Black Stone Minerals, L.P. Announces Third Quarter 2015 Results and Announces Cash Distribution
Key Third Quarter 2015 Highlights:
- Average production of 29.0 MBoe per day, representing year-over-year growth of 2.5%.
-
Revenues of
$137.0 million for the quarter, including unrealized derivative gain of$44.1 million . -
Net income of
$53.9 million ; Adjusted EBITDA (as defined below) of$64.8 million . -
Quarterly distribution coverage ratio of 1.2 times with cash generated
from operations available for distribution of
$61.1 million . - Debt to trailing twelve month EBITDAX of 0.2 times at end of the quarter.
Management Commentary
Financial and Operating Results
Production
Realized Prices, Revenues, and Net Income
The partnership’s average realized price per Boe, excluding the effect
of derivative settlements, was
Lease bonus for the quarter was
Reported net income was
Financial Position
As of
Acquisitions and Investing Activities
Year to date, net cash used in investing activities for the partnership
was
Distributions
The Board of Directors of the general partner has approved a cash
distribution of
Conference Call
About
Forward-Looking Statements
This news release includes forward-looking statements. All statements,
other than statements of historical facts, included in this news release
that address activities, events or developments that the partnership
expects, believes or anticipates will or may occur in the future are
forward-looking statements. Terminology such as “will,” “may,” “should,”
“expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,”
“believe,” “target,” “continue,” “potential,” the negative of such terms
or other comparable terminology often identify forward-looking
statements. Except as required by law,
- the partnership’s ability to execute its business strategies;
- the volatility of realized oil and natural gas prices;
- the level of production on the partnership’s properties;
- regional supply and demand factors, delays, or interruptions of production;
- the partnership’s ability to replace its oil and natural gas reserves; and
- the partnership’s ability to identify, complete, and integrate acquisitions.
Information for Non-U.S. Investors
This press release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Although a portion of Black Stone
Minerals’ income may not be effectively connected income and may be
subject to alternative withholding procedures, brokers and nominees
should treat 100% of Black Stone Minerals’ distributions to non-U.S.
investors as being attributable to income that is effectively connected
with a
BLACK STONE MINERALS, L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per unit amounts) |
||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||
REVENUE | ||||||||||||||||||||
Oil and condensate sales | $ | 44,128 | $ | 71,089 | $ | 126,584 | $ | 195,665 | ||||||||||||
Natural gas and natural gas liquids sales | 32,191 | 45,914 | 92,799 | 156,554 | ||||||||||||||||
Gain on commodity derivative instruments | 56,430 | 8,682 | 57,450 | 339 | ||||||||||||||||
Lease bonus and other income | 4,271 | 7,110 | 16,051 | 26,586 | ||||||||||||||||
TOTAL REVENUE | 137,020 | 132,795 | 292,884 | 379,144 | ||||||||||||||||
OPERATING (INCOME) EXPENSE | ||||||||||||||||||||
Lease operating expense | 4,924 | 6,037 | 16,540 | 15,707 | ||||||||||||||||
Production costs and ad valorem taxes | 8,175 | 12,181 | 26,250 | 33,589 | ||||||||||||||||
Exploration expense | 1,817 | 440 | 2,014 | 444 | ||||||||||||||||
Depreciation, depletion and amortization | 23,288 | 37,065 | 83,414 | 84,058 | ||||||||||||||||
Impairment of oil and natural gas properties | 24,854 |
- |
156,683 |
- |
||||||||||||||||
General and administrative | 18,994 | 15,644 | 53,530 | 45,607 | ||||||||||||||||
Accretion of asset retirement obligations | 265 | 148 | 805 | 443 | ||||||||||||||||
(Gain) loss on sale of assets, net |
4 |
- |
(20 | ) |
- |
|||||||||||||||
TOTAL OPERATING EXPENSE | 82,321 | 71,515 | 339,216 | 179,848 | ||||||||||||||||
INCOME (LOSS) FROM OPERATIONS | 54,699 | 61,280 | (46,332 | ) | 199,296 | |||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||
Interest and investment income | 18 | 3 | 46 | 27 | ||||||||||||||||
Interest expense | (870 | ) | (3,440 | ) | (5,530 | ) | (10,292 | ) | ||||||||||||
Other income | 45 | 62 | 241 | 869 | ||||||||||||||||
TOTAL OTHER EXPENSE | (807 | ) | (3,375 | ) | (5,243 | ) | (9,396 | ) | ||||||||||||
NET INCOME (LOSS) | 53,892 | 57,905 | (51,575 | ) | 189,900 | |||||||||||||||
NET INCOME ATTRIBUTABLE TO PREDECESSOR |
- |
(57,905 | ) | (450 | ) | (189,900 | ) | |||||||||||||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS SUBSEQUENT TO INITIAL PUBLIC OFFERING | (3 | ) |
- |
137 |
- |
|||||||||||||||
DISTRIBUTIONS ON PREFERRED UNITS SUBSEQUENT TO INITIAL PUBLIC OFFERING | (2,973 | ) |
- |
(4,783 | ) |
- |
||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND LIMITED PARTNERS SUBSEQUENT TO INITIAL PUBLIC OFFERING | $ | 50,916 |
$ |
- |
$ | (56,671 | ) |
$ |
- |
|||||||||||
ALLOCATION OF NET INCOME (LOSS) SUBSEQUENT TO INITIAL PUBLIC OFFERING ATTRIBUTABLE TO: | ||||||||||||||||||||
General partner interest |
$ |
- |
$ |
- |
||||||||||||||||
Common limited partner interests | 25,608 | (28,502 | ) | |||||||||||||||||
Subordinated limited partner interests | 25,308 | (28,169 | ) | |||||||||||||||||
$ | 50,916 | $ | (56,671 | ) | ||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER UNIT: | ||||||||||||||||||||
Per common limited partner unit (basic and diluted) | $ | 0.27 | $ | (0.30 | ) | |||||||||||||||
Weighted average common limited partner units outstanding | ||||||||||||||||||||
(basic and diluted) | 96,186 | 96,183 | ||||||||||||||||||
Per subordinated limited partner unit (basic and diluted) | $ | 0.27 | $ | (0.30 | ) | |||||||||||||||
Weighted average subordinated limited partner units outstanding | ||||||||||||||||||||
(basic and diluted) | 95,057 | 95,057 | ||||||||||||||||||
DISTRIBUTIONS DECLARED AND PAID SUBSEQUENT TO INITIAL PUBLIC OFFERING: | ||||||||||||||||||||
Per common limited partner unit | $ | 0.1615 | $ | 0.1615 | ||||||||||||||||
Per subordinated limited partner unit | $ | 0.1615 | $ | 0.1615 | ||||||||||||||||
The following table shows the partnership’s production, realized prices, and revenues for the periods presented.
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except for realized prices) | |||||||||||||||||||
Production: | |||||||||||||||||||
Oil and condensate (MBbls) | 936 | 783 | 2,668 | 2,106 | |||||||||||||||
Natural gas (MMcf)1 | 10,411 | 10,945 | 31,817 | 31,173 | |||||||||||||||
Equivalents (MBoe)2 | 2,671 | 2,607 | 7,971 | 7,302 | |||||||||||||||
Realized prices: | |||||||||||||||||||
Oil and condensate ($/Bbl) | $ | 47.15 | $ | 90.79 | $ | 47.45 | $ | 92.91 | |||||||||||
Natural gas ($/Mcf)1 | $ | 3.09 | $ | 4.19 | $ | 2.92 | $ | 5.02 | |||||||||||
Equivalents ($/Boe)2 | $ | 28.57 | $ | 44.88 | $ | 27.52 | $ | 48.24 | |||||||||||
Revenue: | |||||||||||||||||||
Oil and condensate sales | $ | 44,128 | $ | 71,089 | $ | 126,584 | $ | 195,665 | |||||||||||
Natural gas and natural gas liquids sales | 32,191 | 45,914 | 92,799 | 156,554 | |||||||||||||||
Gain on commodity derivative instruments | 56,430 | 8,682 | 57,450 | 339 | |||||||||||||||
Lease bonus and other income | 4,271 | 7,110 | 16,051 | 26,586 | |||||||||||||||
Total revenue | $ | 137,020 | $ | 132,795 | $ | 292,884 | $ | 379,144 | |||||||||||
1 |
As a mineral and royalty interest owner, Black Stone Minerals is often provided insufficient and inconsistent data on natural gas liquid (“NGL”) volumes by its operators. As a result, the partnership is unable to reliably determine the total volumes of NGLs associated with the production of natural gas on its acreage. Accordingly, no NGL volumes are included in reported production; however, revenue attributable to NGLs is included in natural gas revenue and the calculation of realized prices for natural gas. |
||||||||||||||||||
2 |
“Btu-equivalent” production volumes are presented on an oil-equivalent basis using a conversion factor of six Mcf of natural gas per barrel of “oil equivalent,” which is based on approximate energy equivalency and does not reflect the price or value relationship between oil and natural gas. |
||||||||||||||||||
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, and cash available for distribution are non-GAAP supplemental financial measures used by Black Stone Minerals’ management and external users of the partnership’s financial statements such as investors, research analysts, and others, to assess the financial performance of its assets and its ability to sustain distributions over the long term without regard to financing methods, capital structure, or historical cost basis.
EBITDA, Adjusted EBITDA, and cash available for distribution should not be considered an alternative to, or more meaningful than, net income, income from operations, cash flows from operating activities, or any other measure of financial performance presented in accordance with GAAP as measures of the partnership’s financial performance. EBITDA, Adjusted EBITDA, and cash available for distribution have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. The partnership’s computation of EBITDA, Adjusted EBITDA, and cash available for distribution may differ from computations of similarly titled measures of other companies.
The following table presents a reconciliation of EBITDA, Adjusted EBITDA, and cash available for distribution to net income, the most directly comparable GAAP financial measure, for the periods indicated.
Three Months Ended |
Nine Months Ended |
|||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
(Unaudited) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Net income (loss) | $ | 53,892 | $ | 57,905 | $ | (51,575 | ) | $ | 189,900 | |||||||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||||
Add: | ||||||||||||||||||
Depreciation, depletion and amortization | 23,288 | 37,065 | 83,414 | 84,058 | ||||||||||||||
Interest expense | 870 | 3,440 | 5,530 | 10,292 | ||||||||||||||
EBITDA | 78,050 | 98,410 | 37,369 | 284,250 | ||||||||||||||
Add: | ||||||||||||||||||
Impairment of oil and natural gas properties | 24,854 |
- |
156,683 |
- |
||||||||||||||
Accretion of asset retirement obligations | 265 | 148 | 805 | 443 | ||||||||||||||
Equity-based compensation | 5,690 | 1,798 | 13,052 | 7,452 | ||||||||||||||
Less: | ||||||||||||||||||
Unrealized gain on commodity derivative instruments | (44,053 | ) | (9,108 | ) | (10,918 | ) | (3,708 | ) | ||||||||||
Adjusted EBITDA | 64,806 | 91,248 | 196,991 | 288,437 | ||||||||||||||
Adjustments to reconcile to cash generated from operations: | ||||||||||||||||||
Add: | ||||||||||||||||||
Borrowings/cash used to fund capital expenditures | 62,165 | 32,973 | 104,558 | 102,858 | ||||||||||||||
Loss on sales of assets, net | 4 |
- |
- |
- |
||||||||||||||
Less: | ||||||||||||||||||
Deferred revenue | (94 | ) |
- |
(584 | ) | (2,516 | ) | |||||||||||
Cash interest expense | (628 | ) | (3,197 | ) | (4,806 | ) | (9,566 | ) | ||||||||||
Gain on sales of assets, net |
- |
- |
(20 | ) |
- |
|||||||||||||
Additions to and acquisitions of oil and natural gas properties | (62,165 | ) | (32,973 | ) | (104,558 | ) | (102,858 | ) | ||||||||||
Cash generated from operations | 64,088 | 88,051 | 191,581 | 276,355 | ||||||||||||||
Less: | ||||||||||||||||||
Cash paid to noncontrolling interests | (45 | ) | (84 | ) | (167 | ) | (252 | ) | ||||||||||
Preferred unit distributions | (2,973 | ) | (3,962 | ) | (8,823 | ) | (11,763 | ) | ||||||||||
Cash generated from operations available for distribution on common and subordinated units and reinvestment in our business | $ | 61,070 | $ | 84,005 | $ | 182,591 | $ | 264,340 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006718/en/
Source:
Black Stone Minerals, L.P.
Brent Collins, (713) 445-3200
Vice
President, Investor Relations
investorrelations@blackstoneminerals.com