Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 89

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 in oil and condensate sales, which were partially offset by an increase in natural gas and NGL sales and lease bonus and other income.

Oil and condensate sales. Oil and condensate sales decreased for the quarter ended September 30, 2025 as compared to the corresponding period in 2024 primarily due to lower realized commodity prices, which were partially offset by increased production volumes. The increase in oil and condensate production was driven by higher mineral and royalty volumes in the Permian Basin. Our mineral and royalty interest oil and condensate volumes accounted for 96% and 95% of total oil and condensate volumes for quarters ended September 30, 2025 and 2024, respectively.

26

Natural gas and natural gas liquids sales. Natural gas and NGL sales increased for the quarter ended September 30, 2025 as compared to the corresponding prior period. The increase was due to higher realized commodity prices between the comparative periods partially offset by a decrease in production volumes. The decrease in production was driven by reduced royalty interest volumes, primarily within the Haynesville/Bossier play. Mineral and royalty interest production accounted for 96% and 94% of our natural gas volumes for the quarters ended September 30, 2025 and 2024, respectively.

Gain (loss) on commodity derivative instruments. Cash settlements we receive represent realized gains, while cash settlements we pay represent realized losses related to our commodity derivative instruments. In addition to cash settlements, we also recognize fair value changes on our commodity derivative instruments in each reporting period. The changes in fair value result from new positions and settlements that may occur during each reporting period, as well as the relationships between contract prices and the associated forward curves. During the third quarter of 2025, gains from our commodity derivative instruments decreased compared to the same period in 2024. For the three months ended September 30, 2025, we recognized $6.9 million of realized gains and $20.4 million of unrealized gains from our oil and natural gas commodity contracts, compared to $10.9 million of realized gains and $20.8 million of unrealized gains in the same period in 2024. The unrealized gains on our commodity contracts during the third quarter of 2025 were primarily driven by changes in the forward commodity price curves for natural gas. The unrealized gains for the same period in 2024 were primarily driven by changes in the forward commodity price curves for oil. 

Lease bonus and