Form 4: Diamondback Energy CFO Jere W. Thompson III Reports Stock Transactions Following Vesting of Restricted Stock Units
SEC Form 4 Filing
Diamondback Energy's CFO, Jere W. Thompson III, reports acquisition and disposal of company stock related to the vesting and tax withholding of restricted stock units.
Summary
- On March 4, 2025, Jere W. Thompson III, CFO and Executive VP of Diamondback Energy, Inc., filed a Form 4 detailing changes in his beneficial ownership of the company's common stock.
- The reported transactions occurred on March 1, 2025, and involve the acquisition of shares through the vesting of restricted stock units (RSUs) and the subsequent disposal of shares to cover tax withholding obligations.
- Thompson acquired 5,445 shares of common stock related to restricted stock units vesting in three equal installments beginning on March 1, 2025.
- He also acquired 6,345 shares of common stock related to performance-based restricted stock units that vested on December 31, 2024, and settled on March 1, 2025.
- To satisfy tax obligations, the issuer withheld 2,491 shares related to the performance-based restricted stock units, 363 shares related to the third tranche of time-based restricted stock units granted on March 1, 2023, 518 shares related to the second tranche of time-based restricted stock units granted on March 1, 2024, and 715 shares related to the first tranche of time-based restricted stock units granted on March 1, 2025.
- Following these transactions, Thompson directly owns 15,288 shares of Diamondback Energy common stock.
Sentiment
Score: 7
Explanation: The document is a standard SEC filing related to executive compensation. It doesn't contain any information that would significantly impact investor sentiment positively or negatively. The transactions are routine and expected.
Industry Context
This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies within the energy sector.
Comparison to Industry Standards
- Executive compensation packages including restricted stock units are standard practice among publicly traded oil and gas companies such as EOG Resources, Pioneer Natural Resources, and ConocoPhillips.
- The vesting schedules and performance metrics associated with these RSUs are typically aligned with the company's long-term strategic goals and shareholder value creation.
- Tax withholding practices related to RSU vesting are consistent across the industry, with companies generally withholding shares based on the fair market value of the stock on the vesting date.
Key Dates
| Date | Description |
|---|---|
| 2022-01-01 | Start of performance period for performance-based restricted stock units. |
| 2022-03-01 | Date of grant for performance-based restricted stock units. |
| 2023-03-01 | Date of grant for time-based restricted stock units (third tranche). |
| 2024-03-01 | Date of grant for time-based restricted stock units (second tranche). |
| 2024-12-31 | Vesting date for performance-based restricted stock units. |
| 2025-02-28 | Date used for closing price of Diamondback Energy common stock to determine tax withholding. |
| 2025-03-01 | Date of transactions: vesting of RSUs and tax withholding. |
| 2025-03-01 | Date of grant for time-based restricted stock units (first tranche). |
| 2025-03-04 | Date of Form 4 filing. |
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