Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 91

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 91
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 debt fair values, which are Level 3 measurements, were estimated based on the Partnership’s incremental borrowing rates for similar types of borrowing arrangements, when quoted market prices were not available. The estimated fair values of the Partnership’s financial instruments are not necessarily indicative of the amounts that would be realized in a current market exchange.Assets and Liabilities Measured at Fair Value on a Recurring BasisThe Partnership estimated the fair value of commodity derivative financial instruments using the market approach via a model that uses inputs that are observable in the market or can be derived from, or corroborated by, observable data. See "Note 5 – Commodity Derivative Financial Instruments" for additional information.The following table presents information about the Partnership’s assets and liabilities measured at fair value on a recurring basis:  Fair Value Measurements UsingEffect of   Level 1Level 2Level 3Counterparty NettingTotal (in thousands)As of December 31, 2024     Financial Assets     Commodity derivative instruments$— $5,634 $— $(3,810)$1,824 Financial Liabilities     Commodity derivative instruments— 19,243 — (3,810)15,433 As of December 31, 2023     Financial Assets     Commodity derivative instruments$— $41,983 $— $(3,338)$38,645 Financial Liabilities     Commodity derivative instruments— 4,648 — (3,338)1,310 

F-21

BLACK STONE MINERALS, L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Assets and Liabilities Measured at Fair Value on a Non-Recurring BasisNonfinancial assets and liabilities measured at fair value on a non-recurring basis include certain nonfinancial assets and liabilities as may be acquired in a business combination and measurements of oil and natural gas property values for assessment of impairment.The determination of the fair values of proved and unproved properties acquired in business combinations are estimated by discounting projected future cash flows. The factors used to determine fair value include estimates of economic reserves, future operating and development costs, future commodity prices, timing of future production, and a risk-adjusted discount rate. The Partnership has designated these measurements as Level 3. The Partnership's fair value assessments for recent acquisitions are included in Note 4 — Oil and Natural Gas Properties.Oil and natural gas properties are measured