Mission Statement, Vision, & Core Values (2024) of Black Stone Minerals, L.P. (BSM)

An Overview of Black Stone Minerals, L.P. (BSM)

General Summary of Black Stone Minerals, L.P. (BSM)

Black Stone Minerals, L.P. (BSM) is one of the largest owners and managers of oil and natural gas mineral interests in the United States. The company was founded in 2014 and has since established a significant presence in the energy sector by acquiring and managing mineral and royalty interests across various prolific oil and gas basins, including the Permian Basin, the Bakken/Three Forks, and the Haynesville/Bossier plays.

As of 2024, BSM's operational focus includes generating revenue through the leasing of its mineral interests and receiving royalties from oil and natural gas production. The company primarily offers mineral and royalty interests without the associated operational costs of traditional exploration and production companies.

Current sales figures for 2024 indicate a total revenue of $349.973 million for the nine months ended September 30, 2024, down from $401.375 million in the same period of 2023.

Company's Financial Performance in the Latest Financial Reports

In the latest financial reporting period, Black Stone Minerals reported a decrease in total revenue, primarily driven by a reduction in gains from commodity derivative instruments and lower natural gas and natural gas liquids sales. The breakdown of revenue includes:

Despite the overall decline in revenue, oil and condensate sales saw a slight increase due to higher production volumes, which accounted for 95% of total oil and condensate volumes for the nine months ended September 30, 2024. Conversely, the decrease in natural gas and NGL sales was attributed to lower realized commodity prices.

For the third quarter of 2024, total revenue increased to $134.856 million, compared to $109.797 million in the same quarter of 2023, primarily due to a gain on commodity derivative instruments.

Introduction to Black Stone Minerals as an Industry Leader

Black Stone Minerals, L.P. is recognized as a leader in the mineral and royalty sector, leveraging its extensive portfolio of oil and natural gas interests to drive revenue growth while minimizing operational risks associated with production. The company’s strategic focus on acquiring high-quality mineral interests has positioned it favorably against competitors.

BSM's ability to generate significant cash flow through its mineral interests makes it a compelling choice for investors looking for exposure to the energy sector without the operational complexities associated with traditional oil and gas companies. With a commitment to maintaining a low-cost structure and enhancing shareholder value through strategic acquisitions and efficient management, Black Stone Minerals continues to be a prominent player in the industry.

Mission Statement of Black Stone Minerals, L.P. (BSM)

Mission Statement of Black Stone Minerals, L.P. (BSM)

Black Stone Minerals, L.P. (BSM) articulates its mission statement to reflect its commitment to acquiring and managing mineral and royalty interests in oil and natural gas, with a focus on delivering value to its stakeholders while maintaining operational excellence and sustainability.

Core Component 1: Commitment to Stakeholders

The first core component emphasizes the company’s dedication to its stakeholders, including unitholders, employees, and partners. BSM aims to provide attractive returns through prudent management of its assets and effective capital allocation. For the nine months ended September 30, 2024, BSM reported a net income of $224.98 million, showcasing its capacity to generate value for its investors.

• Financial Performance: BSM's total revenue for the same period was $349.97 million.
• Distribution Strategy: The distribution rate for the Series B cumulative convertible preferred units was adjusted to 9.8%.

Core Component 2: Operational Excellence

This component highlights BSM's focus on operational efficiency and strategic growth. The company operates with a low-cost structure and prioritizes effective resource management. For instance, BSM's lease operating expenses decreased to $7.43 million for the nine months ended September 30, 2024, compared to $8.15 million in the prior year. This reflects BSM’s commitment to controlling costs while enhancing production capabilities.

Core Component 3: Sustainability and Community Engagement

BSM recognizes the importance of sustainable practices and community engagement. The company actively seeks to minimize its environmental impact through responsible resource management. In 2024, BSM has begun initiatives to support solar development on its mineral acreage in Texas. This diversification not only aligns with sustainability goals but also positions BSM favorably in the evolving energy landscape.

Furthermore, BSM’s operations span across 41 states in the U.S., indicating a significant footprint that allows for community engagement and economic contributions in various regions.

Vision Statement of Black Stone Minerals, L.P. (BSM)

Vision Statement of Black Stone Minerals, L.P. (BSM)

The vision statement of Black Stone Minerals, L.P. (BSM) is centered around becoming a leader in the mineral and royalty sector, focusing on sustainable growth and enhanced value for unitholders. The company aims to strategically acquire and manage mineral interests while optimizing the performance of its existing portfolio.

BSM emphasizes its commitment to sustainability, which is reflected in its operational practices and investment strategies. The company integrates environmental considerations into its decision-making processes, ensuring that its activities are aligned with best practices in environmental stewardship. This commitment is evident in its ongoing projects that support renewable energy sources, such as solar development initiatives on its mineral acreage in Texas.

As part of its vision, BSM aims to expand its mineral and royalty interests through targeted acquisitions. In 2024, the company successfully acquired mineral and royalty interests for an aggregate of $65.2 million, primarily focused on unproved oil and natural gas properties. This strategic move is designed to enhance BSM's asset base and ensure long-term growth.

BSM's financial metrics demonstrate its commitment to delivering value to its unitholders. For the nine months ended September 30, 2024, the company reported total revenue of $349.973 million, a decrease from $401.375 million in the same period of 2023. This decline was primarily attributed to reduced gains on commodity derivative instruments and lower natural gas and NGL sales.

BSM is focused on leveraging technology to optimize its operations. The company invests in advanced geological data analytics and production optimization technologies to enhance the efficiency of its mineral extraction processes. This approach not only improves operational performance but also contributes to the overall sustainability of its operations.

Community engagement is a vital component of BSM's vision. The company actively seeks to build strong relationships with local communities and stakeholders, ensuring that its operations are socially responsible and beneficial to the areas in which it operates. This includes initiatives aimed at supporting local economies and creating job opportunities.

Looking ahead, BSM aims to continue its trajectory of growth through strategic investments, sustainable practices, and community engagement. The company plans to enhance its portfolio through additional acquisitions and to focus on optimizing its existing assets, ensuring that it remains a leader in the mineral and royalty sector.

Core Values of Black Stone Minerals, L.P. (BSM)

Integrity

The core value of integrity is fundamental to Black Stone Minerals, L.P. (BSM) and emphasizes the importance of honesty and ethical conduct in all business dealings. This value ensures that the company maintains trust with its stakeholders, including investors, employees, and partners.

In 2024, BSM has demonstrated its commitment to integrity through transparent communication practices and adherence to regulatory requirements. For instance, the company consistently publishes detailed financial reports, including its quarterly earnings, which for the nine months ended September 30, 2024, reported a net income of $224.98 million. This level of transparency fosters trust and reinforces the company's integrity.

Excellence

Excellence is a core value that drives BSM's operational strategies and performance metrics. The company strives for the highest standards in its operations, ensuring that it delivers value to its stakeholders.

For example, BSM has significantly increased its oil and condensate sales, which reached $209.11 million for the nine months ended September 30, 2024, compared to $208.18 million in the same period of 2023. This growth illustrates BSM's commitment to operational excellence and effective management of its mineral and royalty interests.

Innovation

Innovation is vital for BSM to adapt to the changing landscape of the oil and gas industry. The company actively seeks new technologies and processes that enhance its operational efficiency.

In 2024, BSM has invested approximately $2.3 million in capital expenditures, focusing on workovers and recompletions of existing wells. This investment showcases the company's innovative approach to optimizing its asset base and maximizing production potential.

Collaboration

Collaboration is essential for BSM to achieve its strategic objectives and foster strong relationships with partners and stakeholders. The company values teamwork and partnerships that enhance its operational capabilities.

In 2024, BSM engaged in a significant asset exchange, acquiring an oil and natural gas lease on approximately 8,000 net leasehold acres in East Texas. This strategic collaboration with third-party operators exemplifies BSM's commitment to building strong partnerships that drive growth and success.

Accountability

Accountability is a core value that ensures BSM takes responsibility for its actions and decisions. This value is critical in maintaining stakeholder confidence and trust.

BSM has maintained compliance with all financial covenants in its Credit Facility as of September 30, 2024. This adherence to financial discipline underscores the company's accountability and commitment to sound financial management.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.