Company: BSM
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001621434-25-000108
Chunk: 80

Company: Black Stone Minerals, L.P.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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. The portion of production used for storage varies from year to year depending on the demand from the previous winter and the demand for electricity used for cooling during the summer months. The U.S. Energy Information Administration ("EIA") expects inventories will rise to 3.9 Tcf by the end of October 2025, which would be 3% higher than the five-year average.

The following table shows natural gas storage volumes by region at the end of each quarter presented:20252024Region1Second QuarterFirst QuarterSecond QuarterFirst QuarterEast602 284 660 363 Midwest688 364 779 510 Mountain228 165 239 162 Pacific287 202 282 227 South Central1,148 758 1,174 996 Total2,953 1,773 3,134 2,258 

1    Source:  EIA

Natural Gas Exports

Net natural gas exports averaged 14.2 Bcf per day during the first half of 2025, a 19% increase from the 2024 average. The EIA forecasts average exports of 15.1 Bcf per day for the remainder of 2025 and 16.0 Bcf per day for 2026. The EIA forecast reflects assumptions that U.S. LNG exports will increase as new LNG export projects begin operations during 2025 and 2026.

20

How We Evaluate Our Operations

We use a variety of operational and financial measures to assess our performance. Among the measures considered by management are the following:

•volumes of oil and natural gas produced;

•commodity prices including the effect of derivative instruments; and

•Adjusted EBITDA and Distributable cash flow.

Volumes of Oil and Natural Gas Produced

In order to track and assess the performance of our assets, we monitor and analyze our production volumes from the various basins and plays that constitute our extensive asset base. We also regularly compare projected volumes to actual reported volumes and investigate unexpected variances.

Commodity Prices

Factors Affecting the Sales Price of Oil and Natural Gas

The prices we receive for oil, natural gas, and NGLs vary by geographical area. The relative prices of these products are determined by the factors affecting global and regional supply and demand dynamics, such as economic conditions, production levels, availability of transportation, weather cycles, and other factors. In addition, realized prices are influenced by product quality and proximity to consuming and refining markets. Any differences between realized