Business Context and Reporting Period
Company: Western Midstream Partners, LP (WES)
Filing Type: Form 8-K (Current Report)
Report Date: May 9, 2019
Context: This filing reports a significant corporate event involving Anadarko Petroleum Corporation, the indirect general partner and majority unitholder of Western Midstream Partners, LP.
Key Financial Metrics
This filing is a current report regarding a corporate transaction and does not contain financial statements. Consequently, the filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
- Termination of Prior Merger: On May 9, 2019, Anadarko terminated its agreement and plan of merger with Chevron Corporation.
- New Merger Agreement: On the same date, Anadarko entered into the "Occidental Merger Agreement" with Occidental Petroleum Corporation.
- Transaction Structure: A wholly owned subsidiary of Occidental will merge with and into Anadarko. Anadarko will continue as the surviving corporation and become a wholly owned subsidiary of Occidental.
- Consideration: Anadarko shareholders will receive a combination of cash and shares of Occidental common stock.
Guidance, Outlook, and Risks
- Expected Closing: Anadarko expects the merger to close in the second half of 2019.
- Conditions Precedent: The transaction is subject to Anadarko shareholder approval, regulatory approvals, and other customary closing conditions.
- Impact on Western Midstream: As Anadarko is the majority unitholder, this transaction represents a change in ultimate control for Western Midstream Partners, LP, though specific operational impacts are not detailed in this filing.
Key Facts for Investor Verification
- Confirm the specific terms of the cash and stock consideration offered to Anadarko shareholders.
- Monitor the status of regulatory approvals required for the Occidental merger.
- Verify the timeline for Anadarko shareholder voting on the merger.
- Assess potential changes to Western Midstream's capital structure or distribution policy resulting from the change in majority ownership.