Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 42

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 9B
Chunk 42
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 L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes information about performance units for the year ended December 31, 2024.    Performance unitsNumber of UnitsWeighted-Average Grant-Date Fair Value per UnitUnvested at December 31, 2023922,039 $12.24 Granted1389,801 15.11 Vested(420,783)9.50 Forfeited(90,895)15.47 Unvested at December 31, 2024800,162 $14.71 1  Includes 70,505 of additional performance units issued based on the final performance multiplier for awards that vested in the period.The weighted-average grant-date fair value per unit for performance unit awards was $15.11, $14.54, and $12.40 for the years ended December 31, 2024, 2023, and 2022, respectively. Unrecognized compensation cost associated with performance unit awards was $3.7 million as of December 31, 2024, which the Partnership expects to recognize over a weighted-average period of 1.69 years. The fair value of performance units vested for the years ended December 31, 2024, 2023 and 2022 was $6.3 million, $8.0 million, and $3.9 million, respectively. Aspirational Performance Unit AwardsIn the first quarter of 2022, the Board approved a grant of awards to all employees dependent on the achievement of an aspirational production target to be measured in the fourth quarter of 2025 (the "Aspirational Awards"). The Aspirational Awards include performance cash awards and performance equity awards in the form of restricted performance units. To the extent earned, each performance unit represents the right to receive one common unit. The performance cash awards and performance units are eligible to become earned at the end of the requisite service period on December 31, 2025 if the minimum performance metrics are achieved. The minimum performance metrics are at least 42 Mboe per day of average daily royalty production in either the fourth quarter or the month of December of 2025 while maintaining a net debt to EBITDA ratio less than or equal to 1.0 on December 31, 2025. Average daily royalty production does not include production attributable to acquisitions consummated during the performance period. The following table