Occidental Petroleum Corporation OXY and Western Midstream Partners, LP WES have entered into an agreement to maximize the value of shareholders and unitholders. Per the agreement, the firm will exchange 98% interest in the $260 million 6.50% fixed-rate note receivable due 2038 from Occidental for 27.855 million Western Midstream common units owned by the former. The units will be canceled following the exchange. This deal will be beneficial for both the entities. Further, the deal will aid Occidental in achieving its debt reduction goal, strengthening the balance sheet and lowering annual interest expenses by $16.9 million. Also, this transaction will increase the firm's per-annum free cash flow after distributions by nearly $18.1 million, based on current per-unit annualized distributions. The above exchange will allow Occidental to further lower debt burden.