Western Midstream Partners, LP 8-K

What Happened Western Midstream Partners, LP (WES) reported that on January 16, 2026 its subsidiary Delaware Basin Midstream LLC (DBM) entered into an amendment to the Delaware Basin gas gathering agreement with Anadarko E&P Onshore LLC (AEP) that replaces a cost-of-service-based fee with a fixed-fee structure, adds a minimum volume commitment through the end of 2027, and revises certain acreage transfer/release processes. On the same date WES and Occidental-related parties executed a Unit Redemption Agreement providing for the transfer to, and redemption by, WES of approximately 15.3 million WES common units on February 3, 2026. Following the transactions, Occidental will indirectly own 37.2% of WES’s outstanding common units. The changes and related transactions were reviewed and approved by an independent Special Committee and the full board.

Key Details

• Amendment executed January 16, 2026 to the gas gathering agreement originally effective January 1, 2018.
• Fee change: cost-of-service-based gathering fee replaced with a fixed-fee structure.
• New minimum volume commitment runs through the end of 2027.
• Unit Redemption Agreement (dated January 16, 2026) calls for redemption on February 3, 2026 of ~15.3 million WES common units; Occidental to indirectly hold 37.2% post-transaction.
• Related arrangements include DBM gathering/processing certain volumes already on DBM’s system and conforming changes to processing agreements with Occidental subsidiaries.

Why It Matters These agreements can affect WES’s near-term and medium-term cash flow stability and ownership structure. The fixed-fee and minimum volume commitment could provide more predictable gathering revenue through 2027 (reducing exposure to cost fluctuations), while the unit redemption reduces the public float and increases Occidental’s ownership stake to 37.2%, which may have governance and liquidity implications for holders of WES common units. The transactions were approved by an independent Special Committee, indicating they were reviewed for fairness to WES unitholders.