Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 43

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 is warmer and natural gas demand is lower, natural gas storage levels generally increase. From November to March, storage levels typically decline as utility companies draw natural gas from storage to meet increased heating demand due to colder weather. In order to maintain sufficient storage levels for increased seasonal demand, a portion of natural gas production during the summer months must be used for storage injection. 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") estimates that natural gas inventories concluded the injection season in October 2025 at 4.0 Tcf, which is 5% higher than the five-year average.

The following table shows natural gas storage volumes by region at the end of each quarter presented:20252024Region1Third QuarterSecond QuarterFirst QuarterThird QuarterSecond QuarterFirst QuarterEast832 602 284 846 660 363 Midwest972 688 364 1,013 779 510 Mountain269 228 165 283 239 162 Pacific302 287 202 293 282 227 South Central1,186 1,148 758 1,113 1,174 996 Total3,561 2,953 1,773 3,548 3,134 2,258 

1    Source:  EIA

Natural Gas Exports

Net natural gas exports averaged 14.5 Bcf per day during the third quarter of 2025, a 22% increase from the 2024 average. The EIA forecasts average exports of 16.0 Bcf per day for the remainder of 2025 and 16.3 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 the remainder of 2025 and into 2026.

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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