Company: BSM
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022559
Chunk: 50

Company: Black Stone Minerals, L.P.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 covering its San Augustine County acreage are independent of the development agreement and associated commitments covering Angelina County.

If Aethon drills more than the minimum commitment wells in a given program year, Aethon may reduce its minimum well commitment in future program years by the number of excess wells, which we refer to as "banked" wells. Aethon's ability to apply banked wells to reduce its drilling commitments is capped at three or four wells each year, depending on the JEA. Upon the satisfaction of the current program year performance deadlines as described in the agreements, Aethon will have an inventory of one banked well in San Augustine and 10 banked wells in Angelina that will be available to satisfy its drilling commitments in future program years.

The San Augustine JEA provides for a minimum of nine wells to be drilled in the current (third) program year ending in May 2025, with a minimum of 12 wells to be drilled in the fourth program year scheduled to commence in June 2025 and each program year thereafter. As of March 31, 2025, Aethon had drilled eight wells in the third program year under the San Augustine JEA, with one more well expected to be drilled by the end of the current program year in May 2025.

The Angelina JEA provides for a minimum 15 wells to be drilled in the current (fourth) program year ending in June 2025 and, each program year thereafter. As of March 31, 2025, Aethon had drilled nine wells in the fourth program year under the Angelina JEA, with six more wells expected to be drilled by the end of the current program year in June 2025.

Farmout Agreements

We have entered into farmout arrangements designed to reduce our working interest capital expenditures and thereby significantly lower our capital spending other than for mineral and royalty interest acquisitions. Under these agreements, we conveyed our rights to participate in certain non-operated working interest opportunities to external capital providers while retaining value from these interests in the form of additional royalty income or retained economic interests. These farmout arrangements cover a portion of our share of working interests under active development by Aethon in San Augustine and Angelina County in East Texas. 

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Credit Facility

We maintain a senior secured revolving credit agreement, as amended, (the "Credit Facility"). The Credit Facility has an aggregate maximum credit amount of $1.0 billion and terminates on October 31, 2027. The commitment of