Form 4: Summit Midstream Executive Exercises Stock Options, Sells Shares to Cover Taxes

James David Johnston, an executive at Summit Midstream Corp, exercised stock options and sold a portion of the acquired shares to cover tax obligations.

Summary

• James David Johnston, an Executive VP at Summit Midstream Corp, exercised 10,795 restricted stock units on January 18, 2025.
• These units converted into common stock on a one-for-one basis.
• Following the exercise, 2,811 shares were sold at $41.57 per share to cover tax liabilities.
• After these transactions, Johnston directly owns 36,185 shares of Summit Midstream Corp.
• Johnston also holds 91,950 restricted stock units from various tranches with different vesting dates.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing related to executive stock transactions, and does not indicate any positive or negative sentiment.

Industry Context

This is a routine filing related to executive compensation and is common practice for publicly traded companies.

Comparison to Industry Standards

• Executive stock option exercises and subsequent sales to cover taxes are standard practice across publicly traded companies.
• The vesting schedule of one-third of the restricted stock units vesting on the first anniversary and the remainder on the second and third anniversaries is a common vesting structure.
• Similar transactions are regularly reported by executives at comparable midstream companies such as Energy Transfer (ET) and Kinder Morgan (KMI).

Stakeholder Impact

• The transaction has a minor impact on the total number of shares outstanding.
• The sale of shares by an executive could be perceived as a slight negative by some investors, but is a normal part of executive compensation.

Key Dates

Keywords

stock options, restricted stock units, insider trading, executive compensation, Summit Midstream Corp, SMC, Form 4