Form 4: Aris Water Solutions Officer Nicholas Patterson Reports Acquisition of Restricted Stock Units

Nicholas A. Patterson, Chief Commercial Officer of Aris Water Solutions, reports the acquisition of 31,780 restricted stock units (RSUs) under the company's 2021 Equity Incentive Plan.

Summary

• Nicholas A. Patterson, Chief Commercial Officer of Aris Water Solutions, Inc., filed a Form 4 on March 5, 2024, reporting a transaction that occurred on March 1, 2024.
• The transaction involved the acquisition of 31,780 shares of Class A Common Stock in the form of restricted stock units (RSUs).
• These RSUs were granted under the Aris Water Solutions, Inc. 2021 Equity Incentive Plan.
• The RSUs vest in three equal installments: one-third on March 1, 2025, one-third on March 1, 2026, and one-third on March 1, 2027.
• Following the reported transaction, Patterson beneficially owns 59,949 shares of Class A Common Stock directly.
• A power of attorney document was also filed, authorizing Amanda M. Brock, Stephan E. Tompsett, and Robert W. Hunt, Jr. to act on Patterson's behalf in matters related to SEC filings.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The RSU grant indicates confidence in the executive and the company's future, but it's a routine transaction.

Positives

• The grant of RSUs aligns the executive's interests with those of the shareholders, incentivizing long-term performance.
• The vesting schedule encourages continued service and commitment to the company over the next three years.

Future Outlook

The vesting schedule of the RSUs suggests an expectation of continued employment and contribution from the executive over the next three years.

Industry Context

Equity grants are a common practice in the industry to incentivize and retain key personnel. The vesting schedule is typical for such grants.

Comparison to Industry Standards

• Equity compensation is a standard practice across the oilfield services and water management industries.
• Companies like Select Water Solutions and Tetra Technologies also utilize equity grants as part of their compensation packages.
• The vesting schedule of one-third per year over three years is a common structure for RSU grants in similar companies.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it aligns management's interests with the company's long-term success.
• Employees may see the grant as a sign of the company's commitment to its leadership team.

Key Dates