Black Stone Minerals(BSM)2024-11-05 00:21Production and Sales - Mineral and royalty production for Q3 2024 was 35.3 MBoe/d, a decrease from 38.2 MBoe/d in Q2 2024 and 40.3 MBoe/d in Q3 2023[4] - The company produced 875 MBbls of oil and condensate in Q3 2024, down from 1,092 MBbls in Q3 2023, a decrease of 19.9%[23] - Oil and condensate sales decreased to $63,999,000 in Q3 2024 from $85,724,000 in Q3 2023, representing a decline of 25.4%[23] - Natural gas and natural gas liquids sales also fell to $37,039,000 in Q3 2024 from $48,815,000 in Q3 2023, a decrease of 24.0%[21] Financial Performance - Net income for Q3 2024 was $92.7 million, up from $68.3 million in Q2 2024 and $62.1 million in Q3 2023[9] - Adjusted EBITDA for Q3 2024 totaled $86.4 million, down from $100.2 million in Q2 2024 and $130.0 million in Q3 2023[9] - Distributable cash flow for Q3 2024 was $78.6 million, compared to $92.5 million in Q2 2024 and $124.4 million in Q3 2023[9] - Total revenue for the three months ended September 30, 2024, was $134,856,000, an increase of 22.8% compared to $109,797,000 for the same period in 2023[21] - Net income for the three months ended September 30, 2024, was $92,731,000, up from $62,067,000 in the same period last year, reflecting a growth of 49.5%[21] - Total operating expenses decreased to $41,736,000 in Q3 2024 from $47,763,000 in Q3 2023, a reduction of 12.6%[21] Price Realization - The average realized price per Boe for Q3 2024 was $29.40, a 2% decrease from $30.01 in Q2 2024 and a 14% decrease from $34.30 in Q3 2023[6] - Realized prices for oil and condensate were $73.15 per Bbl in Q3 2024, compared to $78.50 per Bbl in Q3 2023, a decline of 9.0%[23] Distributions and Units - Black Stone announced a distribution of $0.375 per unit for Q3 2024, with a distribution coverage ratio of approximately 1.00x[2][11] - Distributable cash flow per unit decreased to $0.373 in Q3 2024 from $0.592 in Q3 2023[27] - Preferred unit distributions rose to $7.366 million in Q3 2024 from $5.250 million in Q3 2023[27] - The weighted average common units outstanding (basic) was 210,687 for Q3 2024, slightly up from 209,982 in Q3 2023[21] - Total units outstanding increased to 210,695 in Q3 2024 from 209,991 in Q3 2023[27] Debt and Cash Position - As of November 1, 2024, Black Stone had approximately $42.8 million in cash and no outstanding debt[10] - Interest expense increased to $724 thousand in Q3 2024 from $621 thousand in Q3 2023[27] Acquisitions and Agreements - The company acquired mineral, royalty, and leasehold interests totaling $14.7 million in Q3 2024, bringing total acquisitions since September 2023 to $79.8 million[14] - The company amended joint exploration agreements with Aethon, extending drill schedules and releasing 25,000 acres for other opportunities[13] Commodity Derivatives - Black Stone has commodity derivative contracts covering portions of its anticipated production for 2024, 2025, and 2026, with significant hedge positions in oil and natural gas[15][16] - Unrealized loss on commodity derivative instruments was $20.811 million in Q3 2024, compared to a gain of $51.111 million in Q3 2023[27] Other Financial Metrics - Adjusted EBITDA and Distributable cash flow are used to assess financial performance, with Adjusted EBITDA defined as net income before interest, taxes, and depreciation[26] - Equity-based compensation decreased to $2.177 million in Q3 2024 from $3.777 million in Q3 2023[27] - Net income attributable to common units was $85,365,000 for Q3 2024, compared to $56,817,000 in Q3 2023, an increase of 50.5%[21] - Net income for Q3 2024 was $92.731 million, a decrease from $274.902 million in Q3 2023[27] - Adjusted EBITDA for Q3 2024 was $86.442 million, down from $130.015 million in Q3 2023[27] - Distributable cash flow for Q3 2024 was $78.622 million, compared to $124.405 million in Q3 2023[27]