Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 83

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 83
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 segment. We adopted ASU 2023-07 on December 31, 2024. The CODM evaluates significant expenses based off the consolidated financial statements and does not further disaggregate expenses in deciding how to allocate resources and assess performance. Since the Partnership operates as a single reporting segment, all required segment reporting disclosures can be found in the consolidated financial statements. The effect of the adoption had no impact on our consolidated financial statements.In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, which enhances the disclosures required for certain expense captions in the Company's annual and interim consolidated financial statements. The guidance is effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027, with early adoption permitted. The Partnership is currently evaluating the impact of this standard on its disclosures.

NOTE 3 — ASSET RETIREMENT OBLIGATIONS

The asset retirement obligation ("ARO") liability reflects the present value of estimated costs of dismantlement, removal, site reclamation, and similar activities associated with the Partnership’s working interest oil and natural gas properties. The Partnership utilizes current retirement costs to estimate the expected cash outflows for retirement obligations. The Partnership estimates the ultimate productive life of the properties, a credit-adjusted risk-free rate, and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing ARO liability, a corresponding adjustment is made to the oil and natural gas property balance.The following table describes changes to the Partnership’s ARO liability for the periods presented:  For the year ended December 31, 20242023 (in thousands)Beginning asset retirement obligations$20,267 $16,019 Liabilities incurred46 174 Liabilities settled(713)(98)Accretion expense1,298 1,042 Revisions in estimated costs953 3,130 Dispositions(533)— Ending asset retirement obligations$21,318 $20,267 Current asset retirement obligations$2,032 $1,237 Non-current asset retirement obligations$19,286 $19,030 

F-15

BLACK STONE MINERALS, L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 — OIL AND NATURAL GAS PROPERTIES 

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