Black Stone Minerals, L.P. (NYSE:BSM) (“Black Stone Minerals” or
“the Partnership”) today announced its financial and operating
results for the fourth quarter and full year of 2015, provided
guidance for 2016, and announced that the Board of Directors of its
general partner authorized the Partnership to repurchase up to $50
million in value of its common units over the next six months.
Highlights
- Fourth quarter of 2015 average
production of 27.1 MBoe/d.
- Revenues of $100.0 million for the
quarter, including an unrealized derivative gain of $16.1
million.
- Net loss of $49.7 million; Adjusted
EBITDA (as defined below) of $54.0 million.
- Estimated year-end 2015 proved reserves
of 49.8 MMBoe.
- Production for 2016 expected to average
28.5 – 29.5 MBoe/d, a 1% increase over 2015 average daily volumes
at the mid-point of guidance.
- Board of Directors has approved a $50
million common unit repurchase program.
Management Commentary
Thomas L. Carter, Jr., Black Stone Minerals’ President, Chief
Executive Officer, and Chairman commented, “While 2015 was a
challenging year for the oil and gas industry, Black Stone Minerals
increased production over 2014 and saw reserve adds from drilling
exceed production through a combination of industry activity and
our working interest participation program. In spite of current
conditions, our mineral positions in core areas of some of the best
plays in the country should allow us, on an annual basis, to
maintain flat to growing production in 2016 as compared to 2015.
The Partnership remains well positioned with a strong balance
sheet, and we have reduced our subordinated unit distribution to
maintain strong distribution coverage and to provide additional
capital for growth opportunities. We continue to evaluate
acquisitions, but given the low price of our common units in light
of our common coverage ratio and the escalating MQD over the next
three years, we believe that buying our own common units is as
attractive, if not more so, as other acquisition targets we are
seeing in the market. Indeed, recent transactions in our sector
suggest that our common units are underpriced. As a result, our
Board of Directors has authorized a $50 million common unit
repurchase program over the next six months. We believe that this
program, combined with our increasing common MQD beginning in the
second quarter of 2016 and beyond and a continued focus on
acquisitions, will provide us with more flexibility to take
advantage of the best opportunities for long-term growth in unit
value.”
Quarterly Financial and Operating Results
Production
Black Stone Minerals reported average production of 27.1 MBoe/d
for the fourth quarter of 2015, 69% of which is attributable to
mineral and royalty interests. This represents a decrease of 9%
over average production of 29.9 MBoe/d for the corresponding period
in 2014 and is a decrease of 7% from the third quarter of 2015. For
the full year 2015, production averaged 28.7 MBoe/d compared to
27.5 MBoe/d in 2014.
Realized Prices, Revenues, and Net Loss
The Partnership’s average realized price per Boe, excluding the
effect of derivative settlements, was $24.15 for the quarter ended
December 31, 2015, a decline of 41% from $40.97 per Boe from the
quarter ended December 31, 2014.
Black Stone Minerals reported revenues of $100.0 million in the
fourth quarter of 2015, a decrease of 41% from $169.2 million in
the fourth quarter of 2014. The decrease primarily reflects
significantly lower commodity prices compared to the corresponding
period in 2014, which was partially offset by an unrealized gain of
$16.1 million in the current quarter that reflects the increase in
value of unsettled derivative contracts.
Lease bonus and other income was $7.0 million for the fourth
quarter of 2015, compared to $19.6 million for the same period last
year. The timing and amount of lease bonus is variable.
The Partnership reported a net loss of $49.7 million for the
quarter ended December 31, 2015, compared to a net loss of $20.7
million in the corresponding period in 2014. The current quarter
reflects a non-cash impairment of oil and natural gas properties of
$92.9 million resulting from declines in future expected net cash
flows primarily associated with lower commodity prices at December
31, 2015.
Proved Reserves
An independent petroleum engineering firm prepared an estimate
of Black Stone Minerals’ proved reserves and value of proved
reserves discounted at 10% (“PV-10”) using reference prices of
$50.28 per barrel of oil and $2.587 per MMBTU of natural gas in
accordance with the applicable rules of the Securities and Exchange
Commission. These prices are adjusted for quality and market
differentials and transportation fees, and in the case of natural
gas are adjusted for the value of natural gas liquids.
Estimated proved oil and natural gas reserves at year-end 2015
were 49.8 MMBoe, a decrease of 3% from 51.1 MMBoe at year-end 2014,
and were approximately 32% oil and 88% proved developed producing.
The standardized measure of discounted cash flows (“SMOG”) and
PV-10 was $555.0 million at the end of 2015 as compared to $1,143.1
million at year-end 2014. The decrease is primarily attributable to
lower commodity prices during the year ended December 31, 2015.
A rollforward of proved reserves is presented in the following
table:
Crude Oil(MBbl)
Natural Gas(MMcf)
Total(MBoe)
Net proved reserves at December 31, 2014 17,067
204,256 51,109 Revisions of previous estimates (197 )
(17,043 ) (3,037 ) Purchases of minerals in place 8 367 69
Extensions, discoveries, and other additions 2,529 57,484 12,110
Production (3,565 ) (41,389 ) (10,463 ) Net
proved reserves at December 31, 2015 15,842 203,675
49,788 Net Proved Developed Reserves December 31, 2014
16,700 202,888 50,514 December 31, 2015 15,497 174,555 44,590 Net
Proved Undeveloped Reserves December 31, 2014 367 1,368 595
December 31, 2015 345 29,120 5,198
Financial Position
As of December 31, 2015, Black Stone Minerals had $66.0 million
outstanding under its credit facility. Black Stone Minerals is in
compliance with all financial covenants associated with its credit
facility. The Partnership’s regularly scheduled borrowing base
redetermination is set for April 2016. As of March 4, 2016, $99.0
million was outstanding under the credit facility.
Distributions
As previously announced, the Board of Directors of the general
partner approved a cash distribution of $0.2625 per common unit and
$0.18375 per subordinated unit attributable to the fourth quarter
of 2015. The quarterly distribution coverage ratio was
approximately 1.2x the approved distribution attributable to the
fourth quarter of 2015. These distributions were paid on February
26, 2016.
Summary 2016 Guidance
Key assumptions in Black Stone Minerals’ 2016 program are as
follows:
FY2016
Average daily production (MBoe/d) 28.5 – 29.5 Percentage oil ~30%
Percentage royalty interest ~63% Lease bonus and other
income ($MM) $30 Lease operating expense ($/Boe) $2.00 –
$2.25 Lease operating expense ($/working interest Boe) $5.45 –
$6.10 Production costs and ad valorem taxes (as % of total
pre-derivative O&G revenue) 14% – 16% Exploration expense ($MM)
$0 – $1 G&A – cash ($MM) $36.5 – $37.5 G&A –
non-cash ($MM)
$29.0 – $30.0 G&A – TOTAL ($MM)
$65.5 – $67.5 DD&A ($/Boe) $8.00 – $8.50
Working Interest Participation
Black Stone Minerals expects to invest approximately $60 million
in its working interest participation program in 2016. The majority
of this amount will be deployed on assets in the Haynesville Shale
where the Partnership participates with a major in the Shelby
Trough with up to a 50% working interest. It is assumed that 11
gross wells will be completed during the year in that program.
The Partnership’s working interest production is anticipated to
average approximately 37% of total production in 2016.
Hedge Position
The Partnership has commodity derivative contracts in place
covering a substantial part of 2016’s anticipated production. Based
on the guided volumes above, approximately 63% of expected oil
volumes are hedged at prices averaging $54.98 per barrel, and
approximately 60% of expected gas volumes are hedged at prices
averaging $3.08 per Mcf. More detailed information regarding the
Partnership’s existing hedge position can be found in the Annual
Report on Form 10-K for 2015, which is expected to be filed on or
around March 8, 2016.
Distributions
The minimum quarterly distribution will increase to $0.2875 per
unit in the second quarter of 2016 from its current level of
$0.2625 per unit. While the Board of Directors determines
distributions on a quarterly basis and does not fix the
Partnership’s distribution policy in advance, Black Stone Minerals
currently assumes the following for 2016:
- the full minimum quarterly distribution
will be paid on the common units;
- a distribution of $0.18375 per quarter
will be paid on the subordinated units; and
- subordinated distributions will be
adjusted to maintain total distribution coverage in excess of
1.0x.
Unit Repurchase Program
The Board of Directors has authorized the repurchase of up to
$50 million in common units over the next six months. The
repurchase program authorizes the Partnership to make repurchases
on a discretionary basis as determined by management, subject to
market conditions, applicable legal requirements, available
liquidity, and other appropriate factors. All or a portion of any
repurchases may be made under a Rule 10b5-1 plan, which would
permit common units to be repurchased when the Partnership might
otherwise be precluded from doing so under insider-trading laws.
The repurchase program does not obligate the Partnership to acquire
any particular amount of common units and may be modified or
suspended at any time and could be terminated prior to completion.
The Partnership will periodically report the number of common units
repurchased. The repurchase program will be funded from the
Partnership’s cash on hand or available revolving credit facility.
Any repurchased common units will be cancelled.
Conference Call
Black Stone Minerals will host a conference call and webcast for
investors and analysts to discuss its results for the fourth
quarter and full year of 2015 on Tuesday, March 8, 2016 at 9:00
a.m. Central Time. To join the call, participants should dial (855)
546-9558 and use conference code 45234419. A live broadcast of the
call will also be available at
http://investor.blackstoneminerals.com. A recording of the
conference call will be available at that site through March 23,
2016.
About Black Stone Minerals, L.P.
Black Stone Minerals is one of the largest owners of oil and
natural gas mineral interests in the United States. The Partnership
owns mineral interests and royalty interests in over 40 states and
60 onshore basins in the continental United States. The
Partnership also owns and selectively participates as a
non-operating working partner in established development programs,
primarily on its mineral and royalty holdings. The Partnership
expects that its large, diversified asset base and long-lived,
non-cost-bearing mineral and royalty interests will result in
production and reserve growth, as well as increasing quarterly
distributions to its unitholders.
Forward-Looking Statements
This news release includes forward-looking statements. All
statements, other than statements of historical facts, included in
this news release that address activities, events or developments
that the Partnership expects, believes or anticipates will or may
occur in the future are forward-looking statements. Terminology
such as “will,” “may,” “should,” “expect,” “anticipate,” “plan,”
“project,” “intend,” “estimate,” “believe,” “target,” “continue,”
“potential,” the negative of such terms or other comparable
terminology often identify forward-looking statements. Except as
required by law, Black Stone Minerals undertakes no obligation and
does not intend to update these forward-looking statements to
reflect events or circumstances occurring after this news release.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. All forward-looking statements are qualified in their
entirety by these cautionary statements. These forward-looking
statements involve risks and uncertainties, many of which are
beyond the control of Black Stone Minerals, which may cause the
Partnership’s actual results to differ materially from those
implied or expressed by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to, those summarized below:
- the Partnership’s ability to execute
its business strategies;
- the volatility of realized oil and
natural gas prices;
- the level of production on the
Partnership’s properties;
- regional supply and demand factors,
delays, or interruptions of production;
- the Partnership’s ability to replace
its oil and natural gas reserves; and
- the Partnership’s ability to identify,
complete, and integrate acquisitions.
BLACK STONE MINERALS, L.P. CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (In thousands, except per unit
amounts)
Three Months EndedDecember
31,
Year Ended December 31,
2015 2014 2015 2014
REVENUE Oil and condensate sales $ 36,954 $ 61,725 $ 163,538 $
257,390 Natural gas and natural gas liquids sales 23,219 50,902
116,018 207,456 Gain on commodity derivative instruments 32,838
36,997 90,288 37,336 Lease bonus and other income 7,029
19,553 23,080 46,139
TOTAL REVENUE 100,040 169,177
392,924 548,321 OPERATING (INCOME)
EXPENSE Lease operating expense 5,043 5,526 21,583 21,233
Production costs and ad valorem taxes 9,517 15,986 35,767 49,575
Exploration expense 578 187 2,592 631 Depreciation, depletion and
amortization 20,884 27,904 104,298 111,962 Impairment of oil and
natural gas properties 92,886 117,930 249,569 117,930 General and
administrative 23,645 17,158 77,175 62,765 Accretion of asset
retirement obligations 270 617 1,075 1,060 (Gain) loss on sale of
assets, net (4,853 ) 32 (4,873 ) 32 Other expense 1,593
1,424 1,593 1,424
TOTAL OPERATING EXPENSE 149,563 186,764
488,779 366,612 INCOME (LOSS) FROM
OPERATIONS (49,523 ) (17,587 ) (95,855 ) 181,709 OTHER INCOME
(EXPENSE) Interest and investment income 12 1 58 28 Interest
expense (888 ) (3,217 ) (6,418 ) (13,509 ) Other income 669
90 910 959 TOTAL
OTHER EXPENSE (207 ) (3,126 ) (5,450 )
(12,522 ) NET INCOME (LOSS) (49,730 ) (20,713 ) (101,305 ) 169,187
NET INCOME (LOSS) ATTRIBUTABLE TO PREDECESSOR — 20,713 (450 )
(169,187 ) NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
SUBSEQUENT TO INITIAL PUBLIC OFFERING 1,123 — 1,260 — DISTRIBUTIONS
ON REDEEMABLE PREFERRED UNITS SUBSEQUENT TO INITIAL PUBLIC OFFERING
(2,739 ) — (7,522 ) — NET
LOSS ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON AND
SUBORDINATED UNITS SUBSEQUENT TO INITIAL PUBLIC OFFERING $ (51,346
) $ — $ (108,017 )
$
— ALLOCATION OF LOSS SUBSEQUENT TO INITIAL PUBLIC OFFERING
ATTRIBUTABLE TO: General partner interest $ — $ — Common units
(25,824 ) (54,326 ) Subordinated units (25,522 )
(53,691 ) $ (51,346 ) $ (108,017 ) NET LOSS ATTRIBUTABLE TO LIMITED
PARTNERS PER COMMON AND SUBORDINATED UNIT: Per common unit (basic
and diluted) $ (0.27 ) $ (0.56 ) Weighted average common units
outstanding (basic and diluted) 96,182 96,182
Per subordinated unit (basic and diluted) $ (0.27 ) $ (0.56
) Weighted average subordinated units outstanding (basic and
diluted) 95,057 95,057 DISTRIBUTIONS
DECLARED AND PAID SUBSEQUENT TO INITIAL PUBLIC OFFERING: Per common
unit $ 0.2625 $ 0.4240 Per subordinated unit $ 0.2625
$ 0.4240
The following table shows the Partnership’s production,
revenues, realized prices, and operating expenses for the periods
presented.
Three Months EndedDecember
31,
Year EndedDecember 31,
2015 2014 2015 2014
(Unaudited) (Dollars in thousands, except for realized
prices) Production: Oil and condensate (MBbls)1 897 899
3,565 3,005 Natural gas (MMcf)1 9,572 11,100
41,389 42,273 Equivalents (MBoe) 2,492 2,749 10,463 10,051
Revenue: Oil and condensate sales $ 36,954 $ 61,725 $
163,538 $ 257,390 Natural gas and natural gas liquids sales 23,219
50,902 116,018 207,456 Gain on commodity derivative instruments
32,838 36,997 90,288 37,336 Lease bonus and other income
7,029 19,553 23,080 46,139 Total revenue $
100,040 $ 169,177 $ 392,924 $ 548,321
Realized prices: Oil
and condensate ($/Bbl) $ 41.20 $ 68.66 $ 45.87 $ 85.65 Natural gas
($/Mcf)1 $ 2.43 $ 4.59 $ 2.80 $ 4.91 Equivalents ($/Boe) $ 24.15 $
40.97 $ 26.72 $ 46.25
Operating expenses: Lease operating
expense $ 5,043 $ 5,526 $ 21,583 $ 21,233 Production costs and ad
valorem taxes 9,517 15,986 35,767 49,575 Exploration expense 578
187 2,592 631 Depreciation, depletion, and amortization 20,884
27,904 104,298 111,962 Impairment of oil and natural gas properties
92,886 117,930 249,569 117,930 General and administrative 23,645
17,158 77,175 62,765
Per Boe: Lease operating expense $ 2.02
$ 2.01 $ 2.06 $ 2.11 Production costs and ad valorem taxes 3.82
5.82 3.42 4.93 Depreciation, depletion, and amortization 8.38 10.15
9.97 11.14 General and administrative 9.49 6.24 7.38 6.24
1
As a mineral and royalty interest owner,
Black Stone Minerals is often provided insufficient and
inconsistent data on natural gas liquid (“NGL”) volumes by its
operators. As a result, the Partnership is unable to reliably
determine the total volumes of NGLs associated with the production
of natural gas on its acreage. Accordingly, no NGL volumes are
included in reported production; however, revenue attributable to
NGLs is included in natural gas revenue and the calculation of
realized prices for natural gas.
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, and cash available for distribution are
non-GAAP supplemental financial measures used by Black Stone
Minerals’ management and external users of the Partnership’s
financial statements such as investors, research analysts, and
others, to assess the financial performance of its assets and its
ability to sustain distributions over the long term without regard
to financing methods, capital structure, or historical cost
basis.
Black Stone Minerals defines EBITDA as net income (loss) before
interest expense, income taxes and depreciation, depletion, and
amortization. Black Stone Minerals defines Adjusted EBITDA as
EBITDA adjusted for impairment of oil and natural gas properties,
accretion of asset retirement obligations, unrealized gains/losses
on commodity derivative instruments, and non-cash equity-based
compensation. Black Stone Minerals defines cash available for
distribution as Adjusted EBITDA plus or minus amounts for certain
non-cash operating activities, borrowings for capital expenditures,
capital expenditures, cash interest expense, and distributions to
noncontrolling interests and preferred unitholders.
EBITDA, Adjusted EBITDA, and cash available for distribution
should not be considered an alternative to, or more meaningful
than, net income, income from operations, cash flows from operating
activities, or any other measure of financial performance presented
in accordance with GAAP as measures of the Partnership’s financial
performance. EBITDA, Adjusted EBITDA, and cash available for
distribution have important limitations as analytical tools because
they exclude some but not all items that affect net income, the
most directly comparable GAAP financial measure. The Partnership’s
computation of EBITDA, Adjusted EBITDA, and cash available for
distribution may differ from computations of similarly titled
measures of other companies.
The following table presents a reconciliation of EBITDA,
Adjusted EBITDA, and cash available for distribution to net income,
the most directly comparable GAAP financial measure, for the
periods indicated.
Three Months EndedDecember
31,
Year EndedDecember 31,
2015 2014 2015 2014
(Unaudited) (In thousands) Net income (loss) $
(49,730 ) $ (20,713 ) $ (101,305 ) $ 169,187 Adjustments to
reconcile to Adjusted EBITDA: Add: Depreciation, depletion and
amortization 20,884 27,904 104,298 111,962 Interest expense
888 3,217 6,418 13,509 EBITDA (27,958 ) 10,408
9,411 294,658 Add: Impairment of oil and natural gas properties
92,886 117,930 249,569 117,930 Accretion of asset retirement
obligations 270 617 1,075 1,060 Equity-based compensation 4,948
3,888 18,000 11,340 Less: Unrealized gain on commodity derivative
instruments (16,145 ) (35,575 ) (27,063 )
(39,283 ) Adjusted EBITDA 54,001 97,268 250,992 385,705
Adjustments to reconcile to cash generated from operations: Add:
Borrowings/cash used to fund additions to and acquisitions of oil
and natural gas properties 11,964 16,895 116,522 119,753
Restructuring charges 4,208 — 4,208 — Incremental general and
administrative related to initial public offering 353 — 1,303 —
Loss on sales of assets, net — 32 — 32 Less: Deferred revenue (76 )
(73 ) (660 ) (2,589 ) Cash interest expense (677 ) (2,978 ) (5,483
) (12,544 ) Gain on sales of assets, net (4,853 ) — (4,873 ) —
Additions to oil and natural gas properties (11,843 ) (16,774 )
(54,244 ) (74,201 ) Acquisitions of oil and natural gas properties
(121 ) (121 ) (62,278 ) (45,552 ) Cash
generated from operations 52,956 94,249 245,487 370,604 Less: Cash
paid to noncontrolling interests (41 ) (55 ) (208 ) (307 )
Redeemable preferred unit distributions (2,739 )
(3,957 ) (11,562 ) (15,720 ) Cash generated from
operations available for
distribution on common and
subordinated
units and reinvestment in our business
$ 50,176 $ 90,237 $ 233,717 $ 354,577
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160307006615/en/
Black Stone Minerals, L.P.Brent Collins, 713-445-3200Vice
President, Investor
Relationsinvestorrelations@blackstoneminerals.com
Black Stone Minerals (NYSE:BSM)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Black Stone Minerals (NYSE:BSM)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024