Warren Buffett has received approval from FERC to buy up to 50% of Occidental Petroleum.
-an electric and natural gas transmission company, in 1999 was his entry into the energy business. In the intervening years, he has made a number of other buys in this space, and currently, BHE Pipeline group is an energy juggernaut with 21,000 miles of gas transmission lines. An article carried innoted in regard to where Buffett was likely to spend some of his, then-$49 bn cash hoard, “
While not spectacular earners, regulated utilities tend to be steady, reliable cash generators, a feature Buffett likes.” In spite of a lot of speculation the deal-making for which Buffett is famous, encountered a multi-year dry spell in the energy space that lasted until 2020. In 2020 Buffett broke the dry spell and made a bit of a splash with his ~$10 bn acquisition a couple of years ago of ~s, pipelines. As you can see in the graphic below, with 21K miles of pipelines BHE is one of the largest energy transmission companies in the U.S. What does this have to do with OXY, you may ask?
OXY owns 51% of Western Midstream Partners, , which as you can see below fills a significant gap in BHE's footprint. WES assets include extensive gathering lines in the Delaware basin, a sub-basin of the Permian basin, and the DJ basin in Colorado that feed into the Cactus Pipeline that terminates in Corpus Christie, Tex. A hub for crude oil export and.
WES controls key export infrastructure to markets that BHE does not currently serve and would fit right into their framework without any overlap. With little overlap, the deal would probably pass Federal Trade Commission-FTC and other regulatory agencies' review. As big as BHE is, it is still a relatively minor player in the pipeline space.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. Natural Gas Jumps To $10 For The First Time Since 2008 | OilPrice.comU.S. natural gas futures hit $10 per million British thermal units (MMBtu) early on Tuesday, jumping briefly above that threshold for the first time since 2008
Read more »
Big Tech Is Under Pressure To Turn Its Back On Big Oil | OilPrice.comBig Tech has come under fire for helping Big Oil produce more oil, a move that appears to go counter to the promises tech companies have made about reducing emissions.
Read more »
U.S. Strategic Petroleum Reserve Falls To 35-Year Low | OilPrice.comThe United States’ Strategic Petroleum Reserve (SPR) now has only 453.1 million barrels in its inventory, following another significant drop in the past week that puts the emergency reserve at a low not seen in three and a half decades
Read more »
Iran Accuses The EU And U.S. Of Stalling Nuclear Talks | OilPrice.comTehran has long sought the return of more than a dozen Iranians currently held in the United States, while Washington has been seeking the release of several Iranian-American dual nationals.
Read more »
Leeds bowlers set trap to catch 'disrespectful' teenagers after destruction of memorial benchHarehills Park and Bowling Club said they had seen an “unprecedented level” of theft and destroyed property in the last eight months
Read more »
The Brompton, Engineering for ChangeReview: The Brompton, Engineering for Change - v.interesting & candid look behind the scenes of the BromptonBicycle company, by its CEO cycling
Read more »