Form 4: Director Settles Suburban Propane Phantom Units

Suburban Propane Partners LP Director William M. Landuyt settled 2,354 phantom units for cash at $18.83 per unit.

Summary

• William M. Landuyt, a Director at Suburban Propane Partners LP (SPH), reported a change in beneficial ownership.
• On November 14, 2025, 2,354 phantom units vested and were converted into cash.
• The transaction involved the deemed acquisition and subsequent disposition of 2,354 common units at a price of $18.83 per unit, representing the cash settlement of the phantom units.
• Following these transactions, Landuyt beneficially owns 74,195 common units.
• Phantom units vest one-third on each of the first three anniversaries of the grant date, subject to continuous employment or service, and are automatically converted into cash based on the average trading price on the vesting date.

Sentiment

Score: 5

Explanation: Neutral. This is a routine insider transaction related to compensation, not indicative of operational performance or strategic shifts.

Positives

• The vesting of phantom units indicates a director's continued service and the execution of a pre-established compensation plan.

Negatives

• The disposition of common units for cash by a director, while routine for compensation, reduces their direct equity stake in the company.

Future Outlook

The vesting schedule for phantom units indicates that one-third vest on each of the first three anniversaries of the grant date, implying potential future vesting events for remaining phantom units held by the reporting person.

Management Comments

• One third of the phantom units vest on each of the first three anniversaries of the grant date, subject to continuous employment or service of the reporting person from the grant date through the applicable payment date.
• Upon vesting, phantom units are automatically converted into cash equal to the average of the highest and lowest trading prices of the Issuer's Common Units on the vesting date.

Industry Context

This transaction is a routine insider compensation event, common across all industries for public company directors and executives, and does not provide specific insights into broader industry trends for Suburban Propane Partners LP.

Comparison to Industry Standards

• The use of phantom units as a form of equity compensation is a standard practice for public companies, aligning director interests with shareholder value.
• Cash settlement of vested equity awards is a common mechanism, often used to cover tax obligations or for liquidity, and is consistent with compensation practices in comparable companies.

Stakeholder Impact

• Shareholders: The transaction is a routine compensation event and is unlikely to have a significant direct impact on shareholder value, though it represents a minor reduction in the director's direct equity holdings.
• Director (William M. Landuyt): Received cash compensation from the settlement of vested phantom units.

Next Steps

• Future vesting events for remaining phantom units are implied by the stated vesting schedule.

Key Dates

Keywords

Suburban Propane Partners LP, SPH, Form 4, Insider Transaction, Director, Phantom Units, Equity Compensation, Beneficial Ownership