Form 4: CrossAmerica Partners Director Receives Phantom Unit Grant

CrossAmerica Partners LP Director Justin A. Gannon was granted 3,154 phantom units, aligning his interests with common unitholders.

Summary

• Justin A. Gannon, a Director of CrossAmerica Partners LP (CAPL), was granted 3,154 phantom units on July 23, 2025.
• Each phantom unit is the economic equivalent of one common unit representing a limited partner interest in CrossAmerica Partners L.P.
• The phantom units are accompanied by tandem distribution equivalent rights, entitling the holder to cash payments equal to distributions paid to common unitholders.
• The phantom units were acquired at a price of $0, as they represent a compensation grant.
• Following this transaction, Mr. Gannon beneficially owns 36,528 derivative securities, specifically phantom units.

Sentiment

Score: 6

Explanation: Slightly positive, as it represents a standard compensation grant that aligns director interests with unitholders, which is generally viewed favorably for corporate governance.

Positives

• The grant of phantom units to Director Justin A. Gannon aligns his financial interests with those of common unitholders, as each phantom unit is the economic equivalent of one common unit.
• The inclusion of tandem distribution equivalent rights ensures the director benefits from distributions, further aligning interests with unitholder returns.

Future Outlook

The granted phantom units are scheduled to vest in one annual installment on the first anniversary of the grant date, provided the reporting person maintains continuous service as a director. Upon vesting, the units will be converted into either cash or common units at the discretion of the Issuer.

Industry Context

The grant of equity-based compensation, such as phantom units, to directors is a common practice across various industries, including the energy midstream sector where CrossAmerica Partners operates. This practice aims to align the interests of company leadership with those of shareholders/unitholders, encouraging long-term value creation.

Comparison to Industry Standards

• The use of phantom units with distribution equivalent rights is a standard form of long-term incentive compensation for directors in master limited partnerships (MLPs) and similar structures, comparable to practices at companies like Plains All American Pipeline, L.P. (PAA) or Energy Transfer LP (ET).
• The vesting schedule, typically an annual installment, is consistent with common industry practices for director equity grants, promoting retention and sustained engagement.

Stakeholder Impact

• Shareholders/Unitholders: The grant aligns the director's interests with unitholders, potentially leading to more shareholder-friendly decisions and long-term value creation.
• Employees: No direct impact on general employees is indicated by this filing.

Next Steps

• The phantom units are expected to vest on the first anniversary of the grant date (July 23, 2026), contingent on continuous service.
• Upon vesting, the Issuer will determine whether to convert the phantom units into cash or common units.

Key Dates

Keywords

CrossAmerica Partners LP, CAPL, Justin A. Gannon, Director, Phantom Units, Equity Compensation, SEC Form 4, Insider Transaction, Limited Partnership, Distribution Equivalent Rights