Company: BSM
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022559
Chunk: 94

Company: Black Stone Minerals, L.P.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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 asset base, we will continue to explore the relevance of our assets in energy transition, including opportunities in renewable energy and carbon sequestration.

As of March 31, 2025, our mineral and royalty interests were located in 41 states in the continental United States, including all of the major onshore producing basins. These non-cost-bearing interests include ownership in approximately 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 first quarter, EXCO Resources Inc. was operating one rig, and Aethon was operating three rigs on our Angelina, Nacogdoches, and San Augustine acreage in the Shelby Trough. During the quarter, Aethon successfully turned to sales 11 gross (0.7 net) wells, with the majority of the wells showing improved results compared to older offsets. Aethon’s development program remains on track, with an estimated 17 gross (1.0 net) additional wells expected to turn to sales during the remainder of 2025.

In the Louisiana Haynesville, development continued under our Accelerated Drilling Agreements (“ADAs”). These agreements provide greater near-term certainty by accelerating development and associated revenue in our high-interest areas in exchange for a modest reduction in royalty burden. During the first quarter, two gross (0.2 net) wells in De Soto Parish were turned to sales under our ADAs.

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In the Permian Basin, we continue to monitor several large-scale development projects expected to generate meaningful liquids volumes in 2025 and beyond. As previously disclosed, a large operator has planned more than 35 gross (1.25 net) wells in Culberson County, Texas. To date, 24 of these wells have been spud. We anticipate nine gross wells to turn to sales in the fourth quarter of 2025, with the remainder expected in the first half of 2026.

Business Environment

The information below is designed to give a broad overview of the oil and natural gas