of 19,000,000 common units by affiliates of Occidental (NYSE: OXY). The Selling Unitholders are granting Barclays, the sole underwriter, a 30-day option to purchase up to 2,850,000 additional units. WES is not selling any units and will not receive proceeds from the offering. The offering is subject to market conditions and there's no guarantee of completion. It will be made through a prospectus supplement and base prospectus, part of a shelf registration statement effective March 30, 2023. Barclays Capital Inc. is managing the offering, with materials available through them or the SEC website.

Positive

• Potential for increased liquidity in WES common units
• No dilution for existing WES unitholders as the company is not issuing new units

Negative

• Large sale by Occidental affiliates may signal reduced confidence in WES
• Potential downward pressure on unit price due to increased supply
• WES not receiving any proceeds from the offering

Insights

Financial Analyst

This secondary offering by Occidental's affiliates is a significant development for Western Midstream Partners. The sale of 19 million common units, with a potential additional 2.85 million, signals a major shift in ownership structure. This move could impact WES's stock price and market perception.

For investors, this offering might indicate Occidental's strategy to reduce its stake in WES, potentially affecting future operational decisions. The market's reaction to this large-scale sell-off will be important to watch. It's important to note that WES won't receive any proceeds, meaning no direct financial benefit to the company's operations or balance sheet.

Keep an eye on how this affects WES's trading volume and price volatility in the short term. Long-term implications may include changes in corporate governance and strategic direction if Occidental's influence diminishes significantly.

Market Research Analyst

This offering could significantly alter WES's shareholder composition. With Occidental potentially reducing its stake, we might see increased liquidity and free float for WES units. This could attract a more diverse investor base and potentially lead to inclusion in broader market indices.

However, investors should consider the timing and market conditions of this offering. A large influx of units could temporarily pressure the stock price. The market's absorption capacity and current demand for midstream assets will be critical factors to monitor.

It's also worth noting the choice of Barclays as the sole book-runner. Their ability to place these units with institutional investors could influence the short-term price stability and long-term ownership structure of WES. Overall, this move may reshape WES's market positioning and investor perception.

HOUSTON, Aug. 12, 2024 /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) ("WES") announced today the commencement of an underwritten secondary public offering of 19,000,000 common units representing limited partner interests in WES ("Common Units") by affiliates of Occidental (NYSE: OXY) (the "Selling Unitholders"). The Selling Unitholders intend to grant Barclays, as the underwriter, a 30-day option to purchase up to 2,850,000 additional Common Units from the Selling Unitholders. WES is not selling any Common Units in the offering and will not receive any proceeds from the sale of Common Units in the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed.

Barclays is acting as the sole book-running manager for the offering. The offering will be made only by means of the prospectus supplement and accompanying base prospectus, which is part of a shelf registration statement that became effective on March 30, 2023, copies of which may be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by phone at 1-888-603-5847 or by email at barclaysprospectus@broadridge.com. An electronic copy of the prospectus supplement and accompanying base prospectus is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT WESTERN MIDSTREAM

Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.

This news release contains forward-looking statements. WES and its general partner believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including risks and uncertainties associated with market conditions as they relate to the offering and the Selling Unitholders' ability to close successfully on the offering. See "Risk Factors" in WES's Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, and June 30, 2024, and other public filings and press releases. Except as required by law, WES does not undertake the obligation to publicly update or revise any forward-looking statements.

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations                   
Investors@westernmidstream.com
866-512-3523

Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866-512-3523

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SOURCE Western Midstream Partners, LP

FAQ

How many common units of WES are being offered in the secondary public offering?

The secondary public offering includes 19,000,000 common units of Western Midstream Partners, LP (WES), with an option for the underwriter to purchase up to 2,850,000 additional units.

Who is selling the WES common units in this offering?

The common units are being sold by affiliates of Occidental (NYSE: OXY), referred to as the Selling Unitholders in the announcement.

Will Western Midstream Partners (WES) receive any proceeds from this offering?

No, Western Midstream Partners (WES) is not selling any common units in this offering and will not receive any proceeds from the sale of the units.

Who is the underwriter for the WES secondary public offering?

Barclays is acting as the sole book-running manager and underwriter for this secondary public offering of WES common units.