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

Christopher B. Dial, SVP, GC and Secretary of Western Midstream Partners, reports transactions involving common units and derivative securities.

Summary

• On February 20, 2025, Christopher B. Dial, a Senior Vice President, General Counsel, and Secretary at Western Midstream Partners, reported changes in beneficial ownership.
• The transactions involved common units representing limited partner interests and various derivative securities, including performance units and phantom units.
• Dial acquired 13,007 and 16,189 common units through the vesting of 2022 Performance Units, and disposed of 5,119 and 6,371 common units to cover tax obligations at a price of $41.63.
• He also acquired 30,026 units of 2025 Phantom Units and 15,013 units each of 2025 Performance Unit-TUR and 2025 Performance Unit-ROA.
• Following these transactions, Dial directly owns 169,389 common units.
• He also holds various phantom and performance units from 2023 and 2024 with future vesting dates.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing reflects routine transactions related to executive compensation. The vesting of performance units suggests that some performance goals were met, but the sale of shares to cover taxes is a neutral event.

Positives

• The vesting of performance units indicates that certain performance metrics were likely met, which could be a positive sign for the company's performance.

Negatives

• The disposal of common units to cover tax obligations, while a normal occurrence, could be perceived negatively if investors interpret it as a lack of confidence in the company's future prospects, although the amount is small relative to the total holdings.

Risks

• The value of performance units is contingent on achieving pre-established performance metrics, introducing uncertainty regarding their ultimate value.
• The discretion of the Board of Directors to settle phantom units in cash rather than common units could dilute shareholder equity if cash settlement is chosen.

Future Outlook

The document does not contain explicit forward-looking statements, but the granting of new phantom and performance units suggests an ongoing incentive program tied to future company performance.

Industry Context

Form 4 filings are routine disclosures for publicly traded companies, providing transparency into the transactions of company insiders. These filings are closely watched by investors for signals about management's confidence in the company's prospects.

Comparison to Industry Standards

• Stock awards are a common form of compensation for executives in the energy industry, aligning their interests with those of shareholders.
• The vesting schedules and performance metrics associated with these awards are typically designed to incentivize long-term value creation.
• Similar companies such as Enterprise Products Partners (EPD) and Magellan Midstream Partners (MMP) also utilize equity-based compensation plans for their executives.

Stakeholder Impact

• The transactions have a minor impact on shareholders, as they involve the vesting and disposal of a relatively small number of common units.
• Employees who are granted performance and phantom units are incentivized to improve company performance, which benefits all stakeholders.

Key Dates