Black Stone Minerals (BSM) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was $46.3 million and Adjusted EBITDA $90.1 million; full-year net income reached $271.3 million and Adjusted EBITDA $380.9 million.

• Q4 mineral and royalty production averaged 34.8 thousand BOE/d, with total production at 36.1 thousand BOE/d; full-year 2024 production averaged 38.5 thousand BOE/d, a 2% decrease year-over-year.

• Maintained quarterly distribution of $0.375 per unit, totaling $1.50 per unit for 2024, with a coverage ratio of 1.03x.

• Executed $43–45.2 million in mineral and royalty acquisitions in Q4, totaling $130–130.5 million since September 2023, focused on the Gulf Coast and Shelby Trough regions.

• Ended Q4 with $25 million debt, reduced to $12 million by February 2025, and $6.9 million cash.

Financial highlights

• Q4 oil and gas revenue was $102.3 million, up 1% sequentially but down from $132.6 million year-over-year.

• Average realized price per Boe in Q4 was $30.81, up 5% sequentially but down 12% year-over-year.

• Q4 distributable cash flow was $81.9 million, providing 1.03x coverage for the quarter.

• Q4 loss on commodity derivatives was $20.6 million, including a $29.3 million non-cash unrealized loss.

• Year-end 2024 proved reserves were 57.4 MMBoe, down 11% from 2023; 70% natural gas, 88% proved developed producing.

Outlook and guidance

• 2025 production guidance is 38–41 thousand BOE/d, with royalty production expected to rise about 2% over 2024.

• Anticipates increased activity in Shelby Trough, Louisiana Haynesville, and Permian Basin.

• Lease bonus, operating expense, and production costs for 2025 are projected to be in line with 2024; G&A will rise slightly due to inflation and hiring.

• Lease bonus and other income projected at $9–11 million; production costs and taxes at 10–12% of pre-derivative O&G revenue.

• Maintains active hedging program for 2025–2026 with oil swaps at ~$71/Bbl and gas swaps at $3.36–$3.64/MMBtu.