Form 4: Western Midstream Partners SVP Kristen Shults Reports Unit Award and Disposals

Kristen S. Shults, SVP & Chief Financial Officer of Western Midstream Partners, reported the acquisition and disposal of common units and derivative securities, including performance and phantom units, on February 20, 2025.

Summary

• Kristen S. Shults, SVP & Chief Financial Officer of Western Midstream Partners, reported transactions involving common units representing limited partner interests.
• On February 20, 2025, Shults acquired 16,257 and 20,235 common units through the vesting of performance units.
• She also disposed of 6,398 and 7,963 common units to cover tax obligations at a price of $41.63 per unit.
• Additionally, Shults acquired 30,026, 15,013 and 15,013 phantom and performance units, which vest in the future.
• Following these transactions, Shults directly owns 88,129 common units.
• The reported transactions also involve derivative securities, including performance and phantom units that convert into common units upon vesting.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing reflects routine transactions related to executive compensation and tax obligations. There are no indications of significant positive or negative developments.

Positives

• The vesting of performance units indicates that certain performance metrics were likely achieved.
• The acquisition of phantom units suggests continued alignment of the executive's interests with those of the company.

Negatives

• The disposal of common units to cover tax obligations reduces the executive's direct holdings, although this is a common practice.

Risks

• The value of performance units is contingent upon the achievement of future performance metrics, which may not be met.
• The value of phantom units is tied to the market value of common units, which is subject to market fluctuations.

Future Outlook

The reporting person will receive additional common units if performance metrics are achieved over the next three years. The reporting person will receive additional common units as phantom units vest over the next three years.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded partnerships like Western Midstream Partners. It provides transparency into the holdings and transactions of key executives.

Comparison to Industry Standards

• Form 4 filings are standard practice for publicly traded companies and partnerships, ensuring transparency in insider trading activities.
• The vesting of performance units and the granting of phantom units are common forms of executive compensation in the energy industry, aligning management's interests with those of unitholders.
• Companies like Enterprise Products Partners (EPD) and MPLX LP (MPLX) also utilize similar equity-based compensation plans for their executives.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders, as they primarily reflect internal compensation adjustments.
• The vesting of performance units could be viewed positively by unitholders if it indicates the achievement of performance targets.

Key Dates