Fitch puts Western Midstream on positive watch

Fitch Ratings said it placed Western Midstream Operating, LP's long-term issuer default rating and senior unsecured rating of BBB- on Rating Watch positive following news of an agreed plan for Chevron Corp. to acquire Western Midstream's sponsor Anadarko.

Anadarko currently owns about 55.5% of Western Midstream following the completion of the inter-family simplification at Western Midstream this year, the agency said.

The positive watch reflects the potential operating benefits and enhancement in counterparty exposure and ownership credit quality following the transaction, Fitch said.

Following the close of the Chevron acquisition, Western Midstream will largely be owned by an oil and gas major that has a significantly stronger credit profile and financial flexibility than Anadarko, the agency said.

Chevron's financial flexibility and access to capital markets will allow the company to deploy capital and ramp up production volumes in regions that have strong economic values, such as the Permian basin, Fitch said.

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