Tue, Feb 25, 9:24 PM (61 days ago)
Black Stone Minerals, L.P. (NYSE: BSM) reported 2024 revenues of $433.7M—a 26.8% decline largely driven by lower oil and natural gas sales and unfavorable commodity derivative settlements—while net income attributable to common units stood at $241.9M (basic EPS of $1.15). Operating expenses improved, with reduced lease and production costs contributing to tighter margins despite a modest uptick in G&A expenses. The company continued its strategic focus on managing its low-cost, non–cost-bearing mineral and royalty asset portfolio, acquiring approximately $110.4M of assets predominantly in the Gulf Coast region. Reserves were estimated at 57,380 MBoe, reflecting declines due to production and technical revisions. BSM’s liquidity remains supported by a $25M credit facility (with a borrowing base around $580M and cash commitments of $375M) and disciplined hedging strategies. Key risks include commodity price volatility, operational and regulatory uncertainties, and cybersecurity threats. Near-term development initiatives (e.g., in Haynesville/Bossier and the Permian) and adjustments in farmout agreements indicate a cautious but focused outlook for 2025 while aiming to sustain quarterly cash distributions.