Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 33

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 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 September 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 September 30,Nine Months Ended September 30,2025202420252024 (in thousands)Cash—short and long-term incentive plans$937 $1,498 $3,458 $3,883 Equity-based compensation—restricted common units1,043 1,006 3,178 2,967 Equity-based compensation—restricted performance units615 621 2,395 2,050 Board of Directors incentive plan550 550 1,650 1,748  Total incentive compensation expense$3,145 $3,675 $10,681 $10,648 For nine months ended September 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.

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BLACK STONE MINERALS, L.P. AND SUBSIDIARIESNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 "Distribution Rate"). On November 28, 2023, the Distribution Rate was adjusted to 9.8% and will be readjusted