BSM - Earnings call transcript Q4 2024 | Black Stone Minerals, L.P.

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Black Stone Minerals Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Mark Meaux, Director of Finance. ahead. go Please

Mark Meaux

Today's morning the either Good Minerals Thank for last our Conference you Quarter will recorded Thank available night. release, be phone to which or us on Call. Earnings XXXX by Full along Stone is online joining being and and with you. website Year everyone. call earnings for Fourth issued Black was

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

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

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

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

I'll now turn call Tom. the over to

Tom Carter

'XX continue where -- getting our ongoing I our long-term for on us SVP promotion on to details, to to work today everyone of you program initiatives. the of Carter beginning want and our Corporate he Development to Fowler morning discuss before year on all quarter with full the fourth joining those to recent lead team call, his acquisition congratulate thank and into and Good results, will

and the oil both second assets of gas revenue the assets, a oil half We pricing to with but described We're the from XXXX gas the remain the year pricing XXXX. to quarter. solid of production weak the halves. production strong encouraged Despite our can in for for stronger in X put us with in portfolio natural $X.XXX oil natural gas assets within fundamentals additive robust guidance year. and position started be our fourth distributions natural production our headwinds, our by hold coupled and enabled Black attractive oil which, Stone gas our hindered

targeted development on strategy, In of our addition, high builds runway our acquisition we which on further continue long focus interest to opportunities.

On the our during continue million. development to In opportunities acquisition acquisitions and the execute quarter, value existing opportunities, and to had front, bringing our acquisitions shareholders. XXXX, $XX asset that add position, total minerals another in ultimately we 'XX to the around royalty September accretive which identify confident on we long-term since enhance will $XXX million we're and increased

coverage. pricing to a solid We're distribution flat excess the year hold a quarter year during our Overall, environment. volatile it a despite was pleased with solid and

on sheet runway achieve Constructive outlook drive long-term liquidity across LNG multiple in solid development field strategy, us buoyed grassroot full returns. demand ultimately enable working and strong balance to execute ample the assets. gas and and commercial continue a provides 'XX oil to for outlook clean for operators by to Our growth from shareholder profitable robust production basins company acquisitions and long position natural our with targeted our to including

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

Taylor DeWalch

Thank you, Tom, and good morning, everyone.

from and both BOEs total commodity royalty quarter, in last out, were day, production are BOE price production was quarter. volatility. Tom a XX,XXX we and XX,XXX quarter volumes down the solid per continued As had day pointed per Mineral despite of fourth which

mineral For per BOE day. and XX,XXX royalty XX,XXX averaged production production BOE day, while total XXXX, per volumes was

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

full $XXX.X at EBITDA basis. adjusted was the million year with on maintained our an or unit million. $XXX.X We per XXXX, net $X.XXX the For $X.XX quarter income distribution for annualized totaling

Distributable cash we conjunction guidance for X.XXx represents was flow earnings quarter. XXXX the $XX.X release, for quarter million, yesterday. our In the the released coverage which with

from to full forward year the increase XXXX look we production we an XXXX, expect As in levels.

our activity driven our night. acreage broad position, across interest increase we production unique our by press in this In to is last addition release activity highlighted high development

In on the to acreage. on Currently, year. X promote multiple rigs is XX remainder rig X the operating turned-to-sales company's EXCO operating is for Trough has the work Aethon wells East XXXX Aethon with we operators development to already of acreage. gross Texas, in XX another expected with continue our Shelby and

interest accelerated addition, agreements XXXX. In on and gross wells fourth XXXX another to producing of high Haynesville begin well development the underway, wells production the during during Louisiana expected in X is with quarter first XX the

Stone's of our represent XXXX. the wells base both in further opportunities expect development Under covering includes demonstrate In production interest and plays. strong gross Culberson X near-term and royalty wells provide in on development asset large to County. gas Permian position, activity our interest these we across across growth XX accelerating portfolio the and developments areas high XX our slightly acreage. unique operators in burden. This high within agreements, Currently, These on and assets reduced exchange our a in BSM's certainty first different wells have oil XX diverse including are Black will acreage, development tracking we been spud, basins for a

expected to XXXX, hiring production in had be last for operating value increase line in a as bonus, in XXXX. expense additional our we is in hiring to strategy for ability as result and lease With G&A to with we and in start our year XXXX as generate expected expect and to the XXXX prices. confident volatility long-term during slightly solid costs are promotions We strong shareholders. a 'XX. Again, long-term gas some despite quarter year our and natural well a of

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

Operator

our [Operator Instructions] John Texas first We'll with Annis of from question line the Capital. take

John Annis

how Gulf broadly, current characterize Coast on more whether opportunities For disclose gas my not you focus prefer the wanted first bid-ask you -- and locations you acquisitions acquisitions at this gas? oil the spread whether would and for perhaps for focused Understanding specific continue region you to in on it's guys Could the oil and help would or may in made and to recent to one, characterize I mineral be then both frame QX. time. you

Tom Carter

I'll that. at a is take shot Tom. This

to question, growing that other at half area repeat advantage term add a solid we is Gulf our see in conservatively time. region you footprint. where if the in we that. this long footprint in program remember in are the -- the from the focused environment, LNG prior around this very We're long-term footprint, of I Shelby our acquisition second take basins gas in Our Trough generally many had acquisitions to that not of expanding looking could Coast relatively acquisitions, natural And at the growth future, And don't inventory. large opportunity we have sets actively

John Annis

Got it. makes That sense.

position these XXXX gas, the ADAs entered For then into Haynesville, agreements? retaining the bring my agreements? accelerate natural Haynesville. think they ADAs let you with follow-up, for drilling the the activity a growth during the call How naturally that from over And impact way additional Louisiana activity your of does type accelerated that agreements to while Are in of remain shifting duration outlook calculus how asking your across on another backdrop constructive of we about executing royalty? guess I should does the higher multiyear especially of attractive? Or still the it, do certainty

Carrie Clark

Carrie. is This

how there that the identified then, a not that generally we smaller already of And interest from on first, an based have location as we've Aethon, the the interest resource concentrated much agreement the might much area. like course, more as So are of opportunity we in they targeted ADA, have are perspective where gone it. on and is out far and multiyear these this a both exploration with joint contract opportunities

bit the aggregate, a So than much agreement. limited in up but add are the like exploration accelerated quite a joint they more these multiyear contract typically agreements

X tenets I to X we we then opportunities of really just It's of being drilling on to to that's to some mineral try production of response, we to about goes -- owner tools strategy predictability of X be as the influence accelerated. we the intentional it's X accelerated how that that side I think there volumes price. do activity of since clear, wells. out not but in actually we're without -- since can't out maintain on them point in wells, to those and is a And our the anything this our answered call more strategy, -- the do commodity the consistency And seeking to charge try question are whole have the that the development in we drilling

Taylor DeWalch

this say we This potentially certainly a targeted that follow-up. we've other are of into One the follow-up, just thus continue Taylor program while John, I'd mentioned, into to One years. far type Carrie is agreement entered see opportunities DeWalch. do as additional still

with So there that are that. additional continue we opportunities

Operator

[Operator Markets. with line Tim question Capital from the Rezvan next Instructions] Our KeyBanc will come of

Timothy Rezvan

helpful operational detail update. sort say appreciate with start, wanted the just a release As to I that we a the of in

sight XXXX and the long a the this period this because think will times As half activity to kind the back multiyear XXXX be we that impact? up increasing think reflecting understand cycle of more setting to good like this is think Or of Haynesville, of in as activity about half line you a increase pretty now do in in you first this Just growth. do of of what seems trying for increase? be

this have if reflected? constructive get we more context you can little when XXXX on this any And on curious a news? be would of kind should Just from

Tom Carter

hopeful that in long we Tim, normal. take activity around cycle our of a little Trough, in than I'll Tom. modest the maybe is shot a growth properties. In in modest you give at Haynesville for Shelby and very and to annual a information especially area, are than our more better this

leases of acquisition XX% the in owning almost in various only area active -- and/or that the that towards we working of control is total that totaling on acreage area XXX,XXX of most we're area, area. acres the East they in excess half moving in in Specifically, Aethon in And acreage the minerals but about and in Texas, area. encompasses there's counties that are the

a there subset in with to that of and out to have area. see years trying meaningfully amounts -- very runway come large many expand we our operator with we there operating And out operators to for very long additional also multiple are activity

gas prices of It's considered, been predict considerably Of certainly not course, gas current to the is sensitive relatively hard is predictable. natural to all have like anybody. feel this environment but no surprise and We natural predictable, price forever. as completely it's

the a of optimistic to fair growth expanding And here so expanding the we're out come from that are there's areas being of number developed that and amount operators.

Timothy Rezvan

$XX that. the less mentioned putting think theoretically can That's was kind $XXX Okay. acquisitions you on the out context. prepared would your fourth It $XXX helpful there million the show I trying like sheet. Xx context could balance in and be provide to in cards you be you of appreciate on terms don't of is on And make the how to on million of quarter still comfortable that and like I another want much you acquisitions. understand then some outlook. levered. comments, But of what opportunity then in you your looks just spent too than set debt million

to available? be And kind helpful. your more? what's inclination buy would Any comments what's that So on of

Tom Carter

identified monitor and in our to to We available could at. see this becoming there. anything position taking that expand go much Well, -- there not how but additional to as want do And has conservatively going us But studied going to the previously, much million we're long it or avenues conservative but been we as after out going go to and inventory more a different many purchased. to to we that not about levered, that's take else. is left acquired $XXX further I as doubt what's significant There's are trying million market. at natural as would to and if be fast gas say have you are look on watch there $XXX we

Operator

Tom to And closing I'll will question-and-answer conclude Carter the over that session. hand our back comments. any for call

Tom Carter

Okay. your and joining chatting Well, future. questions and today we look you thanks further call, interest the very much forward and in for the with to

Operator

all you joining. call Thank for This today. will conclude our

You disconnect. may now

Black Stone Minerals (BSM) 25 Feb 252024 Q4 Earnings call transcript