Company: BSM
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001621434-25-000108
Chunk: 31

Company: Black Stone Minerals, L.P.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 to U.S. federal, state, and local environmental regulations with regard to air, land, and water quality and other environmental matters.The Partnership does not consider the potential remediation costs that could result from issues identified in any environmental site assessments to be material to the unaudited interim consolidated financial statements, and no provision for potential remediation costs has been recorded.Litigation

From time to time, the Partnership is involved in legal actions and claims arising in the ordinary course of business. The Partnership believes existing claims as of June 30, 2025 will be resolved without material adverse effect on the Partnership’s financial condition or operations. 

NOTE 8 - INCENTIVE COMPENSATION

The table below summarizes incentive compensation expense recorded in the General and administrative line item of the consolidated statements of operations for the periods presented: Three Months Ended June 30,Six Months Ended June 30,2025202420252024 (in thousands)Cash—short and long-term incentive plans$1,235 $1,125 $2,521 $2,385 Equity-based compensation—restricted common units1,172 965 2,135 1,961 Equity-based compensation—restricted performance units238 691 1,780 1,429 Board of Directors incentive plan550 549 1,100 1,198  Total incentive compensation expense$3,195 $3,330 $7,536 $6,973 For the six months ended June 30, 2025, the Partnership repurchased 256,771 common units at a weighted average price of $14.62 per unit for the purpose of satisfying tax withholding obligations upon the vesting of certain long-term incentive equity awards held by our executive officers and certain other employees. Specifically, when an employee's equity award vests, the Partnership withholds a portion of the units to cover the employee's tax liability.

NOTE 9 - PREFERRED UNITS

Series B Cumulative Convertible Preferred UnitsOn November 28, 2017, the Partnership issued and sold in a private placement 14,711,219 Series B cumulative convertible preferred units representing limited partner interests in the Partnership for a cash purchase price of $20.39 per Series B cumulative convertible preferred unit, resulting in total proceeds of approximately $300.0 million.The Series B cumulative convertible preferred units were initially entitled to quarterly distributions in an amount equal to 7.0% of the face amount of the preferred units per annum (the