Yahoo Finance Black Stone Minerals, L.P. (NYSE:BSM) Q1 2024 Earnings Call Transcript
Black Stone Minerals, L.P. (NYSE:BSM) Q1 2024 Earnings Call Transcript May 7, 2024
Black Stone Minerals, L.P. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and welcome to the Black Stone Minerals First Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]. I'd now like to turn the call over to Mark Meaux, Director of Finance. Please go ahead.
Mark Meaux: Thank you. Good morning to everyone. Thank you for joining us either by phone or online for Black Stone Minerals First Quarter 2024 Earnings Conference Call. Today's call is being recorded and will be available on our website, along with the earnings release, which was issued last night. Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations, and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements. For discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the risk factors section of our 2023 10-K.
We may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliation of those measures to the most directly comparable GAAP measure and other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www.blackstoneminerals.com. Joining me on the call from the company are Tom Carter, Chairman, CEO, and President, Evan Kiefer, Senior Vice President, Chief Financial Officer and Treasurer, Carrie Clark, Senior Vice President, Chief Commercial Officer, and Steve Putman, Senior Vice President and General Counsel. I'll now turn the call over to Tom.
Tom Carter: Thank you, Mark. Good morning, everyone, and thank you for joining us this morning to discuss the quarter. We posted a good first quarter with net income of $63.9 million and adjusted EBITDA of $104.1 million. We generated total production volumes for the first quarter of 40.3 MBoe/d, a decrease of 2% from our fourth quarter of '23 volumes. Royalty volumes for the quarter were 38.9 MBoe/d. Oil volumes trended down in the Midland and Delaware Basins but were partially offset by an increase in the resilient Bakken area. And despite the ongoing natural gas challenges, natural gas volumes increased from the fourth quarter in the Fayetteville, Gulf Coast, Lance, Mesa, Verity, and other trends. Factors like these continue to illustrate the benefit of a diversified portfolio where we continue to see additions in non-core plays that contribute to new production year-over-year.
Our unique asset mix has a strategic advantage that continues to consistently add long-term value to Black Stone and its unit holders. With that, let me just turn to focus on the Haynesville Bossier, which is, as everyone knows, a significant long-term growth engine for Black Stone. In the Shelby Trough, we announced in December that one of our operators invoked a “timeout” under the provision of our joint exploration agreement, which would allow them to cease activity for a period of time. We have a good group of operators in the Shelby Trough, being XTO, Aethon, Pine Wave, Milestone, XCO, and others. And in addition, in Louisiana, we have Chesapeake, Southwestern, Comstock, and others. So we've got a great portfolio of operators. The operator that declared a timeout, however, is currently drilling three wells and is expected to continue levels of activity there.
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