The following is a summary of the Black Stone Minerals, L.P. (BSM) Q4 2023 Earnings Call Transcript:
Financial Performance:
Black Stone Minerals reported Q4 production of 41,100 barrels of oil equivalent (BOE) per day and full-year adjusted EBITDA of $474.7 million, exceeding forecasts.
The company generated $3.8 million in lease bonus and other income in Q4 and $12.5 million for the full year.
Operating expenses and production costs are expected to remain consistent in 2024.
Distributable cash flow for the quarter was $119.1 million, providing a distribution coverage of 1.19x for Q4 and 1.13x for the full year.
Adjusted EBITDA for Q4 was $125.5 million, with full-year 2023 EBITDA reaching $474.7 million.
Distributions stood at $0.475 per unit, equivalent to $1.90 per annum.
Business Progress:
Black Stone projects a slight increase in annual production for 2024.
Despite natural gas volume decreases mainly in Louisiana Haynesville, there was a modest volume increase in the East Texas Austin Chalk.
The company launched a $150 million unit repurchase scheme in Q4 2023.
A total of 39 wells were operational in the Shelby Trough, with 63 rigs running at year-end, accounting for 10% of the US rig count.
Without any debt, the company entered 2024 with aggressive plans for focused mineral and royalty acquisitions, having already acquired non-producing assets worth $15 million in 2023.
Despite potential temporary challenges in the commodity price environment, the long-term outlook for the natural gas market is positive.
More details: Black Stone Minerals IR
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