Black Stone Minerals (BSM) Q2 Results - Aug 1

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Black Stone Minerals (BSM) Q2 Results - Aug 1

Post by dan_s »

Good quarter. Key Stat is DCF above my forecast resulting in an increased dividend. If you are investing for yield, this one is a keeper.
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HOUSTON, August 01, 2022--(BUSINESS WIRE)--Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black Stone," or "the Company") today announces its financial and operating results for the second quarter of 2022 and updated earnings call information.

Financial and Operational Highlights

Mineral and royalty production for the second quarter of 2022 equaled 30.3 MBoe/d, an increase of 2% over the prior quarter; total production, including working interest volumes, was 33.5 MBoe/d for the quarter. < Compares to my Q2 forecast of 34,000 Boepd.

Net income for the second quarter was $131.8 million. < Compares to my forecast of $89.4 million net income.

Adjusted EBITDA for the quarter totaled $112.8 million, an increase of 14% over the prior quarter and the highest level recorded by Black Stone as a public company.

Distributable cash flow was $106.6 million for the second quarter, an increase of 15% relative to the first quarter of 2022 and also a record high for the Company. < DCF beat my forecast.

Announced a distribution of $0.42 per unit with respect to the second quarter of 2022, which represents a 5% increase from the distribution paid with respect to the first quarter of 2022. Distribution coverage for all units was 1.21x. < I was expecting a distribution of $0.40/unit.

Total debt at the end of the second quarter was $86.0 million; total debt to trailing twelve-month Adjusted EBITDA was 0.2x at quarter-end. As of July 29, 2022, total debt had been reduced to $54.0 million.

Conference Call

Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2022 on Tuesday, August 2, 2022 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) 715-9871 for domestic participants and (646) 307-1963 for international participants. The conference code for the call is 2386291. A recording of the conference call will be available on Black Stone's website.

Management Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ Chief Executive Officer and Chairman commented, "The efforts to attract capital to our acreage are delivering results. We have a clear line of sight on significant increases in drilling activity from producers on some of our concentrated positions. In the Shelby Trough, where royalty production peaked at over 11,000 Boe per day under BP and XTO’s drilling programs, Aethon is ramping up to annual well counts that should allow us to surpass those levels in the coming years. In addition, we continue to be encouraged by drilling results in the East Texas Austin Chalk and by what that implies for future activity levels there. We have a deep inventory with over 20 years of drilling locations in these areas, and believe we are well-positioned to return to multi-year production growth."
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Black Stone Minerals (BSM) Q2 Results - Aug 1

Post by dan_s »

Note below from Stifel

Black Stone Minerals, L.P. (BSM, $15.07, Buy; Target $19.00) - Announces
solid financial results and continued progress in the Shelby Trough and Austin
Chalk - Derrick Whitfield
- We view this release as slightly positive. The positives
include: i) an oil production beat (5.7% above on oil), ii) an EBITDA beat, and iii)
an encouraging production outlook for 2023. The negatives include: i) lower than
expected total equivalent production, and ii) lower than expected full-year 2022
production guidance. Net-net, Black Stone delivered strong financial results and an
encouraging longer-term outlook which should overshadow lower than expected 2022
production guidance.
Dan Steffens
Energy Prospectus Group
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