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SEC Filings
10-Q
BLACK STONE MINERALS, L.P. filed this Form 10-Q on 11/07/2017
Entire Document
 

compared to the same period in 2016, primarily driven by brokerage fees associated with higher acquisition activity as compared to the corresponding period in 2016.
Interest expense. Interest expense was higher in the third quarter of 2017 due to increased borrowings under our credit facility. Average outstanding borrowings during the third quarter of 2017 were higher than the third quarter of 2016 due to funding of acquisitions in 2017 and 2016, common unit repurchases in 2016, and redemptions associated with our preferred units.
Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016
The following table shows our production, revenues, pricing, and expenses for the periods presented:
 
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
Variance
 
 
(Unaudited)
(Dollars in thousands, except for realized prices)
Production:
 
 

 
 

 
 

 
 

Oil and condensate (MBbls)
 
2,597

 
2,848

 
(251
)
 
(8.8
)%
Natural gas (MMcf)1
 
44,459

 
36,014

 
8,445

 
23.4
 %
Equivalents (MBoe)
 
10,007

 
8,850

 
1,157

 
13.1
 %
Revenue:
 
 

 
 

 
 
 
 
Oil and condensate sales
 
$
119,097

 
$
104,581

 
$
14,516

 
13.9
 %
Natural gas and natural gas liquids sales1
 
142,651

 
85,706

 
56,945

 
66.4
 %
Gain (loss) on commodity derivative instruments
 
35,387

 
(12,295
)
 
47,682

 
(387.8
)%
Lease bonus and other income
 
37,082

 
26,129

 
10,953

 
41.9
 %
Total revenue
 
$
334,217

 
$
204,121

 
$
130,096

 
63.7
 %
Realized prices:
 
 

 
 

 
 
 
 
Oil and condensate ($/Bbl)
 
$
45.87

 
$
36.72

 
$
9.15

 
24.9
 %
Natural gas ($/Mcf)1
 
3.21

 
2.38

 
0.83

 
34.9
 %
Equivalents ($/Boe)
 
$
26.16

 
$
21.50

 
$
4.66

 
21.7
 %
Operating expenses:
 
 

 
 

 
 
 
 
Lease operating expense
 
$
12,906

 
$
14,179

 
$
(1,273
)
 
(9.0
)%
Production costs and ad valorem taxes
 
35,314

 
23,301

 
12,013

 
51.6
 %
Exploration expense
 
616

 
643

 
(27
)
 
(4.2
)%
Depreciation, depletion, and amortization
 
84,483

 
79,654

 
4,829

 
6.1
 %
Impairment of oil and natural gas properties
 

 
6,775

 
(6,775
)
 
(100.0
)%
General and administrative
 
51,998

 
52,213

 
(215
)
 
(0.4
)%
 
1 
As a mineral-and-royalty-interest owner, we are often provided insufficient and inconsistent data on NGL volumes by our operators. As a result, we are unable to reliably determine the total volumes of NGLs associated with the production of natural gas on our acreage. Accordingly, no NGL volumes are included in our reported production; however, revenue attributable to NGLs is included in our natural gas revenue and our calculation of realized prices for natural gas.
Revenue
Total revenues for the nine months ended September 30, 2017 increased compared to the nine months ended September 30, 2016. Production for the nine months ended September 30, 2017 averaged 36.7 MBoe per day, an increase of 4.4 MBoe per day, compared to the corresponding period in 2016. The increase in total revenue from the corresponding prior period is primarily due to higher realized commodity prices and production volumes, an increase in revenue from our commodity derivative instruments, and higher lease bonus and other income.
Oil and condensate sales. Oil and condensate sales during the nine months ended September 30, 2017 were higher than the corresponding period in 2016 primarily due to higher realized prices, partially offset by a slight decrease in production volumes between comparative periods. Our mineral-and-royalty-interest oil and condensate volumes accounted for 81.3% and 77.2% of total oil and condensate volumes for the nine months ended September 30, 2017 and 2016, respectively. Our mineral-

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