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.

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

• Q4 mineral and royalty production was 34.8 thousand BOE/day; total production was 36.1 thousand BOE/day, with 74% natural gas.

• Full-year 2024 production averaged 38.5 thousand BOE/day, a 2% decrease year-over-year.

• 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 distribution.

• 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/day, with royalty production expected to rise about 2% over 2024.

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

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

• Constructive natural gas outlook supported by LNG demand and robust oil production.

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