Black Stone Minerals' Q1 2025: Contradictions Unveiled on Acquisition Strategy and Haynesville Activity

Acquisition Focus and Strategy, Activity and Development in the Haynesville Basin, Activity in the Haynesville Basin, Aethon's Activity and Well Completions are the key contradictions discussed in Black Stone Minerals' latest 2025Q1 earnings call.



Maintaining Distribution Amidst Volatility:
- Black Stone Minerals maintained its quarterly distribution of $0.375 per unit despite recent volatility in commodity prices and shifting global market dynamics.
- This decision was influenced by the company's strong financial position, asset outlook, and the unique opportunity provided by the seismic license purchase.

Increased Activity in Haynesville and Permian:
- The company reported that Aethon is operating 3 rigs on its acreage and has turned to sales 11 gross wells in 2025, with 17 more expected by the end of the year in the Haynesville region.
- Activity is driven by the rerate in natural gas prices and accelerated drilling agreements, which provide near-term certainty and accelerated development of BSM's high interest areas.

Permian Basin Development Progress:
- In the Permian Basin, more than 35 gross wells are being developed on BSM acreage, with 24 wells already spud and 9 gross wells expected to turn to sales in Q4 2025.
- This development is part of a large-scale project, and the company is monitoring several incremental large-scale developments across its Permian portfolio.

Seismic License and Subsurface Evaluation:
- The company's distributable cash flow for the quarter was $73.7 million, representing 0.93x coverage, which was slightly lower due to a seismic license purchase.
- This purchase is part of a comprehensive subsurface evaluation of the expanded Shelby Trough area, aiming to enhance understanding and maximize potential value.