Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 164

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1A
Chunk 164
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, development, and production on the properties underlying our mineral and royalty interests and non-operated working interests. Substantially all our revenue is derived from the sale of oil and natural gas production from producing wells in which we own a royalty interest or a non-operated working interest. A reduction in the expected number of wells to be drilled on our acreage by these operators or the failure of our operators to adequately and efficiently develop and operate our acreage could have an adverse effect on our results of operations. 

Our assets consist of mineral and royalty interests and non-operated working interests. For the year ended December 31, 2024, we received revenue from over 1,000 operators. The failure of our operators to adequately or efficiently perform operations or an operator’s failure to act in ways that are in our best interests could reduce production and revenues. Our operators are often not obligated to undertake any development activities other than those required to maintain their leases on our acreage. In the absence of a specific contractual obligation, any development and production activities will be subject to their reasonable discretion. Our operators could determine to drill and complete fewer wells on our acreage than is currently 

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expected. The success and timing of drilling and development activities on our properties, and whether the operators elect to drill any additional wells on our acreage, depends on a number of factors largely outside of our control, including:

•the capital costs required for drilling activities by our operators, which could be significantly more than anticipated;

•the ability of our operators to access capital;

•prevailing commodity prices;

•the availability of suitable drilling equipment, production and transportation infrastructure, and qualified operating personnel;

•the operators’ expertise, operating efficiency, and financial resources;

•approval of other participants in drilling wells;

•the operators’ expected return on investment in wells drilled on our acreage as compared to opportunities in other areas;  

•the selection of technology;

•the selection of counterparties for the marketing and sale of production; and

•the rate of production of the reserves.

The operators may elect not to undertake development activities, or may undertake these activities in an unanticipated fashion, which may result in significant fluctuations in our results of operations and cash distributions to our unitholders. Sustained reductions in production by the operators on our properties may also adversely affect our results of operations and cash distributions to unitholders.

Cessation or protracted slowdown of activity in the Shelby Trough area could adversely affect our results of operations.

In 2024, we