Yes, Western Midstream is indeed a Master Limited Partnership (MLP). This designation is central to its operational and financial structure.
Understanding Western Midstream's Structure
As a Master Limited Partnership, Western Midstream operates with a specific business model common in the energy sector, particularly for infrastructure assets. Its general manager is a subsidiary owned by Occidental Petroleum (OXY), highlighting a significant connection to a major player in the oil and gas industry.
Western Midstream's Core Operations
Western Midstream focuses primarily on natural gas transportation. Its extensive asset portfolio is designed to support the gathering, processing, and transportation of natural gas, which are crucial activities in the energy value chain.
Here's an overview of its key operational assets:
- Natural Gas Gathering Systems: The company owns 21 natural gas gathering systems, which are networks of pipelines used to collect natural gas from production wells.
- Pipelines: In addition to gathering systems, Western Midstream operates various pipelines for transporting natural gas over longer distances.
- Processing and Treating Facilities: It boasts 70 processing and treating facilities. These facilities are essential for refining natural gas by removing impurities and separating valuable components, making it suitable for market.
Key Aspects of Western Midstream
To provide a clearer picture, here's a summary of Western Midstream's defining characteristics:
| Aspect | Description |
|---|---|
| Entity Type | Master Limited Partnership (MLP) |
| General Manager Link | Subsidiary owned by Occidental Petroleum (OXY) |
| Primary Business Focus | Natural gas-focused transportation |
| Asset Portfolio | 21 natural gas gathering systems, pipelines, 70 processing/treating facilities |
