Black Stone Minerals(BSM) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net income for the first quarter was $15.9 million with adjusted EBITDA of $82.2 million, maintaining a quarterly distribution of $0.0375 per unit [6][5] - Distributable cash flow for the quarter was $73.7 million, representing a coverage ratio of 0.93 times [6] Business Line Data and Key Metrics Changes - Mineral and royalty production was 34,200 BOE per day, while total production volumes were 35,500 BOE per day, both in line with the previous quarter [6] - In East Texas, Aethon operated three rigs and turned to sales 11 gross wells in 2025, with another 17 expected for the remainder of the year [7][8] Market Data and Key Metrics Changes - The company is encouraged by the strength in natural gas prices, which is expected to drive additional near-term gas-weighted activity [5][11] - The Louisiana Haynesville area saw two incremental high-interest wells turned to sales in March, bringing the total to four under accelerated drilling agreements [8] Company Strategy and Development Direction - The company continues to focus on high-interest acreage in both oil and gas regions, with ongoing development activity expected to benefit from recent acquisitions [6][14] - The acquisition strategy remains focused on the Shelby Trough area, with over $160 million in minerals acquired since September 2023 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy and outlook across assets, emphasizing the ability to generate long-term value for shareholders [9] - The company is closely monitoring commodity environments and activity trends, indicating a proactive approach to potential market changes [7] Other Important Information - The company has made a seismic license purchase to enhance subsurface evaluation in the expanded Shelby Trough area [6] Q&A Session Summary Question: Activity in the Haynesville given the rerate in natural gas prices - Management is encouraged by the strength in natural gas prices and anticipates increased activity levels across the basin, with ongoing developments expected this year [11][12] Question: Current opportunity set for acquisitions and impact of oil price decrease - The company sees long-term growth opportunities in its acquisition strategy, particularly in natural gas, while remaining open to evaluating other opportunities as they arise [13][14]