BSM - Earnings call transcript Q2 2024 | Black Stone Minerals, L.P.

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Operator

Good day, everyone, and welcome to today's Black Stone Minerals Q2 Earnings Call. [Operator Instructions] Please note this call may be recorded. [Operator Instructions] It is now my pleasure to turn the conference over to Mr. Mark Meaux, Director of Finance. Please go ahead.

Mark Meaux

you. Thank everyone. to morning Good you for for Conference phone online either joining Stone Minerals us Black Earnings by Second or Thank Quarter Call. XXXX

on the is will issued call recorded our available website Today's last night. along release earnings being with which was be and

statements I'd and forward-looking to assumptions involve future These this we regarding be start, that risks will our the results in from implied statements. statements cause materially results to our differ like Before call our that you about advise we or making during expectations actual forward-looking may plans, performance. expressed our

For a and discussion our the you our Risk of statements release about press of should the refer cautionary in these XX-K. forward-looking to Factors risks, yesterday from section information XXXX

to are metrics non-GAAP in we directly Reconciliation which on our certain press our performance. website comparable that measures information be release useful found non-GAAP from are other those and evaluating www.blackstoneminerals.com. about refer measures the believe of at financial these GAAP described We to most earnings can in may our yesterday, measure

Tom Joining are from Officer; Counsel. Carrie Chief Senior President Senior Officer Treasurer; the Chairman, CEO DeWalch, call Vice the and Financial and company President; and President, Chief President, Steve me Commercial Vice Clark, Senior and Putman, on General Taylor Vice Carter,

now the to call Tom. over I'll turn

Tom Carter

focused long and development remain continued enhance our quarter, Good further solid morning, we high and with runway thank our results asset you targeted of interest us strategy, today. to along see we base to our all the second organic joining existing opportunities. In acquisitions for from growth unique on

revenues utilized growth day, excess income generated at maintained the in EBITDA. quarter from We with over line million and and $XX unit of in and XX,XXX opportunities. quarter oil came million the on BOE the $X.XXX with for gas per coverage production. net oil was first our distribution production XX% condensate $XXX our in adjusted just at of quarter which per Total

With decision-making remain we're commercial and long-term for company. constructive gas as revenues strategy of as natural mix, our sheet, strong as positive constructive a asset positioned production opportunities, basins uniquely and future remain very foundation clean a the the the well multiple -- natural to on oil balance focused outlook with

we the the starting acquisitions runway we of On asset front, a XXXX, grassroot initiatives previously, acquisition quarter elongate our to of our position program to enhance in as opportunities. commercial to discussed targeted fourth expanded and include existing development our

$XX million royalty September added quarter, minerals the interest acquired and in metals royalty have these in $XX.X and in areas about we During million another since acquisitions and 'XX. of

to see continue value accretive we our We add for to add shareholders. ultimately -- and our opportunities which will position to

work in East current improvement preparing monitoring Texas and and multiple operators acreage to continue gas with environment Louisiana, In our the on natural the while we development anticipated the for market. promote to

also multiple We undeveloped our on well and operations remain with recent Gulf Trough successful resource extensive of results. focused XX over inventory, Coast Shelby Tcf on the totaling

across objective it to being year. half year development of achieve quarter the in minerals XX more this and in strong the per second day with with scheduled after million area wells rates maintained assets. the was on we've were working of range operators brought X drilled all XX online our of our come strategic full the the feet initial second the and of are in Another our field cubic to to in half Overall, quarter, first million a online wells in several the

set. the toward our future commercial watermark continue and production growing initiatives We to by the high advancing and returning distribution looking the previously

of details walk the over financial it turn through I'll that, to With Taylor the quarter. to

Taylor DeWalch

morning, good everyone. and Tom, Thanks,

just oil per market. day in an last which over very quarter. royalty XX,XXX our which production volumes As per were saw Both from downturn was Boe a Mineral quarter. total second the increase had pointed BOE solid We volumes, day. flat Tom gas out, offset XX,XXX are helped and production of we in continued about and the

guidance thoughtfully year full review first the updated dynamics. our continue market to for current quarter, maintain We

previously quarter. the income net was for As for $XX.X cash $XX.X an million, that mentioned, X.XXx $X.XXX announced We for $XXX.X quarter Tom million. basis. represents being adjusted flow or our $X.XX with for which was on quarter the million annualized distribution quarter coverage is the the previously Distributable unit EBITDA per

distribution can Our to quarter flat the previous and that so royalty attractive Board use mineral continue from the excess to pursue elected to we the acquisitions. keep coverage

flexibility strong a gives have us dynamic sheet market that to these continue We through balance cycles.

at Total remained on are commitments currently revolver. there and under facility borrowings the million the outstanding $XXX credit no

of end $XX we million the in over just cash. week, last of As had

hedged are the year. the We well of for remainder

Our realized XXXX $X.XX $XX gain $X of approximately Hub about are price of a benefited at natural hedges for MMBtu, an million. per that second the to approximately we quarter, gas Henry at with comparing average MMBtu per

our expected hedged the of cash XXXX inflate will price of near-term XX% over volumes volatility. have We for from that our help remainder flows

hedge and to XXXX. our on We we'll we long-term value shareholders. another had we'll Again, to our continue strategy XXXX, for add our portfolio hedges quarter, solid to have generating for for on adding maintain focus continued and of

for With questions. call we'll that, open the

Operator

KeyBanc. will first [Operator from Instructions] question And Tim come with Rezvan our

Timothy Rezvan

Aethon, a but in get comments maybe on gave hoping color. more I My first little to was the question, some release, you

You till delayed Is Can the what back quarter. mentioned production means? production? clarify some in that in are they deferred second initial a you a the choking that or release wells from

formally they of Aethon in has then And of December. out entered of give kind you if that on could out this time comments broader come if sort

Taylor DeWalch

previously first -- what I that quick be the pass of of number guess the just take production. just date bit. that the we first your Tim. we To that part Thanks, is a on question. on delayed this Taylor, little And the Appreciate question I'll said clarify in -- delayed was was announced going there release had wells so production a to a

those announced, X of and previously the and the we the were And so to wells anticipate we're along specific the year. of second see in that coming like release XX excited come and ahead wells comment other the go is there in half those mentioned, to the online X

Timothy Rezvan

Okay.

-- that's suggests are those producing IP So you fully the typical the rates. gave rates

And Okay. are part of you that out clarify Do time the officially then that get work? question, on does process out? they can How you notification?

Carrie Clark

That's say put that it's I Tim, Carrie declaration and to just wells, but those wells press still X in is as in is now. to can they this But we talking time -- put really not February right -- I of information, release out. withholding was something any new Aethon to I can that, think the speak we're a Clark. Yes, not of what think formal with speak I come as far did coming not really out have that definitively -- think, online. we can't

still how have -- rate them yet, We forward we're to but talking seen on with production initial holistically. move best additional not

Timothy Rezvan

Okay.

know Okay. in sort are little to more it And kind want to give the I you emerging I acquire? then but to discussing release, was color, from mineral yet this but is if of on continue that Gulf what you in guideposts highlight you I understand. disclosed Coast wondering I not appreciate I you acreage Are precluding an detail that. what there more can't some a curious was openly, of acquisitions a is operator. evolve mass formal follow-up, And to of as my get the give waiting you process. agreement with critical you could area.

Carrie Clark

formally as up information science publicly done already a some bit Yes. the or shared We're I work speaking and amount of just a as not to maintain is accretive assimilate mean, in the we're we're that over it. Sure. great position of that's about I -- lines program acquisition that program. still year. with pretty about a that to detail last position -- that trying think, it's we've pretty we're far as to we've standard, acquisition that trying covers we much the And technical that, the it have quite

Timothy Rezvan

say much. I understand you too right. All can't Okay.

Operator

back I'd closing speakers we pass additional at Instructions] to It like any time. for [Operator looks this to remarks. no it have like now questions

Tom Carter

you you next at for all XQ us and for forward much. we earnings look joining Thank Thank Okay. the the to call, you with very quarter. so much 'XX speaking

Operator

This and today's concludes ladies presentation. gentlemen. you, Thank

You now disconnect. may

Black Stone Minerals (BSM) 6 Aug 242024 Q2 Earnings call transcript