Black Stone Minerals, L.P. Reports First Quarter Results and Announces Multiple New Development Agreements
Tue, May 4, 2021, yahoo.com
Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black Stone," or "the Company") today announces its financial and operating results for the first quarter of 2021.
Financial and Operational Highlights
- Mineral and royalty production for the first quarter of 2021 equaled 31.1 MBoe/d, a decrease of 3% over the prior quarter; total production, including working interest volumes, was 36.8 MBoe/d for the quarter.
- Net income and Adjusted EBITDA for the quarter totaled $16.2 million and $60.0 million, respectively.
- Distributable cash flow was $53.8 million for the first quarter, resulting in distribution coverage for all units of 1.5x based on the announced cash distribution of $0.175 per unit.
- Total debt at the end of the first quarter was $111.0 million; total debt to trailing twelve-month Adjusted EBITDA was 0.4x at quarter-end. As of April 30, 2021, total debt had been reduced to $96.0 million.
- Effective April 30, 2021, Black Stone’s borrowing base under its revolving credit facility was reaffirmed at $400 million. As part of the redetermination process, Black Stone and its lenders agreed to extend the maturity date of the facility to November 1, 2024.
Subsequent to the end of the first quarter of 2021, Black Stone:
- Entered into an agreement with affiliates of Aethon Energy ("Aethon") to develop certain of the Company’s undeveloped Shelby Trough Haynesville and Bossier acreage in San Augustine County, Texas.
- Entered into an agreement with a consortium of operators through which the operators will drill up to three test wells for the Austin Chalk formation on Black Stone acreage in East Texas using high-intensity, multi-stage completions; the initial test well under the agreement was spud in April 2021.
- Entered into an agreement with a large, private independent operator to develop additional Black Stone acreage within the Austin Chalk formation in East Texas.
- Agreed to acquire mineral and royalty properties in the northern Midland Basin for total consideration of $20.7 million in cash and BSM common units.