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UBS MLP One on One Conference – Black Stone Minerals, L.P.

Black Stone Minerals, L.P. · Jan 10, 2017 · 23 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 1
    UBS MLP One-on-One Conference January 10, 2017
  2. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 2
    Black Stone Minerals at a Glance Black Stone Minerals, L.P. is the largest publicly traded yield vehicle focused on oil and gas mineral and royalty interests in the U.S. Mineral and royalties provide commodity exposure without the…
  3. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 3
    Large, Diversified Portfolio of Assets Black Stone Minerals Acreage Position The origins of Black Stone Minerals can be traced back to the 1870s in East Texas Focus on capturing minerals began in the 1980s Over the last four…
  4. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 4
    Differentiated Distribution Structure Growing Common Unit Distribution Protected by Subordination Structure Growing Common Distribution(1) Common units scheduled to receive an increasing minimum quarterly distribution 1.60 9%…
  5. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 5
    Performance through 3Q16 Monthly Gross Well Additions Total Reported Production 140 1,750 40 Baker Hughes Rig Count 120 1,500 35 BSM New Wells 100 Average: 75 1,250 30 80 25 MBoe/d 1,000 60 20 750 40 15 20 500…
  6. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 6
    Solid Financial Position Senior credit facility is BSMs only Secured Credit Facility1 debt 600 Borrowing base increased 11% to 500 MM in most recent re-determination 500 299 million drawn at the end of 3Q16; ample liquidity…
  7. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 7
    Focus on Core Competencies Minerals Management Mineral Acquisition Working Interest Participation Generate lease bonus income Capture mineral and royalty Fundamentally different from by promoting prospects to positions that…
  8. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 8
    Managing the Mineral and Royalty Assets Drive activity on to BSM mineral Recent M&R Volumes vs. Rig Count and royalty (M&R) interests 2,000 25 Multiple levers are available to Production (MBoe/d) 20 1,500 incentivize…
  9. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 9
    Long History of Acquisitions Scalable Infrastructure for Acquisitions by Year(1) Future Acquisitions 300 Acquisitions thru 9/30/16 include: Business Development: Reviewed hundreds of FCX diverse mineral & royalty third-party…
  10. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 10
    Working Interest Participation Option In many cases, Black Stone Minerals retains the ability to participate as a working interest owner along side our operators At our discretion, we can invest at a point when results are…
  11. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 11
    Large, Diversified Portfolio of Assets Black Stone Minerals Acreage Position 3Q16 Production by Play 35.0 MBoe/d Other Haynesville 34% 33% Bakken/TF Permian 14% 3% Wilcox Eagle Ford 9% 7% 3Q16 Production by Commodity…
  12. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 12
    Haynesville & Bossier Shales Improved completion designs and more favorable gas markets leading - BSM acreage - Producing well to renewed interest in the play - 2016 horizontal permit on BSM Significant levels of investment…
  13. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 13
    Bakken/Three Forks Improved drilling - BSM acreage - Producing well efficiency and - 2016 horizontal permit on BSM completion designs resulting in stable production profile Of horizontal permits filed in the play during…
  14. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 14
    Eagle Ford Shale BSM exposed to some of - BSM acreage - Producing well - 2016 horizontal permit on BSM the best parts of the play Approximately 7% of horizontal permits filed in play in first nine months of 2016 involved BSM…
  15. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 15
    Permian Basin - BSM acreage Black Stone has - Producing well - 2016 horizontal permit on BSM significantly expanded its Permian Basin footprint since its IPO Continuing to build positions across the basin Approximately 18% of…
  16. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 16
    Multiple Avenues of Growth with Free Options on New Discoveries Anadarko Basin Williston Basin Arkoma Basin Louisiana Mississippi Salt Basins Plays: Granite Wash, SCOOP, STACK, Cottage Grove, Hogshooter, Marmaton, and Plays:…
  17. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 17
    Investment Highlights Growth potential from unique and diverse asset base Size and scale through over 18 million mineral and royalty acres Durable competitive advantage; would be difficult to replicate our footprint Low capital…
  18. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 18
    Appendix BLACK STONE MINERALS, L.P. 19
  19. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 19
    How Mineral and Royalty Interests Work Mineral Revenue Generation 1 Unleased Minerals(1) 2 BSM issues a lease for an upfront cash bonus payment and Revenue Costs customarily a 20-25% royalty In return, BSM delivers the right to…
  20. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 20
    The Value of Mineral and Royalty Interests Operating Margin per Equity Barrel (/Boe) Illustrative Working Illustrative Mineral/Royalty Interest Operator Interest Owner Mineral and royalty production realizes higher Revenue 26.50 /…
  21. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 21
    Full Year 2016 Guidance Revised 2016 Guidance Average daily production (Mboe/d) 31.0 32.0 Percentage oil 30% Percentage royalty interest 65% Lease bonus and other income (MM) 30 Lease operating expense (/Boe) 1.65 1.85 Lease…
  22. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 22
    EBITDA, Adjusted EBITDA, and Distributable Cash Flow Reconciliation Three Months Ended September 30 2016 2015 (In thousands) Net income (GAAP) 37,535 53,892 Adjustments to reconcile to Adjusted EBITDA: Add: Depreciation, depletion…
  23. UBS MLP One on One Conference – Black Stone Minerals, L.P. – slide 23
    Subordinated Conversion Mechanics Automatic 1:1 Conversion if BSM earns and pays 1.35 per unit on all common and Conversion subordinated units for the four-quarter period ending March 31, 2019, or any four- quarter period thereafter…

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