Black Stone Minerals, L.P. to Acquire $102 Million of Assets from Freeport-McMoRan Oil & Gas

HOUSTON–(BUSINESS WIRE)–Apr. 21, 2016– Black Stone Minerals, L.P. (NYSE:BSM) (“Black Stone Minerals” or “the Partnership”) announced today it has entered into an agreement with Freeport-McMoRan Oil & Gas and certain of its affiliates to acquire a diverse oil and gas mineral asset package for $102 million. The Partnership also has scheduled its first quarter of 2016 earnings call.

Management Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ President, Chief Executive Officer, and Chairman commented, “This transaction is a great example of the type of package that Black Stone likes to acquire – a diverse set of mineral and royalty assets with existing production, near-term development opportunities, and meaningful exposure to attractive oil and gas provinces. The majority of this acreage is in Texas, Louisiana, and Arkansas and is complementary to our existing positions in those states. The package includes acreage in both the Midland and Delaware basins that is well positioned for the Wolfcamp and Spraberry intervals, as well as acreage in other resource plays. These assets will benefit from our focus on active minerals management and we’re confident that they will be strong contributors to production and reserve growth in future years.”

Transaction Overview

Black Stone Minerals has signed an agreement with Freeport-McMoRan Oil & Gas and certain of its affiliates to acquire a mineral package for $102 million. Highlights of the transaction include the following:

• Approximately 1.2 million gross/126 thousand net mineral acres, 16 thousand net NPRI acres, and 11 thousand net ORRI acres in 20 states with significant concentrations in Texas, Louisiana, and Arkansas;
• Bolsters the Partnership’s presence in the Permian region and includes acreage with approximately 100 active permits in the Midland andDelaware basins;
• Estimated average daily production of approximately 850 Boe/d for the fourth quarter of 2015; and
• Estimated proved developed producing reserves of 2.0 MMBoe (43% oil) as of December 31, 2015.

The transaction will be funded with cash on hand and borrowings under Black Stone Minerals’ credit facility. Closing is expected to be completed by the end of the second quarter of 2016, subject to customary closing conditions. The Partnership anticipates any updates to guidance will be provided in conjunction with its first quarter of 2016 earnings call.

First Quarter of 2016 Earnings Conference Call

Black Stone Minerals is scheduled to release details regarding its earnings for the first quarter of 2016 after the close of trading on May 9, 2016. A teleconference to discuss these results is scheduled for May 10, 2016 at 9:00 a.m. Central time (10:00 a.m. Eastern time). Dial-in information is provided below. A telephonic replay of the call will be available approximately two hours after the call through June 10, 2016.

The conference call will be webcast live and can be accessed through the Investor Relations section of Black Stone Mineral’s website atwww.blackstoneminerals.com. A recording of the conference call will be available at that site through June 10, 2016.

About Black Stone Minerals, L.P.

Black Stone Minerals is one of the largest owners of oil and natural gas mineral interests in the United States. The Partnership owns mineral interests and royalty interests in over 40 states and 60 onshore basins in the continental United States. The Partnership also owns and selectively participates as a non-operating working partner in established development programs, primarily on its mineral and royalty holdings. The Partnership expects that its large, diversified asset base and long-lived, non-cost-bearing mineral and royalty interests will result in production and reserve growth, as well as increasing quarterly distributions to its unitholders.