Black Stone Minerals, L.P. (NYSE:BSM) Q4 2023 Earnings Call Transcript

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Evan Kiefer: Yes. So, this is Evan. And I will kind of hit on the operator consolidation first. And I think overall, consolidation within the industry on the operator side could be beneficial. I think specifically thinking about comps or thinking about the Southwestern deal, there is benefits that can be gained through operator efficiencies, costs and everything that I think will trickle down best of the benefit on the mineral owner side as additional development could persist. Now, on the other side of that, there is capital discipline, and I know Diamondback with Endeavor has indicated possibly rig cuts and maybe a little bit more to what I was seeing to be a flatter production. So, I think overall, we are still kind of waiting to see how everything ultimately transacts and how that kind of post-transaction world looks.

But I think at a reasonable level, it’s probably neutral on the moderate-to-low growth story, particularly in the Permian and overall kind of efficiencies to be gained on the gas side, particularly on the Haynesville piece.

Derrick Whitfield: And just on more of the minerals consolidation side of the equation, what are your thoughts on that?

Carrie Clark: This is Carrie Clark. Thanks for the question. I think on – in the mineral space, just on a relative basis, of course, they are a much smaller pool, but there has been some significant consolidation over the last couple of years, just off the top of my head, the Sitio-Brigham transaction from last year. And to touch back a bit about on the operator consolidation and its impact to us, we are always monitoring as the – as these deals come about, what the specific impact is to us and trying to quantify that. And I think for the Chesapeake and SWN consolidation that we don’t expect a material impact to us from – based on that transaction. But of course, as I have said, again, we are always looking at those operator consolidations and understand that capital can shift from priority projects for one company and as they form a different company that could shift around, and that’s what we are monitoring on that front.

I don’t – as far as the outlook on mineral consolidation, there is nothing out there that we see at this point that we are anticipating. So, I think that’s all we really have to share on that is just we are kind of seeing the same thing that you all might be seeing in the market.

Derrick Whitfield: Terrific. Thanks for the added color.

Carrie Clark: Sure.

Operator: At this time, I would like to turn the call back over to Tom Carter for any closing comments or additional remarks.

Tom Carter: Well, thank you all for joining the call today and we look forward to speaking with you again in 90 days or so.

Operator: Once again, ladies and gentlemen, that does conclude today’s call. Thank you for your participation. You may disconnect at this time.

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