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 phantom units.

Summary

• On February 12, 2025, Catherine A. Green, SVP & Chief Accounting Officer of Western Midstream Partners, engaged in transactions involving common units representing limited partner interests and derivative securities.
• These transactions included the vesting of phantom units and the subsequent disposition of common units to cover tax obligations.
• Specifically, Green acquired 4,175, 7,018, and 11,952 common units through the vesting of 2022, 2023, and 2024 phantom units, respectively.
• Simultaneously, Green disposed of 1,716, 2,762, and 4,704 common units to satisfy tax withholding requirements at a price of $39.87 per unit.
• Following these transactions, Green directly owns 63,928 common units.
• Green also holds various performance-based units that vest in the future and are convertible into common units based on performance metrics.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transactions are routine and reflect standard compensation practices. The vesting of phantom units suggests that performance metrics are being met.

Positives

• The vesting of phantom units indicates that performance metrics were likely met, which is a positive signal.

Negatives

• The sale of common units to cover tax obligations, while standard, slightly reduces Green's direct holdings.

Risks

• Future performance metrics may not be met, impacting the vesting of performance-based units.
• Fluctuations in the price of WES common units could affect the value of Green's holdings and the cost of covering future tax obligations.

Future Outlook

The document does not contain specific forward-looking statements, but it does indicate future vesting dates for phantom and performance units.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. This filing indicates standard compensation practices involving equity-based awards.

Comparison to Industry Standards

• Equity compensation is a common practice among publicly traded companies, particularly in the energy sector.
• Companies like Enterprise Products Partners (EPD) and MPLX LP (MPLX) also utilize similar equity-based compensation plans for their executives.
• The vesting schedules and performance-based metrics are generally aligned with industry standards to incentivize long-term value creation.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders.
• The vesting of equity-based compensation aligns management's interests with those of shareholders.

Key Dates