GEL insider Davison reports phantom unit cash payout and sale of 2,778 units
Rhea-AI Filing Summary
Genesis Energy LP insider James E. Davison reported transactions on 10/01/2025 involving Class A common units and related phantom units. Mr. Davison received 2,778 vested phantom units that were treated as a disposition of the phantom units and an acquisition of the underlying Common Units - Class A, and those vested units were paid in cash based on the 20-trading-day average closing price prior to vesting. On the same date 2,778 Common Units - Class A were sold at a price of $16.53 each. Following the reported activity, the filing shows Mr. Davison directly beneficially owns approximately 2.717 million Common Units - Class A and indirectly owns 1,010,835 Common Units through Terminal Services, Inc., of which he is the sole stockholder.
Positive
- Reporting provides clear disclosure of the phantom unit settlement mechanism and pricing (cash based on 20-day average).
- The reporting person retains substantial ownership post-transaction: ~2.717 million direct units plus 1,010,835 indirect units via Terminal Services, Inc.
Negative
- A small sale of 2,778 Common Units occurred at $16.53, representing a reduction in direct holdings.
Insights
TL;DR: Insider exercised/settled phantom units for cash and sold 2,778 Class A units; substantial remaining direct and indirect holdings remain.
The filing documents a routine compensation-related settlement where phantom units vested and were cash-settled using the 20-day average price, with a simultaneous reported sale of 2,778 Common Units at $16.53. The net effect is a modest reduction in direct holdings from the reported amounts, while aggregate beneficial ownership remains large: direct holdings in the low millions plus an additional 1,010,835 units held indirectly via Terminal Services, Inc. The transaction appears administrative and compensation-driven rather than an open-market strategic disposition.
TL;DR: Transactions reflect standard executive compensation settlement and a small sale; disclosures are complete and indicate indirect ownership via a private entity.
The Form 4 clearly states the nature of the phantom unit settlement, the cash valuation method (20-day average), and the reporting person’s indirect ownership through Terminal Services, Inc., of which he is sole shareholder. Documentation is specific about quantities and pricing, and the filing is signed and dated. From a governance perspective, the disclosure meets Section 16 requirements and provides investors with transparent details on the mechanism and amounts involved.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Phantom Units | 2,778 | $0.00 | -- |
| Grant/Award | Phantom Units | 2,420 | $0.00 | -- |
| Exercise | Common Units - Class A | 2,778 | $0.00 | -- |
| Disposition | Common Units - Class A | 2,778 | $16.53 | $46K |
| holding | Common Units - Class A | -- | -- | -- |
Footnotes (1)
- The payment of the phantom units in cash is deemed to be a disposition of the phantom units in exchange for the acquisition of the underlying Common Units - Class A and a simultaneous disposition of the underlying Common Units - Class A to the issuer. Upon vesting, the phantom units were paid in cash based on the average closing price of the Common Units - Class A for the 20 trading days immediately prior to the date of vesting. The Reporting Person is the sole stockholder of Terminal Services, Inc. The phantom units will be paid in cash based on the average closing price of the Common Units - Class A for the 20 trading days immediately prior to the vesting date. Award includes tandem distribution equivalent rights pursuant to which the quarterly distributions paid by the partnership on each Common Unit - Class A will be accrued over the vesting period and paid quarterly.
