Current bsm Stock Info

Black Stone Minerals Breakout Notes

Jeff Wood, senior VP and CFO of Black Stone Minerals, LP., (ticker: BSM) presented today at EnerCom’s The Oil & Gas Conference® 22.

Black Stone Minerals is a mineral and royalty interest company focused on owning and leasing acreage to oil and gas operators. The company has over 18 million mineral and royalty acres across 40 states.

During Q2, the company’s share of production in its acreage averaged 37.3 MBOEPD, 5% higher than Q1. Throughout the second quarter, the company focused on acquisitions in the Haynesville/Bossier play in East Texas—where it invested $18.1 million in cash, and $45.7 million in equity. Over the course of the first half of 2017, the company invested more than $125 million on acquisitions.

During the company’s breakout session, management was asked the following questions:

  • Can you enlighten us about the incentives that you offer operators?
  • How often have you drilled wells in the past?
  • How has your acquisition strategy changed within the last couple years since the successful acquisition of the prolific Bakken?
  • Some of the newer companies are overlying or underlying other existing companies, will you be considering acquisition of such companies to add to your portfolio?
  • Do you have any positions in the DJ basin?
  • What will be your minimum size scale to consider acquiring in the DJ basin? Will you be willing to give serious considerations to current existing opportunities if offered?
  • What is your take on other companies coming out with IPOs in a bid to replicate your own IPO success?
  • Can you enlighten us about the MLP units and associated capital invested? Do you have existing IDRs?
  • As we are still in a tough commodity market, how uncertain is half the capital structure? Do the subordinated holders have any right to take out the commons? Can the IPO be reversed by these legacy holders?
  • Have you ever contemplated selling assets for value and reinvesting the generated capital?
  • Have there being discussions on leveraging distribution or will you rather just pay out the investors?
  • Within the Shelby trough, do you have particular operators/parties for acquisition or is it open to others with general interest?

Black Stone Minerals presented at EnerCom’s 2017 The Oil & Gas Conference®.

You can listen to the company’s presentation by clicking here.

You can view the company’s Q2 update by clicking here.

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