Form 4: ONE Gas Executive Kouplen Receives Performance and Restricted Unit Awards

Angela Kouplen, a Senior Vice President at ONE Gas, Inc., was granted performance and restricted unit awards under the company's equity compensation plan.

Summary

• Angela Kouplen, Senior Vice President and Chief Human Resources Officer of ONE Gas, Inc., received performance and restricted unit awards on February 18, 2025.
• The awards were granted under the Issuer's Amended and Restated Equity Compensation Plan (2018).
• 2,307 performance units were awarded, vesting on February 19, 2028, based on the company's total shareholder return compared to a peer group over a three-year period from January 1, 2025, to December 31, 2027.
• 1,538 restricted units were awarded, vesting on February 19, 2028.
• Both awards will be credited with dividend equivalents during the vesting period, payable in common stock.
• The price of both the performance units and restricted units was $71.53.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a stable and ongoing operation. The sentiment is neutral to slightly positive as it suggests alignment of management interests with shareholders.

Positives

• The equity awards align executive compensation with company performance and shareholder returns.
• The vesting period encourages long-term commitment from the executive.
• Dividend equivalents provide additional value to the awards.

Future Outlook

The performance units' value will depend on ONE Gas's total shareholder return compared to its peer group over the performance period ending December 31, 2027.

Industry Context

Equity compensation is a common practice in the energy industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Companies like Atmos Energy (ATO) and Southwest Gas (SWX) also utilize performance-based equity awards to incentivize executives.
• The vesting period of three years is fairly standard in the industry.
• The performance metrics tied to shareholder return are also common among peer companies.

Stakeholder Impact

• Shareholders: The equity awards aim to align management's interests with shareholder value creation.
• Employees: The awards may serve as a motivation for other employees, demonstrating the company's commitment to rewarding performance.

Key Dates