Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 201

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 201
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 depend significantly upon the prevailing prices for oil and natural gas.

The following table reflects commodity prices at the end of each quarter presented: 2024Benchmark PricesFourth QuarterThird QuarterSecond QuarterFirst QuarterWTI spot crude oil ($/Bbl)1$72.44 $68.75 $82.83 $83.96 Henry Hub spot natural gas ($/MMBtu)1$3.40 $2.65 $2.42 $1.54 

1   Source: EIA

Rig Count

As we are not the operator of record on any producing properties, drilling on our acreage is dependent upon the exploration and production companies that lease our acreage. In addition to drilling plans that we seek from our operators, we also monitor rig counts in an effort to identify existing and future leasing and drilling activity on our acreage.

The following table shows the rig count at the end of each quarter presented: 2024U.S. Rotary Rig Count1Fourth QuarterThird QuarterSecond QuarterFirst QuarterOil483 484 479 506 Natural gas102 99 97 112 Other4 4 5 3 Total589 587 581 621 

 1   Source: Baker Hughes Incorporated

48

Natural Gas Storage 

A substantial portion of our revenue is derived from sales of oil production attributable to our interests; however, the majority of our production is natural gas. Natural gas prices are significantly influenced by storage levels throughout the year. Accordingly, we monitor the natural gas storage reports regularly in the evaluation of our business and its outlook.

Historically, natural gas supply and demand fluctuates on a seasonal basis. From April to October, when the weather 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 EIA forecasts that inventories will conclude the withdrawal season, which is the end of March 2025, at 1.9 Tcf, or 1% higher than the five-year average. The EIA expects inventories will rise to 3.7 T