BSM - Earnings call transcript Q3 2024 | Black Stone Minerals, L.P.

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Operator

Hello, everyone, and thank you for joining us today for this Black Stone Minerals Q3 2024 Earnings Conference Call. [Operator Instructions] Today's session is also being recorded. And to get us started with opening remarks and introductions, I am pleased to turn the floor to Director of Finance, Mr. Mark Meaux. Please go ahead, sir.

Mark Meaux

operator. you, Thank everyone. to Good morning Thank you for Conference phone online either joining Stone Minerals us Black Earnings by Third or for 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

production a in quarter. throughout the successful Thanks, area previously Mark. decrease Good in morning, last announced, distribution and the us by today. And volatility as third despite gas our thanks had a quarter, joining year. We natural for maintained driven consistent from

working for development. with our progressed mineral partners we program, long-term acquisition we quarter, the continue and During our

development of acreage long targeted on further strategy remain enhance our interest in acquisition our runway position are and focused outlook opportunities. our We confident the to existing high across

the acquisition targeted On the through we've to discussed throughout asset acquisition our program the grassroots previously we continue footprint expand year. front,

asset million fourth for of we XXXX about for which royalty further build in our quarter, minerals minerals plan about lease, contiguous value all assets continue a in the to the for of far, quarter $XX since opportunities, long-term interest which a have and development. Thus acquired with accretive drive million shareholders. $XX substantial will we and ultimately long-term an added and royalty operator During along pursuing

quarter Texas other multiple million feet In Angelina to X the the operating in prepare improvements acreage promote County. joint by and we current fracking the in per cubic work Aethon third And and looking currently to signed multiple continue to environment X East in wells Louisiana, brought were while on to and operators our monitor market. amendments online rig XX wells also Trough with and natural day production with initial and development range. We we exploration them XX Shelby million gas commodity recently at existing the the rates are anticipated agreement in our

near-term Louisiana activity area And with online XX the wells the the as about operators Toledo play, ongoing of day. excited Bend about promote we're per in On side multiple multiple development. for cubic feet in the Comstock million work recently to we this area turned

Taylor financial quarter. I'll this objective of was the with and our details the with of it over our maintain quarter, that, to walk production Overall, goal operators acquisitions. With will it the successful accretive full turn of assets across to strategic and of a growth to all through continue asset development we achieve through management targeted to working active

Taylor DeWalch

Thanks, Tom, and good morning, everyone.

dynamics. to from both XX,XXX down first and of the continue updated out, We XX,XXX continued the bit successful for which day a had pointed production BOE volatility. despite last review and quarter, production volumes guidance quarter in price maintained market per current per were was Tom BOE royalty total commodity a we were and As quarter. our third quarter Mineral day, softly

production. was income revenue third from $XX.X in and million with quarter the million. and condensate oil $XX.X came the gas oil EBITDA quarter, XX% adjusted for of being Net

per We for which flow approximately maintained was $X.XXX our the at the on $XX.X an the basis. for coverage annualized represents unit distribution quarter quarter. Xx for quarter million, $X.XX Distributable cash or

and Our focus market solid commercial liquidity long gives term. balance the us these in opportunities sheet ample the provides through opportunity and flexibility and cycles to dynamic on short

X, are outstanding total And with on as appreciate our commitments our borrowings million million, at revolver. with remaining We credit there facility working at banking our $XXX currently partners. no of reaffirmed was $XXX November and

As approximately last of million the we week, had of end $XX of cash.

are the year. well the hedged of remainder We for

$X.XX for the at gas gas to benefited Hub XXXX that with we quarter, an Our approximately $XX are settlement million. average natural approximately Henry of third per comparing and MMBtu $X.XX hedges of a

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

focus had to for a we'll We for maintain and XXXX. successful long-term and quarter, additional place of generating also have continue on XXXX, we'll in attractive for hedges hedges on value our our shareholders. adding we Again, strategy

With call like the open I'd that, questions. to for

Operator

[Operator Capital at Rezvan Instructions] Markets. hear from We'll KeyBanc Tim

Timothy Rezvan

with of on level of sort trending that would was around going look. terms there. of how first consternation some volumes know think you Can you XXXX put of an forward? idea I sort start on the you give market see I Aethon kind back the factual to update like us step provided. I'd how activity you and kind

If kind the years couple on have next you of of could just you the what sort picture sort activity? visibility and of is what of over amendment kind this step say of

Taylor DeWalch

report I want Tim. Thanks, is I off. maybe appreciate And to Taylor. just this start say night This morning. I'll just ] your last [ off, first

we're basin. and our speaking, gas of taking generally East natural Texas, in back being mentioned earlier. thoughtful operators Tom's thinking at in entire bit with think Louisiana, to all about we as the picture, a looking certainly a and across across I step entire activity the just remarks continue macro work So And little

they're in them appreciate work And to running work the activity continue partners. well. as with all in continue we'll As area, to and that it with relates the to of our Aethon, rate current we certainly, the

I question. So answers hope that your

Timothy Rezvan

the to one dedicated you be rig that way interest? there's is think So on area a of of going saying

Taylor DeWalch

I'd exact as work I that a to area. being is activity, rig going the working, developing continue the as Shelby of been whole say to seen Trough. just historically, them level see activity active say we the in we've in what going commitment maintain And them in Aethon as to would and with we're they've about that to continue they're far

Timothy Rezvan

Okay.

spend you Coast cadence that of area, to reflective opportunity trying talked are of you've trying you you $XXX is $XX appreciate up Is quarter? Gulf Okay. then And think the or quarter spending take million, set, something acquisitions, the Just the $XX done? progression. ability I just spending? acquisitions, where like million measured your next could million get this deals there's of measured that. trying to but date understand a Like and about sounds came you it to that. could about pivot if to like -- measured big kind of you kind to theoretically, to the of be maybe another Or understand about and

Taylor DeWalch

comfortable area our we're are looking the a be I'd monthly quarterly, ability look individual thoughtful reached Yes. good there on to this in that we And those say at. we've pretty basis and the Gulf minerals continuing we're that in assess that's market I'd current a to in what what about. Coast on is we acquire additional And question. But basis. to a opportunities and continue say at cadence that an feel Thanks.

Operator

you back signals to [Operator phone audience. for I'll any turn no Instructions] Gentlemen, it our closing remarks. from we additional or have

Tom Carter

again, thank Okay. you next Well, look us We all. any today, you talking forward we additional for quarter. to joining And you thank don't and questions. we have with

Operator

you and for conference your Black participation. Ladies Stone thank and conclude gentlemen, all we does this today's Minerals call,

may lines. now You disconnect your

Black Stone Minerals (BSM) 5 Nov 242024 Q3 Earnings call transcript