Black Stone Minerals, L.P. owns and manages oil and natural gas mineral interests across 41 states in the United States, with ownership in approximately 68,000 producing wells. The company also has non-operated working interests, a significant portion of which are on their positions where they also have a mineral and royalty interest.
Recent developments include updates on the Shelby Trough and Austin Chalk developments in Texas. In the Shelby Trough, 24 wells are currently producing under a development agreement with Aethon, and another 20 wells are being drilled or completed. In the Austin Chalk, the company has entered into agreements with multiple operators to drill wells in the area, with 29 wells with modern completions now producing in the field.
The business environment has been affected by volatile oil and natural gas prices, with commodity prices decreasing in 2023 due to reduced demand for natural gas and rising global oil inventories. The company uses derivative instruments to manage the variability in cash flows associated with the sale of oil and natural gas production.
The company evaluates its operations using measures such as volumes of oil and natural gas produced, commodity prices, and non-GAAP financial measures like Adjusted EBITDA and Distributable cash flow. As of December 31, 2023, Black Stone Minerals, L.P. had hedged 73% of its available oil and condensate hedge volumes and 66% of its available natural gas hedge volumes for 2024.
The company's financial report provides a comprehensive overview of its operations, including updates on developments, the business environment, and measures used to assess performance. The market has reacted to these announcements by moving the company's shares 2.4% to a price of $15.27. For more information, read the company's full 10-K submission here.
