Black Stone Minerals LP · Q3 2022 earnings

Briefing

Black Stone Minerals reported record financial results for the third quarter of 2022, driven by increased production and favorable commodity prices.

Black Stone Minerals reported record financial results for Q3 2022, with net income of $168.5 million and adjusted EBITDA of $123.1 million, the highest level as a public company. Production increased by 23% over the prior quarter, and distributable cash flow also reached a record high of $116.5 million.

• Mineral and royalty production increased by 23% over the prior quarter, reaching 37.3 MBoe/d.
• Net income was $168.5 million, and adjusted EBITDA reached a record high of $123.1 million.
• Distributable cash flow was $116.5 million, also a record high for the Company.
• A distribution of $0.45 per unit was announced, representing a 7% increase from the previous quarter.

Headline financials

Revenue & EPS history

The Company now expects total production for 2022 to be at or above the midpoint of its original guidance range of 34.0 to 37.0 MBoe/d. The Company expects lease operating expenses to be at the high end of the guidance range of $10-$12 million and production costs as a percentage of oil and gas revenues to be below the guidance range of 10%-12%. Black Stone expects cash G&A to be in line with the guidance range of $36-$38 million. The Company expects non-cash G&A to be at the high end of the guidance range of $13-$15 million, due primarily to the impact of the increase in Black Stone’s unit price during the year on the Company's long-term incentive compensation expense.