Company: BSM
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001621434-25-000108
Chunk: 39

Company: Black Stone Minerals, L.P.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 gross wells to turn to sales in the second half of 2025, with the remainder expected in the first half of 2026.

Revenant Joint Exploration Agreement and Farmout

In May 2025, we entered into a joint exploration agreement ("JEA") with Revenant Energy ("Revenant") covering approximately 270,000 gross acres across San Augustine, Nacogdoches, Angelina, Houston, and Trinity counties. The agreement includes annual well commitments that escalate over five years, from a minimum of 6 wells per year starting in 2026 increasing to a minimum of 25 wells per year for years 2030, and beyond, and require test wells in certain areas in order to continue operating across the full acreage. The agreement allows for non-operated working interest participation, and in June 2025, we entered into a farmout agreement with an external capital provider covering all of our undivided 35% working interest. For more information, see “—Liquidity and Capital Resources—Shelby Trough Development Agreements.”

Amendment to Aethon Joint Exploration Agreements

In May 2025, we entered into an amendment to the JEAs with Aethon in Angelina and San Augustine counties which reduces the contract area to approximately 210,000 gross acres. Under the terms of the amendment, Aethon released over 50,000 gross acres from the contract area, in exchange for reducing the annual well commitment to a total of 16 wells across both JEAs. The farmout agreements covering non-operated working interests under these JEAs have terminated, and Aethon is absorbing that working interest as part of the amendment. For more information, see “—Liquidity and Capital Resources—Shelby Trough Development Agreements.”

Business Environment

The information below is designed to give a broad overview of the oil and natural gas business environment as it affects us. 

Commodity Prices and Demand

Oil and natural gas prices have been historically volatile based upon the dynamics of supply and demand. To manage the variability in cash flows associated with the projected sale of our oil and natural gas production, we use various derivative instruments, which have recently consisted of fixed-price swap contracts.

Oil prices decreased in the first half of 2025 compared to the same period in 2024, primarily due to weakening global demand amid, changes in trade policies, including imposition of tariffs and other import/export restrictions, and escalating trade tensions between the United States and China.