Black Stone Minerals LP presents at EnerCom’s The Oil & Gas Conference®
During Black Stone Minerals’ breakout session, management was asked the following questions:
- Could you talk about the risks that affect the business beyond the commodity price risk?
- Are there embedded tax consequences for investors to consider for ownership?
- How much of the property is Held by Production? How much of the property do you have yet to set a royalty rate for?
- Why is XTO going after the Haynesville? What have you leased to XTO?
- Is there an average royalty received on producing acreage? What is the royalty interest range?
- How is it being a public company?
- Where do you see the company in 5 years?
- How do you think about your balance sheet? Use of debt?
- How should we think about the level at which you would do a follow on issuance?
- Can you talk about what it would take for the subordinated shares to be brought up in terms of distributions?
- Are you buying minerals or leasing in West Texas?
- Who is your competition to buy minerals?
- What is the aggregate decline curve across all companies?
- Are there any states that are difficult to acquire mineral rights because of the state regulations?
- If the refracturing trend becomes prevalent will this create production hiccups?
- Are you seeing opportunities in distressed areas?
- Can you speak a bit about the Gilly Field? Are you expecting more vertical drilling?
Black Stone Minerals, L.P. is one of the largest holders of mineral and royalty interests focused on oil and gas properties in the U.S. The company’s interests include approximately 17 million gross acres in more than 40 states and every major producing basin in the U.S.
Black Stone Minerals began operating as a timber company in the late 1800s, and some of the properties that the company owns are a residual from those holdings. The company has built acreage positions to more than ~17 million mineral and royalty acres. The company operates as a non-operator in all of its properties. The company has the option to participate in wells where it owns the mineral rights or lease the property in exchange for a lease bonus and an over-riding royalty share. The opportunity to participate allows them to maintain capital discipline when faced with different opportunities to commit capital.
During the first quarter 2016 Black Stone Minerals purchased 4,800 gross mineral acres in the Wattenberg Field for $35 million. The company said it continues to be active in the A&D market, and is anticipating deal flow from the depressed pricing environment.