Western Midstream Partners (WES)

Western Gas was formed by Anadarko Petroleum to own, operate, acquire and develop midstream energy assets. WES’s assets are located in West and South Texas, the Rocky Mountains (Colorado, Utah and Wyoming), North-Central Pennsylvania and the Mid-Continent (Kansas and Oklahoma), and WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as third-party producers and customers.Anadarko is the primary counter party for most Western Gas assets since they are drop-down from APC, with the exception of the Delaware Basin Midstream that was acquired from Nuevo Midstream.

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OXY's Swing to the DJ Could Lift Western Midstream

Occidental (OXY) recently added new rigs to its drilling program in the Denver-Julesburg (DJ) Basin, an unexpected development that could lift our outlook for Western Midstream (WES). For most of 2022, OXY had operated 1 rig on its DJ acreage.

This rig has been feeding Western’s DJ gathering system, which has been struggling to grow volumes. On Sept. 17, OXY added a second rig in the DJ, according to East Daley's Midstream Activity Tracker, and on Oct. 20, a third rig. This follows the overall trend in the DJ, with total rigs in the eastern Colorado-Wyoming basin increasing from 14 at the beginning of 2022 to 19 today.

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