Company: BSM
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022559
Chunk: 102

Company: Black Stone Minerals, L.P.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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 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 the first quarter of 2025, we recognized an increase in losses from our commodity derivative instruments compared to the same period in 2024. For the three months ended March 31, 2025, we recognized $3.6 million of realized losses and $52.4 million of unrealized losses from our oil and natural gas commodity contracts, compared to $13.8 million of realized gains and $25.1 million of unrealized losses in the same period in 2024. The unrealized losses on our commodity contracts during the first quarter of 2025 and the unrealized losses in the corresponding period in 2024 were primarily driven by changes in the forward commodity price curves for oil and natural gas. 

Lease bonus and other income. When we lease our mineral interests, we generally receive an upfront cash payment, or a lease bonus. Lease bonus revenue can vary substantively between periods because it is derived from individual transactions with operators, some of which may be significant. Lease bonus and other income for the first quarter of 2025 was higher than the same period in 2024. Leasing activity in the Permian Basin and proceeds from surface use waivers on our mineral acreage supporting solar development in Louisiana made up the majority of lease bonus and other income for the first quarter of 2025. The majority of lease bonus and other income for the first quarter of 2024 came from leasing activity in the Austin Chalk and proceeds from surface use waivers on our mineral acreage supporting solar development in Texas.

Operating Expenses

Lease operating expense. Lease operating expense includes recurring expenses associated with our non-operated working interests necessary to produce hydrocarbons from our oil and natural gas wells, as well as certain nonrecurring expenses, such as well repairs. Lease operating expense decreased for the quarter ended March 31, 2025 as compared to the same period in 2024, primarily due to lower nonrecurring service-related expenses, including workovers.

Production costs and ad valorem taxes. Production taxes include statutory amounts deducted from our production revenues by various state taxing entities. Depending on the regulations of the states where the production originates, these taxes may be based on a percentage of the realized value or a fixed amount per production unit. This category also includes the costs to process and transport our production to applicable sales points. Ad valorem