Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 109

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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. We anticipate 13 gross wells (0.47 net) to turn to sales in the fourth quarter of 2025, with the remaining 16 gross (0.57 net) wells expected in the first half of 2026.

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 during the nine months ended September 30, 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. The decline was further driven by an oversupplied market, as OPEC+ members unwound voluntary production cuts and non-OPEC+ producers increased output. Natural gas prices increased during the nine months ended September 30, 2025 relative to the prior-year period. Prices were supported by unusually cold weather in the first quarter of 2025, which drove higher heating demand and resulted in lower-than-average storage levels. Natural gas pricing was also supported by higher wholesale power pricing this summer compared to last summer. In the third quarter of 2025, natural gas pricing experienced a slight decline due to milder weather conditions lowering electricity demand.

Given the dynamic nature of these events, including uncertainty regarding changes in trade policies and their resulting consequences, we cannot reasonably estimate how long these market conditions will persist. While we use derivative instruments to partially mitigate the impact of commodity price volatility, our revenues and operating results depend significantly upon the prevailing prices for oil and natural gas.

The following table reflects commodity prices at the end of each quarter presented:20252024Benchmark Prices1Third QuarterSecond QuarterFirst QuarterThird QuarterSecond QuarterFirst QuarterWTI spot oil price ($/Bbl)$63.17 $66.30 $71.87 $68.75 $82.83 $83.96 Henry Hub spot natural gas ($/MMBtu)$3.12 3.26 4.11 2.65 2.42 1.54 

1    Source:  EIA

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Rig Count

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