Black Stone Minerals (BSM) Q4 Results - Feb 20

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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 < Beat my production forecast of 38,000 Boepd.

Net income for the quarter was $147.6 million. < Compares to my Net Income forecast of $97.1 million, which does not include the $37.4 million mark-to-market gain on their hedges, so they beat my forecast by $13.1 million. BSM has ~60% of their 2024 natural gas hedged at more than $3.50/mcf. Plus, rising NGL prices do help BSM quite a bit. They report natural gas and NGLs on a combined basis.
Adjusted EBITDA for the quarter totaled $125.5 million

Distributable cash flow was $119.1 million for the fourth quarter, which represents a 4% decrease relative to the third
quarter of 2023, making the seventh consecutive quarter above $100 million

Black Stone announced a distribution of $0.475 per unit with respect to the fourth quarter of 2023. Distribution coverage for
all units was 1.19x < This is good and they have a super strong balance sheet, so this dividend should be sustainable

Total debt at the end of the quarter was zero; as of February 16, 2024, total debt remained at zero with $102.9 million of cash

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 and $474.7 million, respectively

Increased cash distributions by 9% from $1.745 per unit attributable to the full year 2022 to $1.90 per unit attributable to
the full year 2023

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.”