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

Catherine A. Green, SVP & Chief Accounting Officer of Western Midstream Partners, reports transactions involving common units and derivative securities.

Summary

• Catherine A. Green, SVP & Chief Accounting Officer of Western Midstream Partners, filed a Form 4 detailing changes in beneficial ownership.
• On February 20, 2025, Green acquired 9,393 and 11,692 common units representing limited partner interests through the vesting of performance units.
• She also disposed of 3,697 and 4,601 common units to cover tax obligations at a price of $41.63 per unit.
• Following these transactions, Green directly owns 76,715 common units.
• Green also acquired 24,021 Phantom Units, 12,011 Performance Unit-TUR and 12,011 Performance Unit-ROA.
• The reported derivative securities include performance units and phantom units that vest over time and are convertible into common units or cash.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing showing standard compensation practices. There are no explicit positive or negative indicators, but the vesting of performance units suggests that performance targets are being met.

Positives

• The acquisition of performance units indicates that pre-established performance metrics were achieved, which is a positive sign for the company's performance.
• The vesting of performance units and phantom units suggests that the executive is incentivized to contribute to the company's success over the long term.

Negatives

• The disposal of common units to cover tax obligations, while a normal occurrence, slightly reduces the executive's direct ownership in the company.

Risks

• The value of the performance units is contingent upon the achievement of future performance metrics, which introduces uncertainty.
• The discretion of the Board of Directors to settle phantom units in cash rather than common units could dilute shareholder equity.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting schedules of the phantom and performance units suggest a continued focus on long-term performance and value creation.

Industry Context

Form 4 filings are a routine part of regulatory compliance for publicly traded companies and their executives. They provide transparency into insider transactions and can offer insights into management's perspective on the company's value and prospects.

Comparison to Industry Standards

• Form 4 filings are standard practice across all publicly traded companies in the US, ensuring transparency in insider trading activities.
• The types of equity compensation (performance units, phantom units) are common tools used by companies like Western Midstream Partners to align management incentives with shareholder value creation, similar to practices at companies like Enterprise Products Partners and MPLX.

Stakeholder Impact

• Shareholders can use this information to understand executive compensation and alignment with company performance.
• Employees may be interested in the vesting schedules and performance metrics associated with equity compensation.

Key Dates