Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 69

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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ERALS, L.P. AND SUBSIDIARIESNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. There were no transfers into, or out of, the three levels of fair value hierarchy for the nine months ended September 30, 2025 and 2024. The carrying value of the Partnership's cash and cash equivalents, restricted cash, receivables, and payables approximate fair value due to the short-term nature of the instruments. The estimated carrying value of all debt as of September 30, 2025 and December 31, 2024 approximated the fair value due to variable market rates of interest. These debt fair values, which are Level 3 measurements, were estimated based on the Partnership’s incremental borrowing rates for similar types of borrowing arrangements, when quoted market prices were not available. The estimated fair values of the Partnership’s financial instruments are not necessarily indicative of the amounts that would be realized in a current market exchange. Assets and Liabilities Measured at Fair Value on a Recurring BasisThe Partnership estimated the fair value of commodity derivative financial instruments using the market approach via a model that uses inputs that are observable in the market or can be derived from, or corroborated by, observable data. See "Note 4 - Commodity Derivative Financial Instruments" for additional information. The following table presents information about the Partnership’s assets and liabilities measured at fair value on a recurring basis:  Fair Value Measurements UsingEffect of Counterparty NettingTotal Level 1Level 2Level 3 (in thousands)As of September 30, 2025     Financial Assets     Commodity derivative instruments$— $17,513 $— $(8,408)$9,105 Financial Liabilities     Commodity derivative instruments$— $13,501 $— $(8,408)$5,093 As of December 31, 2024     Financial Assets     Commodity derivative instruments$— $5,634 $— $(3,810)$1,824 Financial Liabilities     Commodity derivative instruments$— $19,243 $— $(3