Black Stone Minerals LP (BSM) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to today's Black Stone Minerals Q2 earnings call. (Operator Instructions) Please note this call may be recorded. I'll be standing by should you need any assistance. It is now my pleasure to turn the conference over to Mr. Mark Meaux, Director of Finance. Please go ahead.

大家好，歡迎參加今天的 Black Stone Minerals 第二季財報電話會議。（操作員說明）請注意，此通話可能會被錄音。如果您需要任何幫助，我會隨時待命。現在我很高興將會議交給財務總監 Mark Meaux 先生主持。請繼續。

Thank you. Good morning to everyone. Thank you for joining us either by phone or online for Black Stone Minerals' second quarter 2024 earnings conference call. Today's call is being recorded and will be available on our website along with the earnings release, which was issued last night.

謝謝。大家早安。感謝您透過電話或線上參加 Black Stone Minerals 的 2024 年第二季財報電話會議。今天的電話會議正在錄音，並將與昨晚發布的收益報告一起發佈在我們的網站上。

Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations, and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements. For discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the risk factor section of our 2023 10-K.

在我們開始之前，我想告訴您，我們將在本次電話會議期間就我們的計劃、期望和有關未來業績的假設做出前瞻性聲明。這些陳述涉及可能導致我們的實際結果與我們的前瞻性陳述中明示或暗示的結果有重大差異的風險。對於這些風險的討論，您應該參閱我們昨天新聞稿中有關前瞻性陳述的警示信息以及我們 2023 年 10-K 的風險因素部分。

We may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliation of those measures to the most directly comparable GAAP measure and other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www.blackstoneminerals.com.

我們可能會參考某些我們認為有助於評估我們績效的非公認會計準則財務指標。我們昨天發布的收益新聞稿中描述了這些指標與最直接可比較的 GAAP 指標的協調以及有關這些非 GAAP 指標的其他信息，該新聞稿可以在我們的網站 www.blackstoneminerals.com 上找到。

Joining me on the call from the company are Tom Carter, Chairman, CEO, and President; Taylor DeWalch, Senior Vice President, Chief Financial Officer and Treasurer; Carrie Clark, Senior Vice President, Chief Commercial Officer, and Steve Putman, Senior Vice President and General Counsel.

與我一起參加電話會議的有公司董事長、執行長兼總裁湯姆·卡特 (Tom Carter)； Taylor DeWalch，資深副總裁、財務長兼財務長； Carrie Clark，資深副總裁兼首席商務官，Steve Putman，資深副總裁兼總法律顧問。

I'll now turn the call over to Tom.

我現在會把電話轉給湯姆。

Good morning, and thank you all for joining us today. In the second quarter, we continue to see solid results from our unique asset base, and we remain focused on our organic growth strategy along with targeted acquisitions to further enhance our existing long runway of high-interest development opportunities.

早安，感謝大家今天加入我們。在第二季度，我們繼續看到我們獨特的資產基礎帶來的堅實業績，我們仍然專注於我們的有機成長策略以及有針對性的收購，以進一步增強我們現有的高利息開發機會。

Total production for the quarter was in line with the first quarter at 40,400 BOE per day, which generated $68 million of net income and just over $100 million of adjusted EBITDA. 67% of our oil and gas revenues in the quarter came from oil and condensate production. We maintained our distribution at $37.5 per unit with excess coverage utilized on growth opportunities.

該季度的總產量與第一季持平，為每天 40,400 桶油當量，產生了 6,800 萬美元的淨利潤和略高於 1 億美元的調整後 EBITDA。本季我們 67% 的石油和天然氣收入來自石油和凝析油生產。我們維持每單位 37.5 美元的分配，並利用成長機會進行超額覆蓋。

With our clean balance sheet, commercial strategy, and asset mix, we're uniquely positioned to remain focused on the long-term decision-making opportunities. Strong oil production and revenues from multiple basins, as well as a constructive natural gas outlook, remain the foundation of a very positive future for the company.

憑藉我們乾淨的資產負債表、商業策略和資產組合，我們處於獨特的地位，可以繼續專注於長期決策機會。來自多個盆地的強勁石油產量和收入以及建設性的天然氣前景仍然是該公司非常積極的未來的基礎。

On the acquisitions front, as we discussed previously, starting in the fourth quarter of 2023, we expanded our commercial initiatives to include a targeted grassroots acquisition program to enhance our existing asset position and to elongate our runway of development opportunities.

在收購方面，正如我們之前討論的，從 2023 年第四季度開始，我們擴大了商業計劃，包括有針對性的基層收購計劃，以增強我們現有的資產地位並延長我們的發展機會。

During the quarter, we added another $26.5 million in minerals and royalty acquisitions and have acquired about $65 million in minerals and royalty interest in these areas since September of 2023. We continue to see creative opportunities to add to our position, which will ultimately add value for our shareholders.

本季度，我們又增加了 2,650 萬美元的礦產和特許權使用費收購，自 2023 年 9 月以來，我們已收購了這些地區約 6,500 萬美元的礦產和特許權使用權權益。我們繼續看到創造性的機會來增加我們的地位，最終將為我們的股東增加價值。

In East Texas and Louisiana, we continue to work with multiple operators to promote development on our acreage while monitoring the current environment and preparing for the anticipated improvement in the natural gas market. We also remain focused on the Shelby Trough operations and our extensive undeveloped inventory, totaling over 15 TcF of GAP -- of Gulf Coast resource, with multiple successful recent well results.

在德州東部和路易斯安那州，我們繼續與多家營運商合作，促進我們區域的開發，同時監測當前環境並為天然氣市場的預期改善做好準備。我們也繼續關注謝爾比槽作業和我們廣泛的未開發庫存，總計超過 15 TcF 的 GAP - 墨西哥灣沿岸資源，最近取得了多個成功的井結果。

Another eight wells on our minerals were brought online in the second quarter in this area with initial rates in the range of 25 million to 30 million cubic feet per day. And several more wells are scheduled to come online in the second half of the year after being drilled in the first half of the year.

第二季度，該地區另外 8 口礦井上線，初始產能為每天 2,500 萬至 3,000 萬立方英尺。繼上半年完鑽後，預計下半年還將有幾口井上線。

Overall, it was a strong quarter, and we maintain our strategic objective of working with the operators to achieve full field development across all of our assets. We continue looking toward the future by advancing our commercial initiatives and growing production and returning the distribution to the high water mark previously set.

總體而言，這是一個強勁的季度，我們維持與營運商合作的策略目標，以實現我們所有資產的全面現場開發。我們繼續展望未來，推進我們的商業計劃和增加產量，並將分銷恢復到先前設定的高水位。

With that, I'll turn it over to Taylor to walk through the financial details of the quarter.

這樣，我將把它交給泰勒，讓他詳細介紹本季的財務細節。

Thanks, Tom. Good morning, everyone. As Tom pointed out, we had a very solid second quarter. Mineral and royalty production was 38,200 BOE per day, and total production volumes were just over 40,000 BOE per day, both of which are about flat from last quarter.

謝謝，湯姆。大家早安。正如湯姆指出的那樣，我們的第二季度表現非常出色。礦物和特許權使用費產量為每天 38,200 桶油當量，總產量略高於每天 40,000 桶油當量，兩者與上季度基本持平。

We saw an increase in our oil volumes, which helped offset the continued downturn in the gas market. We maintain our updated full-year guidance from the first quarter, continue to thoughtfully review current market dynamics.

我們的石油產量增加，有助於抵消天然氣市場的持續低迷。我們維持第一季以來最新的全年指引，並繼續認真審視當前的市場動態。

As Tom previously mentioned, net income was $68.3 million for the quarter, with adjusted EBITDA being $100.2 million. We previously announced that our distribution for the quarter is $37.5 per unit, or $1.50 on an annualized basis. Distributable cash flow for the quarter was $92.5 million, which represents 1.17 times coverage for the quarter.

正如 Tom 之前提到的，該季度淨利潤為 6,830 萬美元，調整後 EBITDA 為 1.002 億美元。我們先前宣布，本季的分配為每單位 37.5 美元，或按年化計算 1.50 美元。本季可分配現金流量為 9,250 萬美元，相當於本季覆蓋率的 1.17 倍。

Our board elected to keep the distribution flat from the previous quarter so that we can continue to use the excess coverage to pursue attractive mineral and royalty acquisitions. We continue to have a strong balance sheet that gives us flexibility through these dynamic market cycles. Total commitments under the credit facility remain at $375 million, and there are currently no outstanding borrowings on the revolver. As of the end of last week, we had just over $61 million in cash.

我們的董事會選擇保持與上一季持平的分配，以便我們可以繼續利用超額覆蓋範圍來進行有吸引力的礦產和特許權使用費收購。我們繼續擁有強大的資產負債表，使我們能夠在這些動態的市場週期中保持靈活性。信貸安排下的承諾總額仍為 3.75 億美元，目前沒有未償還的循環貸款。截至上週末，我們的現金略高於 6,100 萬美元。

We are well-edged for the remainder of the year. Our 2024 natural gas hedges are at approximately $3.55 per MMbtu. Comparing that to an average price at Henry Hub of about $2 per MMbtu for the second quarter, we benefited with a realized gain of approximately $12 million.

我們在今年剩下的時間裡處於有利地位。我們 2024 年的天然氣對沖價格約為每 MMbtu 3.55 美元。與第二季亨利中心每 MMbtu 約 2 美元的平均價格相比，我們獲得了約 1,200 萬美元的已實現收益。

We have over 60% of our expected volumes hedged for the remainder of 2024 that will help inflate our cash flows from near-term price volatility. We have continued to add to our hedge portfolio for 2025 and will maintain our strategy of adding on hedges for 2026. Again, we had another solid quarter and will continue to focus on generating long-term value for our shareholders.

我們在 2024 年剩餘時間內對預期交易量的 60% 以上進行了對沖，這將有助於擴大我們因近期價格波動而產生的現金流。我們在 2025 年持續增加對沖投資組合，並將在 2026 年維持增加對沖投資的策略。我們再次迎來了又一個穩健的季度，並將繼續專注於為股東創造長期價值。

With that, we'll open the call for questions.

至此，我們將開始提問。

(Operator Instructions) Tim Rezvan, KeyBanc.

（操作員說明）Tim Rezvan，KeyBanc。

Good morning, folks, and thank you for taking my questions. My first question, in the release, you gave some comments on Aethon, but I was hoping to maybe get a little more color. You mentioned in the release a delayed initial production from some wells in the second quarter.

早安，夥伴們，謝謝你們回答我的問題。我的第一個問題，在新聞稿中，您對 Aethon 發表了一些評論，但我希望也許能得到更多的色彩。您在新聞稿中提到第二季一些油井的初始生產延遲。

Can you clarify what that means? Is that deferred till, or are they choking back production? And then if you could kind of give broader comments on if Aethon has sort of formally come out of this timeout that they answered in December. Thank you.

你能解釋一下這意味著什麼嗎？是推遲到還是他們在抑制生產？然後，如果你能就 Aethon 是否已經正式擺脫他們在 12 月回答的這個暫停問題發表更廣泛的評論。謝謝。

Thanks, Tim. Appreciate the question. And I guess -- this isTaylor, I'll take a quick pass at just your first part of that question on the delayed production to clarify what we said in the release. So we had previously announced that there was a number of wells that the first production date was just going to be delayed a little bit. And so the comment there in the release is specific to those wells that were previously announced, and we're excited to see those wells go ahead and come online, like we mentioned, eight of the ten, and anticipate the other two coming online in the second half of the year.

謝謝，蒂姆。感謝這個問題。我想 - 這是泰勒，我將快速回答你關於延遲製作的問題的第一部分，以澄清我們在新聞稿中所說的內容。因此，我們之前曾宣布，有一些井的首次生產日期將稍微推遲。因此，新聞稿中的評論是針對先前宣布的那些井的，我們很高興看到這些井繼續上線，就像我們提到的那樣，十口井中的八口，並預計另外兩口將在下半年。

Okay. So that's the IP rate you gave suggests those are, the typical fully producing rates. Okay. And then can you clarify on the timeout part of that question? Are they officially out? Do you get notification? How does that process work?

好的。這就是您給出的 IP 速率，表明這些是典型的完全生產速率。好的。然後你能澄清一下這個問題的超時部分嗎？他們正式出局了嗎？你收到通知了嗎？這個過程是如何進行的？

Tim, this is Carrie Clark. Yeah, I think not to -- we can't really speak to that, not withholding any information. But I think what was put in the press release is that we're still talking with Aethon as far as a formal declaration of coming out, of quote coming out of timeout. That's not really something that we can speak to definitively right now.

提姆，這是凱莉克拉克。是的，我認為不要——我們不能真正談論這一點，不能隱瞞任何資訊。但我認為新聞稿中的內容是，我們仍在與 Aethon 就暫停的正式聲明進行談判。這並不是我們現在可以明確談論的事情。

But can say that they did start three new wells in February, and those wells, I think, have just come online. We have not seen initial production rates yet, but we're still talking with them on how best to move forward holistically.

但可以說他們確實在二月啟動了三口新井，我認為這些井剛剛上線。我們還沒有看到初始生產率，但我們仍在與他們討論如何最好地全面推進。

Okay. I understand. I appreciate that. And then as my follow-up, in the release you continue to highlight mineral acquisitions in this emerging but not yet disclosed Gulf Coast area. And I was curious kind of what is precluding you from discussing it more openly. Is there a critical massive acreage you want to acquire?

好的。我明白。我很欣賞這一點。然後，作為我的後續行動，您在新聞稿中繼續強調這個新興但尚未披露的墨西哥灣沿岸地區的礦產收購。我很好奇是什麼阻止了你更公開地討論它。您是否想要獲得關鍵的大面積土地？

Are you waiting to get some sort of formal agreement with an operator? Or at least you can't give color, but I was wondering if you could give a little more detail on what the guideposts are to evolve that process. Thank you.

您是否正在等待與運營商達成某種正式協議？或者至少你不能給出顏色，但我想知道你是否可以提供更多關於發展過程的指南的細節。謝謝。

Sure. Yeah. I mean, we're as is pretty standard, we're not speaking in a great amount of detail publicly or formally about that acquisition program. But we've shared quite a bit of information about it. We're just still trying to maintain -- we're trying to assimilate a position that's accretive to the position that we already have that lines up with the science and some technical work that we've done over the last year. And it's -- I think pretty much covers it as far as the acquisition program.

當然。是的。我的意思是，我們是相當標準的，我們不會公開或正式地談論該收購計劃的大量細節。但我們已經分享了大量有關它的資訊。我們只是仍在努力維持——我們正在努力吸收一個能夠增加我們已經擁有的位置的位置，該位置與我們去年所做的科學和一些技術工作相一致。我認為就收購計劃而言，它幾乎涵蓋了所有內容。

All right. I understand you can't say too much. Thanks.

好的。我明白你不能說太多。謝謝。

Thanks, Tim.

謝謝，蒂姆。

(Operator Instructions) And I'd like to pass it now back to speakers for any closing remarks.

（操作員說明）我現在想將其傳回給發言者以供結束語。

Okay. Thank you all very much for joining us for the 2Q '24 earnings call. And we look forward to speaking with you at the next quarter. Thank you so much.

好的。非常感謝大家參加我們 24 年第二季的財報電話會議。我們期待在下個季度與您交談。太感謝了。

Thank you, ladies and gentlemen. This concludes today's presentation. You may now disconnect.

謝謝你們，女士們、先生們。今天的演講到此結束。您現在可以斷開連線。