Black Stone Minerals, L.P. (NYSE: BSM) (“Black Stone Minerals,”
“Black Stone,” or “the Company”) today announces its financial and
operating results for the fourth quarter and full year of 2024 and
provides guidance for 2025.
Fourth Quarter 2024 Highlights
- Mineral and royalty production for the fourth quarter of 2024
equaled 34.8 MBoe/d; total production, including working interest
volumes, was 36.1 MBoe/d for the quarter
- Net income for the quarter was $46.3 million. Adjusted EBITDA
for the quarter totaled $90.1 million
- Distributable cash flow was $81.9 million for the fourth
quarter
- Black Stone announced a distribution of $0.375 per common unit
with respect to the fourth quarter of 2024. Distribution coverage
for all units was 1.03x
- Total debt at the end of the quarter was $25.0 million; as of
February 21, 2025, total debt was $12.0 million with $6.9 million
of cash
Full Year Financial and Operational Highlights
- Mineral and royalty volumes in 2024 decreased 2% over the prior
year to average 36.6 MBoe/d; average full year 2024 production was
38.5 MBoe/d
- Reported 2024 net income and Adjusted EBITDA of $271.3 million
and $380.9 million, respectively
- Cash distributions attributable to the full year 2024 were
$1.50 per common unit
Management Commentary
Thomas L. Carter, Jr., Black Stone Minerals’ Chairman, Chief
Executive Officer, and President, commented, “We ended last year
and started this year with stronger gas pricing and fundamentals,
which when coupled with our solid oil assets, sets up for what we
anticipate to be a positive 2025. For 2024, we remained within our
production guidance at 38.5 MBoe/d, despite the headwinds
experienced during the year from lower natural gas pricing and
production resulting in a slight decrease in year-over-year
production. Additionally, we were able to maintain our quarterly
distribution of $0.375 per unit, or $1.50 for the full year, with
excess coverage and a conservative leverage position of 0.07x.
Throughout 2024 we executed on our strategic, long-term focus by
adding $110 million in grass-roots mineral acquisitions, while also
working with partners solidifying development and managing our
assets across all basins. In 2025, we expect to benefit from
increased activity on high-interest acreage in multiple areas
including the Shelby Trough, Louisiana Haynesville, and Permian in
addition to activity across our broad acreage position, and an
overall increase in development on our gas-weighted assets driven
by strong natural gas prices, leading to full year production
guidance of 38 - 41 MBoe/d, representing ~2% growth over 2024.
Finally, we plan to further advance our targeted mineral
acquisition program and are encouraged by the long-term prospects
the program provides our shareholders.”
Quarterly Financial and Operating Results
Production
Black Stone Minerals reported mineral and royalty volumes of
34.8 MBoe/d (75% natural gas) for the fourth quarter of 2024,
compared to 35.3 MBoe/d for the third quarter of 2024 and 38.9
MBoe/d for the fourth quarter of 2023.
Working interest production was 1.3 MBoe/d in the fourth quarter
of 2024, 2.1 MBoe/d for the third quarter of 2024, and 2.2 MBoe/d
for the fourth quarter of 2023. The continued overall decline in
working interest production volumes is consistent with the
Company's decision to farm out its working-interest participation
to third-party capital providers.
Total reported production averaged 36.1 MBoe/d (96% mineral and
royalty, 74% natural gas) for the fourth quarter of 2024, compared
to 37.4 MBoe/d and 41.1 MBoe/d for the third quarter of 2024 and
the fourth quarter of 2023, respectively.
Realized Prices, Revenues, and Net Income
The Company’s average realized price per Boe, excluding the
effect of derivative settlements, was $30.81 for the fourth quarter
of 2024. This is an increase of 5% from $29.40 per Boe for the
third quarter of 2024 and a 12% decrease compared to $35.03 for the
fourth quarter of 2023.
Black Stone reported oil and gas revenue of $102.3 million (59%
oil and condensate) for the fourth quarter of 2024, an increase of
1% from $101.0 million in the third quarter of 2024. Oil and gas
revenue in the fourth quarter of 2023 was $132.6 million.
The Company reported a loss on commodity derivative instruments
of $20.6 million for the fourth quarter of 2024, composed of a $8.7
million gain from realized settlements and a non-cash $29.3 million
unrealized loss due to the change in value of Black Stone’s
derivative positions during the quarter. Black Stone reported a
gain on commodity derivative instruments of $31.7 million and a
gain of $54.5 million for the quarters ended September 30, 2024 and
December 31, 2023, respectively.
Lease bonus and other income was $2.0 million for the fourth
quarter of 2024. Lease bonus and other income for the third quarter
of 2024 and fourth quarter of 2023 was $2.1 million and $3.8
million, respectively.
The Company reported net income of $46.3 million for the fourth
quarter of 2024, compared to net income of $92.7 million in the
preceding quarter. For the fourth quarter of 2023, the Company
reported net income of $147.6 million
Adjusted EBITDA and Distributable Cash Flow
Adjusted EBITDA for the fourth quarter of 2024 was $90.1
million, which compares to $86.4 million in the third quarter of
2024 and $125.5 million in the fourth quarter of 2023.
Distributable cash flow for the quarter ended December 31, 2024 was
$81.9 million. For the third quarter of 2024 and fourth quarter of
2023, distributable cash flow was $78.6 million and $119.1 million,
respectively.
2024 Proved Reserves
Estimated proved oil and natural gas reserves at year-end 2024
were 57.4 MMBoe, a decrease of 11% from 64.5 MMBoe at year-end
2023, and were approximately 70% natural gas and 88% proved
developed producing. The standardized measure of discounted future
net cash flows was $868.1 million at the end of 2024, as compared
to $1,019.5 million at year-end 2023.
Netherland, Sewell and Associates, Inc., an independent,
third-party petroleum engineering firm, evaluated Black Stone
Minerals’ estimate of its proved reserves and PV-10 at December 31,
2024. These estimates were prepared using reference prices of
$76.32 per barrel of oil and $2.13 per MMBTU of natural gas in
accordance with the applicable rules of the Securities and Exchange
Commission (as compared to prompt month prices of $70.40 per barrel
of oil and $4.23 per MMBTU of natural gas as of February 21, 2025).
These prices were adjusted for quality and market differentials,
transportation fees, and, in the case of natural gas, the value of
natural gas liquids. A reconciliation of proved reserves is
presented in the summary financial tables following this press
release.
Financial Position and Activities
As of December 31, 2024, Black Stone Minerals had $2.5 million
in cash, with $25.0 million drawn under its credit facility. The
Company’s borrowing base at December 31, 2024 was $580.0 million,
and total commitments under the credit facility were $375.0
million. The Company's next regularly scheduled borrowing base
redetermination is set for April 2025. Black Stone is in compliance
with all financial covenants associated with its credit
facility.
As of February 21, 2025, $12.0 million debt was outstanding
under the credit facility and the Company had $6.9 million in
cash.
During the fourth quarter of 2024, the Company made no
repurchases of units under the Board-approved $150 million unit
repurchase program.
Fourth Quarter 2024 Distributions
As previously announced, the Board approved a cash distribution
of $0.375 for each common unit attributable to the fourth quarter
of 2024. The quarterly distribution coverage ratio attributable to
the fourth quarter of 2024 was approximately 1.03x. These
distributions will be paid on February 25, 2025 to unitholders of
record as of the close of business on February 18, 2025.
Activity Update
Black Stone continues to see robust activity across its broad
acreage position, with some unique, high-interest developments
expected to drive meaningful near-term production.
Development Activity
Currently, EXCO is operating one rig and Aethon is operating
three rigs on the Company’s Angelina, Nacogdoches, and San
Augustine acreage in the Shelby Trough. During 2025, Aethon has
already turned-to-sales (“TTS”) 11 gross (0.9 net) wells with early
data showing better performance than the older offsets and strong
initial rates primarily between 20 – 30 MMcf/d. We expect Aethon to
continue its development program under the amended JEAs with an
estimated 17 gross (1.1 net) additional wells TTS during 2025.
In the Louisiana Haynesville during 2024, the Company entered
into several Accelerated Drilling Agreements (“ADAs”) with large,
well-capitalized operators. Under these agreements, the operators
will provide near term certainty and accelerated development on
BSM’s high-interest areas in exchange for a reduced royalty burden.
During 2024, 2 gross (0.4 net) wells were TTS and BSM expects an
additional 11 gross (0.6 net) wells to TTS in 2025.
In the Permian Basin, the Company is tracking several
development projects expected to generate meaningful production
volumes during 2025 and beyond. A large producer is expected to
begin development of 37 gross (1.3 net) wells in Culberson County,
TX, which includes 8 gross wells to be TTS in the fourth quarter of
2025.
Farmout Agreements
In September and December 2024, two of the Company's farmout
agreements covering non-operated working interests in San Augustine
County terminated. Consistent with our policy to minimize
participation in working interests, we do not intend to step into
the working interests associated with the terminated agreements.
Unless we agree otherwise with Aethon, we believe that Aethon, as
operator and the party who has proposed the existing wells, has
absorbed and will continue to absorb any non-consented
interests.
Acquisition Activity
Black Stone’s commercial strategy since 2021 has been focused on
attracting capital and securing drilling commitments in areas where
the Company already owns significant minerals. Management made the
decision to expand this growth strategy by adding to the Company’s
mineral portfolio through strategic, targeted efforts primarily in
the Gulf Coast region. In the fourth quarter of 2024 Black Stone
acquired additional (primarily non-producing) mineral, royalty, and
leasehold interests totaling $45.2 million and since September
2023, the Company has acquired a total of $130.5 million in
mineral, royalty, and leasehold interests. Black Stone’s commercial
strategy going forward includes the continuation of meaningful,
targeted mineral and royalty acquisitions to complement the
Company's existing positions.
Summary 2025 Guidance
Following are the key assumptions in Black Stone Minerals’ 2025
guidance, as well as comparable results for 2024:
FY 2024
Actual
FY 2025
Est.
Mineral and royalty production
(MBoe/d)
36.6
36.5 – 38.5
Working interest production (MBoe/d)
1.9
1.5 – 2.5
Total production (MBoe/d)
38.5
38 – 41
Percentage natural gas
74%
77%
Percentage royalty interest
95%
96%
Lease bonus and other income ($MM)
$12.5
$9-11
Lease operating expense ($MM)
$9.7
$8-10
Production costs and ad valorem taxes (as
% of total pre-derivative O&G revenue)
12%
10-12%
G&A - cash ($MM)
$43.5
$47-48
G&A - non-cash ($MM)
$8.6
$10-12
G&A - TOTAL ($MM)
$52.1
$57 - $60
DD&A ($/Boe)
$3.20
$3.10 - $3.30
Black Stone expects royalty production to increase by
approximately 2% in 2025 relative to full year 2024 levels,
primarily due to Aethon turning online 28 wells in the Shelby
Trough and accelerated development in the Louisiana Haynesville and
Permian Basin. This is partially offset by an expected moderation
of activity in Bakken / Three Forks, Eagle Ford and Austin
Chalk.
The Partnership expects general and administrative expenses to
be slightly higher in 2025 as a result of inflationary costs and
selective hires made to support Black Stone’s ability to evaluate,
market and manage its undeveloped acreage positions to potential
operators.
Hedge Position
Black Stone has commodity derivative contracts in place covering
portions of its anticipated production for 2025 and 2026, including
derivative contracts put in place after the end of the year. The
Company's hedge position as of February 21, 2025, is summarized in
the following tables:
Oil Hedge Position
Oil Swap Volume
Oil Swap Price
MBbl
$/Bbl
1Q25
555
$71.22
2Q25
555
$71.22
3Q25
555
$71.22
4Q25
555
$71.22
1Q26
180
$66.29
2Q26
180
$66.29
3Q26
180
$66.29
4Q26
180
$66.29
Natural Gas Hedge Position
Gas Swap Volume
Gas Swap Price
BBtu
$/MMBtu
1Q25
10,800
$3.36
2Q25
10,920
$3.36
3Q25
11,040
$3.45
4Q25
11,040
$3.45
1Q26
10,800
$3.64
2Q26
10,920
$3.64
3Q26
11,040
$3.64
4Q26
11,040
$3.64
More detailed information about the Company's existing hedging
program can be found in the Annual Report on Form 10-K, which is
expected to be filed on or around February 25, 2025.
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 2024 on Tuesday, February 25, 2025 at 9:00
a.m. Central Time. Black Stone recommends participants who do not
anticipate asking questions to listen to the call via the live
broadcast available at http://investor.blackstoneminerals.com. Analysts
and investors who wish to ask questions should dial (800) 715-9871
for domestic participants and (646)-307-1963 for international
participants. The conference ID for the call is 8003975. A
recording of the conference call will be available on Black Stone's
website.
About Black Stone Minerals, L.P.
Black Stone Minerals is one of the largest owners and managers
of oil and natural gas mineral interests in the United States. The
Company owns mineral interests and royalty interests in 41 states
in the continental United States. Black Stone believes its large,
diversified asset base and long-lived, non-cost-bearing mineral and
royalty interests provide for stable production and reserves over
time, allowing the majority of generated cash flow to be
distributed to 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 Company 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 Company’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, as wells as the Risk Factors section in our most
recent annual report on Form 10-K:
- the Company’s ability to execute its business strategies;
- the volatility of realized oil and natural gas prices;
- the level of production on the Company’s properties;
- overall supply and demand for oil and natural gas, and regional
supply and demand factors, delays, or interruptions of
production;
- conservation measures and general concern about the
environmental impact of the production and use of fossil
fuels;
- the Company’s ability to replace its oil and natural gas
reserves;
- general economic, business, or industry conditions including
slowdowns, domestically and internationally, and volatility in the
securities, capital, or credit markets;
- cybersecurity incidents, including data security breaches or
computer viruses;
- competition in the oil and natural gas industry;
- the availability or cost of rigs, equipment, raw materials,
supplies, oilfield services or personnel; and
- the level of drilling activity by the Company's operators,
particularly in areas such as the Shelby Trough where the Company
has concentrated acreage positions.
BLACK STONE MINERALS,
L.P.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(In thousands, except per unit
amounts)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
REVENUE
Oil and condensate sales
$
59,949
$
80,112
$
269,061
$
288,296
Natural gas and natural gas liquids
sales
42,364
52,440
157,907
200,297
Lease bonus and other income
1,981
3,824
12,461
12,506
Revenue from contracts with customers
104,294
136,376
439,429
501,099
Gain (loss) on commodity derivative
instruments
(20,568
)
54,465
(5,730
)
91,117
TOTAL REVENUE
83,726
190,841
433,699
592,216
OPERATING (INCOME) EXPENSE
Lease operating expense
2,272
3,237
9,705
11,386
Production costs and ad valorem taxes
10,701
15,027
49,577
56,979
Exploration expense
156
429
2,735
2,148
Depreciation, depletion, and
amortization
10,943
11,748
45,196
45,683
General and administrative
11,796
12,505
52,082
51,455
Accretion of asset retirement
obligations
336
293
1,298
1,042
(Gain) loss on sale of assets, net
—
—
—
(73
)
TOTAL OPERATING EXPENSE
36,204
43,239
160,593
168,620
INCOME (LOSS) FROM OPERATIONS
47,522
147,602
273,106
423,596
OTHER INCOME (EXPENSE)
Interest and investment income
190
826
1,666
1,867
Interest expense
(1,130
)
(674
)
(3,109
)
(2,754
)
Other income (expense)
(236
)
(107
)
(337
)
(160
)
TOTAL OTHER EXPENSE
(1,176
)
45
(1,780
)
(1,047
)
NET INCOME (LOSS)
46,346
147,647
271,326
422,549
Distributions on Series B cumulative
convertible preferred units
(7,367
)
$
(6,026
)
(29,466
)
(21,776
)
NET INCOME (LOSS) ATTRIBUTABLE TO THE
GENERAL PARTNER AND COMMON UNITS
$
38,979
$
141,621
$
241,860
$
400,773
ALLOCATION OF NET INCOME (LOSS):
General partner interest
$
—
$
—
$
—
$
—
Common units
38,979
141,621
241,860
400,773
$
38,979
$
141,621
$
241,860
$
400,773
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED
PARTNERS PER COMMON UNIT:
Per common unit (basic)
$
0.19
$
0.67
$
1.15
$
1.91
Per common unit (diluted)
$
0.18
$
0.65
$
1.15
$
1.88
WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING:
Weighted average common units outstanding
(basic)
210,694
209,991
210,684
209,970
Weighted average common units outstanding
(diluted)
211,078
225,511
210,780
225,105
The following table shows the Company’s production, revenues,
realized prices, and expenses for the periods presented.
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(Unaudited)
(Dollars in thousands, except
for realized prices)
Production:
Oil and condensate (MBbls)
855
1,026
3,606
3,757
Natural gas (MMcf)1
14,794
16,546
62,984
64,647
Equivalents (MBoe)
3,321
3,784
14,103
14,532
Equivalents/day (MBoe)
36.1
41.1
38.5
39.8
Realized prices, without
derivatives:
Oil and condensate ($/Bbl)
$
70.12
$
78.08
$
74.61
$
76.74
Natural gas ($/Mcf)1
2.86
3.17
2.51
3.10
Equivalents ($/Boe)
$
30.81
$
35.03
$
30.27
$
33.62
Revenue:
Oil and condensate sales
$
59,949
$
80,112
$
269,061
$
288,296
Natural gas and natural gas liquids
sales1
42,364
52,440
157,907
200,297
Lease bonus and other income
1,981
3,824
12,461
12,506
Revenue from contracts with customers
104,294
136,376
439,429
501,099
Gain (loss) on commodity derivative
instruments
(20,568
)
54,465
(5,730
)
91,117
Total revenue
$
83,726
$
190,841
$
433,699
$
592,216
Operating expenses:
Lease operating expense
$
2,272
$
3,237
$
9,705
$
11,386
Production costs and ad valorem taxes
10,701
15,027
49,577
56,979
Exploration expense
156
429
2,735
2,148
Depreciation, depletion, and
amortization
10,943
11,748
45,196
45,683
General and administrative
11,796
12,505
52,082
51,455
Other expense:
Interest expense
1,130
674
3,109
2,754
Per Boe:
Lease operating expense (per working
interest Boe)
$
18.62
$
16.02
$
13.55
$
13.13
Production costs and ad valorem taxes
3.22
3.97
3.52
3.92
Depreciation, depletion, and
amortization
3.30
3.10
3.20
3.14
General and administrative
3.55
3.30
3.69
3.54
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 Company 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 our
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
Adjusted EBITDA and Distributable cash flow are supplemental
non-GAAP financial measures used by Black Stone's management and
external users of the Company'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.
The Company defines Adjusted EBITDA as net income (loss) before
interest expense, income taxes, and depreciation, depletion, and
amortization adjusted for impairment of oil and natural gas
properties, if any, accretion of asset retirement obligations,
unrealized gains and losses on commodity derivative instruments,
non-cash equity-based compensation, and gains and losses on sales
of assets, if any. Black Stone defines Distributable cash flow as
Adjusted EBITDA plus or minus amounts for certain non-cash
operating activities, cash interest expense, distributions to
preferred unitholders, and restructuring charges, if any.
Adjusted EBITDA and Distributable cash flow should not be
considered an alternative to, or more meaningful than, net income
(loss), income (loss) from operations, cash flows from operating
activities, or any other measure of financial performance presented
in accordance with generally accepted accounting principles
("GAAP") in the United States as measures of the Company's
financial performance.
Adjusted EBITDA and Distributable cash flow have important
limitations as analytical tools because they exclude some but not
all items that affect net income (loss), the most directly
comparable U.S. GAAP financial measure. The Company's computation
of Adjusted EBITDA and Distributable cash flow may differ from
computations of similarly titled measures of other companies.
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(Unaudited)
(In thousands, except per unit
amounts)
Net income (loss)
$
46,346
$
147,647
$
271,326
$
422,549
Adjustments to reconcile to Adjusted
EBITDA:
Depreciation, depletion, and
amortization
10,943
11,748
45,196
45,683
Interest expense
1,130
674
3,109
2,754
Income tax expense (benefit)
284
143
509
320
Accretion of asset retirement
obligations
336
293
1,298
1,042
Equity-based compensation
1,799
2,417
8,564
10,829
Unrealized (gain) loss on commodity
derivative instruments
29,302
(37,400
)
50,944
(8,394
)
(Gain) loss on sale of assets, net
—
—
—
(73
)
Adjusted EBITDA
90,140
125,522
380,946
474,710
Adjustments to reconcile to Distributable
cash flow:
Change in deferred revenue
(1
)
(1
)
(4
)
(9
)
Cash interest expense
(858
)
(410
)
(2,030
)
(1,715
)
Preferred unit distributions
(7,367
)
(6,026
)
(29,466
)
(21,776
)
Distributable cash flow
$
81,914
$
119,085
$
349,446
$
451,210
Total units outstanding1
211,138
210,313
Distributable cash flow per unit
0.388
0.566
1 The distribution attributable to the
quarter ended December 31, 2024 is calculated using 211,137,816
common units as of the record date of February 18, 2025.
Distributions attributable to the quarter ended December 31, 2023
were calculated using 210,313,477 common units as of the record
date of February 16, 2024.
Proved Oil & Gas Reserve Quantities
A reconciliation of proved reserves is presented in the
following table:
Crude Oil
(MBbl)
Natural Gas
(MMcf)
Total
(MBoe)
Net proved reserves at December 31,
2023
19,091
272,296
64,474
Revisions of previous estimates
119
(25,218
)
(4,084
)
Purchases of minerals in place
10
314
62
Sales of minerals in place
(163
)
(1,250
)
(371
)
Extensions, discoveries, and other
additions
2,015
56,323
11,402
Production
(3,606
)
(62,984
)
(14,103
)
Net proved reserves at December 31,
2024
17,466
239,481
57,380
Net Proved Developed Reserves
December 31, 2023
19,091
228,061
57,101
December 31, 2024
17,466
220,901
54,283
Net Proved Undeveloped Reserves
December 31, 2023
—
44,235
7,373
December 31, 2024
—
18,580
3,097
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224440618/en/
Black Stone Minerals, L.P. Contacts Taylor DeWalch Senior
Vice President, Chief Financial Officer, and Treasurer Telephone:
(713) 445-3200 investorrelations@blackstoneminerals.com
Black Stone Minerals (NYSE:BSM)
과거 데이터 주식 차트
부터 2월(2) 2025 으로 3월(3) 2025
Black Stone Minerals (NYSE:BSM)
과거 데이터 주식 차트
부터 3월(3) 2024 으로 3월(3) 2025
