Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 178

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1A
Chunk 178
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 to issue an unlimited number of additional interests, including common units, without a vote of the unitholders other than, in certain instances, approval of holders of our Series B cumulative convertible preferred units. Our issuance of additional common units or other equity interests of equal or senior rank will have the following effects:

•the proportionate ownership interest of common unitholders in us immediately prior to the issuance will decrease;

•the amount of cash distributions on each common unit may decrease;

•the ratio of our taxable income to distributions may increase;

•the relative voting strength of each previously outstanding common unit may be diminished; and

•the market price of the common units may decline.

However, subject to certain exceptions, our partnership agreement does not authorize us to issue securities having preferences or rights with priority over or on a parity with the Series B cumulative convertible preferred units with respect to 

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rights to share in distributions, redemption obligations, or redemption rights without Series B cumulative convertible preferred unitholder approval.

Distributions to Unitholders; Price of Units and Other Risks

Actions taken by our general partner may affect the amount of cash generated from operations that is available for distribution to unitholders.

The amount of cash generated from operations available for distribution to unitholders is affected by decisions of our general partner regarding such matters as:

•amount and timing of asset purchases and sales;

•cash expenditures;

•borrowings and repayment of current and future indebtedness;

•redemption of all or a portion of the Series B cumulative convertible preferred units;

•issuance of additional units; and

•the creation, reduction, or increase of reserves in any quarter.

In addition, borrowings by us do not constitute a breach of any duty owed by our general partner to our unitholders.

The market price of our common units could be adversely affected by sales of substantial amounts of our common units in the public or private markets.

As of December 31, 2024, we had 210,694,933 common units and 14,711,219 Series B cumulative convertible preferred units outstanding. Each holder may elect to convert all or any portion of its Series B cumulative convertible preferred units into common units on a one-for-one basis, subject to customary anti-dilution adjustments, an adjustment for any distributions that have accrued but not been paid when due, and certain other restrictions. Under certain conditions, we may elect to convert all or any portion of the Series B cumulative convertible preferred units into common units. As of December 31, 202