Black Stone Minerals, L.P. Announces Fourth Quarter Cash Distribution
10 February 2016 - 11:20AM
Business Wire
Black Stone Minerals, L.P. (NYSE:BSM) (“Black Stone Minerals”)
today announces that the Board of Directors of the general partner
has approved a cash distribution of $0.2625 per common unit and
$0.18375 per subordinated unit, attributable to the fourth quarter
of 2015. Distributions will be payable on February 26, 2016 to
unitholders of record at the close of business on February 19,
2016.
Thomas L. Carter, Jr., Black Stone Minerals’ President, Chief
Executive Officer, and Chairman commented, “The Board of Directors
is committed to maintaining the growing minimum quarterly
distribution for common units and expects to maintain the current
minimum quarterly distribution of $0.2625 per common unit and the
scheduled increase to $0.2875 per common unit set for the second
quarter of 2016. We are also reducing the distribution on
subordinated units to $0.18375 per unit for the fourth quarter of
2015, a 30% reduction from last quarter’s distribution. The
decision to reduce the subordinated distribution is not a decision
we made lightly. Indeed, management and the Board of Directors are
significant holders of subordinated units, so we clearly understand
how this affects legacy owners. However, the decision is consistent
with the two-class common and subordinated structure we implemented
in our IPO in May 2015, which gave owners of common units a clear
view to a secure and growing distribution with excellent coverage.
This decision is also consistent with our philosophy of maintaining
strength in our balance sheet. While we could have maintained the
full minimum quarterly distribution on the subordinated units in
line with distributions in prior quarters without borrowing, we
have chosen to reduce the distribution to the subordinated units in
order to preserve liquidity and keep cash in the business. We
believe this is prudent and in the best long-term interests of the
partnership, particularly given the opportunities we are seeing in
the acquisition market. The Board of Directors is prepared to
adjust future distribution amounts for subordinated units so that a
total distribution coverage in excess of 1.0x can be maintained. We
will continue to review subordinated distributions on a quarterly
basis in these times of price volatility, looking for the best
means to generate yield for our unitholders and long-term growth
opportunities for the partnership.”
About Black Stone Minerals, L.P.
Black Stone Minerals is one of the largest owners of oil and
natural gas mineral interests in the United States. The partnership
owns mineral interests and royalty interests in over 40 states and
60 onshore basins in the continental United States. The partnership
also owns and selectively participates in non-operating working
interests in established development programs, primarily on its
mineral and royalty holdings. The partnership expects that its
large, diversified asset base and long-lived, non-cost-bearing
mineral and royalty interests will result in production and reserve
growth, as well as increasing quarterly distributions to its
unitholders.
Forward-Looking Statements
This news release includes forward-looking statements. All
statements, other than statements of historical facts, included in
this news release that address activities, events or developments
that the partnership expects, believes or anticipates will or may
occur in the future are forward-looking statements. Terminology
such as “will,” “may,” “should,” “expect,” “anticipate,” “plan,”
“project,” “intend,” “estimate,” “believe,” “target,” “continue,”
“potential,” the negative of such terms or other comparable
terminology often identify forward-looking statements. Except as
required by law, Black Stone Minerals undertakes no obligation and
does not intend to update these forward-looking statements to
reflect events or circumstances occurring after this news release.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. All forward-looking statements are qualified in their
entirety by these cautionary statements. These forward-looking
statements involve risks and uncertainties, many of which are
beyond the control of Black Stone Minerals, which may cause the
partnership’s actual results to differ materially from those
implied or expressed by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to, those summarized below:
- the partnership’s ability to execute
its business strategies;
- the volatility of realized oil and
natural gas prices;
- the level of production on the
partnership’s properties;
- regional supply and demand factors,
delays, or interruptions of production;
- the partnership’s ability to replace
its oil and natural gas reserves; and
- the partnership’s ability to identify,
complete, and integrate acquisitions.
Information for Non-U.S. Investors
This press release is intended to be a qualified notice under
Treasury Regulation Section 1.1446-4(b). Although a portion of
Black Stone Minerals’ income may not be effectively connected
income and may be subject to alternative withholding procedures,
brokers and nominees should treat 100% of Black Stone Minerals’
distributions to non-U.S. investors as being attributable to income
that is effectively connected with a United States trade or
business. Accordingly, Black Stone Minerals’ distributions to
non-U.S. investors are subject to federal income tax withholding at
the highest marginal rate, currently 39.6% for individuals.
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version on businesswire.com: http://www.businesswire.com/news/home/20160209006889/en/
Black Stone Minerals, L.P.Brent Collins, 713-445-3200Vice
President, Investor
Relationsinvestorrelations@blackstoneminerals.com
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