Form 4: Western Midstream Partners Executive Daniel Holderman Reports Changes in Beneficial Ownership

Daniel Holderman, SVP & Chief Operating Officer of Western Midstream Partners, reports transactions involving common units and phantom units, resulting in adjustments to his beneficial ownership.

Summary

• On February 12, 2025, Daniel P. Holderman, SVP & Chief Operating Officer of Western Midstream Partners, engaged in transactions involving common units representing limited partner interests and derivative securities (phantom units).
• These transactions included the vesting of phantom units and the subsequent disposition of common units to cover tax obligations.
• Following these transactions, Holderman's direct ownership includes 35,748 common units.
• He also holds derivative securities including 10,819 2023 Phantom Units, 29,879 2024 Phantom Units, 16,228 2023 Performance Unit ROA, 16,228 2023 Performance Unit TUR, 22,409 2024 Performance Unit ROA, and 22,409 2024 Performance Unit TUR.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing transactions related to executive compensation. It doesn't contain overtly positive or negative information, hence a neutral sentiment score.

Future Outlook

The reporting person holds performance-based units that will vest based on the achievement of pre-established performance metrics over a 3-year performance period, potentially resulting in the receipt of between 0% and 200% of one WES Common Unit per performance unit.

Industry Context

This filing is a routine disclosure related to executive compensation and equity ownership, common in the energy and midstream sectors. It reflects the ongoing management incentives tied to company performance and shareholder value.

Comparison to Industry Standards

• Executive compensation packages in the midstream energy sector often include a mix of salary, stock options, restricted stock units (RSUs), and performance-based units.
• Companies like Enterprise Products Partners (EPD) and MPLX LP (MPLX) also utilize similar equity-based compensation structures to align management interests with those of unitholders.
• The vesting schedules and performance metrics associated with these units are typically designed to incentivize long-term value creation and operational efficiency.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders, as they primarily reflect internal compensation adjustments.
• However, the structure of executive compensation, including performance-based units, is designed to align management's interests with those of shareholders, potentially driving long-term value creation.

Key Dates