Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 29

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 29
---
 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 $— $(3,810)$15,433 Assets and Liabilities Measured at Fair Value on a Non-Recurring BasisNonfinancial assets and liabilities measured at fair value on a non-recurring basis include certain nonfinancial assets and liabilities as may be acquired in a business combination and measurements of oil and natural gas property values for impairment.The determination of the fair values of proved and unproved properties acquired in business combinations are estimated by discounting projected future cash flows. The factors used to determine fair value include estimates of economic reserves, future operating and development costs, future commodity prices, timing of future production, and a risk-adjusted discount rate. The Partnership has designated these measurements as Level 3. The Partnership had no business combinations for the nine months ended September 30, 2025 or the year ended December 31, 2024. See "Note 3 - Oil and Natural Gas Properties."Oil and natural gas properties are measured