Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 53

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 period in 2024. In the nine months ended September 30, 2025, we recognized $6.5 million of realized gains and $17.6 million of unrealized gains from our oil and natural gas commodity contracts, compared to $36.4 million of realized gains and $21.6 million of unrealized losses in the same period in 2024. Unrealized gains on our commodity contracts during the nine months ended September 30, 2025 were driven by changes in forward oil and natural gas price curves, compared to the corresponding period in 2024 when unrealized losses were driven by changes in forward natural gas price curves.

Lease bonus and other income. Lease bonus and other income for the nine months ended September 30, 2025 was higher than the same period in 2024. Leasing activity in the Permian Basin and proceeds from the surface use waivers on our mineral acreage supporting solar development in Louisiana made up the majority of lease bonus and other income for the nine months ended September 30, 2025, while a substantial portion of the activity in the corresponding period in 2024 came from leasing activity in the Permian Basin, Bakken/Three Forks, and the Austin Chalk plays and proceeds from surface use waivers on our mineral acreage supporting solar development in Texas.

Operating and Other Expenses

Lease operating expense. Lease operating expense increased for the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to increased nonrecurring service-related expenses, including workovers.

Production costs and ad valorem taxes. For the nine months ended September 30, 2025, production costs and ad valorem taxes decreased as compared to the nine months ended September 30, 2024, primarily due to lower production taxes from decreased oil commodity prices and reduced oil and natural gas production volumes, as well as lower ad valorem tax estimates.

Exploration expense. For the nine months ended September 30, 2025, exploration expense increased as compared to the nine months ended September 30, 2024. The increase was primarily driven by purchases of seismic data and costs from proprietary seismic projects associated with existing and future development programs in the expanded Shelby Trough area.

Depreciation, depletion, and amortization. Depreciation, depletion, and amortization decreased for the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to decreased production volumes