Form 4: Western Midstream Partners CEO Michael Ure Donates 22,000 Common Units to Charity

Michael Ure, President & CEO of Western Midstream Partners, LP, reports a donation of 22,000 common units to a charitable institution on May 20, 2024, while maintaining beneficial ownership of a significant number of common and derivative securities.

Summary

• Michael Ure, the President & CEO of Western Midstream Partners, LP (WES), filed a Form 4 on May 20, 2024, detailing changes in his beneficial ownership of the company's securities.
• The report indicates that Ure donated 22,000 common units representing limited partner interests to a charitable institution.
• This transaction did not involve any monetary exchange, as the price is listed as $0.
• Following the transaction, Ure still beneficially owns 539,404 common units directly.
• Ure also holds a significant number of derivative securities, including phantom units and performance units, which are convertible into common units based on vesting schedules and performance metrics.
• These derivative securities include 2022, 2023, and 2024 Phantom Units, as well as performance units tied to Total Unit Return (TUR) and Return on Assets (ROA).

Sentiment

Score: 6

Explanation: The document itself is neutral, as it simply reports a transaction. The charitable donation could be seen as slightly positive, but it doesn't significantly impact the overall sentiment.

Positives

• The donation to a charitable institution could be viewed positively from a corporate social responsibility perspective.

Future Outlook

The document does not contain specific forward-looking statements, but it does detail the vesting schedules and performance-based criteria for Ure's derivative securities, which are tied to the company's future performance.

Industry Context

Form 4 filings are routine disclosures for corporate insiders and provide transparency into their transactions involving the company's securities. This particular filing indicates a charitable donation by the CEO, which is not uncommon.

Comparison to Industry Standards

• Comparing Ure's holdings and transactions to those of executives at similar midstream companies like Enterprise Products Partners (EPD) or MPLX LP (MPLX) would provide context on the scale of his ownership and the frequency of his transactions.
• Executive compensation packages in the midstream sector often include a mix of salary, equity, and performance-based incentives, so Ure's holdings of phantom and performance units are typical.
• Charitable donations of company stock are also not uncommon among executives, as they can provide tax benefits while supporting philanthropic causes.

Stakeholder Impact

• The donation of common units has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
• The charitable institution benefits from the donation.

Key Dates