Company: BSM
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001621434-25-000108
Chunk: 105

Company: Black Stone Minerals, L.P.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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 and natural gas production, we use various derivative instruments, which have recently consisted of fixed-price swap contracts.

Oil prices decreased in the first half of 2025 compared to the same period in 2024, primarily due to weakening global demand amid, changes in trade policies, including imposition of tariffs and other import/export restrictions, and escalating trade tensions between the United States and China. The decline was further driven by an oversupplied market, as OPEC+ members unwound voluntary production cuts and non-OPEC+ producers increased output. Natural gas prices increased during the first half of 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. 

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 Prices1Second QuarterFirst QuarterSecond QuarterFirst QuarterWTI spot oil price ($/Bbl)$66.30 $71.87 $82.83 $83.96 Henry Hub spot natural gas ($/MMBtu)3.26 4.11 2.42 1.54 

1    Source:  EIA

19

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 Count1Second QuarterFirst QuarterSecond QuarterFirst QuarterOil432 484 479 506 Natural gas109 103 97 112 Other6 5 5 3 Total547 592 581 621 

1    Source:  Baker Hughes Incorporated

Natural Gas Storage

A substantial portion of our revenue is derived from sales of oil production attributable to our interests; however, the majority of