Company: BSM
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001621434-25-000108
Chunk: 38

Company: Black Stone Minerals, L.P.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 38
---
71,000 producing wells. We also own non-operated working interests, a significant portion of which are on our positions where we also have a mineral and royalty interest. We recognize oil and natural gas revenue from our mineral and royalty and non-operated working interests in producing wells when control of the oil and natural gas produced is transferred to the customer and collectability of the sales price is reasonably assured. Our other sources of revenue include mineral lease bonus and delay rentals, which are recognized as revenue according to the terms of the lease agreements. 

Recent Developments

Development Activity

At the end of the second quarter, Aethon Energy ("Aethon") was operating two rigs on our Angelina, Nacogdoches, and San Augustine acreage in the Shelby Trough. During the quarter, Aethon successfully turned to sales 2 gross (0.10 net) wells. Aethon’s development program remains on track with the development agreements, with a total of 22 wells spud in the previous program years that ended in the second quarter of 2025. Of these wells, 7 gross (0.42 net) have turned to sales and 15 gross (0.93 net) are expected to turn to sales during the remainder of 2025 and early 2026. EXCO Resources Inc. also remains active on our acreage, completing 2 gross (0.08 net) wells in early June, and recently spud 2 gross (0.08 net) wells in July.

In the Louisiana Haynesville, development continued under our Accelerated Drilling Agreements (“ADAs”). These agreements incentivize operators to accelerate development in our high-interest areas in exchange for a modest reduction in royalty burden, allowing us to capture near-term revenue and reduce uncertainty about where the locations sit in the operator's development plan. During the second quarter, 3 gross (0.09 net) wells in De Soto and Sabine Parishes were turned to sales 

18

under our ADAs. This brings the total well count under the ADA program to seven. We expect another 2 gross (0.13 net) wells to be turned to sales during the third quarter of 2025.

In the Permian Basin, we continue to monitor activity including a large-scale development. A large operator has planned more than 34 gross (1.20 net) wells in Culberson County, Texas. To date, 30 of these wells have been spud. We anticipate 22