Black Stone Minerals, L.P. Announces First Quarter 2015 Results
Key First Quarter 2015 Highlights:
- Average daily production of 29.2 MBoe per day
-
Revenues of
$91.1 million -
Net income of
$17.3 million and Adjusted EBITDA (as defined below) of$60.9 million
“We closed our initial public offering on
Financial and Operating Results
Production
Realized Prices and Revenues
The partnership’s average realized price per Boe, excluding the effect
of hedge settlements, was
Net Income
Net income of
Financial Position
As of
Distributions
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.
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BLACK STONE MINERALS, L.P. PREDECESSOR |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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(In thousands, except per unit amounts) |
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| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| REVENUE | ||||||||
| Oil and condensate sales | $ | 36,163 | $ | 59,642 | ||||
| Natural gas and natural gas liquids sales | 31,640 | 58,206 | ||||||
| Gain (loss) on commodity derivative instruments | 19,647 | (5,995 | ) | |||||
| Lease bonus and other income | 3,611 | 15,559 | ||||||
| TOTAL REVENUE | 91,061 | 127,412 | ||||||
| OPERATING (INCOME) EXPENSE | ||||||||
| Lease operating expenses and other | 6,172 | 4,869 | ||||||
| Production costs and ad valorem taxes | 8,256 | 10,586 | ||||||
| Depreciation, depletion and amortization | 27,891 | 23,134 | ||||||
| Impairment of oil and natural gas properties | 13,467 | — | ||||||
| General and administrative | 14,818 | 15,451 | ||||||
| Accretion of asset retirement obligations | 271 | 147 | ||||||
| Gain on sale of assets | (7 | ) | — | |||||
| TOTAL OPERATING EXPENSE | 70,868 | 54,187 | ||||||
| INCOME FROM OPERATIONS | 20,193 | 73,225 | ||||||
| OTHER INCOME (EXPENSE) | ||||||||
| Interest and investment income | 1 | 22 | ||||||
| Interest expense | (2,945 | ) | (3,433 | ) | ||||
| Other income | 50 | 70 | ||||||
| TOTAL OTHER EXPENSE | (2,894 | ) | (3,341 | ) | ||||
| NET INCOME | 17,299 | 69,884 | ||||||
| NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (9 | ) | 3 | |||||
| DIVIDENDS ON PREFERRED UNITS | (2,909 | ) | (3,882 | ) | ||||
| NET INCOME ATTRIBUTABLE TO THE GENERAL PARTNER AND LIMITED PARTNERS | 14,381 | 66,005 | ||||||
| ALLOCATION OF NET INCOME ATTRIBUTABLE TO: | ||||||||
| General partner interest | — | — | ||||||
| Common limited partner interest | 14,381 | 66,005 | ||||||
| $ | 14,381 | $ | 66,005 | |||||
| NET INCOME ATTRIBUTABLE TO LIMITED PARTNERS PER UNIT: | ||||||||
| Per common limited partner unit (basic and diluted) | $ | 0.09 | $ | 0.40 | ||||
| Weighted average common limited partner units outstanding (basic and diluted) | 167,452 | 164,585 | ||||||
The following table shows the partnership’s production, realized prices, and revenues for the periods presented.
| Three Months Ended March 31, | |||||||||||
| 2015 | 2014 | ||||||||||
|
(Unaudited) |
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| Production: | |||||||||||
| Oil and condensate (MBbls)1 | 827 | 662 | |||||||||
| Natural gas (MMcf)1 | 10,785 | 9,741 | |||||||||
| Equivalents (MBoe)2 | 2,625 | 2,286 | |||||||||
| Realized prices: | |||||||||||
| Oil and condensate ($/Bbl) | $ | 43.73 | $ | 90.09 | |||||||
| Natural gas ($/Mcf)1 | $ | 2.93 | $ | 5.98 | |||||||
| Combined equivalents ($/Boe)2 | $ | 25.83 | $ | 51.55 | |||||||
| Revenue: | |||||||||||
| Oil and condensate sales | $ | 36,163 | $ | 59,642 | |||||||
| Natural gas and natural gas liquids sales | 31,640 | 58,206 | |||||||||
| Gain (loss) on commodity derivative instruments | 19,647 | (5,995 | ) | ||||||||
| Lease bonus and other income | 3,611 | 15,559 | |||||||||
| Total revenue | $ | 91,061 | $ | 127,412 | |||||||
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________________ |
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| 1 | As a mineral-and-royalty-interest owner, the partnership is often provided insufficient and inconsistent data 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. As such, the realized prices account for all sales attributable to NGLs. The oil and condensate production volumes and natural gas production volumes do not include NGL volumes. | |
| 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 do not represent and 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 March 31, | ||||||||
| 2015 | 2014 | |||||||
|
(Unaudited)
(In thousands) |
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| Net income | $ | 17,299 | $ | 69,884 | ||||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||
| Add: | ||||||||
| Depreciation, depletion and amortization | 27,891 | 23,134 | ||||||
| Interest expense | 2,945 | 3,433 | ||||||
| EBITDA | 48,135 | 96,451 | ||||||
| Add: | ||||||||
| Impairment of oil and natural gas properties | 13,467 | — | ||||||
| Accretion of asset retirement obligations | 271 | 147 | ||||||
| Unrealized loss on commodity derivative instruments | — | 3,911 | ||||||
| Equity-based compensation expense | 1,243 | 3,499 | ||||||
| Less: | ||||||||
| Unrealized gain on commodity derivative instruments | (2,197 | ) | — | |||||
| Adjusted EBITDA | 60,919 | 104,008 | ||||||
| Adjustments to reconcile to cash generated from operations: | ||||||||
| Add: | ||||||||
| Borrowings to fund capital expenditures | 13,206 | 38,018 | ||||||
| Less: | ||||||||
| Deferred revenue | (104 | ) | (2,516 | ) | ||||
| Cash interest expense | (2,704 | ) | (3,192 | ) | ||||
| Capital expenditures, net | (13,206 | ) | (38,018 | ) | ||||
| Cash generated from operations | 58,111 | 98,300 | ||||||
| Less: | ||||||||
| Cash paid to noncontrolling interests | (52 | ) | (73 | ) | ||||
| Preferred unit distributions | (2,909 | ) | (3,882 | ) | ||||
| Cash generated from operations available for distribution on common units and reinvestment in our business | $ | 55,150 | $ | 94,345 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20150603005728/en/
Source:
Black Stone Minerals
Marc Carroll, 713-445-3200
Senior
Vice President and Chief Financial Officer
mcarroll@blackstoneminerals.com