Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 98

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 98
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 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 summarizes information about the aspirational performance units for the year ended December 31, 2024.           Aspirational Performance unitsNumber of UnitsWeighted-Average Grant-Date Fair Value per UnitUnvested at December 31, 20231,273,513 $12.06 Granted18,891 15.88Vested— — Forfeited(184,237)11.84Unvested at December 31, 20241,108,167 $12.16 Total compensation expense to be recognized over the life of the Aspirational Awards consists of $5.3 million for the performance cash awards and $13.5 million for the performance equity awards. Compensation expense related to the Aspirational Awards will be recorded over the service period when achievement of the performance condition is probable. As of December 31, 2024, the Partnership determined achievement of the performance condition was not yet probable and no expense was recognized.

F-25

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

Incentive Compensation ExpenseThe table below summarizes incentive compensation expense recorded in General and administrative expenses in the consolidated statements of operations for the years ended December 31, 2024, 2023, and 2022. Year Ended December 31,Incentive compensation expense202420232022 (in thousands)Cash — short and long-term incentive plan$4,940 $4,442 $