TD Securities Calgary Energy Conference July 9, 2019
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the securities laws. All statements, other than statements of historical fact, included in this presentation that address activities,…
Black Stone Minerals at a Glance Black Stone Minerals, L.P. is the largest pure- play oil and gas mineral and royalty owner in the United States Over 20 million mineral and royalty acres (7.4 million net) with interests in 41…
Benefits of Mineral Ownership Oil and gas exposure with no operating Represents perpetual call option on cost or capital spending requirements future oil & gas development activity Direct benefit from technology advances Scale…
Evolution of the Minerals Market Sponsors Continue to Ramp-Up Exposure Public Minerals Sector Expanding ( in billions) 10.0 120 Public Mineral & Royalty Mkt Cap (excl Trusts) 8.6 7.6 100 8.0 18,000 DMLP 80 16,000 PSK…
1Q19 Summary 1Q18 1Q19 Total Production (MBoe/d) 10% 42.4 46.8 Royalty Production (MBoe/d) 18% 28.4 33.5 Realized Price (/Boe, pre-hedge) 14% 33.10 28.34 Distributable Cash Flow (MM) 2% 83.4 81.7 Common Distribution…
Generating Returns to Shareholders Long history of returning cash to equity holders 9% cash yield supported by growing free cash flows 3 billion returned to investors through distributions over the past 20 years 3x return on…
The Black Stone Business Model 1 Continue to enhance scale with an emphasis on building up core positions 2 Unlock value of acquired properties through in- house Land, Engineering and Geology groups 3 Maintain low leverage…
Acquisitions Over Time 1980 1992 2001 2010 IPO (2015) IPO - Present Gross Acres 210 635 6,250 16,500 17,000 20,850 (000s): BAKKEN/THREE FORKS MARCELLUS/UTICA POWDER RIVER BASIN DJ BASIN SCOOP/STACK PERMIAN BASIN…
Recent Acquisition History Black Stone has added to its core 2018 Acquisition Profile positions while opportunistically pursuing large, diversified mineral Haynesville packages 36% Permian 56% Diversified Acquisitions by…
Active Management 20 million gross acres (7.4 million net) of opportunity leads to organic growth with no incremental capital requirements Black Stones team of landmen, engineers and geologists actively promote its acreage to…
Mineral Management Shelby Trough In 2014, the southern portion of the Shelby Trough was relatively undeveloped compared to the rest of the Haynesville / Bossier play BSM invested with XTO to initiate activity and then structured…
Active Management Opportunities Black Stone has leading positions in several of todays most active resource plays, as well as a perpetual call option across the lower 48 in dozens of prospective plays WILLISTON BASIN: BAKKEN/THREE…
Strong Balance Sheet Through Cycles Strategy: Maximize financing flexibility for new acquisition opportunities Funding sources Public markets Approx. 73 million issued through ATM through 2018 Private capital 300 million convertible…
Near Term Growth Drivers Haynesville/Bossier Permian Minerals position concentrated in Shelby Trough, Black Stone has a high quality position in the core of which is delivering among the best economics across the Midland and Delaware…
High Quality Permian Position BSM and VNOM Permian Royalty Acreage Black Stone has meaningful exposure to the rapid development occurring in the Delaware Basin Midland and Delaware basins Permian acquisitions have been the largest…
Key Messages Investors gain exposure to industry-leading minerals portfolio with significant exposure to two of the most active areas in the United States Upside exposure from increase in commodity prices, accelerated…
Appendix
Industry-Leading Diversified M&R Portfolio 1Q19 Production by Play Other 46.8 MBoe/d Black Stone benefits from the 24% significant diversity of its asset base BSM tracks activity at a play level for approximately 40 Shelby Trough…
Haynesville/Bossier Position - BSM acreage There were 15 rigs running on acreage in which BSM - Producing well - Horizontal permit on BSM has an interest as of March 31, 2019 Improved completions and a favorable regional gas market…
Permian Position - BSM acreage - Producing well As of March 31, 2019, there were 44 and - Horizontal permit on BSM Delaware Basin 28 drilling rigs operating on BSM interests in the Midland and Delaware CBP basis, respectively…
Bakken/Three Forks Position - BSM acreage - Producing well - Horizontal permit on BSM As of March 31, 2019, 7 drilling rigs were operating on acreage where BSM has an interest Black Stones concentration in the core, attractive…
Eagle Ford Position - BSM acreage On March 31, 2019, 5 drilling rigs - Producing well - Horizontal permit on BSM were operating on BSM acreage BSM exposed to some of the best parts of the play Active Operators Key…
Financial Summary 2019 Guidance Hedging Summary (as of 3/31/19) Average daily production (Mboe/d) 45 48 Oil Hedge Position Percentage natural gas 71% Swap Costless Collar Collar Oil Swap Price Collars Floor Ceiling Percentage…
Adjusted EBITDA and Distributable Cash Flow Reconciliation Three Months Ended March 31, 2019 2018 (Unaudited) (In thousands, except per unit amounts) Net income 9,017 41,957 Adjustments to reconcile to Adjusted EBITDA:…
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