Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 11

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 9B
Chunk 11
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, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

F-2

Depreciation, Depletion and Amortization (“DD&A”) of Oil and Natural Gas PropertiesDescription of the MatterAt December 31, 2024, the net book value of the Partnership’s oil and natural gas properties was $1,132 million, and depreciation, depletion and amortization (“DD&A”) expense related to the Partnership’s oil and natural gas properties was $45 million for the year then ended. As discussed in Note 2, the Partnership follows the successful efforts method of accounting for its oil and natural gas properties. DD&A of oil and natural gas properties is recorded based on the units-of-production method. Capitalized development costs are amortized on the basis of proved developed reserves, as determined by independent petroleum engineers. Leasehold acquisition costs and costs to acquire proved properties are amortized on the basis of total proved reserves, also determined by independent petroleum engineers. Proved oil and natural gas reserves are estimated quantities of oil and natural gas which geological and engineering data demonstrate with reasonable certainty to be commercially recoverable in future years from known reservoirs under existing economic and operating conditions. Judgment is required by the independent petroleum engineers in interpreting the data used to estimate proved oil and natural gas reserves. Estimating proved oil and natural gas reserves also requires a selection and evaluation of inputs, including historical production. Because of the complexity involved in estimating proved oil and natural gas reserves, management used independent petroleum engineers to determine the proved oil and natural gas reserves estimates as of December 31, 2024.Auditing the Partnership’s oil and natural gas properties DD&A calculation is especially complex because of the use of the work of the independent petroleum engineers and the evaluation of management’s determination of the inputs described above used by the engineers in determining proved oil and natural gas reserves.   How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design and tested the operating effectiveness of the Partnership’s controls that address the risks of material misstatement relating to the oil and natural gas properties DD&A calculation, including management’s controls over the accuracy of the financial data used by the independent petroleum engineers for use in determining proved oil and natural gas reserves.Our audit procedures included, among others, evaluating the professional qualifications and objectivity of the independent petroleum engineers used to determine the proved oil and natural gas reserves estimates. In addition, in assessing whether we can use the work of the independent petroleum engineers we evaluated the accuracy of the financial data and