Business Context and Reporting Period
This Form 8-K filing by Black Stone Minerals, L.P. (the "Partnership") is dated March 15, 2016. The report discloses a change in the Partnership's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the external auditor.
Material Changes
- Dismissal of Prior Auditor: On March 15, 2016, the Audit Committee of Black Stone Minerals GP, L.L.C. approved the immediate dismissal of BDO USA, LLP ("BDO") as the independent registered public accounting firm.
- Engagement of New Auditor: On March 15, 2016, the Committee approved the engagement of Ernst & Young LLP ("E&Y") as the new independent registered public accounting firm. E&Y was formally engaged on March 20, 2016.
- Audit History: BDO's reports for fiscal years ended December 31, 2015, and 2014 contained no adverse opinions, disclaimers, or qualifications. There were no disagreements with BDO regarding accounting principles, practices, or audit scope during the two most recent fiscal years or the interim period through the dismissal date.
- Consultation with New Auditor: No consultations occurred with E&Y regarding accounting principles or reportable events during the two most recent fiscal years or the interim period prior to engagement.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, management commentary on operations, or specific risk factors related to business performance. The primary contingency noted is that the Partnership's limited partners will be asked to ratify the selection of Ernst & Young LLP at the Annual Meeting of Limited Partners scheduled for May 26, 2016.
Investor Verification Checklist
- Verify the ratification of Ernst & Young LLP at the Annual Meeting of Limited Partners on May 26, 2016.
- Review Exhibit 16.1 (Letter from BDO USA, LLP) to confirm the former auditor's agreement with the disclosures in this filing.
- Monitor future filings for the first financial statements audited by Ernst & Young LLP.