Black Stone Minerals finalizes separation agreement with former executive

Published 01/07/2025, 01:30
Black Stone Minerals finalizes separation agreement with former executive

Black Stone Minerals , L.P. (NYSE:BSM), a $2.77 billion market cap company with an impressive 86.69% gross profit margin and "GOOD" financial health rating according to InvestingPro, has entered into a separation agreement with Carrie Clark, its former Senior Vice President and Chief Commercial Officer, according to a statement filed with the Securities and Exchange Commission.

The agreement, dated Sunday, follows Clark’s previously disclosed departure from her executive roles at Black Stone Minerals GP, L.L.C., the company’s general partner, on June 17. Under the terms outlined, Clark will receive a lump sum cash payment of $826,173, subject to compliance with the agreement’s conditions.

In addition to the cash payment, Clark will be eligible for monthly reimbursements for COBRA continuation coverage for up to 12 months or until she obtains group health coverage through another employer. The agreement also provides for accelerated vesting of a pro-rated portion of her outstanding restricted common units, totaling 18,339 units, as well as accelerated vesting of a pro-rated portion of her outstanding performance units and associated distribution equivalent rights, amounting to 58,552 common units before settlement of distribution equivalent rights.

Employment-based forfeiture restrictions on 111,751 performance units related to a 2022 aspirational performance award will also be removed, while performance-based restrictions remain in place.

Clark has agreed to confidentiality, non-competition, non-solicitation, and non-disparagement covenants as set forth in her severance agreement. She will provide consulting services to the general partner and its affiliates through September 30, 2025, or until the consulting period ends as specified in the agreement. For these services, she will be compensated at a rate of $33,333 per month.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, Black Stone Minerals reported its first-quarter 2025 earnings, which fell significantly short of analyst expectations. The company posted an earnings per share (EPS) of $0.04, missing the forecasted $0.32, and revenue of $59.25 million, which was well below the anticipated $118.35 million. Despite these results, Black Stone Minerals maintained its quarterly distribution of $0.375 per unit. In corporate developments, the company announced that Carrie Clark, the Senior Vice President and Chief Commercial Officer, will be departing effective June 17, 2025. Additionally, unitholders approved the 2025 Long-Term Incentive Plan, reserving 6.7 million common units for various equity awards. During their annual meeting, ten directors were elected to serve until 2026, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025. The company remains optimistic about natural gas prices and continues to focus on strategic developments in key regions.

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