Black Stone Minerals, L.P. Q3 FY2025 earnings call

• Congratulated Fowler Carter, Taylor DeWalch, and Chris Bonner on their upcoming promotions. - Pursuing acquisitions through the Haynesville expansion around Shelby Trough, with Revenant's development set to begin early 2026. - Working on a development agreement covering 220,000 gross acres between Aethon's and expand's developments. - Added $20 million in mineral and royalty acquisitions during the quarter, with more accretive opportunities in the near term. - Progressed commercial initiatives in the expanded Shelby Trough, including working with Revenant and marketing additional acreage.

During the third quarter, mineral and royalty production was 34,700 BOE per day, an increase of 5% over the prior quarter. Total production volumes were 36,300 BOE per day. 57% of oil and gas revenue in the quarter came from oil and condensate production.

• Production guidance for 2025 remains unchanged at 33,000 to 35,000 BOE per day. - Didn't update full year guidance at this point, but remains confident in existing acreage positions and commercial strategy for long-term value. - Encouraged focusing on the next 5 years as the reservoir is massive and takes time to spool up.

• Forward-looking statements involve risks that may cause actual results to differ materially from those expressed or implied. - Refer to cautionary information about forward-looking statements in the press release from yesterday and the Risk Factors section of the 2024 10-K.

Q: On the acreage currently being marketed in the KLX area, where do discussions sit and any increased interest following expand's entry into the Western Haynesville, and color on the package being assembled?

A: Fowler Carter said discussions on the KLX area have progressed to the half yard line and expected to be wrapped up in next couple of weeks; interest remains robust with operating partners able to flex above minimum commitments; Tom Carter talked about the package involving acreage in the expanded area with thick shale packages and ongoing work on it.

Q: With strong volume growth this quarter, how to think about volumes trending in fourth quarter and 2026 with wells from Aethon and Permian development project, and comparison of gas-directed activity relative to earlier in the year?

A: Taylor DeWalch said didn't update full year guidance yet, excited about Aethon volumes coming online and Permian development starting to come online, and Tom Carter added to focus on next 5 years as reservoir takes time to spool up.

Q: On Permian production and natural gas differentials weakening due to Waha exposure, any actions being taken?

A: Taylor DeWalch said hedging strategy remains consistent, with natural gas volumes from Haynesville and Shelby Trough having good exposure to Henry Hub, and excited about ongoing development on high-interest acreage in Permian