Form 4: USA Compression Partners Executive Receives Stock and Cash Unit Awards

Eric A. Scheller, a Vice President and Chief Operating Officer at USA Compression Partners, received awards of restricted stock units and cash units as part of a long-term incentive plan.

Summary

• Eric A. Scheller, Vice President and Chief Operating Officer of USA Compression GP, LLC, received 28,310 restricted common units and 9,440 cash units.
• The restricted common units will vest 60% on December 5, 2027, and 40% on December 5, 2029, contingent on continued employment.
• The cash units will vest in three equal installments on December 5, 2025, December 5, 2026, and December 5, 2027, also contingent on continued employment.
• The cash units will be settled in cash based on the average closing price of common units for the ten trading days before each vesting date.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align management interests with shareholders. There are no indications of negative sentiment.

Positives

• The awards align executive compensation with long-term company performance.
• The vesting schedule encourages continued employment and commitment from the executive.
• The use of both stock and cash units provides a balanced incentive structure.

Risks

• The vesting of the awards is contingent on continued employment, which could be a risk if the executive leaves the company before the vesting dates.

Future Outlook

The document does not contain any specific forward-looking statements beyond the vesting schedule of the awards.

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 type of equity and cash-based compensation is common in the energy sector to incentivize executives and align their interests with those of the company and its shareholders.

Comparison to Industry Standards

• Many companies in the energy sector, such as Kinder Morgan, Enterprise Products Partners, and Williams Companies, use similar long-term incentive plans that include restricted stock and cash-based awards.
• The vesting schedules and performance conditions are generally in line with industry practices, aiming to retain key talent and drive long-term value creation.
• The specific amounts and vesting terms may vary based on company size, performance, and individual executive roles.

Stakeholder Impact

• Shareholders may view the awards positively as they incentivize management to improve company performance.
• Employees may see the awards as a sign of the company's commitment to its leadership.

Key Dates

Keywords

USA Compression Partners, Executive Compensation, Restricted Stock Units, Cash Units, Long-Term Incentive Plan, Vesting, Form 4, Insider Trading