Form 4: USA Compression Partners Executive Exercises Phantom Units, Sells Some for Cash and Stock

Eric A. Scheller, a Vice President and Chief Operating Officer at USA Compression Partners, exercised phantom units, receiving both cash and common units.

Summary

• Eric A. Scheller, a Vice President and Chief Operating Officer at USA Compression Partners, exercised phantom units on December 20, 2024.
• He received 12,578 common units and 28,917 common units from two separate phantom unit grants.
• He sold 6,289 common units and 14,459 common units for $23.21 each.
• The phantom units were awarded on December 5, 2019 and December 5, 2021.
• Some of the phantom units vested on December 5, 2024, and the remainder will vest on December 5, 2026.
• The executive settled approximately 50% of his newly vested phantom units for cash and the rest for common units.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing detailing an executive's stock transactions, which is neither positive nor negative in itself.

Management Comments

• The Reporting Person is the Vice President and Chief Operating Officer 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 is a standard SEC Form 4 filing, which is common for executives exercising stock options or phantom units in publicly traded companies. It reflects routine compensation practices.

Comparison to Industry Standards

• The vesting schedule of the phantom units, with some vesting immediately and others vesting later, is a common practice in executive compensation packages.
• The sale of some units for cash and the retention of others as stock is also a typical approach for executives exercising their options or phantom units.
• The price of $23.21 per unit is specific to this transaction and would need to be compared to the market price of USAC at the time to assess if it was a fair market value.

Stakeholder Impact

• The transaction has a minor impact on shareholders as it involves the issuance and sale of a relatively small number of common units.
• The transaction is part of the executive's compensation package and does not have a significant impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

phantom units, common units, insider trading, executive compensation, USA Compression Partners, USAC, SEC Form 4