Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 157

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1A
Chunk 157
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These factors and the volatility of the energy markets make it extremely difficult to predict future oil and natural gas price movements with any certainty. The table below demonstrates such volatility for the periods presented.Year Ended December 31, 2024During the Five Years Prior to  December 31, 2024As of December 31,HighLowHigh2Low3202420232022WTI spot crude oil ($/Bbl)1$87.69 $66.73 $123.64 $8.91 $72.44 $71.89 $80.16 Henry Hub spot natural gas ($/MMBtu)1$3.40 $1.21 $23.86 $1.21 $3.40 $2.58 $3.52 

1  Source: EIA

2  High prices for WTI and Henry Hub were in 2022 and 2021, respectively.

3  Low prices for WTI  and Henry Hub were in 2020 and 2024, respectively. Excludes the period in April 2020 when WTI briefly traded in negative territory.

Any prolonged substantial decline in the price of oil and natural gas will likely have a material adverse effect on our financial condition, results of operations, and cash distributions to unitholders. We may use various derivative instruments in connection with anticipated oil and natural gas sales to minimize the impact of commodity price fluctuations. However, we cannot always hedge the entire exposure of our operations from commodity price volatility. To the extent we do not hedge against commodity price volatility, or our hedges are not effective, our results of operations and financial position may be diminished.

In addition, lower oil and natural gas prices may also reduce the amount of oil and natural gas that can be produced economically by our operators. This scenario may result in our having to make substantial downward adjustments to our estimated proved reserves, which could negatively impact our borrowing base and our ability to fund our operations. If this occurs or if production estimates change or exploration or development results deteriorate, successful efforts method of accounting principles may require us to write down, as a non-cash charge to earnings, the carrying value of our oil and natural gas properties. Our operators could also determine during periods of low commodity prices to shut in or curtail production from wells on our properties. In addition, they could determine during periods of low commodity prices to plug and abandon marginal wells that otherwise