The following is a summary of the Black Stone Minerals, L.P. Common Units (BSM) Q3 2024 Earnings Call Transcript:
Financial Performance:
Black Stone Minerals reported net income of $92.7 million and adjusted EBITDA of $86.4 million for Q3 2024.
Mineral and royalty production was 35,300 BOE per day, and total production volumes were 37,400 BOE per day.
Maintained distribution at $0.375 per share for Q3, with distributable cash flow of $78.6 million, representing approximately 1x coverage.The company is well hedged for natural gas for the remainder of the year, with hedges at approximately $3.55 per MMBtu.
Business Progress:
Continued expansion in mineral and royalty acquisitions, adding about $15 million in assets during the quarter.
Enhanced operator collaborations, particularly in East Texas and Louisiana, to promote asset development.
Active asset management and targeted acquisitions continue as key operational strategies.
Opportunities:
The company has over 60% of its expected gas and oil volumes hedged for the remainder of 2024 which helps insulate cash flows from near-term price volatility.
Additional hedges in place for 2025 and plans to continue adding hedges for 2026.
Risks:
Continued commodity price volatility affects production levels and financial performance.
Potential ongoing fluctuations in natural gas market conditions may impact profitability.
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