Black Stone Minerals LP

Good day, everyone, and welcome to today's Blackstone Minerals Q2 earnings call. At this time, all participants are in a listen-only mode. Later, you'll have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing star 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note this call may be recorded. I'll be standing by should you need any assistance. It is now my pleasure to turn the conference over to Mr. Mark Moe, Director of Finance. Please go ahead.

Thank you. Good morning to everyone. Thank you for joining us either by phone or online for Blackstone Minerals' second quarter 2024 earnings conference call. Today's call is being recorded and will be available on our website along with the earnings release, which was issued last night. Before we start, I'd like to advise you that we will be making forward-looking statements during this call about our plans, expectations, and assumptions regarding our future performance. These statements involve risks that may cause our actual results to differ materially from the results expressed or implied in our forward-looking statements. For discussion of these risks, you should refer to the cautionary information about forward-looking statements in our press release from yesterday and the risk factors section of our 2023 10-K. We may refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliation of those measures to the most directly comparable GAAP measure and other information about these non-GAAP metrics are described in our earnings press release from yesterday, which can be found on our website at www.blackstoneminerals.com. Joining me on the call from the company are Tom Carter, Chairman, CEO, and President of Taylor DeWalsh, Senior Vice President, Chief Financial Officer and Treasurer. Kerry Clark, Senior Vice President, Chief Commercial Officer. And Steve Putman, Senior Vice President and General Counsel. I'll now turn the call over to Tom.

Good morning and thank you all for joining us today. In the second quarter, we continued to see solid results from our unique asset base, and we remained focused on our organic growth strategy, along with targeted acquisitions to further enhance our existing long runway of high-interest development opportunities. Total production for the quarter was in line with the first quarter, at 40.4,000 BOE per day, which generated 68 million of net income and just over 100 million of adjusted EBITDA. 67% of our oil and gas revenues in the quarter came from oil and condensate production. We maintained our distribution at 37.5 cents per unit, with excess coverage utilized on growth opportunities. With our clean balance sheet, commercial strategy, and asset mix, we're uniquely positioned to remain focused on the long-term decision-making opportunities. Strong oil production and revenues with multiple basins, as well as a constructive natural gas outlook, remain the foundation of a very positive future for the company. On the acquisitions front, As we discussed previously, starting in the fourth quarter of 2023, we expanded our commercial initiatives to include a targeted grassroots acquisition program to enhance our existing asset position and to elongate our runway of development opportunities. During the quarter, we added another $26.5 million in minerals and royalty acquisitions. and have acquired about $65 million in metals and royalty interest in these areas since September of 23. We continue to see creative opportunities to add to our position, which will ultimately add value for our shareholders. In East Texas and Louisiana, we continue to work with multiple operators to promote development on our acreage while monitoring the current environment. and preparing for the anticipated improvement in the natural gas market. We also remain focused on the Shelby trough operations and our extensive undeveloped inventory, totaling over 15 TCF of Gulf Coast resource with multiple successful recent well results. Another eight wells on our minerals were brought online in the second quarter. in this area with initial rates in the range of 25 to 30 million cubic feet per day. And several more wells are scheduled to come online in the second half of the year after being drilled in the first half of the year. Overall, it's a strong quarter, and we maintain our strategic objective of working with the operators to achieve full field development across all of our assets. We continue looking toward the future by advancing our commercial initiatives and growing production and returning the distribution to the high watermark previously set. With that, I'll turn it over to Taylor to walk through the financial details of the quarter.