A pretty positive report from a nicely hedged gas heavy royalty trust!
Fourth Quarter 2022 Highlights
Mineral and royalty production for the fourth quarter of 2022 equaled 40.0 MBoe/d, an increase of 7% over the prior quarter and the highest mineral and royalty production ever reported by the Company; total production, including working interest volumes, was 42.1 MBoe/d for the quarter
Net income for the quarter was $183.2 million. Adjusted EBITDA for the quarter totaled a record $131.7 million
Distributable cash flow was $125.3 million for the fourth quarter, which represents an 8% increase relative to the third quarter of 2022, and also a record amount for Black Stone as a public company
Announced a distribution of $0.475 per unit with respect to the fourth quarter of 2022, which represents a 6% increase from the distribution paid with respect to the third quarter of 2022. Distribution coverage for all units was 1.26x
Our quarterly results represent new high-water marks in mineral and royalty production, net income, Adjusted EBITDA, Distributable cash flow and distributions since going public
Total debt at the end of the quarter was $10 million; total debt to trailing twelve-month Adjusted EBITDA was 0.02x at year-end
Full Year Financial and Operational Highlights
Mineral and royalty volumes in 2022 increased 4% over the prior year to average 34.3 MBoe/d; full year 2022 production was 37.1 MBoe/d
Reported 2022 net income and Adjusted EBITDA of $476.5 million and $466.4 million, respectively
Increased cash distributions by 85% from $0.945 per unit attributable to the full year 2021 to $1.745 per unit attributable to the full year 2022
Reduced total outstanding debt by $79 million during 2022
Management Commentary
Thomas L. Carter, Jr., Black Stone Minerals’ Chief Executive Officer and Chairman, commented, “Our record fourth quarter results capped a very successful year for Black Stone Minerals. Without issuing additional equity, we reduced our total debt and increased royalty production through our organic growth efforts to attract additional operator capital to our existing acreage positions. The development programs on our Haynesville and Bossier Shelby Trough acreage continues to ramp up with Aethon as our operating partner. In addition, new drilling activity is continuing to increase across numerous operators on our East Texas Austin Chalk acreage. We enter 2023 well positioned to drive further royalty production growth while maintaining our very healthy balance sheet.”