Form 4: Kinetik Holdings Inc. Executive Howard Trevor Reports Acquisition of Class A Common Stock and Performance Share Units

Howard Trevor, Chief Financial Officer of Kinetik Holdings Inc., reports the acquisition of Class A Common Stock and Performance Share Units, including shares awarded in lieu of cash and restricted stock units.

Summary

• On March 7, 2024, Howard Trevor, the Chief Financial Officer of Kinetik Holdings Inc., reported transactions involving the company's Class A Common Stock.
• Trevor acquired 6,427 shares of Class A Common Stock as a fully vested award in lieu of a cash settlement for the 2023 annual incentive award.
• He also acquired 11,445 restricted stock units (RSUs) under the Kinetik Holdings Inc. 2019 Omnibus Compensation Plan, which will vest on January 1, 2027, subject to continued employment.
• These RSUs can be settled for Class A Common Stock on a one-for-one basis.
• Additionally, Trevor acquired 3,227 performance share units (PSUs), representing a contingent right to receive one share of Class A Common Stock each.
• The number of PSUs that vest, between 0% and 200% of the target, depends on the company's annualized total shareholder return from January 1, 2024, through December 31, 2026.
• The report also includes 3,840 shares acquired under the Issuer's Dividend and Distribution Reinvestment Plan after the Reporting Person's immediately prior Form 5 filing, which were not previously reported.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The transactions reflect standard executive compensation practices and align executive interests with shareholder value through performance-based incentives. There are no overtly negative implications.

Positives

• The acquisition of shares and RSUs by a key executive could be seen as a positive sign of confidence in the company's future performance.
• The performance-based vesting of PSUs aligns executive compensation with shareholder returns, incentivizing value creation.

Risks

• The vesting of RSUs is contingent on continued employment, which introduces a risk of forfeiture if the executive leaves the company before the vesting date.
• The ultimate number of PSUs that vest depends on the company's total shareholder return, which is subject to market fluctuations and other external factors.

Future Outlook

The vesting of RSUs and PSUs is tied to future employment and company performance, indicating a focus on long-term value creation.

Industry Context

Executive compensation packages often include a mix of cash, stock, and performance-based incentives to align management interests with those of shareholders. This filing reflects that common practice.

Stakeholder Impact

• Shareholders may view the executive's acquisition of shares and performance-based units as a positive sign of alignment with their interests.
• Employees may see the compensation structure as an incentive for management to drive company performance.

Key Dates