Black Stone Minerals, L.P. Reports Third Quarter Results

Last Updated: Monday, October 30, 2023  | Business Wire via QuoteMedia


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Rig Activity

As of September 30, 2023, Black Stone had 76 rigs operating across its acreage position, an increase relative to the 73 rigs on the Company's acreage as of June 30, 2023, and a decrease from the 92 rigs operating on the Company's acreage as of September 30, 2022. The increase in rigs at the end of the third quarter compared to the second quarter was driven primarily by an increase in activity in the Gulf Coast and Haynesville/Bossier plays.

Shelby Trough Development Update

Aethon continues to perform with drilling and completing wells according to our development agreements. Aethon has six rigs currently on Black Stone acreage in the Shelby Trough. It has successfully turned 18 wells to sales and has commenced operations on 28 additional wells under the development agreement covering Angelina County. Aethon has successfully turned ten wells to sales and has another seven wells awaiting completion operations under the separate development agreement covering San Augustine County. Additionally, XTO Energy has one well currently awaiting completion operations.

Austin Chalk Update

Black Stone has entered into agreements with multiple operators to drill wells in the areas of the Austin Chalk in East Texas, where the Company has significant acreage positions. The results of the 2021 three well test program in the Brookeland Field demonstrated that modern completion technology has the potential to greatly improve production rates and increase reserves when compared to the vintage, unstimulated wells in the Austin Chalk formation. Eight operators are actively engaged in redevelopment of the field. To date, 26 wells with modern completions are now producing in the field, and an additional three wells are currently either being drilled or completed.

Update to 2023 Guidance

The Company now expects total production for 2023 to be at the upper end of the guidance range of 37 to 39 Mboe/d. The Company expects lease operating expenses to be in line with the revised guidance range of $11 to $12 million and production costs as a percentage of oil and gas revenues to be in line with the revised guidance range of 10% to 12%. Black Stone expects cash G&A to be on the low end of the guidance range of $42 to $44 million. The Company expects non-cash G&A to be at the low end of the revised guidance range of $11 to $13 million.

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