Black Stone Minerals(BSM) - 2025 Q1 - Quarterly Report

Production and Sales - As of March 31, 2025, the company holds mineral and royalty interests in 41 states, including ownership in approximately 71,000 producing wells[83]. - During Q1 2025, Aethon successfully turned to sales 11 gross (0.7 net) wells, with an estimated 17 gross (1.0 net) additional wells expected to turn to sales in the remainder of 2025[84]. - In the Louisiana Haynesville, two gross (0.2 net) wells were turned to sales under Accelerated Drilling Agreements (ADAs) during Q1 2025[85]. - The company anticipates nine gross wells to turn to sales in Q4 2025 in the Permian Basin, with the remainder expected in the first half of 2026[87]. - Oil and condensate sales dropped by 29.7% to $50,093,000, primarily due to lower production volumes and realized commodity prices[113]. - Natural gas and NGL sales increased by 38.6$58,235,000, driven by higher realized commodity prices despite reduced production volumes[116]. - Production of oil and condensate decreased by 22.4% to 716 MBbls, while natural gas production fell by 9.8% to 14,853 MMcf[113]. Financial Performance - For the three months ended March 31, 2025, total revenue decreased by 43.8% to $59,252,000 compared to$105,493,000 for the same period in 2024[113]. - Adjusted EBITDA for the quarter was $82,167,000, down from$104,117,000 in the prior year, reflecting a decrease of 21.1%[111]. - Distributable cash flow decreased to $73,677,000 from$96,388,000, representing a decline of 23.6%[111]. - The company recognized $52.4 million in unrealized losses from commodity derivative instruments during the first quarter of 2025, compared to$25.1 million in the same period in 2024[117]. - General and administrative expenses rose by 7.7% to $15,172,000, primarily due to increased cash and equity-based compensation[123]. - Interest expense increased by 122.1$1,397,000, driven by higher borrowings under the Credit Facility[124]. Cash Flow and Investments - Cash flows provided by operating activities decreased to $64.8 million for the three months ended March 31, 2025, down from$104.5 million in the same period of 2024, representing a decline of approximately 38.0%[130]. - Cash flows used in investing activities improved to $(13.1) million for the three months ended March 31, 2025, compared to$(24.0) million in the same period of 2024, a decrease of approximately 45.5%[131]. - Cash flows used in financing activities decreased to $(51.9) million for the three months ended March 31, 2025, down from$(110.3) million in the same period of 2024, a reduction of approximately 53.0%[132]. - The company spent $2.3 million on capital expenditures for non-operated working interests in 2025, with$0.1 million invested in the first quarter of 2025[133]. - The company acquired mineral and royalty interests for $14.2 million during the three months ended March 31, 2025, funded by$10.3 million in cash and $3.9 million in equity[134]. Market Conditions - The average WTI spot oil price decreased to$71.87 per barrel in Q1 2025 from $83.96 in Q1 2024, while Henry Hub spot natural gas rose to$4.11 per MMBtu from $1.54[91]. - Net natural gas exports averaged 14.4 Bcf per day in Q1 2025, a 21$1.0 billion, with a reaffirmed borrowing base of $580.0 million as of April 2025[144]. - The company had$47.1 million in weighted average outstanding borrowings under the Credit Facility, with a weighted average interest rate of 6.92% for the three months ended March 31, 2025[152]. - The company authorized a $150.0 million unit repurchase program, which will be funded from cash on hand or borrowings under the Credit Facility[128]. - Aethon Energy has commitments to drill a minimum of nine wells in the current program year ending May 2025 under the San Augustine Joint Exploration Agreement[141]. - As of March 31, 2025, the company was in compliance with all debt covenants associated with its Credit Facility[145].