Black Stone Minerals, L.P. (BSM) Bundle
A Brief History of Black Stone Minerals
Black Stone Minerals, L.P. (BSM) is a publicly traded limited partnership focused on owning and managing mineral and royalty interests in oil and natural gas properties. As of 2024, the company has established itself as a significant player in the energy sector, particularly in the United States.
Financial Performance Overview
For the nine months ended September 30, 2024, Black Stone Minerals reported a net income of $224.98 million, compared to $274.90 million for the same period in 2023. This decline reflects the challenges posed by fluctuating commodity prices and production volumes.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $224,980,000 | $274,902,000 |
| Revenue | $349,973,000 | $401,375,000 |
| Adjusted EBITDA | $290,806,000 | $349,188,000 |
| Distributable Cash Flow | $267,532,000 | $332,125,000 |
Production and Sales Data
Production data showed a decrease in both oil and natural gas output. For the three months ended September 30, 2024, oil and condensate production was 875 MBbls, down from 1,092 MBbls in the prior year, a decrease of 19.9%.
| Production Metrics | 2024 (3 months) | 2023 (3 months) |
|---|---|---|
| Oil and Condensate (MBbls) | 875 | 1,092 |
| Natural Gas (MMcf) | 15,369 | 16,980 |
| Equivalents (MBoe) | 3,437 | 3,922 |
Commodity Derivative Instruments
BSM recognized a gain on commodity derivative instruments, reporting $31.68 million for the three months ended September 30, 2024, compared to a loss of $26.92 million in the same period of 2023.
Operating Expenses
Operating expenses showed a mixed performance. Lease operating expenses decreased to $2.42 million from $2.62 million year-over-year, while production costs and ad valorem taxes fell significantly from $16.44 million to $12.37 million.
| Operating Expenses | 2024 (3 months) | 2023 (3 months) |
|---|---|---|
| Lease Operating Expense | $2,422,000 | $2,615,000 |
| Production Costs and Ad Valorem Taxes | $12,369,000 | $16,441,000 |
| General and Administrative Expenses | $12,801,000 | $14,448,000 |
Cash Flows
For the nine months ended September 30, 2024, BSM reported cash flows provided by operating activities of $298.09 million, down from $387.14 million in the prior year.
| Cash Flows | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Operating Activities | $298,087,000 | $387,135,000 |
| Investing Activities | ($64,227,000) | ($4,946,000) |
| Financing Activities | ($283,179,000) | ($330,466,000) |
Acquisitions and Investments
During the nine months ended September 30, 2024, BSM acquired mineral and royalty interests for a total of $65.2 million, with the majority funded through operating cash flows. The acquisitions primarily targeted unproved oil and natural gas properties in the Gulf Coast land region.
Market Position and Future Outlook
BSM continues to navigate a challenging energy market characterized by volatile commodity prices and evolving regulatory landscapes. The company’s strategy remains focused on expanding its mineral and royalty positions while maintaining a disciplined approach to capital allocation.
As of September 30, 2024, the company had a strong balance sheet with total assets of $1.21 billion and total liabilities of $44.52 million, indicating a solid financial foundation for future growth initiatives.
| Balance Sheet Overview | 2024 (September 30) |
|---|---|
| Total Assets | $1,212,817,000 |
| Total Liabilities | $44,516,000 |
| Partners' Equity | $867,823,000 |
BSM's commitment to sustainable practices and strategic investments positions it well for long-term success in the mineral and royalty sector.
A Who Owns Black Stone Minerals, L.P. (BSM)
Ownership Structure
As of 2024, Black Stone Minerals, L.P. (BSM) has a diverse ownership structure comprising both common and preferred units. The total number of common units outstanding is approximately 210,688.
Major Shareholders
The major shareholders of Black Stone Minerals include institutional investors, individual stakeholders, and insiders. The following table outlines the significant shareholders as of the latest data available:
| Shareholder Type | Number of Units Held | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 65,000 | 30.9% |
| Individual Stakeholders | Approximately 25,000 | 11.9% |
| Insider Holdings | Approximately 5,000 | 2.4% |
| Series B Cumulative Convertible Preferred Units | 14,711 units | — |
Market Capitalization
As of the end of September 2024, Black Stone Minerals had a market capitalization of approximately $1.5 billion.
Financial Performance
For the nine months ended September 30, 2024, Black Stone Minerals reported a net income of $224.98 million. The revenue breakdown is as follows:
| Revenue Source | Amount (in thousands) |
|---|---|
| Oil and Condensate Sales | $209,112 |
| Natural Gas Sales | $115,543 |
| Lease Bonus and Other Income | $10,480 |
| Total Revenue | $349,973 |
Distributions
Black Stone Minerals has a distribution policy that allows for distributions to common unitholders based on available cash flow. For the three months ended September 30, 2024, the distribution declared was $0.375 per common unit.
Debt and Credit Facilities
The company maintains a senior secured revolving credit facility with a maximum credit amount of $1.0 billion. As of the latest redetermination, the borrowing base was reaffirmed at $580 million.
Recent Acquisitions
During the nine months ended September 30, 2024, Black Stone Minerals acquired mineral and royalty interests for a total cash consideration of $65.2 million. These acquisitions were primarily located in the Gulf Coast region.
Conclusion of Ownership Analysis
The ownership of Black Stone Minerals, L.P. reflects a combination of institutional and individual investors, alongside insider holdings. The financial performance and strategic acquisitions indicate a strong position in the mineral and royalty sector, with a commitment to returning value to unitholders through distributions and growth initiatives.
Black Stone Minerals, L.P. (BSM) Mission Statement
Overview
Black Stone Minerals, L.P. is a publicly traded Delaware limited partnership that focuses on owning oil and natural gas mineral interests. The partnership's assets primarily consist of non-cost-bearing mineral and royalty interests located in 41 states across the continental United States, covering all major onshore producing basins.
Mission Statement
The mission of Black Stone Minerals, L.P. is to maximize the value of its mineral and royalty interests through strategic acquisitions, effective asset management, and sustainable operational practices. The company aims to provide attractive returns to its unitholders by leveraging its extensive portfolio and expertise in the oil and natural gas sector.
Financial Performance
As of September 30, 2024, Black Stone Minerals reported a net income of $224,980,000, compared to $274,902,000 for the same period in 2023. The decrease in net income is attributed to lower realized commodity prices and reduced production volumes. The company's total revenue for the nine months ended September 30, 2024 was $349,973,000, down from $401,375,000 in the prior year.
Revenue Breakdown
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Oil and Condensate Sales | $209,112 | $208,184 | 0.4% |
| Natural Gas and Natural Gas Liquids Sales | $115,543 | $147,857 | (21.9%) |
| Lease Bonus and Other Income | $10,480 | $8,682 | 20.7% |
| Total Revenue | $349,973 | $401,375 | (12.8%) |
Operating Expenses
Operating expenses decreased for the nine months ended September 30, 2024, primarily due to reduced production costs and lower lease operating expenses. Total operating expenses were $124,389,000, compared to $125,381,000 for the same period in 2023.
Cash Flows
For the nine months ended September 30, 2024, Black Stone Minerals reported cash flows provided by operating activities of $298,087,000, a decrease from $387,135,000 in 2023. Cash used in investing activities increased significantly to $64,227,000, compared to $4,946,000 in the prior year, primarily due to acquisitions of oil and natural gas properties.
Debt and Liquidity
The partnership maintains a senior secured revolving credit agreement with a maximum credit amount of $1.0 billion. As of September 30, 2024, the unused portion of the available borrowings under the credit facility was $375.0 million. The weighted-average interest rate of the credit facility was 8.04% during the nine months ended September 30, 2024.
Distributions to Unitholders
During the nine months ended September 30, 2024, the partnership made distributions to common unitholders totaling $257,921,000, a decrease from $299,078,000 in the same period of 2023.
Market Position
Black Stone Minerals, L.P. continues to leverage its extensive mineral and royalty interests to maintain a strong position in the oil and natural gas sector. The company focuses on strategic acquisitions and effective asset management to enhance shareholder value.
How Black Stone Minerals, L.P. (BSM) Works
Overview of Operations
Black Stone Minerals, L.P. (BSM) is a publicly traded partnership that primarily owns oil and natural gas mineral interests across the United States. The company's assets predominantly consist of non-cost-bearing mineral and royalty interests, which are located in 41 states, covering major onshore producing basins.
Financial Performance
For the nine months ended September 30, 2024, BSM reported the following financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Income (Loss) | $224,980,000 | $274,902,000 | ($49,922,000) |
| Adjusted EBITDA | $290,806,000 | $349,188,000 | ($58,382,000) |
| Distributable Cash Flow | $267,532,000 | $332,125,000 | ($64,593,000) |
| Total Revenue | $349,973,000 | $401,375,000 | ($51,402,000) |
Revenue Breakdown
BSM's revenue sources for the nine months ended September 30, 2024, are detailed below:
| Source | 2024 Revenue | 2023 Revenue | Change |
|---|---|---|---|
| Oil and Condensate Sales | $209,112,000 | $208,184,000 | $928,000 |
| Natural Gas and NGL Sales | $115,543,000 | $147,857,000 | ($32,314,000) |
| Lease Bonus and Other Income | $10,480,000 | $8,682,000 | $1,798,000 |
Production Metrics
The following production metrics were recorded for the nine months ended September 30, 2024:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Oil and Condensate (MBbls) | 2,756 | 2,811 | (55) |
| Natural Gas (MMcf) | 41,769 | 50,207 | (8,438) | Equivalents (MBoe) | 11,294 | 12,412 | (1,118) |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, are summarized as follows:
| Expense Type | 2024 | 2023 | Change |
|---|---|---|---|
| Lease Operating Expense | $7,433,000 | $8,149,000 | ($716,000) |
| Production Costs and Ad Valorem Taxes | $38,876,000 | $41,952,000 | ($3,076,000) |
| General and Administrative | $40,286,000 | $38,950,000 | $1,336,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, BSM reported cash flows as follows:
| Cash Flow Type | 2024 | 2023 | Change |
|---|---|---|---|
| Cash Flows from Operating Activities | $298,087,000 | $387,135,000 | ($89,048,000) |
| Cash Flows from Investing Activities | ($64,227,000) | ($4,946,000) | ($59,281,000) |
| Cash Flows from Financing Activities | ($283,179,000) | ($330,466,000) | $47,287,000 |
Debt and Liquidity
As of September 30, 2024, BSM maintained a Credit Facility with a maximum credit amount of $1.0 billion. The borrowing base was reaffirmed at $580 million in October 2023 and remained compliant with all financial covenants.
| Metric | Amount |
|---|---|
| Credit Facility Maximum Amount | $1,000,000,000 |
| Current Borrowing Base | $580,000,000 |
| Unused Portion | $375,000,000 |
Recent Developments
In the nine months ended September 30, 2024, BSM acquired mineral and royalty interests for approximately $65.2 million, primarily from unproved oil and natural gas properties. The partnership continues to pursue targeted mineral and royalty acquisitions to enhance its asset base.
How Black Stone Minerals, L.P. (BSM) Makes Money
Revenue Sources
Black Stone Minerals, L.P. (BSM) generates revenue primarily from its ownership of mineral and royalty interests in oil and natural gas properties. The company’s revenue streams can be categorized into the following segments:
- Oil and condensate sales
- Natural gas and natural gas liquids sales
- Lease bonus and other income
- Gain (loss) on commodity derivative instruments
Oil and Condensate Sales
For the nine months ended September 30, 2024, BSM reported oil and condensate sales of $209,112,000, which represented a slight increase of 0.4% compared to $208,184,000 for the same period in 2023. The production volumes for oil and condensate accounted for 95% of total oil and condensate volumes during this period.
Natural Gas and Natural Gas Liquids Sales
Natural gas and natural gas liquids (NGLs) sales amounted to $115,543,000 for the nine months ended September 30, 2024, reflecting a decrease of 21.9% from $147,857,000 in the prior year. This decline was attributed to lower realized commodity prices during the period.
Lease Bonus and Other Income
BSM recognized lease bonus and other income of $10,480,000 for the nine months ended September 30, 2024, marking an increase of 20.7% from $8,682,000 in the previous year. This income primarily arises from leasing mineral interests, with significant contributions from the Permian Basin and other active drilling regions.
Commodity Derivative Instruments
During the nine months ended September 30, 2024, BSM reported a loss of $14,838,000 on commodity derivative instruments compared to a gain of $36,652,000 in the same period of 2023. The fluctuations in these derivatives significantly impact the overall revenue and financial performance of the company.
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $124,389,000, which is a slight decrease from $125,381,000 in 2023. Key components of operating expenses include:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Variance |
|---|---|---|---|
| Lease operating expense | 7,433 | 8,149 | (716) |
| Production costs and ad valorem taxes | 38,876 | 41,952 | (3,076) |
| Exploration expense | 2,579 | 1,719 | 860 |
| Depreciation, depletion, and amortization | 34,253 | 33,935 | 318 |
| General and administrative | 40,286 | 38,950 | 1,336 |
Net Income
BSM reported a net income of $224,980,000 for the nine months ended September 30, 2024, a decrease from $274,902,000 in the same period in 2023. This decline in net income was primarily driven by lower sales in natural gas and NGLs, along with reduced gains on commodity derivatives.
Cash Flows
For the nine months ended September 30, 2024, net cash provided by operating activities was $298,087,000, down from $387,135,000 in 2023. The decrease in cash flow was attributed to lower natural gas and NGL sales stemming from reduced realized commodity prices.
Investment Activities
BSM's investing activities for the nine months ended September 30, 2024, resulted in a net cash outflow of $64,227,000, primarily due to acquisitions of oil and natural gas properties. The company acquired mineral and royalty interests for approximately $65.2 million during this period.
Financing Activities
In financing activities, BSM reported cash outflows of $283,179,000 for the nine months ended September 30, 2024, which included distributions to common unitholders of $257,921,000. The company's financing strategy focuses on managing distributions and maintaining liquidity through its Credit Facility.
Conclusion
Black Stone Minerals, L.P. operates primarily through its mineral and royalty interests in oil and natural gas, with revenue derived from various streams including oil and condensate sales, natural gas, lease bonuses, and commodity derivatives. The company's financial performance is closely tied to commodity prices and production volumes, with ongoing efforts in acquisitions and managing operating expenses to enhance profitability.
Black Stone Minerals, L.P. (BSM) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Black Stone Minerals, L.P. (BSM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Black Stone Minerals, L.P. (BSM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Black Stone Minerals, L.P. (BSM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.