BSM - Black Stone Minerals: 2024 Distribution Coverage Projected At Near 1.0x
2024-03-12 14:28:09 ET
Summary
- Black Stone Minerals, L.P. expects 3% total production growth in 2024, although with lower oil production.
- This is despite Aethon's decision to reduce near-term Shelby Trough drilling, although that decision may affect 2025 production more.
- Completion of Aethon's DUCs will minimize the 2024 impact.
- Black Stone's distribution coverage looks to be around 0.98x in 2024 at strip.
- This is an $8 million projected shortfall that can be covered by Black Stone's $70 million in cash on hand.
Black Stone Minerals, L.P. ( BSM ) provided 2024 guidance including expectations of approximately 41,000 BOEPD (24% oil) in average production. This was higher than what I had previously expected for Black Stone in terms of 2024 production, although the oil cut is lower than what I had modeled in December 2023....
Black Stone Minerals: 2024 Distribution Coverage Projected At Near 1.0x