Form 4: Black Stone Minerals Director Boosts Equity Stake Through Compensation Election

Black Stone Minerals, L.P. Director Alexander D. Stuart increased his beneficial ownership by acquiring 1,720 common units at $13.08 per unit, electing equity in lieu of a cash retainer for board service.

Summary

• Alexander D. Stuart, a Director of Black Stone Minerals, L.P., acquired 1,720 common units.
• The transaction occurred on July 3, 2025.
• The common units were acquired at a price of $13.08 per unit.
• The acquisition was a result of the reporting person electing to receive common units instead of a cash retainer for service on the Board of Directors of the Partnership's General Partner, pursuant to a previous arrangement.
• Following this transaction, Alexander D. Stuart directly beneficially owns 2,055,245 common units.
• Indirect beneficial ownership includes 2,112,711 common units through Topsfield Energy Ltd., 1,251,634 through RDS Investments, L.P., 74,541 through Alexander Douglas Stuart Primary Trust, 74,541 through Marian Stuart Pillsbury Primary Trust, 159,901 through UA R Douglas Stuart III Marital Trust, 74,541 through Robert D. Stuart III Primary Trust, 74,541 through James McClure Stuart Primary Trust, 239,333 through Marian S. Pillsbury Family 2012 GST Trust, 286,976 through Ann Peake Stuart 2011 Exempt Trust, 180,775 through Robert D. Stuart, Jr. 1996 Marital Trust, and 6,687 through Barbara E Stuart GST Exempt Trust fbo Alexander D Stuart.

Sentiment

Score: 7

Explanation: The acquisition of common units by a director in lieu of cash compensation is a positive signal, indicating strong alignment of interests with shareholders and confidence in the company's future performance.

Positives

• Director Alexander D. Stuart increased his direct beneficial ownership by 1,720 common units, demonstrating continued alignment with shareholder interests and confidence in Black Stone Minerals, L.P.'s future.
• The election to receive equity instead of cash for board service indicates a strong commitment from a key board member to the long-term performance of the company.

Future Outlook

The transaction indicates a future increase in Director Alexander D. Stuart's equity stake in Black Stone Minerals, L.P. as of July 3, 2025, reflecting a continued commitment to equity-based compensation for board service and alignment with shareholder interests.

Management Comments

• "Pursuant to a previous arrangement, the Reporting Person elected to receive common units in lieu of a cash retainer for service on the Board of Directors of the Partnership's General Partner."

Industry Context

In the context of the oil and gas mineral and royalty sector, an insider's decision to accept equity in lieu of cash compensation is often viewed positively, signaling confidence in the long-term value and stability of the company's assets and cash flows, particularly given the cyclical nature of commodity markets.

Comparison to Industry Standards

• The practice of directors electing to receive equity compensation instead of cash is a common corporate governance practice across various industries, including the energy sector, as it aligns the interests of the board members directly with those of the shareholders.
• While specific comparable companies are not mentioned in the filing, this practice is observed in peers like royalty trusts or other mineral interest companies, where management and board members often hold significant equity stakes to demonstrate commitment.

Corporate Governance

Stakeholder Impact

• Shareholders: Positive impact due to increased insider ownership, signaling confidence and aligning director interests with shareholder returns.
• Management: Reinforces a culture of equity alignment within the leadership team.

Key Dates

Recommendation

Keywords

Black Stone Minerals, BSM, SEC Form 4, insider transaction, director ownership, equity compensation, common units, oil and gas, minerals