Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 42

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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2025 relative to the prior-year period. Prices were supported by unusually cold weather in the first quarter of 2025, which drove higher heating demand and resulted in lower-than-average storage levels. Natural gas pricing was also supported by higher wholesale power pricing this summer compared to last summer. In the third quarter of 2025, natural gas pricing experienced a slight decline due to milder weather conditions lowering electricity demand.

Given the dynamic nature of these events, including uncertainty regarding changes in trade policies and their resulting consequences, we cannot reasonably estimate how long these market conditions will persist. While we use derivative instruments to partially mitigate the impact of commodity price volatility, our revenues and operating results depend significantly upon the prevailing prices for oil and natural gas.

The following table reflects commodity prices at the end of each quarter presented:20252024Benchmark Prices1Third QuarterSecond QuarterFirst QuarterThird QuarterSecond QuarterFirst QuarterWTI spot oil price ($/Bbl)$63.17 $66.30 $71.87 $68.75 $82.83 $83.96 Henry Hub spot natural gas ($/MMBtu)$3.12 3.26 4.11 2.65 2.42 1.54 

1    Source:  EIA

21

Rig Count

As we are not the operator of record on any producing properties, drilling on our acreage is dependent upon the exploration and production companies that lease our acreage. In addition to drilling plans that we seek from our operators, we also monitor rig counts in an effort to identify existing and future leasing and drilling activity on our acreage. 

The following table shows the rig count at the end of each quarter presented:20252024U.S. Rotary Rig Count1Third QuarterSecond QuarterFirst QuarterThird QuarterSecond QuarterFirst QuarterOil424 432 484 484 479 506 Natural gas117 109 103 99 97 112 Other8 6 5 4 5 3 Total549 547 592 587 581 621 

1    Source:  Baker Hughes Incorporated

Natural Gas Storage

The majority of the production volumes attributable to our interests are derived from natural gas production. Natural gas prices are significantly influenced by storage levels throughout the year. Accordingly, we monitor the natural gas storage reports regularly in the evaluation of our business and its outlook.

Historically, natural gas supply and demand fluctuates on a seasonal basis. From April to October, when the weather