Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 207

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 207
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 gas revenue and our calculation of realized prices for natural gas.

Revenue

Total revenue for the year ended December 31, 2024 decreased compared to the year ended December 31, 2023. The decrease in total revenue from the corresponding period is due to lower oil and condensate sales, lower natural gas and NGL sales, and a loss on commodity derivative instruments in 2024 compared to a gain in 2023. 

Oil and condensate sales. Oil and condensate sales decreased for the year ended December 31, 2024 as compared to the year ended December 31, 2023 due to lower realized commodity prices and lower production volumes. The decrease in oil and condensate production was driven by reduced production volumes in the Austin Chalk, Bakken/Three Forks, and Eagle Ford play trends. Our mineral and royalty interest oil and condensate volumes accounted for 95% and 94% of total oil and condensate volumes for the years ended December 31, 2024 and 2023, respectively. 

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Natural gas and natural gas liquids sales. Natural gas and NGL sales decreased for the year ended December 31, 2024 as compared to the year ended December 31, 2023 due to lower realized commodity prices and lower production volumes. The decrease in natural gas and NGL production was driven by reduced production volumes in the Austin Chalk, Bakken/Three Forks, and Haynesville/Bossier play trends. Mineral and royalty interest production accounted for 95% and 94% of our natural gas volumes for the years ended December 31, 2024 and 2023, respectively.

Gain (loss) on commodity derivative instruments.  Cash settlements we receive represent realized gains, while cash settlements we pay represent realized losses related to our commodity derivative instruments. In addition to cash settlements, we also recognize fair value changes on our commodity derivative instruments in each reporting period. The changes in fair value result from new positions and settlements that may occur during each reporting period, as well as the relationships between contract prices and the associated forward curves. During 2024, we recognized $45.2 million of realized gains and $50.9 million of unrealized losses from our commodity derivatives, compared to $82.7 million of realized gains and $8.4 million of unrealized gains in 2023. The unrealized losses on our commodity contracts in 2024 and the unrealized gains in 2023 were