Western Midstream: The Unbearable Tightness Of Oxy's Embrace - Yet Still Appealing
Portfolio Pulse from
Western Midstream (WES) offers a high yield and strong fundamentals, with potential for increased distributions in 2025. However, its affiliation with Occidental Petroleum (OXY) poses risks due to potential conflicts of interest and uncertainty about OXY's intentions to divest its WES stake. Recent developments, including OXY's partial sale of WES units and CEO transitions, have created market uncertainty but also potential investment opportunities.
November 20, 2024 | 10:45 pm
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NEUTRAL IMPACT
Occidental Petroleum's partial sale of WES units and CEO transitions have created market uncertainty. The company's intentions regarding its WES stake remain unclear, posing potential risks and opportunities for investors.
OXY's partial sale of WES units and CEO transitions introduce uncertainty. The unclear intentions regarding its WES stake create a neutral short-term outlook, as these factors could lead to both risks and opportunities.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Western Midstream offers a high yield and strong fundamentals, with potential for increased distributions in 2025. However, its affiliation with Occidental Petroleum poses risks due to potential conflicts of interest and uncertainty about OXY's intentions to divest its WES stake.
WES's strong fundamentals and potential for increased distributions are positive, but the risks associated with its affiliation with OXY, including potential conflicts of interest and uncertainty about OXY's divestment intentions, create a neutral short-term outlook.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80