Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 120

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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 compared to the corresponding prior period 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 and Austin Chalk. Our mineral and royalty interest oil and condensate volumes accounted for 96% and 95% of total oil and condensate volumes for the nine months ended September 30, 2025 and 2024, respectively. 

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Natural gas and natural gas liquids sales. Natural gas and NGL sales during the nine months ended September 30, 2025 increased compared to the corresponding prior period due to higher realized commodity prices partially offset by lower production volumes. The decrease in production volumes was driven by a reduction in royalty interest production volumes, primarily within the Haynesville/Bossier play. Mineral and royalty interest production accounted for 96% and 94% of our natural gas volumes for the nine months ended September 30, 2025 and 2024, respectively.

Gain (loss) on commodity derivative instruments. During the nine months ended September 30, 2025, we recognized an increased gain from our commodity derivative instruments compared to the corresponding period in 2024. In the nine months ended September 30, 2025, we recognized $6.5 million of realized gains and $17.6 million of unrealized gains from our oil and natural gas commodity contracts, compared to $36.4 million of realized gains and $21.6 million of unrealized losses in the same period in 2024. Unrealized gains on our commodity contracts during the nine months ended September 30, 2025 were driven by changes in forward oil and natural gas price curves, compared to the corresponding period in 2024 when unrealized losses were driven by changes in forward natural gas price curves.

Lease bonus and other income. Lease bonus and other income for the nine months ended September 30, 2025 was higher than the same period in 2024. Leasing activity in the Permian Basin and proceeds from the surface use waivers on our mineral acreage supporting solar development in Louisiana made up the majority of lease bonus and other income for the nine months ended September 30, 2025, while a substantial portion of the activity in the corresponding period in 2024 came from leasing activity in the Permian Basin, Bakken/Three Forks, and the Austin Chalk plays and proceeds from surface use waivers on our mineral acreage supporting solar development in Texas.

Operating