Form 4: USA Compression Partners Director Acquires Restricted Units

Director John L. Wortham acquired 4,494 restricted common units of USA Compression Partners, LP, which will vest over time.

Summary

• John L. Wortham, a director of USA Compression Partners, LP, acquired 4,494 restricted common units on January 2, 2025.
• These units were granted under the company's Long-Term Incentive Plan.
• The units will vest in two tranches: 60% on December 5, 2027, and 40% on December 5, 2029.
• Vesting is contingent upon Mr. Wortham's continued service on the board or with an affiliate of USA Compression Partners, LP.

Sentiment

Score: 7

Explanation: The document reflects a standard practice of granting restricted units to a director, which is generally viewed positively as it aligns interests. There are no negative implications.

Positives

• The grant of restricted units aligns the director's interests with the long-term performance of the company.
• The vesting schedule encourages continued service and commitment from the director.

Risks

• The value of the restricted units is subject to the market price of USA Compression Partners, LP common units.
• If Mr. Wortham ceases to serve on the board or with an affiliate before the vesting dates, he may forfeit the unvested units.

Future Outlook

The restricted units will vest over time, contingent on continued service, aligning the director's interests with the company's long-term performance.

Management Comments

• The Reporting Person is a director of USA Compression GP, LLC, the general partner of the Issuer.
• The Issuer is managed by the directors and executive officers of the General Partner.

Industry Context

This type of equity grant is common practice for aligning the interests of directors and management with the long-term success of the company in the energy sector.

Comparison to Industry Standards

• Many companies in the energy sector, such as Kinder Morgan and Enterprise Products Partners, use similar long-term incentive plans to reward and retain key personnel.
• The vesting schedule of 60% after approximately 3 years and 40% after approximately 5 years is a fairly standard approach for restricted unit grants.
• The use of restricted units is a common method to align the interests of directors with the long-term performance of the company, similar to practices seen in other publicly traded partnerships.

Stakeholder Impact

• Shareholders may view this positively as it aligns the director's interests with the long-term performance of the company.
• The director is incentivized to contribute to the company's success to realize the value of the restricted units.

Next Steps

• The director will need to continue serving on the board or with an affiliate to vest in the restricted units.
• The company will need to track the vesting schedule and ensure compliance with the incentive plan.

Key Dates

Keywords

restricted units, insider trading, director, long-term incentive plan, vesting, USA Compression Partners, USAC