Black Stone Minerals (BSM) Q2 Results - Aug 5

[dan_s]

Financial and Operational Highlights

Mineral and royalty production for the second quarter of 2024 equaled 38.2 MBoe/d; total production, including working-interest volumes, was 40.4 MBoe/d for the quarter. < Beat my production forecast of 38,700 Boepd.

Net income for the second quarter was $68.3 million, and Adjusted EBITDA for the quarter totaled $100.2 million.

Distributable cash flow was $92.5 million for the second quarter.

Black Stone announced a distribution of $0.375 per unit with respect to the second quarter of 2024. Distribution coverage for all units was 1.17x.

No debt was outstanding at the end of the second quarter; as of August 2, 2024, total debt remained at zero with approximately $61 million of cash on hand. < BSM should have no problem holding their quarterly distribution at $0.375. They have a lot of their gas hedged at good prices.

Management Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ Chairman, Chief Executive Officer and President, commented, "As previously announced, the second quarter distribution is consistent with first quarter's distribution, with the strong foundation of our comprehensive commercial strategy and capital discipline ensuring our ability to focus on long-term decision making. Throughout the second quarter we continued to add strategic, targeted mineral and royalty interest acquisitions that further enhance our existing assets and provide a long runway for development in combination with our organic growth strategy."