Business Context and Reporting Period
This Form 8-K filing by Western Midstream Partners, LP (WES) is dated August 26, 2022, reporting an executive appointment effective August 29, 2022. The filing addresses Item 5.02 regarding the appointment of certain officers and their compensatory arrangements.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on personnel changes and compensation details.
Material Changes
The primary material change reported is the appointment of Daniel P. Holderman as Senior Vice President and Co-Chief Operating Officer of Western Midstream Holdings, LLC (WES GP). Mr. Holderman will oversee the Partnership's Delaware Basin operations. Craig W. Collins will continue in his role as Senior Vice President and Co-Chief Operating Officer, overseeing Rockies, South Texas operations, and equity investments.
Guidance, Outlook, and Compensation Details
Management commentary is limited to the background of the new appointee and the terms of his compensation package approved by the WES GP Board:
- Base Salary: $375,000.
- Annual Cash Incentive: Target equal to 80% of base salary.
- Equity Award: 17,637 time-based phantom units under the 2017 Long-Term Incentive Plan.
- Vesting Schedule: 20% on February 12, 2023; 40% on February 12, 2024; and 40% on February 12, 2025.
- Settlement: The award will generally be settled in common units upon vesting, with distribution equivalent rights paid in cash quarterly.
No specific guidance, outlook, risks, or contingencies regarding the company's financial future are disclosed in this filing.
Investor Verification Checklist
- Verify the exact vesting terms and settlement mechanics of the 17,637 phantom units by reviewing the award agreement referenced in Exhibit 10.10 of the 2021 Form 10-K.
- Confirm the operational scope division between the two Co-Chief Operating Officers (Delaware Basin vs. Rockies/South Texas).
- Review Mr. Holderman's prior tenure at Occidental Petroleum to assess potential strategic shifts in the Delaware Basin operations.