Black Stone Minerals, L.P. Announces Fourth Quarter and Full Year 2023 Results; Provides Guidance for 2024
- Increased mineral and royalty volumes by 9% in 2023 compared to the prior year.
- Reported net income of $147.6 million for Q4 2023, a significant increase from the preceding quarter.
- Adjusted EBITDA for Q4 2023 was $125.5 million, slightly lower than the previous quarter.
- Distributable cash flow for Q4 2023 was $119.1 million, showing a 4% decrease compared to Q3 2023.
- Total debt remained at zero at the end of Q4 2023, with $102.9 million in cash as of February 16, 2024.
- Announced a distribution of $0.475 per unit for Q4 2023, with distribution coverage of 1.19x.
- Reported 2023 net income and Adjusted EBITDA of $422.5 million and $474.7 million, respectively.
- Estimated proved reserves at year-end 2023 were 64.5 MMBoe, with a standardized measure of discounted future net cash flows at $1,019.5 million.
- Black Stone had 63 rigs operating across its acreage position as of December 31, 2023, a decrease from the previous quarter.
- Expect royalty production to increase by 4% in 2024, offset by a decline in working interest production due to farming out opportunities.
- Hedge positions for oil and natural gas in place for 2024 and 2025 to cover anticipated production.
- Management remains positive about long-term prospects despite challenges in the natural gas market.
- Distributable cash flow decreased by 4% in Q4 2023 compared to the previous quarter.
- Adjusted EBITDA slightly decreased in Q4 2023 compared to the previous quarter.
- Working interest production declined by 4% in Q4 2023 compared to the previous quarter.
- General and administrative expenses expected to be slightly higher in 2024.
- Expected moderation of activity in Louisiana Haynesville due to lower commodity prices in 2024.
Insights
Black Stone Minerals' financial performance in the fourth quarter and full year of 2023 indicates a robust financial position, with a noteworthy elimination of debt and a consistent distributable cash flow above $100 million for seven consecutive quarters. The company's decision to maintain a high distribution rate, in spite of a challenging natural gas market, underscores a strong cash flow generation capacity. However, the decrease in production and the anticipated headwinds due to depressed natural gas prices in 2024 are concerning. The zero debt level enhances financial flexibility, but the company's future growth prospects hinge on how it navigates the volatile energy market and capitalizes on LNG export growth opportunities.
From a valuation perspective, the reported net income and Adjusted EBITDA figures are substantial, but the 31% decrease in average realized price per Boe year-over-year is a red flag. This could potentially affect the company's revenue streams if not offset by increased production or higher commodity prices in the future. The company's hedging positions for 2024 and 2025 provide some revenue predictability, which is favorable for financial planning and risk management.
The energy sector is currently experiencing significant volatility, particularly in the natural gas market. Black Stone Minerals' emphasis on natural gas (approximately 74% of total production) makes it susceptible to fluctuations in natural gas prices. The company's guidance for increased natural gas production in 2024, despite the current price depression, suggests a strategic focus on volume growth to mitigate revenue impacts. However, the reliance on LNG export growth as a long-term strategy must be weighed against geopolitical factors and global energy demand trends. Additionally, the company's proactive hedging strategy is a prudent approach to managing commodity price risks, but it is essential to monitor the effectiveness of these hedges against actual price movements and production levels.
The temporary suspension of drilling obligations by Aethon Energy in the Shelby Trough could impact near-term production volumes, although Black Stone appears to have a diversified asset base to cushion the effect. Moreover, the company's strategic acquisitions and partnerships in the Gulf Coast region and Austin Chalk play could bolster its position if these areas yield successful development outcomes.
Black Stone Minerals' operational strategy, including the farm-out of working interest participation and targeted acquisitions, reflects a cautious approach to capital deployment. This is particularly relevant in an environment where energy companies are pressured to balance growth with capital discipline. The company's focus on royalty interests, which are expected to increase from 94% to 96%, aligns with industry trends favoring less capital-intensive and lower-risk revenue streams.
The absence of impairments in the reported quarters is a positive indicator of asset quality and management's effective valuation of its portfolio. However, the anticipated decline in working interest production may affect total output and thus, the company's ability to fully leverage potential upswings in commodity prices. Investors should consider the company's ability to manage its lease operating expenses and ad valorem taxes, which are significant contributors to the overall cost structure.
Fourth Quarter 2023 Highlights
-
Mineral and royalty production for the fourth quarter of 2023 equaled 38.9 MBoe/d, a decrease of
3% over the prior quarter; total production, including working interest volumes, was 41.1 MBoe/d for the quarter -
Net income for the quarter was
$147.6 million $125.5 million -
Distributable cash flow was
$119.1 million 4% decrease relative to the third quarter of 2023, making the seventh consecutive quarter above$100 million -
Black Stone announced a distribution of
$0.47 5 -
Total debt at the end of the quarter was zero; as of February 16, 2024, total debt remained at zero with
$102.9 million
Full Year Financial and Operational Highlights
-
Mineral and royalty volumes in 2023 increased
9% over the prior year to average 37.4 MBoe/d; average full year 2023 production was 39.8 MBoe/d -
Reported 2023 net income and Adjusted EBITDA of
$422.5 million $474.7 million -
Increased cash distributions by
9% from$1.74 5$1.90 - Eliminated outstanding debt during 2023
Management Commentary
Thomas L. Carter, Jr., Black Stone Minerals’ Chairman, Chief Executive Officer, and President, commented, “We finished the year with a strong quarter. We were able to maintain our highest distribution without any outstanding debt despite a challenging natural gas market. We expect headwinds in 2024 as natural gas prices remain depressed, but we remain encouraged by the long-term prospects for liquefied natural gas export growth and an asset base with significant inventory life that will benefit unitholders through the next decade.”
Quarterly Financial and Operating Results
Production
Black Stone Minerals reported mineral and royalty volumes of 38.9 MBoe/d (
Working interest production for the fourth quarter of 2023 was 2.2 MBoe/d, a decrease of
Total reported production averaged 41.1 MBoe/d (
Realized Prices, Revenues, and Net Income
The Company’s average realized price per Boe, excluding the effect of derivative settlements, was
Black Stone reported oil and gas revenue of
The Company reported a gain on commodity derivative instruments of
Lease bonus and other income was
There was no impairment for the quarters ended December 31, 2023, September 30, 2023, and December 31, 2022.
The Company reported net income of
Adjusted EBITDA and Distributable Cash Flow
Adjusted EBITDA for the fourth quarter of 2023 was
2023 Proved Reserves
Estimated proved oil and natural gas reserves at year-end 2023 were 64.5 MMBoe, an increase of
Netherland, Sewell and Associates, Inc., an independent, third-party petroleum engineering firm, evaluated Black Stone Minerals’ estimate of its proved reserves and PV-10 at December 31, 2023. These estimates were prepared using reference prices of
Financial Position and Activities
As of December 31, 2023, Black Stone Minerals had
As of February 16, 2024, no debt was outstanding under the credit facility and the Company had
During the fourth quarter of 2023, the Company made no repurchases of units under the Board-approved
Fourth Quarter 2023 Distributions
As previously announced, the Board approved a cash distribution of
Activity Update
Rig Activity
As of December 31, 2023, Black Stone had 63 rigs operating across its acreage position, a
Shelby Trough Development Update
A significant portion of Shelby Trough development in recent years has been performed by Aethon Energy (“Aethon”) under the Company’s two Joint Exploration Agreements (“JEA” or “JEAs”) with Aethon, one JEA each covering development in
As announced on December 22, 2023, BSM received notice that Aethon was exercising the “time-out” provisions under its joint exploration agreements with the Company in
The time-out provisions apply only to drilling obligations and associated development activity occurring after December 2023. Based on ongoing discussions with Aethon, we do not expect material changes for wells on which drilling operations had begun prior to the invocation of the time-out in December 2023. We continue working closely with Aethon to finalize development plans going forward and assess the effect of the temporary suspension of drilling obligations and any potential longer-term impacts.
Austin Chalk Update
The Company owns a large mineral position in the Brookeland Austin Chalk play in
Black Stone has entered into agreements with multiple operators to drill wells in the areas of the Austin Chalk in
Acquisition Activity
Black Stone’s commercial strategy since 2021 has been focused on attracting capital and securing drilling commitments on minerals already owned by the Company. Management made the decision to expand this growth strategy by adding to the Company’s mineral portfolio through strategic, targeted efforts primarily in the Gulf Coast region. To that end, in 2023 Black Stone acquired additional, non-producing mineral and royalty interests totaling
Summary 2024 Guidance
Following are the key assumptions in Black Stone Minerals’ 2024 guidance, as well as comparable results for 2023:
|
FY 2023 Actual |
|
FY 2024 Est. |
Mineral and royalty production (MBoe/d) |
37.4 |
|
39 – 40 |
Working interest production (MBoe/d) |
2.4 |
|
1 – 2 |
Total production (MBoe/d) |
39.8 |
|
40 – 42 |
Percentage natural gas |
|
|
|
Percentage royalty interest |
|
|
|
|
|
|
|
Lease bonus and other income ($MM) |
|
|
|
|
|
|
|
Lease operating expense ($MM) |
|
|
|
Production costs and ad valorem taxes (as % of total pre-derivative O&G revenue) |
|
|
|
|
|
|
|
G&A - cash ($MM) |
|
|
|
G&A - non-cash ($MM) |
|
|
|
G&A - TOTAL ($MM) |
|
|
|
|
|
|
|
DD&A ($/Boe) |
|
|
|
Black Stone expects royalty production to increase by approximately
Working interest production is expected to decline in 2024 as a result of Black Stone's decision in 2017 to farm out participation in its working interest opportunities.
The Partnership expects general and administrative expenses to be slightly higher in 2024 as a result of inflationary costs and selective hires made to support Black Stone’s ability to evaluate, market and manage its undeveloped acreage positions to potential operators.
Hedge Position
Black Stone has commodity derivative contracts in place covering portions of its anticipated production for 2024 and 2025, including derivative contracts put in place after the end of the year. The Company's hedge position as of February 16, 2024, is summarized in the following tables:
Oil Hedge Position |
|
|
|
Oil Swap Volume |
Oil Swap Price |
|
MBbl |
$/Bbl |
1Q24 |
570 |
|
2Q24 |
570 |
|
3Q24 |
570 |
|
4Q24 |
570 |
|
1Q25 |
210 |
|
2Q25 |
210 |
|
3Q25 |
210 |
|
4Q25 |
210 |
|
Natural Gas Hedge Position |
|
|
|
Gas Swap Volume |
Gas Swap Price |
|
BBtu |
$/MMbtu |
1Q24 |
10,310 |
|
2Q24 |
10,465 |
|
3Q24 |
10,580 |
|
4Q24 |
10,580 |
|
1Q25 |
900 |
|
2Q25 |
910 |
|
3Q25 |
920 |
|
4Q25 |
920 |
|
More detailed information about the Company's existing hedging program can be found in the Annual Report on Form 10-K, which is expected to be filed on or around February 20, 2024.
Conference Call
Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the fourth quarter and full year of 2023 on Tuesday, February 20, 2024 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) 245-3047 for domestic participants and (203) 518-9765 for international participants. The conference ID for the call is BSMQ423. 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 and managers 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, as wells as the Risk Factors section in our most recent annual report on Form 10-K:
- 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, and regional supply and demand factors, delays, or interruptions of production;
- 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. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per unit amounts) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
REVENUE |
|
|
|
|
|
|
|
|
||||||||
Oil and condensate sales |
|
$ |
80,112 |
|
|
$ |
85,920 |
|
|
$ |
288,296 |
|
|
$ |
336,287 |
|
Natural gas and natural gas liquids sales |
|
|
52,440 |
|
|
|
110,254 |
|
|
|
200,297 |
|
|
|
434,945 |
|
Lease bonus and other income |
|
|
3,824 |
|
|
|
2,790 |
|
|
|
12,506 |
|
|
|
13,052 |
|
Revenue from contracts with customers |
|
|
136,376 |
|
|
|
198,964 |
|
|
|
501,099 |
|
|
|
784,284 |
|
Gain (loss) on commodity derivative instruments |
|
|
54,465 |
|
|
|
31,415 |
|
|
|
91,117 |
|
|
|
(120,680 |
) |
TOTAL REVENUE |
|
|
190,841 |
|
|
|
230,379 |
|
|
|
592,216 |
|
|
|
663,604 |
|
OPERATING (INCOME) EXPENSE |
|
|
|
|
|
|
|
|
||||||||
Lease operating expense |
|
|
3,237 |
|
|
|
3,124 |
|
|
|
11,386 |
|
|
|
12,380 |
|
Production costs and ad valorem taxes |
|
|
15,027 |
|
|
|
14,924 |
|
|
|
56,979 |
|
|
|
66,233 |
|
Exploration expense |
|
|
429 |
|
|
|
1 |
|
|
|
2,148 |
|
|
|
193 |
|
Depreciation, depletion, and amortization |
|
|
11,748 |
|
|
|
12,786 |
|
|
|
45,683 |
|
|
|
47,804 |
|
General and administrative |
|
|
12,505 |
|
|
|
14,326 |
|
|
|
51,455 |
|
|
|
53,652 |
|
Accretion of asset retirement obligations |
|
|
293 |
|
|
|
245 |
|
|
|
1,042 |
|
|
|
861 |
|
(Gain) loss on sale of assets, net |
|
|
— |
|
|
|
— |
|
|
|
(73 |
) |
|
|
(17 |
) |
TOTAL OPERATING EXPENSE |
|
|
43,239 |
|
|
|
45,406 |
|
|
|
168,620 |
|
|
|
181,106 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
147,602 |
|
|
|
184,973 |
|
|
|
423,596 |
|
|
|
482,498 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
||||||||
Interest and investment income |
|
|
826 |
|
|
|
31 |
|
|
|
1,867 |
|
|
|
53 |
|
Interest expense |
|
|
(674 |
) |
|
|
(2,022 |
) |
|
|
(2,754 |
) |
|
|
(6,286 |
) |
Other income (expense) |
|
|
(107 |
) |
|
|
237 |
|
|
|
(160 |
) |
|
|
215 |
|
TOTAL OTHER EXPENSE |
|
|
45 |
|
|
|
(1,754 |
) |
|
|
(1,047 |
) |
|
|
(6,018 |
) |
NET INCOME (LOSS) |
|
|
147,647 |
|
|
|
183,219 |
|
|
|
422,549 |
|
|
|
476,480 |
|
Distributions on Series B cumulative convertible preferred units |
|
|
(6,026 |
) |
|
|
(5,250 |
) |
|
|
(21,776 |
) |
|
|
(21,000 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS |
|
$ |
141,621 |
|
|
$ |
177,969 |
|
|
$ |
400,773 |
|
|
$ |
455,480 |
|
ALLOCATION OF NET INCOME (LOSS): |
|
|
|
|
|
|
|
|
||||||||
General partner interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Common units |
|
|
141,621 |
|
|
|
177,969 |
|
|
|
400,773 |
|
|
|
455,480 |
|
|
|
$ |
141,621 |
|
|
$ |
177,969 |
|
|
$ |
400,773 |
|
|
$ |
455,480 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT: |
|
|
|
|
|
|
|
|
||||||||
Per common unit (basic) |
|
$ |
0.67 |
|
|
$ |
0.85 |
|
|
$ |
1.91 |
|
|
$ |
2.18 |
|
Per common unit (diluted) |
|
$ |
0.65 |
|
|
$ |
0.82 |
|
|
$ |
1.88 |
|
|
$ |
2.12 |
|
WEIGHTED AVERAGE COMMON UNITS OUTSTANDING: |
|
|
|
|
|
|
|
|
||||||||
Weighted average common units outstanding (basic) |
|
|
209,991 |
|
|
|
209,406 |
|
|
|
209,970 |
|
|
|
209,382 |
|
Weighted average common units outstanding (diluted) |
|
|
225,511 |
|
|
|
224,756 |
|
|
|
225,105 |
|
|
|
224,446 |
|
The following table shows the Company’s production, revenues, realized prices, and expenses for the periods presented.
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(Unaudited) (Dollars in thousands, except for realized prices) |
||||||||||||||
Production: |
|
|
|
|
|
|
|
|
||||||||
Oil and condensate (MBbls) |
|
|
1,026 |
|
|
|
1,017 |
|
|
|
3,757 |
|
|
|
3,591 |
|
Natural gas (MMcf)1 |
|
|
16,546 |
|
|
|
17,130 |
|
|
|
64,647 |
|
|
|
59,778 |
|
Equivalents (MBoe) |
|
|
3,784 |
|
|
|
3,872 |
|
|
|
14,532 |
|
|
|
13,554 |
|
Equivalents/day (MBoe) |
|
|
41.1 |
|
|
|
42.1 |
|
|
|
39.8 |
|
|
|
37.1 |
|
Realized prices, without derivatives: |
|
|
|
|
|
|
|
|
||||||||
Oil and condensate ($/Bbl) |
|
$ |
78.08 |
|
|
$ |
84.48 |
|
|
$ |
76.74 |
|
|
$ |
93.65 |
|
Natural gas ($/Mcf)1 |
|
|
3.17 |
|
|
|
6.44 |
|
|
|
3.10 |
|
|
|
7.28 |
|
Equivalents ($/Boe) |
|
$ |
35.03 |
|
|
$ |
50.66 |
|
|
$ |
33.62 |
|
|
$ |
56.90 |
|
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Oil and condensate sales |
|
$ |
80,112 |
|
|
$ |
85,920 |
|
|
$ |
288,296 |
|
|
$ |
336,287 |
|
Natural gas and natural gas liquids sales1 |
|
|
52,440 |
|
|
|
110,254 |
|
|
|
200,297 |
|
|
|
434,945 |
|
Lease bonus and other income |
|
|
3,824 |
|
|
|
2,790 |
|
|
|
12,506 |
|
|
|
13,052 |
|
Revenue from contracts with customers |
|
|
136,376 |
|
|
|
198,964 |
|
|
|
501,099 |
|
|
|
784,284 |
|
Gain (loss) on commodity derivative instruments |
|
|
54,465 |
|
|
|
31,415 |
|
|
|
91,117 |
|
|
|
(120,680 |
) |
Total revenue |
|
$ |
190,841 |
|
|
$ |
230,379 |
|
|
$ |
592,216 |
|
|
$ |
663,604 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Lease operating expense |
|
$ |
3,237 |
|
|
$ |
3,124 |
|
|
$ |
11,386 |
|
|
$ |
12,380 |
|
Production costs and ad valorem taxes |
|
|
15,027 |
|
|
|
14,924 |
|
|
|
56,979 |
|
|
|
66,233 |
|
Exploration expense |
|
|
429 |
|
|
|
1 |
|
|
|
2,148 |
|
|
|
193 |
|
Depreciation, depletion, and amortization |
|
|
11,748 |
|
|
|
12,786 |
|
|
|
45,683 |
|
|
|
47,804 |
|
General and administrative |
|
|
12,505 |
|
|
|
14,326 |
|
|
|
51,455 |
|
|
|
53,652 |
|
Other expense: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
674 |
|
|
|
2,022 |
|
|
|
2,754 |
|
|
|
6,286 |
|
Per Boe: |
|
|
|
|
|
|
|
|
||||||||
Lease operating expense (per working interest Boe) |
|
$ |
16.02 |
|
|
$ |
16.02 |
|
|
$ |
13.13 |
|
|
$ |
12.13 |
|
Production costs and ad valorem taxes |
|
|
3.97 |
|
|
|
3.85 |
|
|
|
3.92 |
|
|
|
4.89 |
|
Depreciation, depletion, and amortization |
|
|
3.10 |
|
|
|
3.30 |
|
|
|
3.14 |
|
|
|
3.53 |
|
General and administrative |
|
|
3.30 |
|
|
|
3.70 |
|
|
|
3.54 |
|
|
|
3.96 |
|
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 our 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 its 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
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(Unaudited) (In thousands, except per unit amounts) |
||||||||||||||
Net income (loss) |
|
$ |
147,647 |
|
|
$ |
183,219 |
|
|
$ |
422,549 |
|
|
$ |
476,480 |
|
Adjustments to reconcile to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion, and amortization |
|
|
11,748 |
|
|
|
12,786 |
|
|
|
45,683 |
|
|
|
47,804 |
|
Interest expense |
|
|
674 |
|
|
|
2,022 |
|
|
|
2,754 |
|
|
|
6,286 |
|
Income tax expense (benefit) |
|
|
143 |
|
|
|
(171 |
) |
|
|
320 |
|
|
|
58 |
|
Accretion of asset retirement obligations |
|
|
293 |
|
|
|
245 |
|
|
|
1,042 |
|
|
|
861 |
|
Equity-based compensation |
|
|
2,417 |
|
|
|
5,579 |
|
|
|
10,829 |
|
|
|
17,388 |
|
Unrealized (gain) loss on commodity derivative instruments |
|
|
(37,400 |
) |
|
|
(72,014 |
) |
|
|
(8,394 |
) |
|
|
(82,486 |
) |
(Gain) loss on sale of assets, net |
|
|
— |
|
|
|
— |
|
|
|
(73 |
) |
|
|
(17 |
) |
Adjusted EBITDA |
|
|
125,522 |
|
|
|
131,666 |
|
|
|
474,710 |
|
|
|
466,374 |
|
Adjustments to reconcile to Distributable cash flow: |
|
|
|
|
|
|
|
|
||||||||
Change in deferred revenue |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
(9 |
) |
|
|
(30 |
) |
Cash interest expense |
|
|
(410 |
) |
|
|
(1,059 |
) |
|
|
(1,715 |
) |
|
|
(4,282 |
) |
Preferred unit distributions |
|
|
(6,026 |
) |
|
|
(5,250 |
) |
|
|
(21,776 |
) |
|
|
(21,000 |
) |
Distributable cash flow |
|
$ |
119,085 |
|
|
$ |
125,350 |
|
|
$ |
451,210 |
|
|
$ |
441,062 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total units outstanding1 |
|
|
210,313 |
|
|
|
209,684 |
|
|
|
|
|
||||
Distributable cash flow per unit |
|
|
0.566 |
|
|
|
0.598 |
|
|
|
|
|
||||
1 The distribution attributable to the quarter ended December 31, 2023 is calculated using 210,313,477 common units as of the record date of February 16, 2024. Distributions attributable to the quarter ended December 31, 2022 were calculated using 209,683,640 common units as of the record date of February 17, 2023.
Proved Oil & Gas Reserve Quantities
A reconciliation of proved reserves is presented in the following table:
|
Crude Oil (MBbl) |
|
Natural Gas (MMcf) |
|
Total (MBoe) |
|||
Net proved reserves at December 31, 2022 |
19,184 |
|
|
269,586 |
|
|
64,115 |
|
Revisions of previous estimates |
675 |
|
|
(20,578 |
) |
|
(2,754 |
) |
Extensions, discoveries, and other additions |
2,989 |
|
|
87,935 |
|
|
17,645 |
|
Production |
(3,757 |
) |
|
(64,647 |
) |
|
(14,532 |
) |
Net proved reserves at December 31, 2023 |
19,091 |
|
|
272,296 |
|
|
64,474 |
|
Net Proved Developed Reserves |
|
|
|
|
|
|||
December 31, 2022 |
19,184 |
|
|
236,529 |
|
|
58,606 |
|
December 31, 2023 |
19,091 |
|
|
228,061 |
|
|
57,101 |
|
Net Proved Undeveloped Reserves |
|
|
|
|
|
|||
December 31, 2022 |
— |
|
|
33,057 |
|
|
5,509 |
|
December 31, 2023 |
— |
|
|
44,235 |
|
|
7,373 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240219650505/en/
Evan Kiefer
Senior Vice President, Chief Financial Officer, and Treasurer
Telephone: (713) 445-3200
investorrelations@blackstoneminerals.com
Source: Black Stone Minerals, L.P.
FAQ
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Did Black Stone Minerals increase its cash distributions in 2023?
What was the total debt at the end of Q4 2023?
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What is the expected change in royalty production for 2024 compared to 2023?
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