Western Gas Partners, now known as Western Midstream Partners, began its journey in the energy sector on August 21, 2007, through its formation by Anadarko Petroleum Corporation. This marked the inception of an entity that would evolve significantly over the years to become a key player in midstream operations. The initial public offering followed in May 2008, when Western Gas Partners, LP, commenced trading on the New York Stock Exchange (NYSE) as a master limited partnership (MLP) under the ticker symbol WES. This move was a pivotal step in establishing Western Gas Partners as a publicly traded entity focused on midstream energy assets.
The Genesis of Western Gas Equity Partners
Expanding its corporate structure, Anadarko Petroleum formed Western Gas Equity Partners, LP, as another MLP on September 11, 2012. A month later, this new entity, trading on the NYSE under the ticker symbol WGP, took on the role of the publicly traded general partner of WES Operating. This strategic maneuver further refined the operational and financial framework of Western Gas Partners, setting the stage for future growth and structural changes within the organization.
Simplification and Transition to Western Midstream Partners
A significant simplification transaction on February 28, 2019, brought about a transformative phase for Western Gas Partners. WES Operating merged into a wholly owned subsidiary of WES, with WES Operating surviving this consolidation. Through this merger, WES acquired the remaining common units of WES Operating, streamlining ownership, except for a 2.0% limited partner interest retained by an indirect subsidiary of Anadarko. Following this pivotal transaction, Western Gas Equity Partners, LP, underwent a name change to Western Midstream Partners, LP. Simultaneously, Western Gas Partners, LP, became Western Midstream Operating, LP. The ticker symbol WES, previously associated with the common units of WES Operating, ceased trading, and the common units of WES, formerly traded under WGP, began trading under the current WES ticker. This transition marked a clear shift in brand identity and operational structure, solidifying the move towards Western Midstream Partners.
Evolution and Strategic Independence
Throughout its history, Anadarko Petroleum strategically contributed diverse assets and subsidiary ownership interests to Western Gas Partners. These foundational entities remain integral to Western Midstream Partners’ organizational framework today. For detailed insights into WES’s current assets and subsidiaries, the latest Form 10-K provides comprehensive information.
In August 2019, Occidental Petroleum (Oxy) acquired Anadarko and Western Gas Partners. Subsequently, both entities embarked on a collaborative path to establish themselves as standalone operations. By December 2019, Western Midstream became an independent midstream organization. This was achieved through a series of agreements with Occidental, empowering Western Midstream to function as a self-sufficient business. These agreements facilitated the direct employment of the company’s workforce and management team by Western Midstream, rather than Oxy. This crucial step enabled independent managerial control over strategic initiatives and daily operations. Currently, Western Midstream employs over 1,200 individuals and is headquartered in The Towers at the Waterway in The Woodlands, Texas, just north of Houston.
Western Midstream Partners has achieved numerous significant milestones since its inception in 2008. Recent highlights include the acquisition of Meritage Midstream and its assets in the Powder River Basin in 2023, and the commencement of Train III operations at the Mentone Plant in West Texas in 2024. These milestones underscore the continuous growth and strategic expansion of Western Midstream in the energy sector.
