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SEC Filings
10-Q
BLACK STONE MINERALS, L.P. filed this Form 10-Q on 11/07/2017
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and-royalty-interest oil and condensate volumes decreased 3.9% for the nine months ended September 30, 2017 relative to the corresponding period in 2016, primarily driven by production decreases in the Eagle Ford Shale play due to outages caused by Hurricane Harvey. Our working-interest oil and condensate volumes decreased by 25.5% to 1.8 MBbls per day during the nine months ended September 30, 2017 as compared to the same period in 2016 primarily due to decreased activity in the Bakken play.
Natural gas and natural gas liquids sales. Natural gas and NGL sales increased for the nine months ended September 30, 2017 as compared to the same period for 2016 driven by an increase in production volumes primarily from new wells in the Haynesville/Bossier and Wilcox plays combined with an increase in realized natural gas and NGL prices. Mineral-and-royalty-interest production accounted for 49.7% and 60.7% of our natural gas volumes for the nine months ended September 30, 2017 and 2016, respectively.
Gain (loss) on commodity derivative instruments. During the nine months ended September 30, 2017, we recognized an $18.3 million gain on our oil commodity contracts, which included $10.7 million in cash received, compared to a recognized loss of $8.9 million in the same period of 2016. During the first nine months of 2017, we recognized $17.1 million of gains from natural gas commodity contracts, which included $1.7 million of cash received, compared to a recognized loss of $3.4 million in the same period of 2016.
Lease bonus and other income. Lease bonus and other income increased for the nine months ended September 30, 2017 as compared to the same period in 2016. During the nine months ended September 30, 2017, we successfully closed several significant lease transactions in the Austin Chalk, Bakken/Three Forks, Haynesville/Bossier and Canyon Lime plays, as well as the Anadarko and Permian Basins, compared to the majority of 2016 activity which came from the Wolfcamp, Austin Chalk, and Marcellus plays.

Operating and Other Expenses
Lease operating expense. Lease operating expense decreased for the nine months ended September 30, 2017 as compared to the same period in 2016, primarily due to decreased operating costs in fields reaching economic limits and fewer remedial projects initiated by our operators. These cost decreases were partially offset by increased operating costs in the Haynesville play.
Production costs and ad valorem taxes. For the nine months ended September 30, 2017, production costs and ad valorem taxes increased from the nine months ended September 30, 2016, generally as a result of higher commodity prices and natural gas production volumes. In addition, the 2016 amount includes $2.7 million of lawsuit settlement proceeds related to improper cost deductions.
Exploration expense. Exploration expense decreased for the nine months ended September 30, 2017 as compared to the same period in 2016. Exploration expense for the nine months ended September 30, 2017 represents costs incurred to acquire 3-D seismic information, related to our mineral and royalty interests, from a third-party service provider.
Depreciation, depletion, and amortization.  Depreciation, depletion, and amortization increased for the nine months ended September 30, 2017 as compared to the same period in 2016, primarily due to higher production partially offset by lower depletion rates.
Impairment of oil and natural gas properties. Impairments totaled $6.8 million for the nine months ended September 30, 2016 primarily due to changes in reserve values resulting from declines in future expected realized net cash flows.
General and administrative. For the nine months ended September 30, 2017, general and administrative expenses decreased as compared to the same period in 2016 due to lower costs attributable to our long-term incentive plans.
Interest expense. Interest expense increased due to higher average outstanding borrowings under our credit facility. Average outstanding borrowings during the first nine months of 2017 were higher than the nine months ended September 30, 2016, primarily due to funding of acquisitions, common unit repurchases in 2016, and redemptions associated with our preferred units in 2017.
Liquidity and Capital Resources
Overview

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