Customer concentration and counterparty credit risk
A large share of revenues and throughput is tied to Occidental and related affiliates.
- Scope
- Occidental-related gathering, processing, transportation, and disposal agreements
- Materiality
- high
Western Midstream Partners, LP
Western Midstream Partners, LP is a U.S.-based midstream energy partnership that gathers, compresses, treats, processes, and transports natural gas and also handles condensate, NGLs, crude oil, and produced water. Its asset base is concentrated in Texas, New Mexico, and the Rocky Mountains, with a mix of wholly owned systems, operated interests, and equity investments.
60,2 %
30,7 %
+6,6 %
1.34
1.34
| % | |
|---|---|
| Natural gas services | 45% Gathering, compressing, treating, processing, and transporting natural gas. |
| Liquids services | 25% Gathering, stabilizing, and transporting condensate, NGLs, and crude oil. |
| Produced-water services | 20% Collecting, recycling, treating, supplying, and disposing of produced water. |
| Commodity handling and other revenues | 10% Buying and selling residue, NGLs, and condensate under certain contracts. |
The company serves upstream oil and gas producers that need takeaway, processing, and water-handling infrastructure to...
- Occidental and affiliatesprimary
Primary contracting counterparty for gathering, processing, transportation, and disposal volumes across multiple systems.
- Other working-interest ownerssecondary
Additional volumes moving through Occidental-dedicated infrastructure and related facilities.
- Upstream oil and gas producerssecondary
Buy midstream services to gather, process, transport, and dispose of production.
- Water-handling customerssecondary
Use produced-water gathering, treatment, recycling, and disposal systems.
Western Midstream’s operations are concentrated in U.S. producing basins, especially Texas and New Mexico, with...
- •Texas is a core operating area, including West Texas systems
- •New Mexico supports natural gas, liquids, and water infrastructure
- •Rocky Mountains assets span Colorado, Utah, and Wyoming
- •Operations are basin-based and depend on local producer activity
- •Asset mix includes gathering, processing, pipelines, and water systems
The company’s strategy centers on operating reliable fee-based midstream systems, expanding and optimizing basin...
01
Expand and optimize midstream infrastructuremedium-term
Higher utilization and new connections support throughput growth and network relevance.
02
Integrate acquired assetsshort-term
Acquisitions can broaden the service offering and increase basin scale if integration succeeds.
03
Preserve fee-based contract structurelong-term
Contracted volumes and minimum commitments support more stable midstream economics.
The business is exposed to customer concentration, especially Occidental, so counterparty performance and volume...
Acquisition integration risk
Combining acquired assets can create operational, regulatory, and liability issues.
- Scope
- Aris acquisition and related integration activities
- Materiality
- high
Construction and permitting risk
New midstream assets depend on regulatory approvals, downstream connectivity, and local conditions.
- Scope
- Expansion projects and new basin infrastructure
- Materiality
- medium
Cybersecurity and operational disruption
Pipeline and processing networks rely on control systems and continuous operations.
- Scope
- Gathering, processing, and water-handling systems
- Materiality
- medium
Business combination fair value accounting
Affects purchase accounting, goodwill/intangibles, and future depreciation or amortization
Long-lived asset and equity investment impairment
Can materially reduce reported earnings and asset carrying values
Asset retirement obligations
Affects liabilities, accretion expense, and capitalized asset balances
Revenue from fee-based contracts and deficiency payments
Can create quarter-to-quarter variability in service revenues
Summit Midstream Corp
SMC · Natural Gas Transmission
Summit Midstream Corp owns and operates midstream energy infrastructure in the continental United States, with assets concentrated in shale and other unconventional resource basins.
NGL Energy Partners LP
NGL · Natural Gas Transmission
NGL Energy Partners LP is a Delaware master limited partnership that operates midstream energy assets in the United States and Canada.
PLAINS ALL AMERICAN PIPELINE LP
PAA · Pipe Lines (No Natural Gas)
Plains All American Pipeline LP is a U.S.-based midstream energy partnership that gathers, transports, stores, and terminates crude oil and, to a lesser extent, natural gas liquids.
Hess Midstream LP
HESM · Crude Petroleum & Natural Gas
Hess Midstream LP is a fee-based midstream partnership that owns and operates gathering, processing, terminaling, storage and water-handling assets in the…
USA Compression Partners, LP
USAC · Natural Gas Transmission
USA Compression Partners, LP is a Delaware limited partnership that provides natural gas compression services across the United States.
DT Midstream, Inc.
DTM · Natural Gas Transmission
: 29/04/2026