Form 4: ONE Gas Executive McCormick Reports Stock Transactions Following Vesting of Performance and Restricted Units

Joseph L. McCormick, a Senior Vice President at ONE Gas, reported the vesting and subsequent transactions of performance and restricted units, along with the acquisition of new performance and restricted units.

Summary

• On February 18, 2025, Joseph L. McCormick, a Senior Vice President at ONE Gas, reported transactions involving ONE Gas common stock.
• These transactions included the vesting of performance units (2022) resulting in 2,745.408 shares and restricted units (2022) resulting in 1,372.148 shares.
• The transactions also included the disposal of shares to cover tax obligations related to the vesting of these units, with 1,297.132 shares disposed of related to performance units and 605.116 shares disposed of related to restricted units.
• Additionally, McCormick acquired new performance units (2025) for 4,697 shares and restricted units (2025) for 3,132 shares.
• The price for all transactions was $71.53 per share.
• Following these transactions, McCormick directly owns 72,296.376 shares of ONE Gas common stock and indirectly owns 3,570 shares through a 401(k) plan.
• He also holds 4,697 performance units (2025) and 3,132 restricted units (2025).

Sentiment

Score: 6

Explanation: The document reflects standard executive compensation practices. The vesting of performance units is a positive sign, but the sale of shares to cover taxes is neutral. Overall, the sentiment is moderately positive.

Positives

• The vesting of performance and restricted units indicates that the company is meeting certain performance metrics, at least partially, as defined in the equity compensation plan.

Future Outlook

The reporting person holds performance and restricted units that will vest in the future based on company performance and continued employment.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are closely monitored by investors for insights into management's confidence in the company's future prospects. Vesting of performance-based equity awards suggests the company is achieving certain pre-defined goals.

Comparison to Industry Standards

• Equity compensation plans are standard practice across the industry, with vesting schedules and performance metrics varying based on company-specific goals and industry benchmarks.
• Companies like Atmos Energy (ATO) and Southwest Gas (SWX) also utilize equity compensation plans to align executive incentives with shareholder value.

Stakeholder Impact

• The vesting of performance units can positively impact shareholders if it reflects strong company performance.
• Employees may be motivated by the potential for future equity awards.

Next Steps

• The 2025 performance units will vest on February 19, 2028, based on the company's total shareholder return compared to a peer group over the period from January 1, 2025, through December 31, 2027.
• The 2025 restricted units will vest on February 19, 2028.

Key Dates