Business Context and Reporting Period
This Form 8-K filing by Western Midstream Partners, LP (WES) reports a corporate governance event dated May 2, 2022. The filing details the appointment of a new Chief Financial Officer and the associated compensatory arrangements.
Key Financial Metrics
The filing text does not provide revenue, profit, cash flow, margin, debt, or liquidity figures. This report focuses exclusively on personnel changes and compensation awards.
Material Changes
On May 2, 2022, Kristen S. Shults was appointed as Senior Vice President and Chief Financial Officer of Western Midstream Holdings, LLC (the General Partner). Ms. Shults, age 37, is a Certified Public Accountant with over 10 years of experience in the oil and gas industry, having previously served as Senior Vice President, Finance and Communications for the General Partner since May 2021.
Compensatory Arrangements and Outlook
In connection with her appointment, the Board approved the following phantom unit awards under the 2017 Long-Term Incentive Plan:
- Time-Based Award (RU Award): 21,676 units vesting ratably over three years beginning February 12, 2023. Distribution equivalent rights are paid quarterly in cash.
- Performance-Based Award (TUR Award): 10,838 units vesting based on relative total unitholder return compared to peers over a three-year period ending December 31, 2024.
- Performance-Based Award (ROA Award): 10,838 units vesting based on average return on assets over a three-year period ending December 31, 2024.
Upon vesting, these awards are generally settled in common units. No other material risks, contingencies, or unusual items were disclosed in this specific filing.
Investor Verification Checklist
- Verify the specific vesting conditions and performance metrics for the TUR and ROA awards in the referenced Exhibit 10.11 and 10.12 from the 2021 Form 10-K.
- Confirm the impact of the new CFO appointment on the company's strategic financial direction in subsequent earnings releases.
- Review the total number of outstanding phantom units to assess potential dilution upon settlement.