Black Stone Minerals, L.P. Reports First-Quarter Results
Financial and Operational Highlights
- Mineral and royalty production for the first quarter of 2025 was 34.2 MBoe/d; total production, including working-interest volumes, was 35.5 MBoe/d for the quarter.
-
Net income for the first quarter was
$15.9 million $82.2 million -
Distributable cash flow was
$73.7 million -
Black Stone announced a distribution of
$0.37 5 -
Total debt at the end of the first quarter was
$63.0 million $63.0 million $4.3 million
Management Commentary
Thomas L. Carter, Jr., Black Stone’s Chairman, Chief Executive Officer and President, commented, “Despite recent market volatility, our financial position and asset outlook remain strong, and we are maintaining our quarterly distribution of
Quarterly Financial and Operating Results
Production
Black Stone reported mineral and royalty volumes of 34.2 MBoe/d (
Working-interest production was 1.3 MBoe/d in the first quarter of 2025, 1.3 MBoe/d in the fourth quarter of 2024, and 2.2 MBoe/d in the first quarter of 2024. The continued year-over-year decline in working-interest volumes is consistent with the Partnership’s decision to farm out its working-interest participation to third-party capital providers.
Total reported production averaged 35.5 MBoe/d (
Realized Prices, Revenues, and Net Income
The Partnership’s average realized price per Boe, excluding the effect of derivative settlements, was
Black Stone reported oil and gas revenue of
The Partnership reported a loss on commodity derivative instruments of
Lease bonus and other income was
The Partnership reported net income of
Adjusted EBITDA and Distributable Cash Flow
Adjusted EBITDA for the first quarter of 2025 was
Financial Position and Activities
As of March 31, 2025, Black Stone had
On April 30, 2025, Black Stone's borrowing base under the credit facility was reaffirmed, and total commitments under the credit facility were maintained at
First Quarter 2025 Distributions
As previously announced, the Board approved a cash distribution of
Activity Update
Development Activity
At the end of the first quarter, EXCO was operating one rig, and Aethon was operating three rigs on the Partnership’s
In the Louisiana Haynesville, development continued under the Partnership’s Accelerated Drilling Agreements (“ADAs”). These agreements provide greater near-term certainty by accelerating development and associated revenue in BSM’s high-interest areas in exchange for a modest reduction in royalty burden. During the first quarter, two gross (0.2 net) wells in De Soto Parish were turned to sales under BSM’s ADAs.
In the Permian Basin, the Partnership continues to monitor several large-scale development projects expected to generate meaningful liquids volumes in 2025 and beyond. As previously disclosed, a large operator has planned more than 35 gross (1.25 net) wells in
Acquisition Activity
Black Stone’s commercial strategy since 2021 has been focused on attracting capital and securing drilling commitments in areas where the Partnership already owns significant minerals. Management made the decision to expand this growth strategy by adding to the Partnership’s mineral portfolio through strategic, targeted efforts primarily in the Shelby Trough area. In the first quarter of 2025, Black Stone acquired
Update to Hedge Position
Black Stone has commodity derivative contracts in place covering portions of its anticipated production for 2025 and 2026. The Partnership's hedge position as of May 2, 2025 is summarized in the following tables:
Oil Hedge Position |
|
|
|
Oil Swap |
Oil Swap Price |
|
MBbl |
$/Bbl |
2Q25 |
555 |
|
3Q25 |
555 |
|
4Q25 |
555 |
|
1Q26 |
390 |
|
2Q26 |
390 |
|
3Q26 |
390 |
|
4Q26 |
390 |
|
Natural Gas Hedge Position |
||
|
Gas Swap |
Gas Swap Price |
|
BBtu |
$/MMbtu |
2Q25 |
10,920 |
|
3Q25 |
11,040 |
|
4Q25 |
11,040 |
|
1Q26 |
11,700 |
|
2Q26 |
11,830 |
|
3Q26 |
11,960 |
|
4Q26 |
11,960 |
|
More detailed information about Black Stone's existing hedging program can be found in the Quarterly Report on Form 10-Q for the first quarter of 2025, which is expected to be filed on or around May 6, 2025.
Conference Call
Black Stone will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2025 on Tuesday, May 6, 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 of oil and natural gas mineral interests in
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:
- 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, as well as regional supply and demand factors, delays, or interruptions of production;
- domestic and foreign trade policies, including tariffs and other controls on imports or exports of goods, including energy products;
- 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. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per unit amounts) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
||||
REVENUE |
|
|
|
|
||||
Oil and condensate sales |
|
$ |
50,093 |
|
|
$ |
71,224 |
|
Natural gas and natural gas liquids sales |
|
|
58,235 |
|
|
|
42,011 |
|
Lease bonus and other income |
|
|
6,925 |
|
|
|
3,548 |
|
Revenue from contracts with customers |
|
|
115,253 |
|
|
|
116,783 |
|
Gain (loss) on commodity derivative instruments |
|
|
(56,001 |
) |
|
|
(11,290 |
) |
TOTAL REVENUE |
|
|
59,252 |
|
|
|
105,493 |
|
OPERATING (INCOME) EXPENSE |
|
|
|
|
||||
Lease operating expense |
|
|
2,162 |
|
|
|
2,432 |
|
Production costs and ad valorem taxes |
|
|
10,185 |
|
|
|
13,038 |
|
Exploration expense |
|
|
5,110 |
|
|
|
3 |
|
Depreciation, depletion, and amortization |
|
|
9,130 |
|
|
|
11,639 |
|
General and administrative |
|
|
15,172 |
|
|
|
14,090 |
|
Accretion of asset retirement obligations |
|
|
332 |
|
|
|
317 |
|
TOTAL OPERATING EXPENSE |
|
|
42,091 |
|
|
|
41,519 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
17,161 |
|
|
|
63,974 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
||||
Interest and investment income |
|
|
64 |
|
|
|
670 |
|
Interest expense |
|
|
(1,397 |
) |
|
|
(629 |
) |
Other income (expense) |
|
|
120 |
|
|
|
(88 |
) |
TOTAL OTHER EXPENSE |
|
|
(1,213 |
) |
|
|
(47 |
) |
NET INCOME (LOSS) |
|
|
15,948 |
|
|
|
63,927 |
|
Distributions on Series B cumulative convertible preferred units |
|
|
(7,366 |
) |
|
|
(7,367 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS |
|
$ |
8,582 |
|
|
$ |
56,560 |
|
ALLOCATION OF NET INCOME (LOSS): |
|
|
|
|
||||
General partner interest |
|
$ |
— |
|
|
$ |
— |
|
Common units |
|
|
8,582 |
|
|
|
56,560 |
|
|
|
$ |
8,582 |
|
|
$ |
56,560 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT: |
|
|
|
|
||||
Per common unit (basic) |
|
$ |
0.04 |
|
|
$ |
0.27 |
|
Per common unit (diluted) |
|
$ |
0.04 |
|
|
$ |
0.27 |
|
WEIGHTED AVERAGE COMMON UNITS OUTSTANDING: |
|
|
|
|
||||
Weighted average common units outstanding (basic) |
|
|
211,253 |
|
|
|
210,654 |
|
Weighted average common units outstanding (diluted) |
|
|
211,253 |
|
|
|
210,654 |
|
The following table shows the Company’s production, revenues, pricing, and expenses for the periods presented:
|
|
|
Three Months Ended March 31, |
||||||
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
||||
|
|
(Unaudited) (Dollars in thousands, except for realized prices and per Boe data) |
|||||||
Production: |
|
|
|
|
|
||||
Oil and condensate (MBbls) |
|
|
|
716 |
|
|
|
923 |
|
Natural gas (MMcf)1 |
|
|
|
14,853 |
|
|
|
16,470 |
|
Equivalents (MBoe) |
|
|
|
3,192 |
|
|
|
3,668 |
|
Equivalents/day (MBoe) |
|
|
|
35.5 |
|
|
|
40.3 |
|
Realized prices, without derivatives: |
|
|
|
|
|
||||
Oil and condensate ($/Bbl) |
|
|
$ |
69.96 |
|
|
$ |
77.17 |
|
Natural gas ($/Mcf)1 |
|
|
|
3.92 |
|
|
|
2.55 |
|
Equivalents ($/Boe) |
|
|
$ |
33.94 |
|
|
$ |
30.87 |
|
Revenue: |
|
|
|
|
|
||||
Oil and condensate sales |
|
|
$ |
50,093 |
|
|
$ |
71,224 |
|
Natural gas and natural gas liquids sales1 |
|
|
|
58,235 |
|
|
|
42,011 |
|
Lease bonus and other income |
|
|
|
6,925 |
|
|
|
3,548 |
|
Revenue from contracts with customers |
|
|
|
115,253 |
|
|
|
116,783 |
|
Gain (loss) on commodity derivative instruments |
|
|
|
(56,001 |
) |
|
|
(11,290 |
) |
Total revenue |
|
|
$ |
59,252 |
|
|
$ |
105,493 |
|
Operating expenses: |
|
|
|
|
|
||||
Lease operating expense |
|
|
$ |
2,162 |
|
|
$ |
2,432 |
|
Production costs and ad valorem taxes |
|
|
|
10,185 |
|
|
|
13,038 |
|
Exploration expense |
|
|
|
5,110 |
|
|
|
3 |
|
Depreciation, depletion, and amortization |
|
|
|
9,130 |
|
|
|
11,639 |
|
General and administrative |
|
|
|
15,172 |
|
|
|
14,090 |
|
Other expense: |
|
|
|
|
|
||||
Interest expense |
|
|
|
1,397 |
|
|
|
629 |
|
Per Boe: |
|
|
|
|
|
||||
Lease operating expense (per working-interest Boe) |
|
|
$ |
18.66 |
|
|
$ |
12.22 |
|
Production costs and ad valorem taxes |
|
|
|
3.19 |
|
|
|
3.55 |
|
Depreciation, depletion, and amortization |
|
|
|
2.86 |
|
|
|
3.17 |
|
General and administrative |
|
|
|
4.75 |
|
|
|
3.84 |
|
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 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 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
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
|
|
|
Three Months Ended March 31, |
||||||
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
||||
|
|
(Unaudited) (In thousands, except per unit amounts) |
|||||||
Net income (loss) |
|
|
$ |
15,948 |
|
|
$ |
63,927 |
|
Adjustments to reconcile to Adjusted EBITDA: |
|
|
|
|
|
||||
Depreciation, depletion, and amortization |
|
|
|
9,130 |
|
|
|
11,639 |
|
Interest expense |
|
|
|
1,397 |
|
|
|
629 |
|
Income tax expense (benefit) |
|
|
|
(85 |
) |
|
|
135 |
|
Accretion of asset retirement obligations |
|
|
|
332 |
|
|
|
317 |
|
Equity–based compensation |
|
|
|
3,055 |
|
|
|
2,383 |
|
Unrealized (gain) loss on commodity derivative instruments |
|
|
|
52,390 |
|
|
|
25,087 |
|
Adjusted EBITDA |
|
|
|
82,167 |
|
|
|
104,117 |
|
Adjustments to reconcile to Distributable cash flow: |
|
|
|
|
|
||||
Change in deferred revenue |
|
|
|
(1 |
) |
|
|
(1 |
) |
Cash interest expense |
|
|
|
(1,123 |
) |
|
|
(361 |
) |
Preferred unit distributions |
|
|
|
(7,366 |
) |
|
|
(7,367 |
) |
Distributable cash flow |
|
|
$ |
73,677 |
|
|
$ |
96,388 |
|
|
|
|
|
|
|
||||
Total units outstanding1 |
|
|
|
211,636 |
|
|
|
210,704 |
|
Distributable cash flow per unit |
|
|
|
0.348 |
|
|
|
0.457 |
|
1 |
The distribution attributable to the three months ended March 31, 2025 is estimated using 211,636,423 common units as of May 2, 2025; the exact amount of the distribution attributable to the three months ended March 31, 2025 will be determined based on units outstanding as of the record date of May 8, 2025. Distributions attributable to the three months ended March 31, 2024 were calculated using 210,703,884 common units as of the record date of May 10, 2024. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250505568500/en/
Black Stone Minerals, L.P. Contact
Taylor DeWalch
Senior Vice President, Chief Financial Officer, and Treasurer
Telephone: (713) 445-3200
investorrelations@blackstoneminerals.com
Source: Black Stone Minerals, L.P.
