Black Stone Expects 2024 Royalty Production To Increase By ~4% YoY
Portfolio Pulse from Benzinga Newsdesk
Black Stone (BSM) forecasts a 4% increase in royalty production in 2024, driven by Aethon's 24 wells in the Shelby Trough and Austin Chalk development, offset by lower activity in Louisiana Haynesville. Working interest production is expected to decline due to a 2017 decision. General and administrative expenses are anticipated to rise slightly due to inflation and strategic hires.
February 20, 2024 | 6:58 am
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Black Stone (BSM) anticipates a 4% increase in royalty production in 2024, with a slight increase in general and administrative expenses due to inflation and strategic hires.
The expected increase in royalty production for BSM in 2024 is a positive indicator of growth, especially with the development of new wells by Aethon in the Shelby Trough and Austin Chalk. However, the slight increase in general and administrative expenses due to inflation and strategic hires is a factor to watch, though it seems to be well-managed and in support of future growth. The decline in working interest production is a result of a strategic decision made in 2017, indicating a shift in focus towards royalty production which could be more profitable in the long run.
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