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

August 03, 2020 05:00 PM Eastern Daylight Time

HOUSTON--(BUSINESS WIRE)--Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black Stone," or "the Company") today announces its financial and operating results for the second quarter of 2020.

Highlights

  • Total mineral and royalty production for the second quarter of 2020 equaled 34.0 MBoe/d, a decrease of 7.3% over the prior quarter; total production, including working interest volumes, was 42.6 MBoe/d for the quarter.
  • Net income (loss) and Adjusted EBITDA for the quarter totaled $(8.4) million and $72.4 million, respectively.
  • Distributable cash flow was $64.4 million for the second quarter, resulting in distribution coverage for all units of 2.1x based on the announced cash distribution of $0.15 per unit.
  • Closed two previously announced mineral and royalty divestitures in July 2020, resulting in total proceeds, after closing adjustments, of $150.1 million.
  • Total debt at the end of the second quarter was $323 million; total debt to trailing twelve-month Adjusted EBITDA was 1.0x at quarter-end. As of July 31, 2020, total debt had been reduced to $153 million.
  • Entered into a development agreement with Aethon Energy with respect to Black Stone's undeveloped mineral and leasehold acreage in the Shelby Trough in Angelina County, Texas
  • Entered into a new incentive agreement with XTO Energy, Inc ("XTO") whereby XTO is expected to complete and turn to sales the 13 existing drilled but uncompleted wells on Black Stone's San Augustine Shelby Trough acreage.
  • Increased distribution to $0.15 per common unit with respect to the second quarter of 2020.
  • Continued to conduct business in a remote work environment as part of the Company’s response to the COVID-19 pandemic.

 

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Replies to This Discussion

I am assuming that the 13 wells in San Augustine Shelby Trough are all Haynesville - so initial production rates combined should be about 200 MMCF to 250 MMCF per day of new production.

Is there sufficient pipeline capacity to take all this gas? Or will there need to be some significant choking back of wells?

Could be a combination of Haynesville and Bossier wells.  Julie could probably tell us where the 13 are located in regard to take away capacity.  XTO also left five Haynesville wells drilled but uncompleted in south DeSoto Parish.  So maybe they will complete those also.

I think I may have just answered my own question - attached is a PDF from DriliingInfo//Enverus showing XTO drilled horizontals (blue dots with API numbers) plus gas pipelines presently in place in this part of the county. Looks like this whole set of wells is south of the existing gas gathering systems.

So completion will probably be combined with laying in new gathering lines for gas take away.

My next question (and I always seem to have one) is what is the capacity of the pipelines that this new set of gathering lines are going into?

Attachments:

They are all HA, all are along Hwy 103 between FM 1266 and Hwy 147 and all are infills on existing units. The gathering system is in place. 

Is that really wise?  Isn't the market gonna get flooded by gas coming out of the Permian Basin?  I thought they were working on transportation lines out of there(Permian Basin)?

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