Company: BSM
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022559
Chunk: 79

Company: Black Stone Minerals, L.P.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 compared to the corresponding prior period. The decreased in revenue was partially offset by an increase in natural gas and NGL sales.

24

Oil and condensate sales. Oil and condensate sales decreased for the quarter ended March 31, 2025 as compared to the corresponding period in 2024 primarily due to lower production volumes and realized commodity prices. The decrease in oil and condensate production was driven by reduced mineral and royalty production in the Permian Basin. Our mineral and royalty interest oil and condensate volumes accounted for 96% and 94% of total oil and condensate volumes for quarters ended March 31, 2025 and 2024, respectively.

Natural gas and natural gas liquids sales. Natural gas and NGL sales increased for the quarter ended March 31, 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 reduction in production volumes. The decrease in natural gas and NGL production was driven by lower mineral and royalty production in the Haynesville/Bossier, Fayetteville, and Austin Chalk play trends. Mineral and royalty interest production accounted for 97% and 95% of our natural gas volumes for the quarters ended March 31, 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 first quarter of 2025, we recognized an increase in losses from our commodity derivative instruments compared to the same period in 2024. For the three months ended March 31, 2025, we recognized $3.6 million of realized losses and $52.4 million of unrealized losses from our oil and natural gas commodity contracts, compared to $13.8 million of realized gains and $25.1 million of unrealized losses in the same period in 2024. The unrealized losses on our commodity contracts during the first quarter of 2025 and the unrealized losses in the corresponding period in 2024 were primarily driven by changes in the forward commodity price curves for oil and natural gas. 

Lease bonus and other income. When