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Jun 30, 2022
Black Stone Minerals Q2 2022 Earnings Report
Black Stone Minerals' financial and operating results were announced for the second quarter of 2022.
Key Takeaways
Black Stone Minerals reported a net income of $131.8 million for the second quarter of 2022. Mineral and royalty production averaged 30.3 MBoe/d, while total production reached 33.5 MBoe/d. The company's Adjusted EBITDA reached a record high of $112.8 million, and distributable cash flow also hit a record high at $106.6 million.
Mineral and royalty production averaged 30.3 MBoe/d, a 2% increase over the prior quarter, while total production was 33.5 MBoe/d.
Net income was $131.8 million, and Adjusted EBITDA reached a record high of $112.8 million, a 14% increase over the prior quarter.
Distributable cash flow was $106.6 million, a 15% increase from the previous quarter and a record high for the Company.
A distribution of $0.42 per unit was announced, representing a 5% increase from the prior quarter, with a distribution coverage of 1.21x.
Black Stone Minerals
Black Stone Minerals
Black Stone Minerals Revenue by Segment
Revenue by Segment
Oil & Condensate Revenue
CapyFin.comNatural Gas & NGL Revenue
CapyFin.comLease & Other Income Revenue
CapyFin.comCommodity Derivatives Revenue
CapyFin.com Forward Guidance
The Company now expects full year 2022 production volumes to be at the low end of the original guidance range of 34-37 MBoe/d. Management anticipates that production volumes will ramp up throughout 2023 and will approach 40 MBoe/d by the end of next year, driven primarily by the increases in drilling activity in the Shelby Trough and Austin Chalk plays.
Positive Outlook
- Increased drilling activity expected in the Shelby Trough and Austin Chalk plays.
- Production volumes are anticipated to ramp up throughout 2023.
- Production volumes are expected to approach 40 MBoe/d by the end of next year.
- Aethon is on pace to meet or exceed its combined well commitments under the Shelby Trough development agreements.
- Black Stone anticipates up to 30 horizontal wells could be spud in the Austin Chalk area over the next twelve months.
Challenges Ahead
- Full year 2022 production volumes are expected to be at the low end of the original guidance range of 34-37 MBoe/d.
- Increased cycle times for multiple well pads on high-interest acreage.
- Delays resulting from global supply chain interruptions, particularly as they impact smaller operators.
- Production results have varied on wells in the Austin Chalk area.
- Continued decline in working interest volumes