Business Context and Reporting Period
This Form 8-K Current Report was filed by Western Midstream Partners, LP on October 17, 2019. The filing discloses significant changes in the company's executive leadership, specifically the appointment of new officers to Western Midstream Holdings, LLC (the General Partner).
Key Financial Metrics
The filing does not provide operational financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on personnel changes and associated compensation arrangements.
Material Changes
- Appointment of CFO: Michael C. Pearl was appointed Senior Vice President and Chief Financial Officer of the General Partner, succeeding Jaime R. Casas, who moved to a role at Occidental Petroleum Corporation.
- Appointment of CAO: Catherine A. Green was appointed Vice President and Chief Accounting Officer of the General Partner.
- Background: Both appointees are former employees of Anadarko Petroleum Corporation (a subsidiary of Occidental), bringing extensive experience in accounting, finance, and investor relations.
Compensation, Risks, and Contingencies
The filing details Retention Agreements entered into by the new officers:
- Michael C. Pearl: Agreed to three cash payments totaling $783,000 ($261,000 each), payable on February 8, 2020, August 8, 2020, and February 8, 2021. Unpaid installments are forfeited upon voluntary termination or termination for cause. Payments accelerate upon termination without cause, death, or disability.
- Catherine A. Green: Agreed to a single cash payment of $400,000 due on October 31, 2022. She is entitled to a prorated portion in the event of involuntary termination without cause prior to the payment date.
- Additional Benefits: Both officers are eligible for future equity awards and participation in Occidental or Anadarko compensation programs, with the Partnership bearing related expenses.
Investor Verification Checklist
- Verify the departure date and final compensation of the outgoing CFO, Jaime R. Casas.
- Confirm the specific terms of the equity award programs available to the new officers.
- Review the impact of these leadership changes on the company's strategic direction and relationship with Occidental Petroleum.
- Check subsequent filings for the actual disbursement of the retention payments outlined in the agreements.