\nBlack Stone Minerals, L.P. (NYSE: BSM) (“Black Stone,” “BSM”, or “the Partnership”) today reports its financial and operating results for the first quarter of 2025.\n<\/p>\n
Financial and Operational Highlights<\/b><\/p>\n Management Commentary<\/b><\/p>\n \nThomas L. Carter, Jr., Black Stone\u2019s Chairman, Chief Executive Officer and President, commented, \u201cDespite recent market volatility, our financial position and asset outlook remain strong, and we are maintaining our quarterly distribution of $0.375 per unit. Distribution coverage for the quarter was 0.93x; however, this lower level of coverage was partially driven by an expenditure related to a seismic license that further bolsters our subsurface evaluation and potential mineral acquisitions in the expanded Shelby Trough area. During the quarter, we continued to progress on our targeted mineral acquisitions and remain confident in the long-term growth opportunities that program provides for our unitholders. Finally, we are staying keenly aware of the current price environment and activity across all of our assets, and we expect to continue to benefit from near-term development activity and production on certain unique, high-interest acreage in both oil- and gas-focused regions.\u201d\n<\/p>\n Quarterly Financial and Operating Results<\/b><\/p>\n Production<\/i><\/p>\n \nBlack Stone reported mineral and royalty volumes of 34.2 MBoe\/d (78% natural gas) for the first quarter of 2025, compared to 34.8 MBoe\/d for the fourth quarter of 2024 and 38.1 MBoe\/d for the first quarter of 2024.\n<\/p>\n \nWorking-interest production was 1.3 MBoe\/d in the first quarter of 2025, 1.3 MBoe\/d in the fourth quarter of 2024, and 2.2 MBoe\/d in the first quarter of 2024. The continued year-over-year decline in working-interest volumes is consistent with the Partnership\u2019s decision to farm out its working-interest participation to third-party capital providers.\n<\/p>\n \nTotal reported production averaged 35.5 MBoe\/d (96% mineral and royalty, 78% natural gas) for the first quarter of 2025, compared to 36.1 MBoe\/d and 40.3 MBoe\/d for the fourth quarter of 2024 and the first quarter of 2024, respectively.\n<\/p>\n Realized Prices, Revenues, and Net Income<\/i><\/p>\n \nThe Partnership\u2019s average realized price per Boe, excluding the effect of derivative settlements, was $33.94 for the first quarter of 2025. This is an increase of 10% from $30.81 per Boe in the fourth quarter of 2024 and a 10% increase from $30.87 in the first quarter of 2024.\n<\/p>\n \nBlack Stone reported oil and gas revenue of $108.3 million for the first quarter of 2025, an increase of 6% from $102.3 million in the fourth quarter of 2024. Oil and gas revenue in the first quarter of 2024 was $113.2 million.\n<\/p>\n \nThe Partnership reported a loss on commodity derivative instruments of $56.0 million for the first quarter of 2025, composed of a $3.6 million loss from realized settlements and a non-cash $52.4 million unrealized loss due to the change in value of Black Stone\u2019s derivative positions during the quarter. Black Stone reported losses of $20.6 million and $11.3 million on commodity derivative instruments for the fourth quarter of 2024 and the first quarter of 2024, respectively.\n<\/p>\n \nLease bonus and other income was $6.9 million for the first quarter of 2025. Lease bonus and other income for the fourth quarter of 2024 and the first quarter of 2024 was $2.0 million and $3.5 million, respectively.\n<\/p>\n \nThe Partnership reported net income of $15.9 million for the first quarter of 2025, compared to net income of $46.3 million in the preceding quarter. For the first quarter of 2024, the Company reported net income of $63.9 million.\n<\/p>\n Adjusted EBITDA and Distributable Cash Flow<\/i><\/p>\n \nAdjusted EBITDA for the first quarter of 2025 was $82.2 million, which compares to $90.1 million in the fourth quarter of 2024 and $104.1 million in the first quarter of 2024. Distributable cash flow for the first quarter of 2025 was $73.7 million. For the fourth quarter of 2024 and the first quarter of 2024, distributable cash flow was $81.9 million and $96.4 million, respectively.\n<\/p>\n Financial<\/i>Position and Activities<\/i><\/p>\n \nAs of March 31, 2025, Black Stone had $2.4 million in cash, with $63.0 million drawn under its credit facility. As of May 2, the Partnership had approximately $4.3 million in cash, and $63.0 million of debt was outstanding under the credit facility.\n<\/p>\n \nOn April 30, 2025, Black Stone’s borrowing base under the credit facility was reaffirmed, and total commitments under the credit facility were maintained at $375.0 million. Black Stone is in compliance with all financial covenants associated with its credit facility.\n<\/p>\n First Quarter 2025 Distributions<\/i><\/p>\n \nAs previously announced, the Board approved a cash distribution of $0.375 for each common unit attributable to the first quarter of 2025. The quarterly distribution coverage ratio attributable to the first quarter of 2025 was approximately 0.93x. The distribution will be paid on May 15, 2025 to unitholders of record as of the close of business on May 8, 2025.\n<\/p>\n Activity Update<\/b><\/p>\n Development Activity<\/i><\/p>\n \nAt the end of the first quarter, EXCO was operating one rig, and Aethon was operating three rigs on the Partnership\u2019s Angelina, Nacogdoches, and San Augustine acreage in the Shelby Trough. During the quarter, Aethon successfully turned to sales 11 gross (0.7 net) wells, with the majority of the wells showing improved results compared to older offsets. Aethon\u2019s development program remains on track, with an estimated 17 gross (1.0 net) additional wells expected to turn to sales during the remainder of 2025.\n<\/p>\n \nIn the Louisiana Haynesville, development continued under the Partnership\u2019s Accelerated Drilling Agreements (\u201cADAs\u201d). These agreements provide greater near-term certainty by accelerating development and associated revenue in BSM\u2019s high-interest areas in exchange for a modest reduction in royalty burden. During the first quarter, two gross (0.2 net) wells in De Soto Parish were turned to sales under BSM\u2019s ADAs.\n<\/p>\n \nIn the Permian Basin, the Partnership continues to monitor several large-scale development projects expected to generate meaningful liquids volumes in 2025 and beyond. As previously disclosed, a large operator has planned more than 35 gross (1.25 net) wells in Culberson County, Texas. To date, 24 of these wells have been spud. We anticipate nine gross wells to turn to sales in the fourth quarter of 2025, with the remainder expected in the first half of 2026.\n<\/p>\n Acquisition Activity<\/i><\/p>\n \nBlack Stone\u2019s commercial strategy since 2021 has been focused on attracting capital and securing drilling commitments in areas where the Partnership already owns significant minerals. Management made the decision to expand this growth strategy by adding to the Partnership\u2019s mineral portfolio through strategic, targeted efforts primarily in the Shelby Trough area. In the first quarter of 2025, Black Stone acquired $14.2 million of additional (primarily non-producing) mineral and royalty interests. From September 2023 through today, the Partnership has completed $160.6 million of mineral and royalty acquisitions. Black Stone\u2019s commercial strategy includes the continued evaluation of meaningful, targeted mineral and royalty acquisitions to complement the Partnership’s existing positions.\n<\/p>\n Update to Hedge Position<\/b><\/p>\n \nBlack Stone has commodity derivative contracts in place covering portions of its anticipated production for 2025 and 2026. The Partnership’s hedge position as of May 2, 2025 is summarized in the following tables:\n<\/p>\n\n
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